Bill Text: CA AB2847 | 2021-2022 | Regular Session | Amended

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

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Bill Title: Unemployment: Excluded Workers Pilot Program.

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Vetoed) 2022-09-28 - Vetoed by Governor. [AB2847 Detail]

Download: California-2021-AB2847-Amended.html

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Amended  IN  Assembly  April 18, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 2847

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Introduced by Assembly Member Eduardo Garcia
(Coauthors: Assembly Members Mia Bonta, Calderon, Cristina Garcia, Gipson, Jones-Sawyer, Robert Rivas, Blanca Rubio, and Santiago)
(Coauthors: Senators Caballero, Durazo, and Hueso)

February 18, 2022

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An act to add and repeal Chapter 4 2 (commencing with Section 2020) of Part 8 of Division 2 of the Labor Code, and to add Section 17140.6 to the Revenue and Taxation Code, relating to unemployment, and making an appropriation therefor, to take effect immediately, bill related to the budget. therefor.

LEGISLATIVE COUNSEL'S DIGEST

AB 2847, as amended, Eduardo Garcia. Unemployment: Excluded Workers Pilot Program.

(1) Existing law authorizes the payment of unemployment compensation benefits and requires that they be made in accordance with regulations of the Director of Employment Development. Existing law generally requires the Employment Development Department to promptly pay benefits if claimants are eligible or to promptly deny benefits if they are ineligible. Existing law prohibits payment of unemployment compensation benefits for services performed by a person who is not a citizen or national of the United States, unless that person is an individual who was lawfully admitted for permanent residence at the time the services were performed, was lawfully present for purposes of performing the services, or was permanently residing in the United States under color of law at the time the services were performed, as specified.

This bill would establish, until January 1, 2025, 2026, the Excluded Workers Pilot Program, to be administered by the Labor and Workforce Development Agency, Economic Development Department, for the purpose of providing income assistance to excluded workers who are not eligible for the existing state or federal benefits administered by the Employment Development Department and who are unemployed. The bill would make individuals eligible to receive $300 per week for each week of unemployment occurring between January 1, 2023, and December 31, 2023, unemployment, if the Secretary of Labor and Workforce Development Director of the Economic Development Department makes certain findings, as defined and specified. The bill would require eligible individuals to submit an application providing specified information to the agency in such form as the secretary may prescribe. the department to promulgate regulations to implement the program, including regulations providing for an application process, as specified.

The bill would prohibit the agency department from requesting or compelling certain information from individuals in connection with administering the program and would require the agency to destroy specified records within 60 days of termination of the program. prohibit the department from retaining specified documents for longer than necessary to administer benefits. The bill would also prohibit, except as specified, disclosures of personal information, as defined, prohibit specified uses of personal information obtained through the program, and make certain types of disclosures a crime, as specified. By expanding the scope of a crime, this bill would impose a state-mandated local program. defined.

The bill would require the agency, department, on or before August 1, 2024, January 1, 2025, to submit a report to the Governor and specified committees the Legislature that makes recommendations for establishing a permanent unemployment insurance benefit program for workers excluded from the unemployment insurance system based on their immigration status, as specified.

The bill would appropriate $690,000,000 from the General Fund to the agency department for purposes of carrying out, implementing, and administering the program.

(2)The Personal Income Tax Law, in modified conformity with federal law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill, for the taxable year beginning on or after January 1, 2023, and before January 1, 2025, would provide an exclusion from gross income for benefits received under the program. The bill would require the Franchise Tax Board to submit, on or before June 15, 2025, a report to the Legislature on the total number of claims for the exclusion and the amount claimed for each exclusion, and would provide findings and declarations relating to the goals, purposes, and objectives of this exclusion.

(3)

(2) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

(4)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.

(5)This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Digest Key

Vote: MAJORITY2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: YESNO  

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Bill Text

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

SECTION 1.

 The Legislature finds and declares the following:

(a) In setting up a system of unemployment insurance benefits, the Legislature recognized that private charity and local relief cannot alone prevent the effects of unemployment. Created in 1935, the unemployment insurance system serves two interlaced purposes: providing income support to workers so they can meet the basic needs of their family if they lose their jobs, and helping to sustain consumer demand during economic downturns by providing a continuing stream of dollars for families to spend in their local economies. Most workers who have become unemployed or underemployed through no fault of their own are eligible to receive unemployment insurance benefits and they, their families, and the California economy reap the benefits of this lifesaving program. However, due to historically racial exclusions, many of California’s most vulnerable workers are entirely excluded from the program.

(b) The COVID-19 pandemic and the subsequent economic downturn caused millions of workers in California to lose their jobs and source of livelihood. Estimates from the Legislative Analyst’s Office show that 6 in 10 California workers worked jobs that could not be done remotely, increasing their chances of contracting COVID-19. Most of these workers were women, people of color, and immigrants who worked in some of the most hazardous and low-paid jobs, including fast food, grocery, garment, manufacturing, construction, and others.

(c) Despite paying millions of dollars in state and local taxes and making up one-sixteenth of the California workforce, undocumented immigrants are categorically excluded from unemployment insurance. As of January 1, 2022, Section 1264 of the Unemployment Insurance Code provides that unemployment insurance benefits, extended duration benefits, and federal-state extended benefits shall not be payable to a noncitizen unless the individual “was lawfully admitted for permanent residence at the time the services were performed, was lawfully present for purposes of performing the services, or was permanently residing in the United States under color of law at the time the services were performed[.]” During the COVID-19 pandemic, undocumented immigrant workers were also unable to access programs such as Pandemic Unemployment Assistance, Federal Pandemic Unemployment Compensation, and Pandemic Emergency Unemployment Compensation. These programs were a crucial lifeline for the one in six adults that received these benefits at the height of the crisis. Studies have shown that beyond curtailing poverty, these benefits substantially reduced hardship and improved the well-being of households, including recipients’ financial stability and mental health. Yet, some of California’s most vulnerable workers have been and remain completely excluded from these programs.

(d) Immigrant workers make up a significant percentage of workers in many of the industries that experienced the highest rates of joblessness and low wages predating the COVID-19 pandemic. The impact of this job loss threatens the livelihoods of millions of Californians, in addition to the unemployed workers themselves. An estimated one in three undocumented residents is a parent and more than one in eight schoolaged children in California have a parent who is an undocumented immigrant. Without the support of essential safety net programs like unemployment insurance, many immigrant families are forced to exhaust their life savings, accumulate debt, and compromise their health to simply afford basic necessities like rent and food.

(e) California’s economy also suffers by excluding undocumented workers from this program. By partially replacing unemployed workers’ earnings, unemployment insurance (UI) benefits help alleviate the inherent reduction in consumption and economic activity that results when there is a drastic increase in unemployment. Economists maintain that UI benefits produce at least $1.61 of economic stimulus for every $1 of benefits paid. Indeed, one economist found that during the Great Recession, every $1 of UI benefits produced about $2 dollars of economic impact. Similarly, UI benefits help employers and the labor market by supporting workers to find the best matched positions.

(f) While the COVID-19 pandemic has highlighted the extreme consequences of undocumented workers’ exclusion from unemployment insurance, this problem has existed for decades and it will only become more urgent. Wildfires, severe weather events, economic fluctuations, seasonal changes in workforce needs—all of these factors will continue to cause unemployment. And for most low-income individuals, unemployment without a safety net is a crisis no matter when it occurs.

(g) To rectify the unjust exclusion of immigrant workers from an essential social safety net program and build a safer and more resilient economy, this bill would require the Labor and Workforce Development Agency Economic Development Department to establish an Excluded Workers Pilot Program to provide weekly monetary assistance to unemployed workers who are not eligible for state or federal unemployment insurance benefits due to their immigration status.

(h) Additionally, this bill would direct the Labor and Workforce Development Agency Economic Development Department to study and make recommendations for the establishment of a permanent wage replacement program for unemployed individuals who are ineligible for unemployment insurance due to their immigration status. The agency department will be required to issue a written report summarizing its recommendations, which will include an evaluation of the Excluded Workers Pilot Program and incorporate feedback from key stakeholders, including community-based organizations who work directly with undocumented workers.

SEC. 2.Chapter 4 (commencing with Section 2020) is added to Part 8 of Division 2 of the Labor Code, to read:

SEC. 2.

 Chapter 2 (commencing with Section 2020) is added to Part 8 of Division 2 of the Labor Code, to read:

CHAPTER  2. Excluded Workers Pilot Program

2020.

 (a) This chapter establishes the Excluded Workers Pilot Program, which shall be administered by the Labor and Workforce Development Agency. Economic Development Department.

(b) The purpose of the Excluded Workers Pilot Program is to provide income assistance to excluded workers who are not eligible for the state or federal benefits administered by the Employment Development Department and who are unemployed.

(c) It is the intent of the Legislature to allow persons who are not lawfully present in the United States, as members of the class of workers excluded from unemployment insurance benefits, to participate in and receive disbursements from the Excluded Workers Pilot Program, and this chapter is therefore enacted pursuant to subsection (d) of Section 1621 of Title 8 of the United States Code.

2021.

 For purposes of this chapter, the following definitions apply:

(a) “Agency” means “Department” means the Economic Development Department of the Labor and Workforce Development Agency.

(b) “Director” means the Director of the Economic Development Department.

(b)

(c) “Employee” has the same meaning as defined in paragraph (1) of subdivision (b) of Section 2775.

(c)

(d) “Individual” means a person who is applying for or receiving disbursements from the program.

(d)

(e) “Personal information” means any type of information, whether written or oral, made or kept by any public officer or agency for the purpose of assessing an individual’s eligibility for, or administering the services authorized by, this chapter. information that identifies or describes an individual, including, but not limited to, the individual’s name, social security number, taxpayer identification number, physical description, home address, home telephone number, education, financial matters, and medical or employment history. It includes statements made by, or attributed to, the individual.

(e)

(f) “Program” means the Excluded Workers Pilot Program.

(f)“Secretary” means the Secretary of Labor and Workforce Development.

(g) “Wages” has the same meaning as defined in Section 926 of the Unemployment Insurance Code.

(h) “Week of unemployment” means a week of partial employment or a week of total unemployment. A week of total unemployment is a week during which the individual performs no work and earns no wages. A week of partial unemployment is a week during which the individual’s regular hours have been reduced and the individual works fewer than 20 total hours.

2022.

 (a) An individual shall be eligible to receive program benefits with respect to any week that falls between January 1, 2023, and December 31, 2023, inclusive, if the secretary director finds all of the following:

(1) The individual resides in California at the time of the application.

(2) The individual performed work in the United States as an employee either: at least 93 hours of work or earned at least one thousand three hundred dollars ($1,300) in gross wages over the course of three calendar months, which do not need to be consecutive, for work performed in California as an employee

(A)Within within the 18 12 months preceding their application for benefits.

(B)Between the months of January through March of 2020, inclusive.

(3) The individual experienced a week of unemployment between January 1, 2023, and December 31, 2023, inclusive. during that week.

(4) The individual is ineligible to receive unemployment insurance benefits under subdivision (a) of Section 1264 of the Unemployment Insurance Code or under subsection (a) of Section 604.3 of Title 20 of the Code of Federal Regulations for reasons related to the individual’s authorization to work.

(b) Notwithstanding any other law, an individual shall be eligible to receive benefits from the program regardless of their immigration status provided they meet the eligibility requirements set forth in subdivision (a).

(c) Notwithstanding subdivision (a), an individual shall not be eligible to receive payments from the program for any week in which the individual received paid family leave pursuant to Chapter 7 (commencing with Section 3300) of Part 2 of Division 1 of the Unemployment Insurance Code or disability benefits pursuant to Part 2 (commencing with Section 2601) of Division 1 of the Unemployment Insurance Code.

2023.

(a)An individual eligible for benefits under this chapter may submit an application no later than May 1, 2024, to the agency in such form as the secretary may prescribe, which shall establish both of the following:

(1)Proof of the individual’s identity.

(2)Proof of the individual’s eligibility under subdivision (a) of Section 2022.

(b)An individual applying for benefits under this chapter whose claim is denied in whole or in part by the agency shall be entitled to request a review of the denial. The review shall be conducted in a manner specified by the agency.

(c)If an application is denied, the agency shall provide notice within 10 days of the denial that shall include both of the following:

(1)A statement identifying the reasons for the denial.

(2)A statement regarding the individual’s right to request a review of the denial and an explanation of how to initiate the review.

(d)

2023.

 (a) On or before January 1, 2024, the department shall promulgate regulations to administer the program. The regulations shall set forth a process by which individuals may apply for the benefits under this chapter, a process for notifying individuals of the acceptance or denial of their application in a timely manner, and a process for individuals to request a review of the denial.

(b) In administering the program established by this chapter, the agency department shall not take any of the following actions:

(1) Requesting, orally or in writing, an individual’s nationality, place of birth, or eligibility or ineligibility for a social security number.

(2)Recording any document an individual provides to prove their identity.

(3)

(2) Compelling or requesting an individual to admit in writing whether they have proof of lawful presence in the United States.

(4)

(3) Contacting an individual’s current, former, or prospective employer for any purpose, including to verify employment status. This paragraph does not prohibit the department from using other means to verify past employment.

(5)

(4) Recording an individual’s immigration or citizenship status.

(e)

(c) The agency department and any entity acting as an agent for the agency for the purpose of administering the program shall destroy all records containing personal information provided by an individual to verify eligibility for the program within 60 days of the termination date of the program. department shall not retain the documents or copies of documents submitted by applicants for this program for any longer than necessary to administer benefits.

(f)

(d) The agency department shall begin accepting applications for the program on or before May 1, 2023. as soon as practicable following the issuance of final regulations to administer the program.

(g)Applications for this program shall be accepted until May 1, 2024, or until the program no longer has sufficient funds to pay benefits, whichever occurs first.

2024.

 (a) Personal information and documents collected under this chapter is are confidential, exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), and shall not be disclosed to any other person or entity, including, but not limited to, any other state or federal agency or official, except as required to administer the services authorized by this chapter or as expressly permitted in subdivision (b). may be used or disclosed only for purposes of administering the program, except where necessary to comply with an order, warrant, or subpoena, each if issued by a court.

(b)This section shall not prohibit the disclosure of personal information collected under this chapter in any of the following circumstances:

(1)The information is disclosed in a manner that cannot be used, whether alone or in combination with other information, to determine the identity of the individual to whom the data pertains.

(2)(A)The individual has provided signed, written consent allowing their personal information to be disclosed to the person requesting the information.

(B)Notwithstanding subparagraph (A), an individual’s signed, written consent as described in subparagraph (A) shall not be valid to authorize disclosure of information to a prospective employer or in connection with assessing the individual’s fitness or capacity for employment.

(C)A person shall not consider an individual’s failure to provide signed, written consent as described in subparagraph (A) when assessing the individual’s eligibility for a benefit or when considering an employment-related action against the individual.

(3)Disclosure is made pursuant to an individualized court order. If disclosure is authorized under this paragraph, the agency shall conduct an individualized review to ensure the disclosure is as narrowly tailored to comply with the order as reasonably possible in order to protect the individual’s privacy as much as reasonably possible.

(4)Disclosure is required under state or federal law. If disclosure is authorized under this paragraph, the agency shall conduct an individualized review to ensure the disclosure is as narrowly tailored to comply with the applicable state or federal law as reasonably possible in order to protect the individual’s privacy as much as reasonably possible.

(c)Notwithstanding any other law, personal information and records containing personal information that are collected or obtained pursuant to this chapter by the state, any state agency, any subdivision of the state, including agents of the California State University and the California Community Colleges, or any private person contracted to administer public services or programs shall only be collected, used, and retained for the purpose of assessing eligibility for, and providing those public services and programs created by, this chapter.

(d)Personal information obtained through this program shall not be used in connection with investigating, locating, or apprehending an individual for any immigration-related violations, including, but not limited to, a query or inquiry under Sections 1324, 1325, or 1326 of Title 8 of the United States Code.

(e)Notwithstanding subdivision (b), there shall be no disclosure of an individual’s information collected under this chapter unless the person or entity requesting the information certifies that the person or entity will not use the information for any purpose prohibited by subdivision (d). The certification shall be made under penalty of perjury, and a violation of this subdivision shall be a misdemeanor.

(f)

(b) In carrying out the services and programs created by this chapter, the agency department shall establish procedures and safeguards against unauthorized access to, and use of, personal information collected by the agency department pursuant to this chapter by any person or entity, public or private, other than an employee of the agency department or a person or entity acting as an agent for the agency department for the purpose of administering the program.

(g)Failure to maintain records as required by this section shall be a misdemeanor.

(h)Except as otherwise provided by this chapter, it shall be a felony for a person to do either of the following:

(1)Knowingly and willfully obtain records containing individually identifiable information under false pretenses.

(2)Knowingly and willfully violate this chapter to obtain records containing individually identifiable information.

2025.

 (a) Any individual found eligible for the program shall receive a payment in the amount of three hundred dollars ($300) for each week of unemployment occurring between January 1, 2023, and December 31, 2023, inclusive.

(b)The agency shall issue the initial payment for benefits to an eligible individual within 14 days of receipt of the individual’s properly completed application.

(c)

(b) The total number of weeks of unemployment for which a covered individual may receive assistance under this chapter shall not exceed 20 weeks.

2026.

 (a) On or before August 1, 2024, the agency January 1, 2025, the department shall submit a report to the Governor, Senate Committee on Insurance, Senate Committee on Labor, Public Employment and Retirement, Assembly Committee on Insurance, and Assembly Committee on Labor and Employment. Governor and the Legislature. The report shall make recommendations for establishing a permanent unemployment insurance benefit program for workers excluded from the unemployment insurance system based on their immigration status.

(b) The agency shall develop the recommendations described in subdivision (a) based on considerations and information, including, but not limited to, an evaluation of the program, research on the target population, assessment of the options for how to fund and administer the program, and stakeholder input.

(c) The agency department shall develop a process to solicit stakeholder input described in subdivision (b) throughout the planning and implementation of the program. The process shall include stakeholder listening sessions and a stakeholder survey. Stakeholders who shall be solicited include, but are not limited to, community-based organizations that work directly with workers excluded from unemployment insurance based on their immigration status.

2027.

 This chapter shall remain in effect only until January 1, 2025, 2026, and as of that date is repealed.

SEC. 3.Section 17140.6 is added to the Revenue and Taxation Code, to read:

17140.6.

For the taxable year beginning on or after January 1, 2023, and before January 1, 2025, gross income does not include benefits or payments received under Chapter 4 (commencing with Section 2020) of Part 8 of Division 2 of the Labor Code.

SEC. 4.

For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares as follows:

(a)The goals, purposes, and objectives of this exclusion are to ensure that, as much as is reasonably possible, the benefits received under the Excluded Workers Pilot Program (Chapter 4 (commencing with Section 2020) of Part 8 of Division 2 of the Labor Code) are spent in the communities in which the individuals receiving the benefits live.

(b)The Legislature shall use income reporting for the exclusion provided by the Franchise Tax Board as the performance indicator to measure whether the exclusion meets the goals, purposes, and objectives stated in subdivision (a).

(c)The Franchise Tax Board shall submit to the Legislature, no later than June 15, 2025, a report that complies with Section 9795 of the Government Code on the total number of claims for the exclusion and the amount claimed for each exclusion. Any individually identifiable information collected pursuant to this subdivision that is used in the report shall be compiled in an aggregate or anonymized manner to preserve confidentiality.

(d)The disclosure provisions of this section shall be treated as an exception to Section 19542, under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.

SEC. 5.SEC. 3.

 The sum of six hundred ninety million dollars ($690,000,000) is hereby appropriated from the General Fund to the Labor and Workforce Development Agency Economic Development Department for the purposes of carrying out the provisions of this act, of which up to 14 percent may be used by the agency for costs to implement and administer the program. act.

SEC. 6.SEC. 4.

 The Legislature finds and declares that Section 2 of this act, which adds Section 2024 to the Labor Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:

The act strikes a balance between furthering the public interest in rectifying the unjust exclusion of immigrant workers from essential social safety net programs like unemployment insurance and protecting the privacy of individuals receiving or applying for the benefits outlined in this act.

SEC. 7.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. 8.

This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.