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AB-226 Unemployment insurance: reporting requirements: status of funds.(2011-2012)

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Amended  IN  Assembly  April 14, 2011
Amended  IN  Assembly  April 06, 2011

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 226


Introduced  by  Assembly Member Solorio

February 02, 2011


An act to amend Section 995 of the Unemployment Insurance Code, relating to unemployment insurance.


LEGISLATIVE COUNSEL'S DIGEST


AB 226, as amended, Solorio. Unemployment insurance: reporting requirements: status of funds.
Existing unemployment insurance law requires the Employment Development Department to submit to the Legislature in May and October of each year a report on the status of the Unemployment Fund and the Unemployment Compensation Disability Fund, containing actual and forecasted information on each fund, as specified.
This bill would additionally require the department, whenever the Unemployment Fund indicates a negative balance, to include in the status report on the Unemployment Fund the estimated impact on employers from the changes in a specified federal tax credit, any estimated impact on employees, and the estimated impact on the General Fund that would result pursuant to existing law if the Unemployment Fund is not returned to solvency within 7 years and the estimated amount the state is expected to pay in interest charges on any outstanding loan to the federal government.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 995 of the Unemployment Insurance Code is amended to read:

995.
 (a) Notwithstanding Section 10231.5 of the Government Code, the department shall submit to the Legislature in May and October of each year a report on the status of the Unemployment Fund and the Unemployment Compensation Disability Fund. Each report shall include both actual and forecasted information on the fund balances, receipts, disbursements, claim data, tax rates, and employment levels.

(b)Whenever the Unemployment Fund indicates a negative balance, the department shall include in the status report on the Unemployment Fund the estimated impact on employers from the changes in the Federal Unemployment Tax Act (FUTA) tax credit, any estimated impact on employees, and the estimated impact on the General Fund that would result pursuant to existing law if the Unemployment Fund is not returned to solvency within seven years.

(c)For purposes of this section, “solvency” means that the Unemployment Fund contains a positive balance so that this fund is able to pay all of its obligations during the calendar year.

(b) Whenever the Unemployment Fund indicates a negative balance, the department shall include in the status report on the Unemployment Fund the estimated cost impact on employers from the changes in the Federal Unemployment Tax Act (FUTA) tax credit and the estimated amount the state is expected to pay in interest charges on any outstanding loan to the federal government.