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AB-74 Unemployment and disability benefit payments: direct deposit.(2021-2022)

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Date Published: 02/18/2021 09:00 PM
AB74:v97#DOCUMENT

Revised  March 25, 2021
Amended  IN  Assembly  February 18, 2021
Amended  IN  Assembly  February 01, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 74


Introduced by Assembly Members Lorena Gonzalez, Chiu, and Petrie-Norris Petrie-Norris, and Smith
(Principal coauthor: Assembly Member Kalra)
(Principal coauthor: Senator Limón)
(Coauthors: Assembly Members Arambula, Bauer-Kahan, Berman, Bloom, Boerner Horvath, Burke, Calderon, Carrillo, Cervantes, Choi, Friedman, Grayson, Cristina Garcia, Gipson, Holden, Kamlager, Lee, Mullin, Nazarian, Patterson, Luz Rivas, Robert Rivas, Rodriguez, Santiago, Seyarto, Stone, and Ting Ting, and Gabriel)
(Coauthors: Senators Archuleta, Caballero, Glazer, Hertzberg, Jones, Leyva, Min, Skinner, Stern, Wiener, and Wilk)

December 07, 2020


An act to amend Sections 1339 and 2701 of the Unemployment Insurance Code, relating to unemployment compensation.


LEGISLATIVE COUNSEL'S DIGEST


AB 74, as amended, Lorena Gonzalez. Unemployment and disability benefit payments: direct deposit.
Existing law authorizes the Employment Development Department to administer the state unemployment insurance compensation program and the disability insurance compensation program, which includes family temporary disability insurance benefits. Existing law requires the department, among other duties, to make unemployment and disability compensation payments, as prescribed by the Director of Employment Development. Existing law requires unemployment insurance compensation benefits that are directly deposited to an account of the recipient’s choice to be deposited to a qualifying account, as defined.
This bill would require the Employment Development Department Department, before commencing payment, to provide a person entitled to receive benefits under the state unemployment insurance compensation program or the disability insurance compensation program the option to receive payments either directly deposited by electronic fund transfer into a qualifying account of the recipient’s choice, or by in addition to other alternative disbursement payment methods such as checks.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 1339 of the Unemployment Insurance Code is amended to read:

1339.
 (a) (1) The department shall pay unemployment compensation benefits through public employment offices or such other agency as may be prescribed by authorized regulations of the director.
(2) The Before commencing payment, the department shall provide a person entitled to receive unemployment compensation benefits the option to receive payments by direct deposit, as regulated under the federal Electronic Fund Transfer Act (EFTA) (15 U.S.C. Sec. 1693 et seq.), into a qualifying account, as defined in subdivision (a) of Section 1339.1, of the recipient’s choice, or by in addition to other alternative disbursement payment methods, including, but not limited to, checks.
(b) Each check or certification (pay order) issued in payment of unemployment insurance compensation benefits shall have prominently imprinted upon it: “State unemployment insurance benefits under the California Unemployment Insurance Code are paid for by employers.”

SEC. 2.

 Section 2701 of the Unemployment Insurance Code is amended to read:

2701.
 (a) Disability benefits shall be paid by the department through public employment offices or other agencies approved by the director.
(b) The Before commencing payment, the department shall provide a person entitled to receive disability benefits and family temporary disability insurance benefits under Chapter 7 (commencing with Section 3300) the option to receive payments by direct deposit, as regulated under the federal Electronic Fund Transfer Act (EFTA) (15 U.S.C. Sec. 1693 et seq.), into a qualifying account, as defined in subdivision (a) of Section 1339.1, of the recipient’s choice, or by in addition to other alternative disbursement payment methods, including, but not limited to, checks.

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REVISIONS:
Heading—Lines 1, 2, and 9.
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