AB 1389: Notice of levy.

Existing law requires the Employment Development Department to implement and administer the unemployment insurance program in this state, and provides for the payment of unemployment compensation benefits to eligible individuals who are unemployed through no fault of their own. Existing law provides for penalties and interest if any person or employing unit is delinquent in the payment of any contributions for unemployment insurance, and authorizes the Director of Employment Development to enforce any state tax liens against a delinquent account receivable or account held by a financial institution if proper notice is given. Existing law requires the person receiving a notice of levy, if the levy is made on an account receivable, to remit any credits or personal property owing to the delinquent person or employing unit to the department within 5 days of receipt of the notice of levy. Existing law also requires a person that comes into possession of credits or property owing to a delinquent person or employing unit within one year of receipt of the notice of an accounts receivable levy to remit the credits or property to the department within 5 days of coming into possession of the credits or property. Existing law requires a financial institution receiving a notice of levy to remit the property to the department within 5 days of receiving the notice of levy, but does not require the financial institution to remit property that is not in their possession at the time the notice of levy is served.

This bill would instead require the person in possession of credits or property owing to the delinquent person or employing unit to remit the credits or property to the department after 10 but no later than 14 business days after service of the levy. The bill would also require a person coming into possession of credits or property owing to the delinquent person or employing unit within one year of receipt of the notice of levy to remit the credits or property to the department after 10 but no later than 14 days after coming into possession of the credits or property. The bill would also make clarifying changes to these provisions.