This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

 THIRD READING  

Bill No: AB 103

Author: Committee on Budget

Amended: 6/22/20 in Senate

Vote: 21

PRIOR VOTES NOT RELEVANT

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 18-0, 6/24/20

AYES: Mitchell, Nielsen, Beall, Caballero, Dahle, Durazo, Hurtado, Leyva, McGuire, Melendez, Monning, Moorlach, Morrell, Pan, Roth, Skinner, Stern, Wieckowski

SUBJECT: Unemployment compensation benefits: COVID-19

SOURCE: Author

DIGEST:

This bill provides conformity to federal law for the purpose of accessing additional unemployment insurance administration funds and to extend unemployment insurance benefits to workers.

ANALYSIS:

Existing law:

1. Establishes the Unemployment Insurance (UI) program administered by the Employment Development Department (EDD) to provide partial wage replacement to workers who lost their job through no fault of their own.
2. Establishes a number of eligibility criteria for receiving UI benefits including the requirement that the recipient be able and available to accept suitable work and actively engaged in the search for suitable work.
3. Establishes a one-week waiting period before an unemployed worker can obtain UI benefits.
4. Provides an unemployed worker with 50 percent of their weekly wages (based on the worker’s highest quarterly earnings in the prior 18 months) with a maximum weekly benefit of $450 for up to 26 weeks.
5. Requires employers to pay a state UI tax on the first $7,000 of wages paid to a worker each year to pay the cost of UI benefits.
6. Requires employers, as a matter of federal law, to pay a federal UI tax on the first $7,000 of wages paid to a worker to pay the cost of UI administration.
7. Establishes a schedule of UI tax rates (with a maximum rate of 6.2 percent).
8. Establishes the Federal-State Extended Unemployment Compensation Act of 1970 to provide extended duration benefits program known as Fed-ED. Fed-ED is funded 50 percent from Federal funds and 50 percent from state funds.
9. Extends the amount of time workers can claim UI benefits from 26 weeks to 39 weeks under House Resolution 748 (The Coronavirus Aid, Relief, Economic Security Act). HR 748 specifies that the federal government pay the full cost of the extra weeks of benefits. The extra weeks of benefits would be available until the end of the 2020.
10. Activates Fed-ED when the state’s Insured Unemployed Rate (IUR) is at least five percent, and is at least 120 percent higher than the average IUR for the same period in the two previous years. The IUR is based on the number of workers collecting UI benefits as a percentage of those who are covered by the UI program.

Federal law also permits states to also adopt a Total Unemployment Rate (TUR), which is based on total number of unemployed individuals who are a part of the labor force, to determine when Fed-ED is available. When the TUR averages 6.5 percent over the most recent three month period, up to 13 weeks of Fed-ED benefits are available. When the TUR averages eight percent over the most recent three month period, up to 20 weeks of Fed-ED benefits are available to individuals who have exhausted their regular UI benefits.

1. Establishes HR 6201, Families First Coronavirus Response Act, which makes available approximately $120 million Federal Funds in UI administration funds for California, as specified. Funding is provided in two allotments to the state, and the state must adopt certain UI administrative changes, as specified, to receive these funds.

This bill:

1. Non-Charging of Employers. Specifies that for the duration of all federal unemployment benefits program specifically created for the COVID-19 pandemic, unemployment insurance benefits paid shall not be charged against the reserve account for a tax-rated employer, as specified. This section shall be repealed on January 1, 2021, unless non-charging provisions are extended by federal law.
2. Total Unemployment Rate Trigger. Triggers on the Fed-ED benefits under the TUR trigger for the period beginning on or after March 18, 2020, pursuant to the Families First Coronavirus Response Act, as specified.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Budget and Fiscal Review Committee, this bill would provide for the payment of additional benefit amounts from the unemployment fund, a continuously appropriated special fund.

SUPPORT: (Verified 6/23/20)

None received

OPPOSITION: (Verified 6/23/20)

None received

Prepared by: Anita Lee / B. & F.R. / 916-651-4103

6/25/20 0:58:09

**** END ****

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 103

Author:(Committee on Budget)

As Amended Ver:June 22, 2020

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This is the Unemployment Compensation Benefits COVID-19 trailer bill for the 2020-21 budget. It contains the necessary changes necessary to implement the 2020 Budget Act. Specifically, this bill:

The Senate Amendments:

1. Deletes the current contents of the bill and instead:
   1. Prohibits unemployment compensation benefits paid to an unemployed individual from being charged against the reserve account of a tax-rated employer, unless the employer or an agent of the employer was at fault, as prescribed, for the duration of all federal unemployment benefit programs. Provides that this provision shall become inoperative on January 1, 2021, unless the director determines that noncharging provisions are otherwise extended by federal law.
   2. Provides for the payment of temporary federal-state emergency unemployment compensation benefits to eligible individuals in this state for weeks of unemployment beginning on or after March 18, 2020, and continuing until the week ending four weeks prior to the last week for which 100% federal sharing is authorized by the federal Families First Coronavirus Response Act or for weeks of unemployment ending four weeks prior to the last week for which Congress has authorized 100% sharing.

COMMENTS:

1. This bill is a budget trailer bill within the overall 2020-21 budget package necessary to implement actions related Unemployment Compensation Benefits COVID-19.
2. This bill provides some limited relief to tax-rated employers whose employees are unemployed as a direct or indirect reason related to COVID-19.
3. This also amends California Unemployment Insurance Code to allow the state to trigger onto the Federal-State Extended Benefit program using the Total Unemployment Rate, which would potentially provide up to 20 weeks of total Unemployment Insurance extended benefits to unemployed workers, funded 100 percent by the federal government.
4. Both of these provisions take advantage of flexibility and new federal funding sources provided in recent federal legislation enacted in response to the coronavirus pandemic.

According to the Author:

None

Arguments in Support:

None on file.

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

This bill provides for the payment of additional amounts from the Unemployment Fund and makes a continuous appropriation.

VOTES:

ASSEMBLY FLOOR: 54-13-13

YES: Aguiar-Curry, Bauer-Kahan, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chu, Cooper, Daly, Eggman, Frazier, Friedman, Gabriel, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Limón, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Weber, Wicks, Wood, Rendon

NO: Bigelow, Brough, Dahle, Flora, Fong, Gallagher, Kiley, Mathis, Melendez, Obernolte, Patterson, Voepel, Waldron

ABS, ABST OR NV: Arambula, Berman, Chen, Chiu, Choi, Cooley, Cunningham, Diep, Eduardo Garcia, Lackey, Levine, Low, Mayes

UPDATED:

VERSION: June 22, 2020

CONSULTANT: Genevieve Morelos / BUDGET / (916) 319-2099 FN: 0003152

SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: AB 103 Hearing Date: June 24, 2020

Subject: Unemployment Compensation Benefits: COVID-19

Summary:

This bill provides conformity to federal law for the purpose of accessing additional unemployment insurance administration funds and to extend unemployment insurance benefits to workers.

Existing Law:

1. Establishes the Unemployment Insurance (UI) program administered by the Employment Development Department (EDD) to provide partial wage replacement to workers who lost their job through no fault of their own.
2. Establishes a number of eligibility criteria for receiving UI benefits including the requirement that the recipient be able and available to accept suitable work and actively engaged in the search for suitable work.
3. Establishes a one-week waiting period before an unemployed worker can obtain UI benefits.
4. Provides an unemployed worker with 50 percent of their weekly wages (based on the worker’s highest quarterly earnings in the prior 18 months) with a maximum weekly benefit of $450 for up to 26 weeks.
5. Requires employers to pay a state UI tax on the first $7,000 of wages paid to a worker each year to pay the cost of UI benefits.
6. Requires employers, as a matter of federal law, to pay a federal UI tax on the first $7,000 of wages paid to a worker to pay the cost of UI administration.
7. Establishes a schedule of UI tax rates (with a maximum rate of 6.2 percent).
8. Establishes the Federal-State Extended Unemployment Compensation Act of 1970 to provide extended duration benefits program known as Fed-ED. Fed-ED is funded 50 percent from Federal funds and 50 percent from state funds.
9. Extends the amount of time workers can claim UI benefits from 26 weeks to 39 weeks under House Resolution 748 (The Coronavirus Aid, Relief, Economic Security Act). HR 748 specifies that the federal government pay the full cost of the extra weeks of benefits. The extra weeks of benefits would be available until the end of the 2020.
10. Activates Fed-ED when the state’s Insured Unemployed Rate (IUR) is at least five percent, and is at least 120 percent higher than the average IUR for the same period in the two previous years. The IUR is based on the number of workers collecting UI benefits as a percentage of those who are covered by the UI program.

Federal law also permits states to also adopt a Total Unemployment Rate (TUR), which is based on total number of unemployed individuals who are a part of the labor force, to determine when Fed-ED is available. When the TUR averages 6.5 percent over the most recent three month period, up to 13 weeks of Fed-ED benefits are available. When the TUR averages eight percent over the most recent three month period, up to 20 weeks of Fed-ED benefits are available to individuals who have exhausted their regular UI benefits.

1. Establishes HR 6201, Families First Coronavirus Response Act, which makes available approximately $120 million Federal Funds in UI administration funds for California, as specified. Funding is provided in two allotments to the state, and the state must adopt certain UI administrative changes, as specified, to receive these funds.

Proposed Law:

This bill provides conformity to federal law for the purpose of accessing additional unemployment insurance administration funds and to extend unemployment insurance benefits to workers.

1. Non-Charging of Employers. Specifies that for the duration of all federal unemployment benefits program specifically created for the COVID-19 pandemic, unemployment insurance benefits paid shall not be charged against the reserve account for a tax-rated employer, as specified. This section shall be repealed on July 1, 2021, unless non-charging provisions are extended by federal law.
2. Total Unemployment Rate Trigger. Triggers on the Fed-ED benefits under the TUR trigger for the period beginning on or after March 18, 2020, pursuant to the Families First Coronavirus Response Act, as specified.

Fiscal Effect:

This bill would provide for the payment of additional benefit amounts from the unemployment fund, a continuously appropriated special fund.

Support:

None on file.

Opposed:

None on file.

-- END --

 THIRD READING  

Bill No: AB 103

Author: Committee on Budget

Amended: 6/20/19 in Senate

Vote: 21

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 12-5, 6/24/19

AYES: Mitchell, Durazo, Hurtado, Leyva, McGuire, Monning, Pan, Roth, Skinner, Stern, Umberg, Wieckowski

NOES: Nielsen, Jones, Moorlach, Morrell, Stone

NO VOTE RECORDED: Beall

ASSEMBLY FLOOR: Not relevant

SUBJECT: Health

SOURCE: Author

DIGEST:

This bill is an omnibus health trailer bill, and contains changes to implement the 2019-20 budget.

ANALYSIS: This bill makes statutory revisions affecting health programs necessary to implement the Budget Act of 2019. Specifically, this bill:

1. Revises the focus of the Council on Health Care Delivery Systems approved in the 2018 Budget Act, renaming it the Healthy California for All Commission and requiring evaluation of the existing health care delivery system and options to transition to a unified financing system, including, but not limited, to single payer.
2. Extends Medi-Cal eligibility from 60 days to 12 months after delivery for women in pregnancy-related Medi-Cal programs who are diagnosed with a maternal mental health condition. Suspends the program on December 31, 2021, unless the Director of Finance determines that General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
3. Expands Medi-Cal eligibility to 138 percent of the federal poverty limit for aged and disabled individuals, beginning January 1, 2020.
4. Expands full-scope Medi-Cal eligibility for adults age 19 to 25 regardless of immigration status, beginning January 1, 2020.
5. Adjusts the reimbursement rate development methodology for Programs for All-Inclusive Care for the Elderly.
6. Withholds 1991 Realignment funds from the County Medical Services Program until the program’s reserves reach a level equivalent to two years of expenditures.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: Yes

According to the Senate Budget and Fiscal Review Committee, this bill withholds 1991 Realignment funds from the County Medical Services Program beginning in 2019-20 until the program’s reserves reach a level equivalent to two years of expenditures. The withheld funds are deposited in the Family Support Subaccount of the Local Revenue Fund, which is continuously appropriated to counties for the purpose of funding the California Work Opportunity and Responsibility to Kids (CalWORKs) program. These funds offset state General Fund expenditures for the CalWORKs program, resulting in net General Fund savings to the state.

SUPPORT: (Verified 6/20/19)

None received

OPPOSITION: (Verified 6/20/19)

None received

Prepared by: Scott Ogus / B. & F.R. / 916-651-4103

6/24/19 13:54:30

**** END ****

SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: AB 103 Hearing Date: June 24, 2019

Subject: Health

Summary:

This bill is an omnibus health trailer bill, and contains changes to implement the 2019-20 budget.

Proposed Law:

This bill makes statutory revisions affecting health programs necessary to implement the Budget Act of 2019. Specifically, this bill:

1. Revises the focus of the Council on Health Care Delivery Systems approved in the 2018 Budget Act, renaming it the Healthy California for All Commission and requiring evaluation of the existing health care delivery system and options to transition to a unified financing system, including, but not limited, to single payer.
2. Extends Medi-Cal eligibility from 60 days to 12 months after delivery for women in pregnancy-related Medi-Cal programs who are diagnosed with a maternal mental health condition. Suspends the program on December 31, 2021, unless the Director of Finance determines that General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
3. Expands Medi-Cal eligibility to 138 percent of the FPL for aged and disabled individuals, beginning January 1, 2020.
4. Expands full-scope Medi-Cal eligibility for adults age 19 to 25 regardless of immigration status, beginning January 1, 2020.
5. Adjusts the reimbursement rate development methodology for Programs for All-Inclusive Care for the Elderly.
6. Withholds 1991 Realignment funds from the County Medical Services Program until the program’s reserves reach a level equivalent to two years of expenditures.

Fiscal Effect:

Withholds 1991 Realignment funds from the County Medical Services Program beginning in 2019-20 until the program’s reserves reach a level equivalent to two years of expenditures. The withheld funds are deposited in the Family Support Subaccount of the Local Revenue Fund, which is continuously appropriated to counties for the purpose of funding the California Work Opportunity and Responsibility to Kids (CalWORKs) program. These funds offset state General Fund expenditures for the CalWORKs program, resulting in net General Fund savings to the state.

Support:

None on file.

Opposed:

None on file.

-- END --

(Without Reference to File)

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 103

Author:(Committee on Budget)

As Amended Ver:June 20, 2019

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This is a Health Trailer Bill for 2019-20. It contains necessary changes related to the Budget Act of 2019. This bill makes various statutory changes to implement the 2019-20 budget.

Major Provisions

Full-Scope Expansion to Young Adults Regardless of Immigration Status. Expands Medi-Cal eligibility to individuals 19-26 years old, regardless of immigration status, who meet income and other eligibility requirements, no sooner than July 1, 2019. Requires the Department of Health Care Services to maximize federal financial participation for this population, and to use state funds as necessary in the absence of federal funds.

1. Elimination of Medi-Cal Senior Penalty. Increases, for people 65 years of age or older, Medi-Cal countable income to include an additional $230 for an individual or $310 for a couple, contingent on federal approval, no sooner than January 1, 2020.
   1. Requires that all countable income over 100% of the federal poverty level, up to 138% of the federal poverty level, be disregarded, after taking all other disregards, deductions, and exclusions into account for individuals 65 years and older.
   2. Requires the income level determined for this population to be not less than the SSI/SSP payment level the individual (or couple) receives or would receive as a disabled or blind individual (or couple).
   3. Requires the Department of Health Care Services to adopt regulations by July 1, 2023, and provide a status report to the Legislature on a semiannual basis until regulations are adopted.
2. Extension of Post-Partum Mental Health Benefits. Extends Medi-Cal post-partum benefits from 60 days to one year for women receiving restricted-scope benefits who have a maternal mental health condition.
   1. Defines "maternal mental health condition" as a mental health condition that occurs during pregnancy or during the postpartum period and, includes, but is not limited to, postpartum depression.
   2. Requires a beneficiary, wishing to qualify for extended benefits, to submit to a county eligibility worker a note from that individual's treating health care provider stating that the health care provider has diagnosed the individual with a maternal mental health condition within 60 days following the last day of the individual's pregnancy.
   3. Authorizes a former beneficiary, wishing to qualify for extended benefits, who lost Medi-Cal coverage within 60 days of the last day of the pregnancy and who is diagnosed with a maternal mental health condition more than 60 days following the last day of pregnancy, to be reinstated to their previous Medi-Cal eligibility by submitting a note from their treating health care provider.
   4. Suspends these benefits on December 31, 2021, unless it is determined that estimated annual General Fund revenues exceed estimated annual General Fund expenditures for the 2021-22 and 2022-23 fiscal years. Establishes legislative intent to consider alternative solutions to restore these benefits if the suspension takes effect.
3. PACE Modernization Act Amendments. Requires that Medi-Cal rates for Programs of All-Inclusive Care for the Elderly (PACE) be consistent with actuarial rate development principles and provide for all reasonable, appropriate, and attainable costs for each PACE organization within a region. Requires the rates for PACE organizations during their first two years of operation to reflect the lower enrollment and higher operating costs associated with a new PACE organizations.
4. Realignment Funding Redirection for CMSP Board. Redirects 100% of the County Medical Services Program (CMSP) Board realignment funding to the state until the Board has reduced its reserves to two years of expenditures, at which point the realignment redirection returns to the current level of 60%. Declares that Yolo County operates within the CMSP structure.
5. Council on Health Care Delivery Systems. Renames the Council on Health Care Delivery Systems to the Healthy California for All Commission, and recasts its responsibilities and membership.
   1. Increases the membership from 5 to 13 members, including: 1) the Secretary of the California Health and Human Services Agency, or the secretary's designee, to serve as the chairperson; 2) eight members appointed by the Governor; 3) two members appointed by the Senate; and 3) two members appointed by the Assembly.
   2. Adds five ex-officio nonvoting members, including: 1) the Executive Director of the California Health Benefit Exchange; 2) the Director of the Department of Health Care Services; 3) the Chief Executive Officer of the Public Employees' Retirement System; and 4) the chairs of the Assembly and Senate Health Committees.
   3. Requires the commission to submit a report to the Legislature and Governor, by July 1, 2020, with options, including: An analysis of California's existing health care delivery system; additional steps California can take to prepare for transition to a unified financing system; and coverage expansion options, including expanding Medi-Cal to cover individuals over 64 years of age, regardless of immigration status.
   4. Requires the commission to submit a report to the Legislature and Governor, by February 1, 2021, including options for key design considerations for a unified financing system, including, but not limited to, a single –payer financing system.
   5. Requires the commission to provide an update to the Legislature and Governor on its progress on the required reports by January 1, 2020, and every six months thereafter.
6. Budget Trailer Bill. Establishes that this is a budget trailer bill and makes an appropriation.

The Senate Amendments:

COMMENTS:

This bill is a budget trailer bill within the overall 2019-20 budget package to implement actions taken affecting the California Health and Human Services Agency and the Department of Health Care Services.

According to the Author:

Arguments in Support:

Arguments in Opposition:

FISCAL COMMENTS:

VOTES:

ASSEMBLY FLOOR: 54-13-13

YES: Aguiar-Curry, Bauer-Kahan, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chu, Cooper, Daly, Eggman, Frazier, Friedman, Gabriel, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Limón, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Weber, Wicks, Wood, Rendon

NO: Bigelow, Brough, Dahle, Flora, Fong, Gallagher, Kiley, Mathis, Melendez, Obernolte, Patterson, Voepel, Waldron

ABS, ABST OR NV: Arambula, Berman, Chen, Chiu, Choi, Cooley, Cunningham, Diep, Eduardo Garcia, Lackey, Levine, Low, Mayes

UPDATED:

VERSION: June 20, 2019

CONSULTANT: Andrea Margolis / BUDGET / (916) 319-2099 FN: 0001146

ASSEMBLY THIRD READING

ATR Bill Id:AB 103

Author:(Ting)

As Introduced Ver:December 3, 2018

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This bill expresses the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

Major Provisions

COMMENTS:

According to the Author:

Arguments in Support:

Arguments in Opposition:

FISCAL COMMENTS:

VOTES:

UPDATED:

VERSION: December 3, 2018

CONSULTANT: Christian Griffith / BUDGET / (916) 319-2099 FN: 0000146