BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1291
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     SB 1291 (Evans) - As Amended:  May 25, 2012 

          Policy Committee:                              InsuranceVote:11 
          - 2 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY
           
          This bill permits teachers participating in credential 
          preparation programs in math, science, and special education to 
          automatically qualify for the California Training Benefits 
          Program (CTB).  Specifically, this bill:   

          1)Permits permanent or probationary public school teachers who 
            have been laid off and participate in a training program to 
            obtain certification in math, science or special education to 
            receive additional unemployment insurance benefits through the 
            CTB.

          2)Delays implementation of this provision until January 1, 2014.

          3)Extends the sunset date for the CTB from Jan. 1, 2015 until 
            January 1, 2019.

           FISCAL EFFECT  

          Assuming that teachers eligible for these benefits would qualify 
          for the maximum weekly benefit amount of $450, would receive 
          benefits for the entire 26 week training extension time period, 
          and that 1,000 to 2,500 teachers would participate, this bill 
          would increase annual benefit payments between $11.7 million and 
          $29.3 million per year (School Employees Fund). 

           COMMENTS  

           1)Rationale  . The intent of this legislation is to allow 
            unemployed teachers to receive Unemployment Insurance (UI) 
            benefits while they are participating in credential programs 








                                                                  SB 1291
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            in the area of math, science, or special education. 
             
             According to the author, this bill will help retain thousands 
            of laid off teachers by authorizing unemployment insurance 
            benefits for those who seek certification training and 
            intensive test preparation in the high demand areas of math, 
            science, and special education. The author argues this bill 
            will create job opportunities by expanding available training 
            for teachers who wish to stay in the teaching field. In the 
            future, the author contends, this bill will decrease 
            unemployment benefits and result in cost avoidance in years to 
            come by permanently employing these teachers.

           2)California Training Benefits Program  .  Federal law requires 
            states to approve individuals for any week of UI benefits in 
            which the individuals are in state-approved school or training 
            and not to disqualify them for failure to be available for 
            work, actively seeking work, and refusing suitable work.

            In California, state-approved training means training offered 
            under the Federal Workforce Investment Act, the California 
            Employment Training Panel, the Federal Trade Act of 1974, or 
            the California Work Opportunity and Responsibility to Kids 
            Program; the individual is a participant in training with a 
            provider that is certified and on the state's Eligible 
            Training Provider List; or the individual is a journey level 
            union member participating in specified training.  Those would 
            all be considered automatically approved training programs, as 
            long as claimants meet all other eligibility criteria.  
            Claimants who do not enter into training under the above 
            circumstances may be eligible for other approved training if 
            they meet other requirements.  

            Claimants determined eligible for the CTB program are exempt 
            from the statutory requirements of being available for work 
            and actively seeking work while attending state-approved 
            training.  Individuals participating in CTB who are otherwise 
            eligible for UI benefits may receive their regular UI benefits 
            during the period of CTB approved training.  There is also a 
            Training Extension claim which provides additional benefits up 
            to a combined maximum of 52 weeks (26 weeks for the regular UI 
            claim plus 26 weeks for the Training Extension claim).  

           3)Unemployment Insurance  . Unemployment insurance is a 
            federal-state program that provides weekly payments to 








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            eligible persons who lose their jobs through no fault of their 
            own.  The program is financed by employers who pay 
            unemployment taxes on the first $7,000 in wages paid to each 
            employee in a calendar year.  The benefits range from $40 to 
            $450 per week depending upon earnings during a 12-month base 
            period.  



           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081