Bill Text: CA AB2570 | 2009-2010 | Regular Session | Introduced

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

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Bill Title: Unemployment insurance: professional employer

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2010-11-30 - From Senate committee without further action. [AB2570 Detail]

Download: California-2009-AB2570-Introduced.html

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BILL NUMBER: AB 2570	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Ma

                        FEBRUARY 19, 2010

   An act to add Section 612 to the Unemployment Insurance Code,
relating to employment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2570, as introduced, Ma. Professional employer organizations:
regulation.
   Under existing law, the Employment Development Department within
the Labor and Workforce Development Agency is charged with
administering the state's unemployment insurance program, which
provides for the compulsory setting aside of funds to be used for a
system of unemployment insurance providing benefits for persons
unemployed through no fault of their own. Existing law also requires
employers, as defined, to register with the department and imposes
penalties on employers for failure to register.
   This bill would prohibit a person or entity from providing,
advertising, or otherwise holding itself out as providing
professional employer services in the state, unless that person or
entity is registered as a professional employer organization with the
department. The bill would require the director to prescribe rules
establishing the method for professional employer organizations to
report quarterly wages and contributions to the director for worksite
employees, as specified.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 612 is added to the Unemployment Insurance
Code, to read:
   612.  (a) A person or entity shall not provide, advertise, or
otherwise hold itself out as providing professional employer services
in the this state unless that person or entity is registered as a
professional employer organization with the department.
   (b) The director shall prescribe rules establishing the method for
professional employer organizations to report quarterly wages and
contributions to the director for worksite employees.
   (1) The rules shall recognize the professional employer
organization as the employing unit of its worksite employees for
reporting purposes. However, the rules may require that each worksite
employee of a single client be reported under a separate and unique
Employment Development Department (EDD) subaccount of the
professional employer organization to reflect the experience of the
worksite employees for a client.
   (2) Any EDD subaccount shall be used solely to determine
experience rates for that individual EDD subaccount on an annual
basis and shall recognize a professional employer organization as the
employing unit associated with each EDD subaccount. The rate and
experience existing on a client's EDD account prior to entering into
a professional employer agreement shall be combined with the
experience accumulated as an EDD subaccount of the professional
employer organization and the combined experience shall remain with
the client account upon termination of the professional employer
agreement.
   (3) Any rule promulgated pursuant to this division shall also
include administrative requirements that permit a professional
employer organization to transmit the reporting and payment date
required by this section collectively as a single electronic filing
with the director.