Bill Text: CA AB2778 | 2009-2010 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Unemployment insurance: voluntary plans.
Spectrum: Bipartisan Bill
Status: (Passed) 2010-09-27 - Chaptered by Secretary of State - Chapter 399, Statutes of 2010. [AB2778 Detail]
Download: California-2009-AB2778-Introduced.html
Bill Title: Unemployment insurance: voluntary plans.
Spectrum: Bipartisan Bill
Status: (Passed) 2010-09-27 - Chaptered by Secretary of State - Chapter 399, Statutes of 2010. [AB2778 Detail]
Download: California-2009-AB2778-Introduced.html
BILL NUMBER: AB 2778 INTRODUCED BILL TEXT INTRODUCED BY Committee on Insurance (Solorio (Chair), Blakeslee (Vice Chair), Anderson, Carter, Hagman, Nava, and Niello) MARCH 1, 2010 An act to amend Section 3254 of the Unemployment Insurance Code, relating to unemployment insurance. LEGISLATIVE COUNSEL'S DIGEST AB 2778, as introduced, Committee on Insurance. Unemployment insurance. Existing law provides for the payment of disability compensation for the wage loss sustained by an individual unemployed because of sickness or injury, and finances that compensation by means of employee contributions at specified rates to the Disability Fund. Existing law requires the Director of Employment Development to approve any voluntary plan, subject to specified exceptions, for disability if the director finds that there is at least one employee and that specified requirements are met, including, among other things, that the plan will be in effect for a period of not less than one year, and, thereafter, continuously unless the director finds that the employer or a majority of its employees employed in the state covered by the plan have given notice of withdrawal from the plan. The notice is required to be filed with the director and is effective only on the anniversary of the effective date of the plan next following the filing of the notice, but in any event not less than 30 days from the time of the filing of the notice, except as provided. This bill would extend from 30 to 60 days the time for filing the above-described notice of withdrawal from the plan. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 3254 of the Unemployment Insurance Code is amended to read: 3254. The Director of Employment Development shall approve any voluntary plan, except one filed pursuant to Section 3255, as to which he or she finds that there is at least one employee in employment and all of the following exist: (a) The rights afforded to the covered employees are greater than those provided for in Chapter 2 (commencing with Section 2625), including those provided for in Chapter 7 (commencing with Section 3300). (b) The plan has been made available to all of the employees of the employer employed in this state or to all employees at any one distinct, separate establishment maintained by the employer in this state. "Employees" as used in this subdivision includes those individuals in partial or other forms of short-time employment and employees not in employment as the Director of Employment Development shall prescribe by authorized regulations. (c) A majority of the employees of the employer employed in this state or a majority of the employees employed at any one distinct, separate establishment maintained by the employer in this state have consented to the plan. (d) If the plan provides for insurance the form of the insurance policies to be issued have been approved by the Insurance Commissioner and are to be issued by an admitted disability insurer. (e) The employer has consented to the plan and has agreed to make the payroll deductions required, if any, and transmit the proceeds to the plan insurer, if any. (f) The plan provides for the inclusion of future employees. (g) The plan will be in effect for a period of not less than one year and, thereafter, continuously unless the Director of Employment Development finds that the employer or a majority of its employees employed in this state covered by the plan have given notice of withdrawal from the plan. The notice shall be filed in writing with the Director of Employment Development and shall be effective only on the anniversary of the effective date of the plan next following the filing of the notice, but in any event not less than 30 days from the time of the filing of the notice; except that the plan may be withdrawn on the operative date of any law increasing the benefit amounts provided by Sections 2653 and 2655 or the operative date of any change in the rate of worker contributions as determined by Section 984, if notice of the withdrawal from the plan is transmitted to the Director of Employment Development not less than3060 days prior to the operative date of that law or change. If the plan is not withdrawn on the3060 days' notice because of the enactment of a law increasing benefits or because of a change in the rate of worker contributions as determined by Section 984, the plan shall be amended to conform to that increase or change on the operative date of the increase or change. (h) The amount of deductions from the wages of an employee in effect for any plan shall not be increased on other than an anniversary of the effective date of the plan except to the extent that any increase in the deductions from the wages of an employee allowed by Section 3260 permits that amount to exceed the amount of deductions in effect. (i) The approval of the plan or plans will not result in a substantial selection of risks adverse to the Disability Fund.