California 2021-2022 Regular Session

California Assembly Bill AB42 Latest Draft

Bill / Amended Version Filed 02/18/2021

                            Amended IN  Assembly  February 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 42Introduced by Assembly Member Lackey(Coauthors: Assembly Members Cunningham, Megan Dahle, Davies, Flora, Gallagher, Kiley, Mathis, Nguyen, Patterson, Smith, Voepel, and Waldron)(Coauthor: Senator Wilk)December 07, 2020 An act to add Article 2 (commencing with Section 370) to Chapter 2 of Part 1 of Division 1 to the Unemployment Insurance Code, relating to unemployment insurance.LEGISLATIVE COUNSEL'S DIGESTAB 42, as amended, Lackey. Unemployment insurance: advisory committee on unemployment insurance.Existing law establishes the Employment Development Department, administered by the Director of Employment Development, within the Labor and Workforce Development Agency and sets forth its powers and duties related to the administration of the state unemployment and disability compensation programs.This bill would express the intent of the Legislature to enact legislation that would establish an advisory committee on unemployment insurance within the Employment Development Department that is composed of members who represent stakeholders and that has meeting and annual reporting requirements. This bill would require the department to establish, upon appropriation by the Legislature, an advisory committee to advise the department on matters within the departments jurisdiction, including, but not limited to, unemployment insurance. The bill would require the committee to include members representing a diverse spectrum of private and public employers and employees impacted by programs overseen by the department, as provided. The bill would require the committee to hold open and public meetings in compliance with the Bagley-Keene Open Meeting Act at least once a quarter. The bill would require, commencing on January 1, 2023, the committee to prepare and publicly publish an annual report describing its activities, including, but not limited to, recommendations made by the advisory committee and the departments response to those recommendations. The bill would also make related findings and declarations.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) The economic shutdowns resulting from the COVID-19 pandemic resulted in a veritable tsunami of unemployment insurance (UI) applications filed with the Employment Development Department (EDD) since March. The final 202021 state budget provides an indicator of the magnitude, as total state and federal UI expenditures have risen from $5,500,000,000 in the 201819 fiscal year to an estimated $43,500,000,000 in the 202021 fiscal year.(b) EDD has had to massively and rapidly increase staffing to address enormous claim backlogs while dealing with a woefully outdated information technology system for processing claims. As of November 18, 2020, EDD was reporting a remaining claims backlog of nearly 600,000, many of which date back months.(c) In addition to the extraordinary increase in UI claims, various federal expansions of UI benefits with loosened eligibility standards in response to the pandemic emergency have made the UI program highly vulnerable to fraud, which is a problem exacerbated by EDDs ongoing administrative deficiencies.(d) A California State Auditor report released in November strongly criticized the EDD for its failure to stop including full social security numbers in mailings sent to UI claimants. In addition, a November 23, 2020, letter to Governor Newsom from the California District Attorneys Associations and seven individual county District Attorneys offices charged that as much as $1,000,000,000 in fraudulent benefits may have been collected in the names of as many as 20,000 prison and jail inmates.SEC. 2. Article 2 (commencing with Section 370) is added to Chapter 2 of Part 1 of Division 1 of the Unemployment Insurance Code, to read: Article 2. Advisory Committee370. (a) The department shall establish and convene an advisory committee to advise the department on matters within the departments jurisdiction, including, but not limited to, unemployment insurance.(b) (1) The advisory committee members shall be made up of organizations representing a diverse spectrum of private and public employers and employees impacted by programs overseen by the department. The director shall designate the organizations to be represented on the advisory committee, and each designated organization shall appoint its representative.(2) Advisory committee members shall serve terms of up to two years.(c) (1) The advisory committee shall meet at least once per quarter.(2) Meetings of the advisory committee shall be open and public in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).(d) The advisory committee shall make recommendations to the department as necessary.(e) Commencing on January 1, 2023, the advisory committee shall prepare and publicly publish an annual report describing its activities, including, but not limited to, recommendations made by the advisory committee and the departments response to those recommendations.371. This article shall be operative upon appropriation by the Legislature.SECTION 1.It is the intent of the Legislature to enact legislation that would establish an advisory committee on unemployment insurance within the Employment Development Department that is composed of members who represent stakeholders and that has meeting and annual reporting requirements. 

 Amended IN  Assembly  February 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 42Introduced by Assembly Member Lackey(Coauthors: Assembly Members Cunningham, Megan Dahle, Davies, Flora, Gallagher, Kiley, Mathis, Nguyen, Patterson, Smith, Voepel, and Waldron)(Coauthor: Senator Wilk)December 07, 2020 An act to add Article 2 (commencing with Section 370) to Chapter 2 of Part 1 of Division 1 to the Unemployment Insurance Code, relating to unemployment insurance.LEGISLATIVE COUNSEL'S DIGESTAB 42, as amended, Lackey. Unemployment insurance: advisory committee on unemployment insurance.Existing law establishes the Employment Development Department, administered by the Director of Employment Development, within the Labor and Workforce Development Agency and sets forth its powers and duties related to the administration of the state unemployment and disability compensation programs.This bill would express the intent of the Legislature to enact legislation that would establish an advisory committee on unemployment insurance within the Employment Development Department that is composed of members who represent stakeholders and that has meeting and annual reporting requirements. This bill would require the department to establish, upon appropriation by the Legislature, an advisory committee to advise the department on matters within the departments jurisdiction, including, but not limited to, unemployment insurance. The bill would require the committee to include members representing a diverse spectrum of private and public employers and employees impacted by programs overseen by the department, as provided. The bill would require the committee to hold open and public meetings in compliance with the Bagley-Keene Open Meeting Act at least once a quarter. The bill would require, commencing on January 1, 2023, the committee to prepare and publicly publish an annual report describing its activities, including, but not limited to, recommendations made by the advisory committee and the departments response to those recommendations. The bill would also make related findings and declarations.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO 

 Amended IN  Assembly  February 18, 2021

Amended IN  Assembly  February 18, 2021

 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION

 Assembly Bill 

No. 42

Introduced by Assembly Member Lackey(Coauthors: Assembly Members Cunningham, Megan Dahle, Davies, Flora, Gallagher, Kiley, Mathis, Nguyen, Patterson, Smith, Voepel, and Waldron)(Coauthor: Senator Wilk)December 07, 2020

Introduced by Assembly Member Lackey(Coauthors: Assembly Members Cunningham, Megan Dahle, Davies, Flora, Gallagher, Kiley, Mathis, Nguyen, Patterson, Smith, Voepel, and Waldron)(Coauthor: Senator Wilk)
December 07, 2020

 An act to add Article 2 (commencing with Section 370) to Chapter 2 of Part 1 of Division 1 to the Unemployment Insurance Code, relating to unemployment insurance.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 42, as amended, Lackey. Unemployment insurance: advisory committee on unemployment insurance.

Existing law establishes the Employment Development Department, administered by the Director of Employment Development, within the Labor and Workforce Development Agency and sets forth its powers and duties related to the administration of the state unemployment and disability compensation programs.This bill would express the intent of the Legislature to enact legislation that would establish an advisory committee on unemployment insurance within the Employment Development Department that is composed of members who represent stakeholders and that has meeting and annual reporting requirements. This bill would require the department to establish, upon appropriation by the Legislature, an advisory committee to advise the department on matters within the departments jurisdiction, including, but not limited to, unemployment insurance. The bill would require the committee to include members representing a diverse spectrum of private and public employers and employees impacted by programs overseen by the department, as provided. The bill would require the committee to hold open and public meetings in compliance with the Bagley-Keene Open Meeting Act at least once a quarter. The bill would require, commencing on January 1, 2023, the committee to prepare and publicly publish an annual report describing its activities, including, but not limited to, recommendations made by the advisory committee and the departments response to those recommendations. The bill would also make related findings and declarations.

Existing law establishes the Employment Development Department, administered by the Director of Employment Development, within the Labor and Workforce Development Agency and sets forth its powers and duties related to the administration of the state unemployment and disability compensation programs.

This bill would express the intent of the Legislature to enact legislation that would establish an advisory committee on unemployment insurance within the Employment Development Department that is composed of members who represent stakeholders and that has meeting and annual reporting requirements. 



This bill would require the department to establish, upon appropriation by the Legislature, an advisory committee to advise the department on matters within the departments jurisdiction, including, but not limited to, unemployment insurance. The bill would require the committee to include members representing a diverse spectrum of private and public employers and employees impacted by programs overseen by the department, as provided. The bill would require the committee to hold open and public meetings in compliance with the Bagley-Keene Open Meeting Act at least once a quarter. The bill would require, commencing on January 1, 2023, the committee to prepare and publicly publish an annual report describing its activities, including, but not limited to, recommendations made by the advisory committee and the departments response to those recommendations. The bill would also make related findings and declarations.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) The economic shutdowns resulting from the COVID-19 pandemic resulted in a veritable tsunami of unemployment insurance (UI) applications filed with the Employment Development Department (EDD) since March. The final 202021 state budget provides an indicator of the magnitude, as total state and federal UI expenditures have risen from $5,500,000,000 in the 201819 fiscal year to an estimated $43,500,000,000 in the 202021 fiscal year.(b) EDD has had to massively and rapidly increase staffing to address enormous claim backlogs while dealing with a woefully outdated information technology system for processing claims. As of November 18, 2020, EDD was reporting a remaining claims backlog of nearly 600,000, many of which date back months.(c) In addition to the extraordinary increase in UI claims, various federal expansions of UI benefits with loosened eligibility standards in response to the pandemic emergency have made the UI program highly vulnerable to fraud, which is a problem exacerbated by EDDs ongoing administrative deficiencies.(d) A California State Auditor report released in November strongly criticized the EDD for its failure to stop including full social security numbers in mailings sent to UI claimants. In addition, a November 23, 2020, letter to Governor Newsom from the California District Attorneys Associations and seven individual county District Attorneys offices charged that as much as $1,000,000,000 in fraudulent benefits may have been collected in the names of as many as 20,000 prison and jail inmates.SEC. 2. Article 2 (commencing with Section 370) is added to Chapter 2 of Part 1 of Division 1 of the Unemployment Insurance Code, to read: Article 2. Advisory Committee370. (a) The department shall establish and convene an advisory committee to advise the department on matters within the departments jurisdiction, including, but not limited to, unemployment insurance.(b) (1) The advisory committee members shall be made up of organizations representing a diverse spectrum of private and public employers and employees impacted by programs overseen by the department. The director shall designate the organizations to be represented on the advisory committee, and each designated organization shall appoint its representative.(2) Advisory committee members shall serve terms of up to two years.(c) (1) The advisory committee shall meet at least once per quarter.(2) Meetings of the advisory committee shall be open and public in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).(d) The advisory committee shall make recommendations to the department as necessary.(e) Commencing on January 1, 2023, the advisory committee shall prepare and publicly publish an annual report describing its activities, including, but not limited to, recommendations made by the advisory committee and the departments response to those recommendations.371. This article shall be operative upon appropriation by the Legislature.SECTION 1.It is the intent of the Legislature to enact legislation that would establish an advisory committee on unemployment insurance within the Employment Development Department that is composed of members who represent stakeholders and that has meeting and annual reporting requirements. 

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

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

SECTION 1. The Legislature finds and declares all of the following:(a) The economic shutdowns resulting from the COVID-19 pandemic resulted in a veritable tsunami of unemployment insurance (UI) applications filed with the Employment Development Department (EDD) since March. The final 202021 state budget provides an indicator of the magnitude, as total state and federal UI expenditures have risen from $5,500,000,000 in the 201819 fiscal year to an estimated $43,500,000,000 in the 202021 fiscal year.(b) EDD has had to massively and rapidly increase staffing to address enormous claim backlogs while dealing with a woefully outdated information technology system for processing claims. As of November 18, 2020, EDD was reporting a remaining claims backlog of nearly 600,000, many of which date back months.(c) In addition to the extraordinary increase in UI claims, various federal expansions of UI benefits with loosened eligibility standards in response to the pandemic emergency have made the UI program highly vulnerable to fraud, which is a problem exacerbated by EDDs ongoing administrative deficiencies.(d) A California State Auditor report released in November strongly criticized the EDD for its failure to stop including full social security numbers in mailings sent to UI claimants. In addition, a November 23, 2020, letter to Governor Newsom from the California District Attorneys Associations and seven individual county District Attorneys offices charged that as much as $1,000,000,000 in fraudulent benefits may have been collected in the names of as many as 20,000 prison and jail inmates.

SECTION 1. The Legislature finds and declares all of the following:(a) The economic shutdowns resulting from the COVID-19 pandemic resulted in a veritable tsunami of unemployment insurance (UI) applications filed with the Employment Development Department (EDD) since March. The final 202021 state budget provides an indicator of the magnitude, as total state and federal UI expenditures have risen from $5,500,000,000 in the 201819 fiscal year to an estimated $43,500,000,000 in the 202021 fiscal year.(b) EDD has had to massively and rapidly increase staffing to address enormous claim backlogs while dealing with a woefully outdated information technology system for processing claims. As of November 18, 2020, EDD was reporting a remaining claims backlog of nearly 600,000, many of which date back months.(c) In addition to the extraordinary increase in UI claims, various federal expansions of UI benefits with loosened eligibility standards in response to the pandemic emergency have made the UI program highly vulnerable to fraud, which is a problem exacerbated by EDDs ongoing administrative deficiencies.(d) A California State Auditor report released in November strongly criticized the EDD for its failure to stop including full social security numbers in mailings sent to UI claimants. In addition, a November 23, 2020, letter to Governor Newsom from the California District Attorneys Associations and seven individual county District Attorneys offices charged that as much as $1,000,000,000 in fraudulent benefits may have been collected in the names of as many as 20,000 prison and jail inmates.

SECTION 1. The Legislature finds and declares all of the following:

### SECTION 1.

(a) The economic shutdowns resulting from the COVID-19 pandemic resulted in a veritable tsunami of unemployment insurance (UI) applications filed with the Employment Development Department (EDD) since March. The final 202021 state budget provides an indicator of the magnitude, as total state and federal UI expenditures have risen from $5,500,000,000 in the 201819 fiscal year to an estimated $43,500,000,000 in the 202021 fiscal year.

(b) EDD has had to massively and rapidly increase staffing to address enormous claim backlogs while dealing with a woefully outdated information technology system for processing claims. As of November 18, 2020, EDD was reporting a remaining claims backlog of nearly 600,000, many of which date back months.

(c) In addition to the extraordinary increase in UI claims, various federal expansions of UI benefits with loosened eligibility standards in response to the pandemic emergency have made the UI program highly vulnerable to fraud, which is a problem exacerbated by EDDs ongoing administrative deficiencies.

(d) A California State Auditor report released in November strongly criticized the EDD for its failure to stop including full social security numbers in mailings sent to UI claimants. In addition, a November 23, 2020, letter to Governor Newsom from the California District Attorneys Associations and seven individual county District Attorneys offices charged that as much as $1,000,000,000 in fraudulent benefits may have been collected in the names of as many as 20,000 prison and jail inmates.

SEC. 2. Article 2 (commencing with Section 370) is added to Chapter 2 of Part 1 of Division 1 of the Unemployment Insurance Code, to read: Article 2. Advisory Committee370. (a) The department shall establish and convene an advisory committee to advise the department on matters within the departments jurisdiction, including, but not limited to, unemployment insurance.(b) (1) The advisory committee members shall be made up of organizations representing a diverse spectrum of private and public employers and employees impacted by programs overseen by the department. The director shall designate the organizations to be represented on the advisory committee, and each designated organization shall appoint its representative.(2) Advisory committee members shall serve terms of up to two years.(c) (1) The advisory committee shall meet at least once per quarter.(2) Meetings of the advisory committee shall be open and public in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).(d) The advisory committee shall make recommendations to the department as necessary.(e) Commencing on January 1, 2023, the advisory committee shall prepare and publicly publish an annual report describing its activities, including, but not limited to, recommendations made by the advisory committee and the departments response to those recommendations.371. This article shall be operative upon appropriation by the Legislature.

SEC. 2. Article 2 (commencing with Section 370) is added to Chapter 2 of Part 1 of Division 1 of the Unemployment Insurance Code, to read:

### SEC. 2.

 Article 2. Advisory Committee370. (a) The department shall establish and convene an advisory committee to advise the department on matters within the departments jurisdiction, including, but not limited to, unemployment insurance.(b) (1) The advisory committee members shall be made up of organizations representing a diverse spectrum of private and public employers and employees impacted by programs overseen by the department. The director shall designate the organizations to be represented on the advisory committee, and each designated organization shall appoint its representative.(2) Advisory committee members shall serve terms of up to two years.(c) (1) The advisory committee shall meet at least once per quarter.(2) Meetings of the advisory committee shall be open and public in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).(d) The advisory committee shall make recommendations to the department as necessary.(e) Commencing on January 1, 2023, the advisory committee shall prepare and publicly publish an annual report describing its activities, including, but not limited to, recommendations made by the advisory committee and the departments response to those recommendations.371. This article shall be operative upon appropriation by the Legislature.

 Article 2. Advisory Committee370. (a) The department shall establish and convene an advisory committee to advise the department on matters within the departments jurisdiction, including, but not limited to, unemployment insurance.(b) (1) The advisory committee members shall be made up of organizations representing a diverse spectrum of private and public employers and employees impacted by programs overseen by the department. The director shall designate the organizations to be represented on the advisory committee, and each designated organization shall appoint its representative.(2) Advisory committee members shall serve terms of up to two years.(c) (1) The advisory committee shall meet at least once per quarter.(2) Meetings of the advisory committee shall be open and public in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).(d) The advisory committee shall make recommendations to the department as necessary.(e) Commencing on January 1, 2023, the advisory committee shall prepare and publicly publish an annual report describing its activities, including, but not limited to, recommendations made by the advisory committee and the departments response to those recommendations.371. This article shall be operative upon appropriation by the Legislature.

 Article 2. Advisory Committee

 Article 2. Advisory Committee

370. (a) The department shall establish and convene an advisory committee to advise the department on matters within the departments jurisdiction, including, but not limited to, unemployment insurance.(b) (1) The advisory committee members shall be made up of organizations representing a diverse spectrum of private and public employers and employees impacted by programs overseen by the department. The director shall designate the organizations to be represented on the advisory committee, and each designated organization shall appoint its representative.(2) Advisory committee members shall serve terms of up to two years.(c) (1) The advisory committee shall meet at least once per quarter.(2) Meetings of the advisory committee shall be open and public in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).(d) The advisory committee shall make recommendations to the department as necessary.(e) Commencing on January 1, 2023, the advisory committee shall prepare and publicly publish an annual report describing its activities, including, but not limited to, recommendations made by the advisory committee and the departments response to those recommendations.



370. (a) The department shall establish and convene an advisory committee to advise the department on matters within the departments jurisdiction, including, but not limited to, unemployment insurance.

(b) (1) The advisory committee members shall be made up of organizations representing a diverse spectrum of private and public employers and employees impacted by programs overseen by the department. The director shall designate the organizations to be represented on the advisory committee, and each designated organization shall appoint its representative.

(2) Advisory committee members shall serve terms of up to two years.

(c) (1) The advisory committee shall meet at least once per quarter.

(2) Meetings of the advisory committee shall be open and public in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).

(d) The advisory committee shall make recommendations to the department as necessary.

(e) Commencing on January 1, 2023, the advisory committee shall prepare and publicly publish an annual report describing its activities, including, but not limited to, recommendations made by the advisory committee and the departments response to those recommendations.

371. This article shall be operative upon appropriation by the Legislature.



371. This article shall be operative upon appropriation by the Legislature.



It is the intent of the Legislature to enact legislation that would establish an advisory committee on unemployment insurance within the Employment Development Department that is composed of members who represent stakeholders and that has meeting and annual reporting requirements.