BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
Ted W. Lieu, Chair
Date of Hearing: April 25, 2012 20011-2012 Regular
Session
Consultant: Martha Gutierrez Fiscal:Yes
Urgency: No
Bill No: SB 1263
Author: Vargas
As Introduced/Amended: February 23, 2012
SUBJECT
State Unemployment Insurance Appeals Board: Salary
KEY ISSUE
Should members of the Unemployment Insurance Appeals Board be
financially compensated for their work?
PURPOSE
To make changes to the way that members of the Unemployment
Insurance Appeals Board are compensated.
ANALYSIS
Under existing law, the California Unemployment Insurance
Appeals Board (CUIAB) is an independent administrative court
system for workers and employers seeking to challenge decisions
made by the Employment Development Department regarding benefits
for unemployment insurance or disability insurance. Appeals are
the first opportunity for all parties to present evidence before
an Administrative Law Judge (ALJ) and have that ALJ decide the
case. The ALJ's decision may be appealed to a seven-member Board
appointed by the Governor and the Legislature. The Board's
decision is final, unless overturned by the California Superior
Court.
Existing law establishes the annual salary for each CUIAB member
at $79, 122, to be increased as specified. The law also
requires that an annual salary of $81,635, increased as
specified, be paid to the Chairperson of the Unemployment
Insurance Appeals Board.
This Bill would delete the salary provisions for the chairperson
and members of the Unemployment Insurance Appeals Board.
COMMENTS
1. Background and Need for this bill?
The California Unemployment Insurance Appeals Board (CUIAB)
was established by the legislature in 1943 as a full-time
Board consisting of seven members, five appointed by the
Governor and one each appointed by the Senate President Pro
Temp and Speaker of the Assembly.
When an unemployed or injured worker applies for unemployment
or disability benefits, an Employment Development Department
(EDD) program representative reviews their work history to
determine eligibility. If a worker is denied benefits by EDD,
the worker may appeal the decision and request a hearing
before an ALJ (Judicial appeal). If the ALJ decides in favor
of the EDD, the worker may appeal to the Board (Board appeal).
If an employer disagrees with the EDD determination, the
employer may also request a hearing with an ALJ and pursue an
appeal to the Board.
Each member receives about 35-50 board appeals cases on a
daily basis. The Board members' appeal review is comprehensive
to ensure the ALJs provided the worker and/or employer due
process and the law was fairly applied. The Board also adopts
regulations to establish procedures and time limits for
appeals; enacts a budget for staff, facilities, and equipment;
issues policies on a variety of topics; and publishes
precedent appeals decisions. In the 2010 calendar year, a
historic 31,232 board appeals were reviewed by the members of
the Board.
Hearing Date: April 25, 2012 SB 1263
Consultant: Martha Gutierrez Page 2
Senate Committee on Labor and Industrial Relations
The author believes that this bill is necessary because CUIAB
members are not required to show up to work every day and
therefore should not be compensated.
2. Proponent Arguments :
According to the author, political favoritism dominates
appointments to various boards including the Unemployment
Insurance Appeals Board. Further, the author contends that
CUIAB members are not required to show up to work every day.
3. Opponent Arguments :
None received.
4. Prior Legislation :
SB 153 (Strickland) of 2011: Failed passage in Committee
SB 153 would have prohibited members appointed to the
Agricultural Labor Relations Board, the Unemployment Insurance
Appeals Board, the Public Employment Relations Board and the
State Water Resources Control Board from receiving a salary
and authorizes a member of these boards to receive a specific
per diem payment ($100 per day). This bill failed passage in
Senate Governmental Organization Committee.
AB 309 (Tran) of 2007: Failed passage in Committee
AB 309 would have suspended salaries of members of 10 state
boards and commissions. Specifically, the State Personnel
Board, Agricultural Labor Relations Board, Workers'
Compensation Appeals Board, California Medical Assistance
Commission, Air Resources Board, Water Resources Control
Board, Public Employment Relations Board, Unemployment
Insurance Appeals Board, Alcoholic Beverage Control Appeals
Board and the Integrated Waste Management Board. This bill
failed passage in Business and Professions Committee.
AB 38 (Tran) of 2005: Failed passage in Committee
AB 38 would have suspended salaries of members of 13 state
boards and commissions. Specifically, the State Personnel
Board, Agricultural Labor Relations Board, Workers'
Compensation Appeals Board, California Medical Assistance
Hearing Date: April 25, 2012 SB 1263
Consultant: Martha Gutierrez Page 3
Senate Committee on Labor and Industrial Relations
Commission, Air Resources Board, Water Resources Control
Board, Public Employment Relations Board, Unemployment
Insurance Appeals Board, Alcoholic Beverage Control Appeals
Board, Integrated Waste Management Board, Board of Prison
Terms, Narcotic Addict Evaluation Authority and the Youth
Authority Board. This bill failed passage in Business and
Professions Committee.
AB 556 (Strickland) of 2003: Failed passage in Committee
AB 556 would have suspended salaries of members of 14 state
boards and commissions. Specifically, the State Personnel
Board, Agricultural Labor Relations Board, Workers
Compensation Appeals Board, California Medical Assistance
Commission, State Air Resources Board, Board of Prison Terms,
Narcotic Addict Evaluation Authority, State Water Resources
Control Board, Youthful Offender Parole Board, Public
Employment Relations Board, Unemployment Insurance Appeals
Board, Alcoholic Beverage Control Appeals Board, California
Integrated Waste Management Board and the California Gambling
Control Commission. This bill failed passage in Business and
Professions Committee.
SUPPORT
None received
OPPOSITION
None received
Hearing Date: April 25, 2012 SB 1263
Consultant: Martha Gutierrez Page 4
Senate Committee on Labor and Industrial Relations