IE11 Not Supported

For optimal browsing, we recommend Chrome, Firefox or Safari browsers.

How Bills Would Target IT at Employment Department

A number of pieces of legislation making their way through the statehouse seek to modernize or improve upon processes and IT at the Employment Development Department — and at least one more example is in the works.

img-7466.jpg
Several bills active in the Legislature would modernize significant aspects of the Employment Development Department’s IT infrastructure, should they clear the statehouse and the governor’s desk.

Among their goals, the bills would formalize plans to “reform” EDD. They’d also require the identification and prioritization of aspects of the ongoing Benefits Modernization System IT project; the assessment of fraud detection and prevention tools; the tracking and analysis of why claimants call for assistance; and the analysis of data to improve the EDD call center. They’re reportedly among as many as two dozen focusing in some way on EDD. Among the takeaways:

  • Assembly Bill 360, from Assemblymember Jim Patterson, R-Fresno, would create the Unemployment Insurance Reform Project to be led by EDD’s director. The bill would also require the department to “report specified information regarding overpayments” at least twice yearly on its website and mandate an immediate risk assessment of “deferred workloads” and development of a “workload plan” prioritizing those workloads based on the assessment. It would require immediate revision of public dashboard information about backlogged claims; require identification of “the elements of the Benefit System Modernization that can assist the department in making timely payments”; require a policy setting a process for tracking and analyzing why claimants call for assistance — and analyze this data twice yearly to improve EDD’s call center. The bill is headed next to the Assembly Committee on Insurance, where it could be heard April 15 or April 29.
    In response to questions from Techwire, Patterson said via email that the bill, introduced this session, “was born out of State Auditor Elaine Howle’s recommendations from the two most recent EDD audit reports,” and has as a backup “budget control language to hold the department accountable to the auditor’s recommendations immediately.” 
    “Just as with other government agencies, the dinosaur technology used at the EDD causes the bulk of the issues. As a recent example, the EDD was unable to turn around new federal unemployment funds for people with claims that ran out on December 26, 2020,” Patterson said, calling the bill’s aspects of IT modernization “crucial.” Those funds, he said, didn’t become available until after March 7.
    Co-author Sen. Melissa Melendez, R-Lake Elsinore, called the bill’s IT components “vital” via email, adding: “Government is horrible at adopting and completing technology projects. Unfortunately, state government refuses to implement new advanced systems even with California being a central hub for the innovation of technology.” The EDD said via email that it “would not be able to comment on developing legislation before receiving official details as to how said legislation would affect EDD policy and/or procedures.”
  • Assemblymember David Chiu, D-San Francisco, told Techwire on Monday that he is working on a spot bill focused on IT reform that will likely reach further across state government than just EDD. The department is “top of the list” for IT reform, he said, but “is certainly not the only agency or set of projects that has been incredibly challenged.” 
    “What I have seen as a legislator is a whole series of projects that predate this governor and our Legislature that, like EDD, reflect antiquated technology, reflect an incredible need for modernization and involve incredibly important functions of state government,” Chiu said. His office last month announced a package of EDD-related legislation from the lawmaker’s Assembly colleagues. Several of these bills have government IT elements.
  • State Senate Bill 375, from state Sen. Scott Wilk, R-Santa Clarita, would also set a policy on tracking and analyzing why unemployment insurance claimants call to seek help. Additionally, it would require EDD, in doing its analysis, to identify and resolve issues or weakness in how it gives assistance to claimants. The bill has been referred to the Senate Committee on Rules.
  • Assembly Bill 397 from Assemblymember Chad Mayes, I-Yucca Valley, would make sure claimants who answer a certification question incorrectly and have received an overpayment aren’t locked out of their benefits. It has also been referred to the Assembly Committee on Insurance.
  • Assembly Bill 110, from Assemblymember Cottie Petrie-Norris, D-Laguna Beach, would require EDD to cross-check with the California Department of Corrections and Rehabilitation to avoid paying fraudulent benefit claims to inmates. It has been referred to the Assembly committees on Insurance and Privacy and Consumer Protection.
  • Similarly to AB 360 and SB 375, SB 232 would require EDD to identify and prioritize implementing aspects of the Benefit Modernization System project and set a policy for tracking and analyzing why claimants call for help. From Sen. Jim Nielsen, R-Tehama, it would also require EDD to provide the Legislature with a plan for assessing how effective its fraud prevention and detection tools are. It was re-referred Thursday to the Senate Committee on Rules.
Theo Douglas is Assistant Managing Editor of Industry Insider — California.