California Assembly Bill AB2188 Introduced / Bill

 BILL NUMBER: AB 2188INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Bradford FEBRUARY 18, 2010 An act to amend Section 3075 of, and to add Sections 1326.5, 1326.6, and 2702.5 to, the Unemployment Insurance Code, relating to unemployment insurance. LEGISLATIVE COUNSEL'S DIGEST AB 2188, as introduced, Bradford. Unemployment compensation: disability benefits: electronic payment. Existing law authorizes the Employment Development Department to administer the state unemployment insurance and the disability compensation programs. Existing law requires the department, among other duties, to make unemployment compensation payments as prescribed by the Director of Employment Development, and to make disability benefit payments by checks drawn on a specified bank, as provided. The bill would authorize the director to make these payments using electronic technology, and if using a vendor to provide electronic payments, prescribe criteria for a contract between the department and the vendor. This bill would require the State Auditor to prepare and submit a report to specified legislative committees, as provided, evaluating the implementation of these electronic payments. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 1326.5 is added to the Unemployment Insurance Code, to read: 1326.5. Any contract entered into between the department and a vendor for the electronic payment of benefits shall include the following criteria: (a) Provide claimants a process to resolve disputes with the vendor in a timely manner. (b) Require that claimants have free and unlimited access to customer service that meets or exceeds the services provided by the department prior to the implementation of electronic payment of benefits. (c) Prohibit the assessment of any fees to a claimant for accessing the electronic payment of benefits under all of the following circumstances: (1) A transaction with a teller at any bank, credit union, or other similar financial institution. (2) A point of sale transaction where an electronic benefit card is utilized to purchase goods or services. (3) A transaction at any automatic teller machine in the vendor's financial network. (d) Allow for inquiries on account balances from automotive teller machines. (e) Charge no fees wherever the vendor can exercise that option. (f) Require the vendor to meet or exceed all federal and state laws for financial privacy and language access requirements. (g) Meet the requirements set forth in Section 19130 of the Government Code. (h) Create a procedure to prevent overdraft fees. (i) Prohibit the deduction of any fees, charges, or debt from future unemployment benefits. SEC. 2. Section 1326.6 is added to the Unemployment Insurance Code, to read: 1326.6. The State Auditor shall complete an evaluation of the implementation of electronic payment of unemployment insurance and disability insurance benefits and report to the Joint Legislative Budget Committee, the Assembly Insurance Committee, and the Senate Labor and Industrial Relations Committee within 18 months of the implementation of Section 1326.5. SEC. 3. Section 2702.5 is added to the Unemployment Insurance Code, to read: 2702.5. Any contract entered into between the department and a vendor for the electronic payment of disability benefits shall include the following criteria: (a) Provide claimants a process to resolve disputes with the vendor in a timely manner. (b) Require that claimants have free and unlimited access to customer service that meets or exceeds the services provided by the department prior to the implementation of electronic payment of disability benefits. (c) Prohibit the assessment of any fees to a claimant for accessing the electronic payment of disability benefits under all of the following circumstances: (1) A transaction with a teller at any bank, credit union, or other similar financial institution. (2) A point of sale transaction where an electronic benefit card is utilized to purchase goods or services. (3) A transaction at any automatic teller machine in the vendor's financial network. (d) Allow for inquiries on account balances from automotive teller machines. (e) Charge no fees wherever the vendor can exercise that option. (f) Require the vendor to meet or exceed all federal and state laws for financial privacy and language access requirements. (g) Meet the requirements set forth in Section 19130 of the Government Code. (h) Create a procedure to prevent overdraft fees. (i) Prohibit the deduction of any fees, charges, or debt from future disability benefits. SEC. 4. Section 3075 of the Unemployment Insurance Code is amended to read: 3075. The director shall, without presenting vouchers and itemized statements, withdraw from the Disability Fund any sums  which   that  he  or she  deems necessary for the payment of disability benefits for a reasonable future period. The Controller shall draw his  or her  warrant for any claim presented by the director for  such   the  payment and the Treasurer shall pay the warrant. Upon the withdrawal thereof,  such   those  sums shall be deposited in a disability benefit payment account in such bank or public depositary and under  such   those  conditions as the director determines, with the approval of the Department of Finance.  Such   The  bank or public depositary shall be one in which general funds of the state may be deposited, but no public deposit insurance charge or premium shall be paid out of  such   that  account. Money in this account shall be used solely to pay disability benefits  by checks drawn on the account  by the department pursuant to authorized regulations and no other disbursement shall be made from that account, except that amounts erroneously and illegally deposited in  such   that  account may be refunded. The procedure prescribed by  such   those  regulations shall satisfy and be in lieu of any and all statutory requirements of specific appropriation or other form of release by state officers of money in their custody prior to expenditure  which   that  might otherwise be applicable to withdrawals from  such   that  account.