BILL ANALYSIS �
AB 274
Page 1
GOVERNOR'S VETO
AB 274 (Garrick)
As Amended June 14, 2011
2/3 vote
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|ASSEMBLY: |74-0 |(May 23, 2011) |SENATE: |38-0 |(August 15, |
| | | | | |2011) |
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ASSEMBLY: 74-0 (August 18, 2011)
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.
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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
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 : 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.
The author states this bill is needed because in many instances
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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.
The Senate amendment is a technical, clarifying amendment.
GOVERNOR'S VETO MESSAGE : "This bill is unnecessary. It directs
employers to a technical guide used by the Employment
Development Department (EDD) to adjudicate Unemployment
Insurance eligibility.
"Use of this guide, however, may cause confusion rather than
assist employers in understanding what qualifies as "good cause"
for responding late to an Unemployment Insurance claim
notification. Information about what constitutes good cause is
already stated on the existing form sent to employers when a
claim is filed."
Analysis Prepared by : Manny Hernandez / INS. / (916) 319-2086
FN: 0002786