Amended in Assembly April 25, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 615

Introduced by Assembly Member Bocanegra

February 20, 2013

An act to amend begin delete Section end delete begin insert Sections 1142 and end insert 1253.3 of begin insert , and to repeal Sections 1451, 1452, 1453, and 1454 of, end insert the Unemployment Insurance Code, relating to unemployment insurance.

LEGISLATIVE COUNSEL’S DIGEST

AB 615, as amended, Bocanegra. Unemployment insurance: classified employees.

Existing law provides for the payment of unemployment compensation benefits and extended duration benefits to eligible persons who meet specified requirements. Existing law prohibits the payment of unemployment benefits to education employees of a public entity, as defined, including teachers, researchers, and administrators for the period between 2 academic years when there is a reasonable assurance that the employee will perform his or her regular services in the subsequent academic year, except as specified. Existing law similarly prohibits the payment of unemployment benefits to specified education employees of a public entity, other than teachers, researchers, or administrators between 2 academic years, except as specified, but provides a procedure for this 2nd category of educational employees, under certain conditions, to seek payment of retroactive unemployment benefits for the period between 2 academic years. begin insert Existing law requires specified notice regarding reasonable assurance of employment in the following academic term be sent to employees before the end of the current academic term. Existing law also authorizes payment of unemployment insurance benefits, using funds from the Department of Education, to the 2nd category of educational employees at specified schools between academic terms in circumstances where benefits would otherwise be denied. end insert

This bill would delete the prohibition on the payment of unemployment benefits to education employees, other than teachers, researchers, and administrators, as specified, between 2 academic years and would make conforming changes begin insert , including deleting the notice of reasonable assurance of employment requirements regarding these employees and eliminating the provisions for payment of unemployment benefits to these employees end insert begin insert at the specified schools end insert .

Because this bill would expand the categories of people who could receive benefits from the Unemployment Insurance Fund, a continuously-appropriated fund, it would make an appropriation.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 1142 of the end insert begin insert Unemployment Insurance
Code end insert begin insert is amended to read: end insert

1142.  

(a) If the director finds that any employer or any
employee, officer, or agent of any employer, in submitting facts
concerning the termination of a claimant’s employment pursuant
to Section 1030, 1327, 3654, 3701, 4654, or 4701, willfully makes
a false statement or representation or willfully fails to report a
material fact concerning that termination, the director shall assess
a penalty of an amount not less than 2 nor more than 10 times the
weekly benefit amount of that claimant. The director shall assess
this penalty in the following manner:

(1) If the director finds that the employer was at fault for
willfully making a false statement or representation or willfully
failing to report a material fact concerning that termination, the
director shall assess the penalty against the employer.

(2) If the director finds that the agent of the employer was at
fault for willfully making a false statement or representation or
willfully failing to report a material fact concerning that
termination, the director shall assess the penalty against the agent
of the employer.

(3) If the director finds that the employer and the agent of the
employer were both at fault for willfully making a false statement
or representation or willfully failing to report a material fact
concerning that termination, the director shall assess the penalty
against the employer and also shall assess another penalty against
the agent of the employer.

(b) If the director finds that any employer or any employee,
officer, or agent of any employer, in submitting a written statement
concerning the reasonable assurance, as defined in subdivision begin delete (g) end delete
begin insert (f) end insert of Section 1253.3, of a claimant’s reemployment, as required
by begin delete subdivisions (b), (c), and (i) end delete begin insert subdivision (b) end insert of Section 1253.3,
willfully makes a false statement or representation or willfully
fails to report a material fact concerning the reasonable assurance
of that reemployment, the director shall assess a penalty of an
amount not less than 2 nor more than 10 times the weekly benefit
amount of that claimant. The director shall assess this penalty in
the following manner:

(1) If the director finds that the employer was at fault for
willfully making a false statement or representation or willfully
failing to report a material fact concerning the reasonable assurance
of that reemployment, the director shall assess the penalty against
the employer.

(2) If the director finds that the agent of the employer was at
fault for willfully making a false statement or representation or
willfully failing to report a material fact concerning the reasonable
assurance of that reemployment, the director shall assess the
penalty against the agent of the employer.

(3) If the director finds that the employer and the agent of the
employer were both at fault for willfully making a false statement
or representation or willfully failing to report a material fact
concerning the reasonable assurance of that reemployment, the
director shall assess the penalty against the employer and also shall
assess another penalty against the agent of the employer.

(c) (1) This article, Article 9 (commencing with Section 1176)
of this chapter with respect to refunds, and Chapter 7 (commencing
with Section 1701) of this part with respect to collections shall
apply to the assessments provided by this section. Penalties
collected under this section shall be deposited in the contingent
fund.

(2) Notwithstanding Section 1586, additional penalties that are
assessed against an agent of the employer and collected pursuant
to paragraph (3) of subdivision (a) and paragraph (3) of subdivision
(b) shall be available for the purposes specified in Section 1586
upon appropriation by the Legislature for those purposes.

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

Section 1253.3 of the Unemployment Insurance Code
is amended to read:

1253.3.  

(a) Notwithstanding any other provision of this
division, unemployment compensation benefits, extended duration
benefits, and federal-state extended benefits are payable on the
basis of service to which Section 3309(a)(1) of the Internal
Revenue Code begin delete of 1954 end delete applies, in the same amount, on the same
terms, and subject to the same conditions as benefits payable on
the basis of other service subject to this division, except as provided
by this section.

(b) Benefits specified by subdivision (a) based on service
performed in the employ of a nonprofit organization, or of any
entity as defined by Section 605, with respect to service in an
instructional, research, or principal administrative capacity for an
educational institution are not payable to any individual with
respect to any week which begins during the period between two
successive academic years or terms or, when an agreement provides
instead for a similar period between two regular but not successive
terms, during that period, or during a period of paid sabbatical
leave provided for in the individual’s contract, if the individual
performs services in the first of the academic years or terms and
if there is a contract or a reasonable assurance that the individual
will perform services for any educational institution in the second
of the academic years or terms.

(c) Benefits specified by subdivision (a) based on service
performed in the employ of a nonprofit organization, or of any
entity as defined by Section 605, with respect to services specified
by subdivision (b), are not payable to any individual with respect
to any week that commences during an established and customary
vacation period or holiday recess if the individual performs the
services in the period immediately before the vacation period or
holiday recess, and there is a reasonable assurance that the
individual will perform the services in the period immediately
following the vacation period or holiday recess.

(d) With respect to any services specified by subdivision begin delete (b), end delete
begin insert (b), end insert compensation payable on the basis of services in that capacity
may be denied as specified in subdivision (b) or (c) to any
individual who performed the services in an educational institution
while in the employ of an educational service agency, and for this
purpose the term “educational service agency” means a
governmental agency or governmental entity that is established
and operated exclusively for the purpose of providing the services
to one or more educational institutions.

(e) Benefits specified by subdivision (a) based on service
performed in the employ of a nonprofit organization, or of any
entity as defined by Section 605, are not payable during the periods
of time, and subject to the same conditions, contained in
subdivisions (b), (c), and (g), if the services are provided to, or on
behalf of, an educational institution.

(f) For purposes of this section, “reasonable assurance” includes,
but is not limited to, an offer of employment or assignment made
by the educational institution, provided that the offer or assignment
is not contingent on enrollment, funding, or program changes. An
individual who has been notified that he or she will be replaced
and does not have an offer of employment or assignment to perform
services for an educational institution is not considered to have
reasonable assurance.

(g) For purposes of this section, if the time for service performed
during the period of and pursuant to any contract for any academic
year or term by an individual for any employing unit as specified
in subdivision (b) constitutes one-half or more of the time in total
service performed for the employing unit by the individual during
that same period for remuneration, all the services of the individual
for the employing unit for that period shall be deemed subject to
the benefit payment restriction provisions of this section.

begin delete

(h) Any entity as defined by Section 605, with respect to any
individual performing a service in any other capacity other than
specified in subdivision (b) for an educational institution, shall
provide a written statement indicating the following to the
individual no later than 30 days before the end of the first of the
academic years or terms:

(1) Whether or not there is a reasonable assurance of
reemployment.

(2) Whether or not it is stated that the individual has no
reasonable assurance of reemployment, that the individual should
file a claim for benefits at the close of the academic year or term.

(3) If it is stated that the individual has reasonable assurance of
reemployment, the written statement shall also inform the employee
that he or she may file a claim for benefits and that the
determination for eligibility for benefits is made by the
Employment Development Department and not by the employer.

(4) If it is stated that the individual has reasonable assurance of
reemployment, that the individual shall be entitled to a retroactive
payment of benefits if the individual is not offered an opportunity
to perform the services for the educational institution for the second
of the academic years or terms, if the individual is otherwise
eligible and he or she filed a claim for each week benefits are
claimed, and if a claim for retroactive benefits is made no later
than 30 days following the commencement of the second academic
year or term.

end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 1451 of the end insert begin insert Unemployment Insurance Code end insert begin insert is
repealed. end insert

begin delete

1451.  

Nonprofessional employees of the Fremont and Riverside
campuses of the California School for the Deaf, the Fremont
campus of the California School for the Blind, and the diagnostic
schools for individuals with neurological disabilities located in
Los Angeles, San Francisco, and Fresno, shall be eligible for
benefits provided by this chapter, on the same terms and conditions
as are specified by this part, Part 3 (commencing with Section
3501), and Part 4 (commencing with Section 4001), for all other
individuals, except where inconsistent with the provisions of this
chapter. Except where inconsistent with the provisions of this
chapter, the provisions of this division and authorized regulations
shall apply to any matter arising pursuant to this chapter.

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 1452 of the end insert begin insert Unemployment Insurance Code end insert begin insert is
repealed. end insert

begin delete

1452.  

Notwithstanding Section 1253.3, between terms
unemployment compensation benefits are payable by the
Controller, from funds appropriated for support of the State
Department of Education and allocated to the state special schools,
upon authorization by the Employment Development Department
to individuals who are eligible to receive these benefits under this
chapter. These benefits shall only be paid for weeks of
unemployment occurring between school terms and during an
established and customary vacation period or holiday recess when
other benefits are denied solely by reason of Section 1253.3.

end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 1453 of the end insert begin insert Unemployment Insurance Code end insert begin insert is
repealed. end insert

begin delete

1453.  

(a) There shall be transferred to the Employment
Development Department from funds appropriated for support of
the State Department of Education and allocated to the state special
schools, at the times and in the manner provided in subdivision
(b), an amount equal to the additional cost to the Employment
Development Department for added administrative work arising
out of this chapter.

(b) The director shall determine the sums he or she estimates
the department will be entitled to receive from the State Department
of Education under this section for each fiscal year, reduced or
increased by any sum by which he or she finds that his or her
estimates for any prior fiscal year were greater or less than the
amounts which were actually required. The sum of the amounts
transferred or expended pursuant to Section 1452, subdivision (a),
and this subdivision in any one fiscal year shall not exceed the
amount appropriated in the then current fiscal year to the State
Department of Education for the purposes of this chapter.

(c) The director may require from the State Department of
Education such employment, wage, financial, statistical, or other
information and reports, properly verified, as may be deemed
necessary by the director to carry out his or her duties under this
division, which shall be filed with the director at the time and in
the manner prescribed by him or her.

(d) The director may tabulate and publish information obtained
pursuant to this chapter in statistical form and may divulge the
name of the employing unit.

(e) The State Department of Education shall provide each
employee subject to this chapter, at the end of each school term,
with written information advising the employee of benefit rights
pursuant to this chapter.

end delete

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 1454 of the end insert begin insert Unemployment Insurance Code end insert begin insert is
repealed. end insert

begin delete

1454.  

An individual who receives any unemployment
compensation benefits otherwise payable irrespective of this
chapter, including retroactive unemployment compensation benefits
paid pursuant to subdivision (c) of Section 1253.3, who has
received benefits under this chapter for the same period, shall be
liable for repayment to the state of the amount of benefits paid
under this chapter for that period.

end delete