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AB-3329 Unemployment insurance compensation: COVID-19 pandemic: temporary benefits.(2019-2020)

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Date Published: 05/01/2020 09:00 PM
AB3329:v98#DOCUMENT

Amended  IN  Assembly  May 04, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 3329


Introduced by Assembly Member Daly

February 21, 2020


An act to amend Section 2058 of the Insurance Code, relating to insurance. add and repeal Sections 1026.2, 1280.3, and 1280.6 of the Unemployment Insurance Code, relating to unemployment benefits, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 3329, as amended, Daly. Fire insurance. Unemployment insurance compensation: COVID-19 pandemic: temporary benefits.
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. Unemployment compensation benefits are paid from the Unemployment Fund, which is continuously appropriated for this purpose. Under existing law, unemployment compensation benefits are based on wages paid in a base period that is calculated according to the month within which the benefit year begins. Existing law provides that a weekly unemployment compensation benefit amount may be paid to an individual whose highest wages in the quarter of their base period exceeded $900, but a weekly benefit amount may not exceed $450. Existing law requires the Director of Employment Development to maintain a separate reserve account for each employer, and to charge unemployment compensation benefits paid to an unemployed individual during any benefit year against the reserve account of that individual’s employer during the individual’s base period.
Existing law, the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act), among other things, provides Federal Pandemic Unemployment Compensation in the amount of $600 per week in addition to the weekly benefit amount paid to eligible persons under the state unemployment compensation law if the state enters into a specified agreement with the United States Secretary of Labor. The CARES Act provides for full reimbursement by the federal government for the total amount of Federal Pandemic Unemployment Compensation paid to individuals by the state pursuant to the agreement.
This bill would provide, until July 1, 2022, following the termination of the Federal Pandemic Unemployment Compensation amount provided pursuant to the CARES Act or any other federal supplemental unemployment compensation payments for unemployment due to the COVID-19 pandemic, that an individual’s weekly benefit amount as otherwise provided for by existing unemployment compensation law be increased by $100 for the remainder of the duration of time the individual is entitled to receive benefits with respect to a valid claim for a benefit year, notwithstanding the weekly benefits cap. The bill would prohibit any unemployment compensation benefits authorized by the bill to be charged against the reserve account of any employer.
This bill would also provide, until July 1, 2022, that for any new claims filed with an effective date on or after July 1, 2020, an individual’s weekly benefit amount shall not be less than $167. The bill would specify that its provisions do not impact the maximum amount of unemployment compensation benefits payable to an individual or any nonmonetary eligibility criteria, as specified.
Because this bill would authorize additional benefits to be paid from the Unemployment Fund, which is continuously appropriated, it would make an appropriation.

Existing law generally regulates classes of insurance, including fire insurance. Existing law defines the measure of indemnity for a loss under a fire insurance policy and requires that an insured covered by a valued policy receive the replacement value or the face amount, whichever is less, if the loss is not rebuilt or replaced.

This bill would instead require that an insured covered by a valued policy receive the replacement value or the face amount, whichever is more, if the loss is not rebuilt or replaced.

Vote: MAJORITY   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 Section 1026.2 is added to the Unemployment Insurance Code, to read:

1026.2.
 (a) Notwithstanding Section 1026 or any other law, any unemployment compensation benefits paid pursuant to Section 1280.6 shall not be charged against the reserve account of any employer.
(b) This section shall remain in effect only until July 1, 2022, and as of that date is repealed.

SEC. 2.

 Section 1280.3 is added to the Unemployment Insurance Code, to read:

1280.3.
 (a) Notwithstanding Section 1280, for any new claims filed with an effective date on or after July 1, 2020, an individual’s weekly benefit amount shall not be less than one hundred sixty-seven dollars ($167).
(b) Nothing in this section shall impact the maximum amount of unemployment compensation benefits payable to an individual pursuant to Section 1281, or any nonmonetary eligibility criteria contained in this part.
(c) This section shall remain in effect only until July 1, 2022, and as of that date is repealed.

SEC. 3.

 Section 1280.6 is added to the Unemployment Insurance Code, to read:

1280.6.
 (a) Notwithstanding Section 1280 or any other law, following the termination of the Federal Pandemic Unemployment Compensation amount of six hundred dollars ($600) provided pursuant to Section 2104 of Subtitle A of Title II of Division A of the federal Coronavirus Aid, Relief, and Economic Security Act (15 U.S.C. Sec. 9023) or any other federal supplemental unemployment compensation payments for unemployment due to the COVID-19 pandemic, an individual’s weekly benefit amount as otherwise provided for by this chapter shall thereafter be increased by one hundred dollars ($100) for the remainder of the duration of time the individual is entitled to receive benefits under this division with respect to a valid claim for a benefit year.
(b) Nothing in this section shall change the eligibility requirements for an individual to receive unemployment benefits under this part.
(c) This section shall remain in effect only until July 1, 2022, and as of that date is repealed.

SECTION 1.Section 2058 of the Insurance Code is amended to read:
2058.

(a)Notwithstanding any other law, if a loss arising out of fire is rebuilt or replaced, an insured covered by a valued policy shall receive full payment for the loss up to the face amount of the policy. If the loss is not rebuilt or replaced, an insured covered by a valued policy shall receive either the replacement value of the loss or the face amount of the policy, whichever is more. As used in this section, “valued policy” has the meaning set forth in Section 412.

(b)This section applies only to valued policies issued or renewed on and after July 1, 1992.