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AB-1066 Unemployment compensation: benefits payable: collection.(2019-2020)

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Date Published: 06/30/2020 09:00 PM
AB1066:v94#DOCUMENT

Amended  IN  Senate  June 30, 2020
Amended  IN  Senate  August 30, 2019
Amended  IN  Assembly  April 30, 2019
Amended  IN  Assembly  April 22, 2019
Amended  IN  Assembly  March 26, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1066


Introduced by Assembly Member Gonzalez
(Coauthor: Senator Leyva)

February 21, 2019


An act to amend Section 1262 of the Unemployment Insurance Code, relating to unemployment compensation, and making an appropriation therefor. amend Section 1093 of, and to add Sections 1093.1 and 1120 to, the Unemployment Insurance Code, relating to unemployment benefits.


LEGISLATIVE COUNSEL'S DIGEST


AB 1066, as amended, Gonzalez. Unemployment insurance: trade disputes: eligibility for benefits. compensation: benefits payable: collection.
Existing law provides for the payment of unemployment compensation benefits to eligible persons who are unemployed through no fault of their own through a federal-state unemployment insurance program administered by the Employment Development Department, subject to oversight by the Director of Employment Development. Unemployment compensation benefits are paid from the Unemployment Fund, and the expenses of administering the unemployment insurance program are paid from the Unemployment Administration Fund.
Under existing law, if an employer fails to keep and furnish to the director any required records or reports necessary for a full determination, decision, or other proper disposition of a claim for unemployment benefits within a reasonable time as the director may by rule, regulation, or procedure prescribe, it is to be conclusively presumed that the claimant is entitled to the maximum total amount of benefits payable unless the director deems sufficient a lesser total amount is due and owing to the claimant.
This bill would instead provide that if an employer, within 10 days after receiving notice from the director of the need to furnish required records or reports necessary for a full determination, decision on appeal, or other proper disposition of a claim for unemployment benefits, fails to furnish those required records or reports to the director, it shall be conclusively presumed that the claimant is entitled to the maximum total benefits payable, unless the director determines, based on the evidence, that the claimant is entitled to a lesser amount.
The bill would also provide that if an employer employing 5 or more claimants has failed to keep and furnish to the director, within 10 days after receiving notice from the director, any required records or reports necessary for a full determination, decision on appeal, or other proper disposition of any claim for benefits in any proceeding under this division, then it shall be conclusively presumed that all claimants of that employer are entitled to the maximum total amount of benefits payable under this division, unless the director determines, based on the evidence, that the claimants are entitled to a lesser amount.
Under existing law, employer contributions to the Unemployment Fund are required to be paid by each employer to the department for deposit in the Unemployment Fund, and become delinquent if not paid in accordance with specified timeframes and procedures. Under existing law, any employer who, without good cause, fails to pay required contributions is subject to a penalty of 15% of the percent of the amount of those contributions, in addition to payment of interest and other specified penalties.
This bill would authorize the director to delegate its authority to recover and collect contributions from an employing unit that has 5 or more persons claiming unemployment benefits to the Attorney General. The bill would require, if this authority is delegated to the Attorney General, that the Attorney General collect the entire required contribution from the employing unit, including interest and penalties, and this amount be deposited into the Unemployment Fund. The bill would require the director to reimburse the Attorney General for its reasonable regulatory costs in recovering and collecting contributions from the Unemployment Administration Fund. The bill would define “employing unit” for purposes of this provision to mean a business or employer that has more than 500 employees, including employees who have been misclassified as independent contractors.

Existing law provides for the payment of unemployment compensation benefits and extended benefits to eligible individuals who meet specified requirements.

Under existing law, unemployment benefits are paid from the Unemployment Fund, which is continuously appropriated for these purposes.

Existing law makes an individual ineligible for unemployment benefits if the individual left work because of a trade dispute and specifies that the individual remains ineligible for the duration of the trade dispute. Existing case law holds that employees who left work due to a lockout by the employer, even if it was in anticipation of a trade dispute, are eligible for benefits.

This bill would restore eligibility for unemployment benefits after the first 3 weeks of a trade dispute for an employee who left work because of the trade dispute. The bill would also codify specified case law that holds that employees who left work due to a lockout by the employer, even if it was in anticipation of a trade dispute, are eligible for benefits. The bill would specify that the bill’s provisions do not diminish eligibility for benefits of individuals deprived of work due to an employer lockout or similar action, as specified.

Because this bill would expand the categories of people eligible to receive benefits from a continuously appropriated fund, it would make an appropriation.

Vote: MAJORITY   Appropriation: YESNO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 1093 of the Unemployment Insurance Code is amended to read:

1093.
 In the event any employer shall fail to keep and furnish to the director, upon notice, any required records or reports (a) If an employer, within 10 days after receiving notice from the director of the need to furnish required records or reports necessary for a full determination, decision on appeal, or other proper disposition of any claim for benefits in any proceeding under this division, within as the director may by rule, regulation, or procedure prescribe, it shall be conclusively fails to furnish those required records or reports to the director, it shall be conclusively presumed that the claimant is entitled to the maximum total amount of benefits payable under this division unless it is established by other evidence which the director deems sufficient that a lesser total amount of benefits is properly due and owing to the claimant. If so established by other evidence upon default of the employer, after notice, such lesser total amount of benefits thus determined shall be conclusive. In all cases in which such presumptions shall apply, if the claimant director determines, based on the evidence, that the claimant is entitled to a lesser amount.
(b) If the claimant has earned wages in employment for more than one employer during his the claimant’s base period, the accounts of the employer or employers who have properly kept and furnished the required records or reports shall not be charged with benefits in an amount exceeding that which such the accounts would have been charged had the claimant been entitled only to benefits determined by the total of the wages earned and the number of calendar quarters worked for them and all benefits paid in excess thereof shall be charged solely against the accounts of the employer or employers who have failed to keep or furnish the required records or reports.

SEC. 2.

 Section 1093.1 is added to the Unemployment Insurance Code, to read:

1093.1.
 If an employer employing five or more claimants, within 10 days after receiving notice from the director of the need to furnish any required records or reports necessary for a full determination, decision on appeal, or other proper disposition of any of those claims for benefits in any proceeding under this division, fails to furnish the required records or reports, then it shall be conclusively presumed that all claimants of that employer are entitled to the maximum total amount of benefits payable under this division, unless the director determines, based on the evidence, that the claimants are entitled to a lesser amount.

SEC. 3.

 Section 1120 is added to the Unemployment Insurance Code, to read:

1120.
 (a) The director may delegate its authority to recover and collect contributions from an employing unit that has five or more persons claiming benefits due under this part to the Attorney General. If this authority is delegated to the Attorney General, the Attorney General shall collect the entire required contribution from the employing unit, including interest and penalties, and this amount shall be deposited into the Unemployment Fund.
(b) The director shall reimburse the Attorney General for its reasonable regulatory costs in recovering and collecting contributions pursuant to subdivision (a) from the Unemployment Administration Fund, in accordance with Section 324.
(c) For purposes of this section, “employing unit” means a business or employer that has more than 500 employees, including employees who have been misclassified as independent contractors.

SECTION 1.Section 1262 of the Unemployment Insurance Code is amended to read:
1262.

(a)An individual is not eligible for unemployment compensation benefits, and these benefits shall not be payable, if the individual left work because of a trade dispute, other than a lockout in the establishment where the individual was employed.

(b)The ineligibility of an individual to receive benefits pursuant to subdivision (a) shall expire after the first three weeks of the trade dispute and shall, thereafter, be eligible.

(c)Nothing in this section shall diminish the eligibility of individuals who were deprived of work as a result of an employer lockout or similar action under the principles set out in Coast Packing Co. v. California Unemployment Ins. Appeals Bd. (1966) 64 Cal.2d 76.