Bill Text: CA AB1355 | 2023-2024 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Employment: benefits: electronic notice and documents.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2023-09-30 - Chaptered by Secretary of State - Chapter 277, Statutes of 2023. [AB1355 Detail]

Download: California-2023-AB1355-Introduced.html

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CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1355

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Introduced by Assembly Member Valencia

February 17, 2023

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An act to amend Section 19853 of the Revenue and Taxation Code, and to amend Section 1089 of the Unemployment Insurance Code, relating to employment.

LEGISLATIVE COUNSEL'S DIGEST

AB 1355, as introduced, Valencia. Employment: benefits: electronic notice and documents.

(1) The Personal Income Tax Law allows various credits against the taxes imposed by that law, including certain credits that are allowed in modified conformity to credits allowed by federal income tax laws. Federal income tax laws allow a refundable earned income tax credit for certain low-income individuals who have earned income and who meet certain other requirements.

The Personal Income Tax Law, in modified conformity with federal income tax laws, allows an earned income credit against personal income tax, and a payment in excess of that credit amount, to an eligible individual that is equal to that portion of the earned income tax credit allowed by federal law as determined by the earned income tax credit adjustment factor as set forth in the annual Budget Act.

Existing law, the Earned Income Tax Credit Information Act, requires an employer, as defined, to notify all employees that they may be eligible for the federal and California earned income tax credit by handing specified documents directly to the employee or mailing the specified documents to the employee’s last known address.

This bill would also authorize the above-described notice to be provided to the employee by email if the employee opts into receipt of electronic notification.

(2) Existing law prescribes a system for the payment of benefits to unemployed individuals who meet specified eligibility criteria. Existing law requires an employer to supply, pursuant to authorized regulations, each individual at the time they become unemployed with copies of printed statements or materials relating to claims for benefits.

This bill would authorize the employer to instead supply that individual with electronic statements or materials relating to claims for benefits if the individual opts into receipt of electronic statements or materials.

Digest Key

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

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Bill Text

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

SECTION 1.

 Section 19853 of the Revenue and Taxation Code is amended to read:

19853.

 (a) An employer shall notify all employees that they may be eligible for the federal and the California EITC within one week before or after, or at the same time, that the employer provides an annual wage summary, including, but not limited to, a Form W-2 or a Form 1099, to any employee.

(b) The state departments and agencies that serve those who may qualify for the federal and the California EITC, as defined in subdivision (e) of Section 19852, shall notify their program recipients that they may be eligible for the federal and the California EITC, at least once a year during the months of January through April, or alternatively, shall provide this annual notification during a regularly scheduled contact with a recipient by telephone, mail, or electronic communication, or by an in-person communication. State departments or agencies that do not directly communicate with persons or households with persons who may qualify for the federal and the California EITC may communicate indirectly through agencies, districts, or regulated entities that serve eligible persons or households with eligible persons. Departments, agencies, and programs are encouraged to develop the most effective method to provide notice to recipients of federal and California EITC eligibility, as long as the notice contains substantially the same language as the notice described in Section 19854.

(c) (1) The employer shall provide the notification required by subdivision (a) by handing directly to the employee or employee, mailing to the employee’s last known address address, or, if the employee opts into receipt of electronic notification, emailing the employee either of the following:

(1)

(A) Instructions on how to obtain any notices available from the Internal Revenue Service and the Franchise Tax Board for this purpose, including, but not limited to, the IRS Notice 797 and information on the California EITC at the Web site internet website www.ftb.ca.gov.

(2)

(B) Any notice created by the employer, as long as it contains substantially the same language as the notice described in paragraph (1) subparagraph (A) or in Section 19854.

(2) The employer may provide the notification described in paragraph (1) by handing it directly to the employee or mailing it to the employee’s last known address even if the employee opts into receipt of electronic notification.

(d) The employer shall not satisfy the notification required by subdivision (a) by posting a notice on an employee bulletin board or sending it through office mail. However, these methods of notification are encouraged to help inform all employees of the federal and the California EITC.

(e) The amendments made to this section by the act adding this subdivision Chapter 294 of the Statutes of 2016 shall apply to notices furnished on or after the effective date of that act. January 1, 2017.

SEC. 2.

 Section 1089 of the Unemployment Insurance Code is amended to read:

1089.

 (a) Each employer shall post and maintain maintain, in places readily accessible to individuals in his service such the employer’s service, printed statements concerning benefit rights and other matters as may be prescribed by authorized regulations. Each

(b) (1) Each employer shall, pursuant to authorized regulations, supply each individual at the time he becomes they become unemployed with copies either of the following:

(A) Copies of printed statements or materials relating to claims for benefits. Each

(B) If the individual opts into receipt of electronic statements or materials, electronic statements or materials relating to claims for benefits.

(2) The employer may supply the statements or materials relating to claims for benefits, as described in paragraph (1), as a printed copy even if the employee opts into receipt of electronic notification.

(c) Each employer shall immediately notify each employee of any change in his the employee’s relationship with said that employer. Failure

(d) Failure to comply with this section by an employer shall constitute a misdemeanor. Such printed

(e) Printed statements shall be supplied by the director to each employer without cost to him. them.