California Assembly Bill AB384 Introduced / Bill

 BILL NUMBER: AB 384INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Ma FEBRUARY 23, 2009 An act to amend Sections 1339 and 3075 of, and to add Section 3076 to, the Unemployment Insurance Code, relating to unemployment compensation, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 384, as introduced, Ma. Unemployment compensation: disability benefits: payment of benefits. 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 by a check or pay order that is permanently imprinted with a specified statement, as provided, and to make disability benefits payments by checks drawn on a specified bank, as provided. This bill would delete the requirement to include the imprinted statement on payments of unemployment compensation and disability benefits. This bill would also make technical, nonsubstantive changes to those provisions. This bill would also authorize the department to pay disability compensation benefits by use of electronic technology, including, but not limited to, benefit cards. The bill would require the department, if it elects to pay those benefits using electronic technology, to select a vender, by a competitive bid process, to provide for this payment process, and would prescribe criteria for the selection of such a vendor. The bill would declare that it shall take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated 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)    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.  (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 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 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. SEC. 3. Section 3076 is added to the Unemployment Insurance Code, to read: 3076. (a) The department may pay benefits due under this part by use of electronic technology, including, but not limited to, benefit cards. If the department elects to pay benefits using electronic technology, it shall select a vendor, by a competitive bid process, to provide for this payment process. (b) The selection of a vendor responsible for implementing an electronic technology payment process pursuant to subdivision (a) shall be based on consideration of the following criteria: (1) The ability of beneficiaries to obtain funds without excessive fees, as determined by the department. (2) The amount of estimated fees the vendor will charge beneficiaries for the use of electronic technology to pay benefits. (3) The adequacy of privacy safeguards for beneficiaries. (4) Vendor responsibility for user education and information technology assistance services such as help desk services. (5) Methods of access to account information. (6) Liability. (7) Degree of access to funds. SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to make necessary changes to the disability compensation benefit program to allow for the payment of benefits by use of electronic technology, at the earliest possible time, thereby decreasing costs and improving the efficiency of the programs, it is necessary that this act take effect immediately.