BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 274
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 274 (Garrick)
          As Amended  June 14, 2011
          Majority vote
           
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          |ASSEMBLY:  |74-0 |(May 23, 2011)  |SENATE: |38-0 |(August 15,    |
          |           |     |                |        |     |2011)          |
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           Original Committee Reference:    INS.
           
           SUMMARY  :  Requires that employers be notified of the 
          circumstances that constitute "good cause" to extend the time to 
          answer a claim for unemployment insurance (UI) benefits.  

           The Senate amendments  specify that the Employment Development 
          Department (EDD), when notifying an employer of a UI claim, 
          shall provide a direct Internet Web site link to the page that 
          describes the circumstances that establish good cause for an 
          extension of the 10-day period during which the employer may 
          submit facts on the claim.

           EXISTING LAW  :

          1)Authorizes each employer affected by a claim of UI benefits, 
            within 10 days after the mailing of the notice of the UI 
            claim, to submit to EDD any facts within its possession 
            disclosing whether the claimant left the employer's employ 
            voluntarily and without good cause or left due to specified 
            circumstances including misconduct, or consumption of 
            alcoholic beverages or other intoxicants.  
           
          2)Requires each employer, after being notified by EDD of a UI 
            claim, to submit within 10 days any facts known that may 
            affect the claimant's eligibility for benefits, and allows for 
            an extension for good cause. 
           
          3)Provides that if, after the 10-day period, the employer 
            acquires knowledge of facts that could not reasonably have 
            been known within the period, the employer shall within 10 
            days of acquiring that knowledge submit the facts to EDD, and 
            the 10-day period may also be extended for good cause.   
          
          4)Provides that if, after a notice of determination of UI 








                                                                  AB 274
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            eligibility, the employer acquires knowledge of facts that may 
            affect the eligibility of the UI claimant and those facts 
            could not have reasonably been known within the 10-day period, 
            the employer shall within 10 days of acquiring that knowledge 
            submit those facts to EDD, and the 10-day period may be 
            extended for good cause.  

           AS PASSED BY THE ASSEMBLY  , this bill: 

          1)Required the EDD, when notifying an employer that an 
            unemployment claim has been filed, to provide them with a 
            direct Internet Web site link to the page that describes the 
            circumstances that establish good cause.  

          2)Specified that the link is available at 
             http://www.edd.ca.gov/UIBDG/Miscellaneous_MI_40.htm  or its 
            successor Web site address.

          3)Provided that EDD shall not be required to update its standard 
            forms, publications, and signs to comply with the above 
            requirement until all of its existing stock of forms, 
            publications, and signs for this purpose is depleted.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, the costs associated with this bill would be minor 
          and absorbable within existing EDD resources.

           COMMENTS  : 

          1)According to the author, the existing law requires EDD to 
            provide notice of the filing of an unemployment claim to the 
            claimant's last employing unit, and requires the employer to 
            submit, within 10 days after the mailing of the notice, any 
            facts that may affect the claimant's eligibility for benefits. 
             
           
           2)The author states this bill is needed because in many 
            instances an employer is required to travel for business, and 
            it is not clear what circumstances constitute good cause to 
            extend the 10-day period to provide the required facts to EDD. 
             This bill will clarify the circumstances that constitute good 
            cause to request and obtain a time extension.
           
           3)The Senate amendment is a technical, clarifying amendment.









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          Analysis Prepared by  :    Manny Hernandez / INS. / (916) 319-2086


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