BILL ANALYSIS �
AB 2362
Page 1
Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 2362 (Grove) - As Amended: April 21, 2014
Policy Committee:
InsuranceVote:13-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill expands code sections under which an unemployment
insurance (UI) fraud-related conviction disqualifies an
individual for UI benefits. Specifically, it adds UI-related
fraud convictions under Penal Code sections related to forgery,
grand theft, and false claims, as well as specified United
States code sections.
It also requires courts to report UI-related convictions to EDD.
FISCAL EFFECT
1)Minor and absorbable costs to the Employment Development
Department (EDD) to process additional disqualifications, and
minor potential savings to EDD (UI and SDI Trust Funds) by
increasing the number of individuals who would be subject to
benefit suspension and forfeiture provisions in current law.
2)Minor and absorbable costs to state courts to report specified
convictions to EDD.
COMMENTS
Purpose . This bill seeks to apply consistency by imposing the
same 52-week forfeiture penalty against an individual convicted
of UI benefit fraud regardless of the federal or state code
section used to prosecute the individual.
According to the author, if an unemployed worker is prosecuted
for UI benefit fraud under a federal or state law other than
Unemployment Insurance Code Section 2101, the 52-week benefit
AB 2362
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forfeiture provision that is imposed for convictions under
Section 2101 does not apply. The author indicates it is
relatively common for prosecutors to charge UI fraud based on
the Penal Code sections included in this bill instead of using
Section 2101. This results in some of those convicted of UI
fraud being subject to UI benefit forfeiture and some not, based
on whether the violations were charged under the Penal Code or
the Unemployment Insurance Code.
Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081