Bill Text: CA AB1355 | 2023-2024 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Amended.html
NOYES
Section 1089 of the Unemployment Insurance Code is amended to read:
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-Amended.html
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Amended
IN
Assembly
May 01, 2023 |
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Amended
IN
Assembly
April 04, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 1355
| Introduced by Assembly Member Valencia (Coauthors: Assembly Members Gipson and Grayson) |
February 17, 2023 |
An act to amend amend, repeal, and add Section 19853 of the Revenue and Taxation Code, and to amend amend, repeal, and add Section 1089 of the Unemployment Insurance Code, relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 1355, as amended, 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 bill, until January 1, 2029, would also authorize the above-described notice to be provided to the employee by email if the employee opts into receipt of electronic notification. employer to provide the above-described notification via email to an employee’s email account, if the employee
affirmatively, and in writing or by electronic acknowledgment, opts into receipt of electronic statements or materials. The bill would prohibit the employer from discharging or taking other adverse action against an employee who does not opt into receipt of electronic statements or materials.
(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. Existing law provides that the failure of an employer to comply with these provisions is a misdemeanor.
This bill
bill, until January 1, 2029, 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. provide the above-described notification concerning statements and materials for benefits via email to an employee’s email account, if the employee affirmatively, and in writing or by electronic acknowledgment, opts into receipt of electronic statements or materials. The bill would prohibit the employer from discharging or taking other adverse action against an employee who does not opt into receipt of electronic statements or materials. By expanding the scope of a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: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) The employer shall provide the notification required by subdivision (a) by handing directly to the employee,
employee or mailing to the employee’s last known address, or, if the employee opts into receipt of electronic notification, emailing the employee address either of the following:
(1) 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 internet website www.ftb.ca.gov.
(2) Any notice created by the employer, as long as it contains substantially the same language as the notice described in
paragraph (1) or in Section 19854.
(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 employer may provide the notification required by subdivision (a) via email to an email account of the employee’s choosing in PDF, JPEG, or other digital image file type format, if an employee affirmatively, and in writing or by electronic acknowledgment, opts into receipt of electronic statements or materials.
(f) An employer may not discharge an employee or in any manner discriminate, retaliate, or take any adverse action against an employee who does not affirmatively, in writing or by electronic acknowledgment, opt into receipt of electronic statements or materials.
(e)
(g) The amendments made to this section by Chapter 294 of the Statutes of 2016 shall apply to notices furnished on or after January 1, 2017.
(h) This
section shall remain in effect only until January 1, 2029, and as of that date is repealed.
SEC. 2.
Section 19853 is added to the Revenue and Taxation Code, 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) The employer shall provide the notification required by subdivision (a) by handing directly to the employee or mailing to the employee’s last known address either of the following:
(1) 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 website www.ftb.ca.gov.
(2) Any notice created by the employer, as long as it contains substantially the same language as the notice described in paragraph (1) or in Section 19854.
(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 shall apply to notices furnished on or after the effective date of that act.
(f) This section shall become operative on January 1, 2029.
SEC. 2.SEC. 3.
Section 1089 of the Unemployment Insurance Code is amended to read:1089.
(a) Each employer shall post and maintain, in places readily accessible to individuals in the employer’s service, printed statements concerning benefit rights and other matters as may be prescribed by authorized regulations.(b) Each employer shall, pursuant to authorized regulations, supply each individual at the time they become unemployed with copies of printed statements or materials relating to claims for benefits, or if the individual opts into receipt of electronic
statements or materials, electronic statements or materials relating to claims for benefits.
(c) Each employer shall immediately notify each employee of any change in the employee’s relationship with that employer.
(d)Failure to comply with this section by an employer shall constitute a misdemeanor.
(e)
(d) Printed statements shall be supplied by the director to each employer without cost to
them.
(e) The employer may provide the notification required by subdivision (a) or (b) via email to an email account of the employee’s choosing in PDF, JPEG, or other digital image file type format, if an employee affirmatively, and in writing or by electronic acknowledgment, opts into receipt of electronic statements or materials.
(f) An employer may not discharge an employee or in any manner discriminate, retaliate, or take any adverse action against an employee who does not affirmatively, in writing or by electronic acknowledgment, opt into receipt of electronic statements or materials.
(g) Failure to comply with this section by an employer shall constitute a misdemeanor.
(h) This section shall remain in effect only until January 1, 2029, and as of that date is repealed.
SEC. 4.
Section 1089 is added to the Unemployment Insurance Code, to read:1089.
(a) Each employer shall post and maintain in places readily accessible to individuals in their service such printed statements concerning benefit rights and other matters as may be prescribed by authorized regulations. Each employer shall, pursuant to authorized regulations, supply each individual at the time they become unemployed with copies of printed statements or materials relating to claims for benefits. Each employer shall immediately notify each employee of any change in their relationship with the employer. Failure to comply with this section by an employer shall constitute a misdemeanor. Such printed statements shall be supplied by the director to each employer without cost to them.(b) This section shall become operative on January 1, 2029.
