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

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Date Published: 09/04/2020 09:00 PM
AB1066:v91#DOCUMENT

Enrolled  September 04, 2020
Passed  IN  Senate  August 31, 2020
Passed  IN  Assembly  August 31, 2020
Amended  IN  Senate  August 20, 2020
Amended  IN  Senate  August 07, 2020
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

February 21, 2019


An act to amend Section 1093 of, and to add Section 1120 to, the Unemployment Insurance Code, relating to unemployment benefits.


LEGISLATIVE COUNSEL'S DIGEST


AB 1066, Gonzalez. Unemployment 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 require, on and after January 1, 2021, that if an employer, within 10 days after receiving an initial notice from the director of the need to furnish over required records or reports necessary for a full determination of a claim for unemployment compensation benefits, fails to furnish those required records or reports to the director, it 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 authorize the director to extend the 10-day deadline on a determination of good cause for a delay in the furnishing of required records or reports for a full determination of any claim for unemployment compensation benefits.
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 amount of those contributions, in addition to payment of interest and other specified penalties.
This bill would authorize the director to delegate their 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 their 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 responsible for issuing a total of more than 500 Internal Revenue Service Form W-2s or Internal Revenue Service Form 1099-NECs.
Vote: MAJORITY   Appropriation: NO   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.
 (a) In the event any employer shall fail to keep and furnish to the director, upon notice, 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, within such reasonable time as the director may by rule, regulation, or procedure prescribe, it shall be conclusively presumed that the claimant is entitled to the maximum total amount of benefits payable under this division unless the director determines, based on evidence, that the claimant is entitled to a lesser amount.
(b) (1) Notwithstanding subdivision (a), on and after January 1, 2021, except as provided in paragraph (2), if an employer, within 10 days after receiving an initial notice requesting the employer to furnish over required records or reports for a full determination of any claim for benefits under this division, 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 the director determines, based on the evidence, that the claimant is entitled to a lesser amount.
(2) The director may extend the 10-day deadline in paragraph (1) on a determination of good cause for a delay in the furnishing of required records or reports for a full determination of any claim for benefits under this division.
(c) If the claimant has earned wages in employment for more than one employer during 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 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 1120 is added to the Unemployment Insurance Code, to read:

1120.
 (a) The director may delegate their 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 their 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 responsible for issuing a total of more than 500 Internal Revenue Service Form W-2s or Internal Revenue Service Form 1099-NECs.