GOOD AFTERNOON TO ALL. I
APOLOGIZE FOR MY TARDINESS. MY
FLIGHT WAS 30 MINUTES DELAYED,
LEAVING. THE, UH. JOINT
INFORMATIONAL HEARING OF THE
ASSEMBLY INSURANCE COMMITTEE AND
THE ASSEMBLY ACCOUNTABILITY AND
ADMINISTRATIVE REVIEW COMMITTEE.
IS CALLED TO ORDER OR FOCUSES ON
THE EMPLOYMENT DEVELOPMENT
DEPARTMENT. TO ALLOW AS MUCH
TIME AS POSSIBLE FOR QUESTIONS
AND ANSWERS OR KEEP MY OPENING
REMARKS VERY BRIEF. TODAY, WE'LL
BE HEARING FROM THE CALIFORNIA
STATE AUDITOR'S OFFICE. THE
EMPLOYMENT DEVELOPMENT
DEPARTMENT ITSELF AND THE
LEGISLATIVE ANALYST'S OFFICE.
THE STATE AUDITOR'S OFFICE IN
THE LEGISLATIVE ANALYST'S OFFICE
HAVE DONE A CONSIDERABLE AMOUNT
OF RESEARCH ON E. D. D. I
APPRECIATE THEIR THOROUGH
ANALYSIS OF THE DEPARTMENT AND I
LOOK FORWARD TO HEARING FROM
THEM TODAY. THOSE TWO ENTITIES,
THE AUDITOR AND THE LEGISLATIVE
ANALYST ABOUT WHAT MORE NEEDS TO
BE DONE TO ENSURE THAT EDDIE
PERFORMS. TO ITS MAXIMUM ON
BEHALF OF THE CITIZENS OF
CALIFORNIA. AS CHAIR OF THE
ASSEMBLY INSURANCE COMMITTEE. I
HAVE HELD SEVERAL INFORMATIONAL
HEARINGS OVER THE LAST TWO YEARS
ON E. D. D. AND SAW
APPROXIMATELY TWO DOZEN BILLS
COME THROUGH THIS COMMITTEE. THE
INSURANCE COMMITTEE, ADDRESSING
BROADLY PUT TRANSPARENCY AND
EFFICIENCY IN THE DEPARTMENT.
IMPROVEMENTS HAVE BEEN MADE. BUT
MORE IMPROVEMENTS ARE NEEDED.
OUR WORK IS NOT COMPLETE. I LOOK
FORWARD TO HEARING TODAY. WHAT
WORK MAY STILL BE DONE BY E D. D
SO THE DEPARTMENT IS BETTER
PREPARED IN THE FUTURE. NOW, I'D
LIKE TO INTRODUCE ASSEMBLY
MEMBER CARDI PETRIE-NORRIS, WHO
WAS CHAIR OF THE ASSEMBLY
ACCOUNTABILITY AND
ADMINISTRATIVE REVIEW COMMITTEE.
HEAR HER PERSPECTIVE. OUR DAILY. OKAY AND WE'RE WORKING. THANK
YOU. CHAIR DAILY. UH, AND GOOD
AFTERNOON AT WANT TO SAY THANK
YOU, UM TO CHAIR DAILY, AS WELL
AS TO THE OTHER MEMBERS WHO ARE
ABLE TO JOIN US HERE TODAY. IT
IS NO SECRET THAT THROUGHOUT THE
COVID 19 PANDEMIC, THE
EMPLOYMENT DEVELOPMENT
DEPARTMENT FAILED CALIFORNIA
DEPARTMENT WAS INUNDATED WITH
CALLS FROM DESPERATE
CALIFORNIANS AND DIRE NEED OF
HELP. THIS EXTRAORDINARY
INCREASE IN CLAIMS RESULTED IN
LONG WAIT TIMES AND SERVICE
FAILURES. IT ALSO RESULTED IN
TREMENDOUS FINANCIAL LOSS
FRAUDSTERS WHO TOOK ADVANTAGE OF
THE PANDEMIC STILL BILLIONS OF
DOLLARS THAT WERE SUPPOSED TO
HELP CALIFORNIANS WHO FOUND
THEMSELVES DISPLACED BY THE
COVID CRISIS, AND THIS FINANCIAL
LOSS WAS MATCHED ONLY BY THE
LOSS IN TRUST THAT THE PUBLIC
HAD IN OUR GOVERNMENT'S ABILITY
TO FUNCTION PROPERLY WHEN PEOPLE
NEEDED US MOST FAILURES AT CDG
LEAD TO ADDITIONAL STRESS AND
HARDSHIP FOR OUR CONSTITUENTS
AND REALLY REPRESENTATIVE
FUNDAMENTAL BREAKDOWN OF OUR
SOCIAL SAFETY NET. I THINK IT'S
IMPORTANT FOR US TO ACKNOWLEDGE
THAT REBUILDING THAT TRUST WILL
BE A LONG ROAD. I KNOW THAT I AM
COMMITTED AS A AS CHAIR DAILY
AND OUR COLLEAGUES HERE. TO
DOING THAT WORK I, ALONG WITH
CHAIR DAILY AND ANOTHER
COLLEAGUES IN THE LEGISLATURE
HELD A SERIES OF OVERSIGHT
HEARINGS TO GET ANSWERS FROM THE
E AND TO ENSURE GREATER
ACCOUNTABILITY. TODAY WE'RE
CONVENING AGAIN TO GET AN UPDATE
FROM THE DEPARTMENT, AS WELL AS
THE STATE AUDITOR'S OFFICE AND
THE LEGISLATIVE ANALYST'S OFFICE
. MY GOAL TODAY IS REALLY TO
LEARN MORE ABOUT WHAT
IMPROVEMENTS HAVE BEEN MADE.
WHAT ISSUES STILL PRESENT A
CHALLENGE AND WHAT IS NEEDED TO
MAKE SURE THAT AS WE MOVE
FORWARD, WE ARE ABLE TO BOTH
SAFEGUARD AGAINST FRAUD AND
SERVE THE PUBLIC IN MOMENTS OF
CRISIS. SO WITH THAT, UM, ARE
THERE OTHER, UM, MEMBERS OF THE
COMMITTEE WHO WOULD LIKE TO MAKE
AN OPENING STATEMENT? YES,
CERTAINLY IF I COULD. WELL,
THANK YOU MATTER, MADAM AND MR
CHAIRPERSONS FOR ORGANIZING.
DON'T LAUGH AT ME. UH HUH. FOR
ORGANIZING THIS IMPORTANT
HEARING. I WOULD LIKE TO USE
THIS TIME TO SPEAK ABOUT, UH,
FRAUD PREVENTION MEASURES. THE L
. A REPORT MINIMIZES THE
ENORMITY OF THESE CLAIMS, AND
PETE'S THEM AS AN OBSTACLE FOR
RECEIVING BENEFITS AS YOU SEE
THE STACK. OF AUDITS RIGHT HERE.
THESE ARE ALL THE AUDITS THAT AH
WE HAVE SENT TO E, D. D AND YET
WE'VE HAD MINIMAL, MINIMAL.
RESPONSES TO THESE IDENTIFIED
PROBLEMS. THE LATEST FIGURES
INDICATE THAT WE LOST $32
BILLION WORTH OF PUBLIC FUNDS,
WHETHER THOSE WERE STATE OR
FEDERAL PROGRAMS. WE FAILED TO
PROTECT TAXPAYER FUNDS. TO PUT
THIS IN PERSPECTIVE, MY DISTRICT
OFFICE ALONG WITH OTHER MEMBERS
OF THIS BODY. DEDICATED MANY
HOURS TO PREVENT FRAUDULENT
CLAIMS BECAUSE OF THE LACK OF
VERIFICATION PERFORMED BY THIS
DEPARTMENT. WHILE WE KNOW THAT
IN 2016 ET DE TURNED OFF THE
PANDORA SYSTEM THAT DISTRICT
ATTORNEY'S HELD AS AN EFFECTIVE
TOOL FOR DETECTING AND TRACKING
FRAUD AT THE DEPARTMENT AND
WOULD HAVE MINIMIZED THE
TOTALITY OF STOLEN FUNDS. WE
STILL HAVE VICTIMS COMING
FORWARD WITH CLAIMS THAT THEIR
IDENTITIES ARE BEING CUT COOP
DID FOR CRIMINALITY. THIS JUST
THIS IS TO SAY WE BADLY NEED
THESE FRAUD PREVENTION TOOLS
BECAUSE BAD ACTORS WILL
MANIPULATE A WEEK VERIFICATION
PROCESS AND ARE NOT AFRAID TO
SEEK HELP FROM PUBLIC OFFICERS
WHO NEED TO BE SERVING THE
PEOPLE IN NEED. SO I LOOK
FORWARD TO THIS, UH, THIS
DISCUSSION AND I HOPE THAT WE
CAN BRING REAL REMEDY INSTEAD OF
ANOTHER STACK OF PAPER THAT JUST
KIND OF SITS WE REALLY NEED
ACTION HERE. THIS IS SOMETHING.
THIS IS A BIG FAILURE TO OUR
PUBLIC WHO DEPENDS ON US AND
ESPECIALLY DURING THIS VERY,
VERY DIFFICULT TIME PROVED TO BE
DISAPPOINTING. SO LET'S UH LET'S
FIX IT AND LET'S MAKE IT BETTER.
THANK YOU. THANK YOU, MR LACKEY,
AND THAT'S VERY WELL, SAID. MR
JIM WOOD IS NEXT. THANK YOU. MR
CHAIR, MADAM CHAIR. UM I'M GOING
TO PUT A DIFFERENT FACE ON THIS,
AND I'M GOING TO READ SOMETHING
HERE. UH, LETTER FROM A
CONSTITUENT, UM AS MANY OF YOU
ARE AWARE OUR STAFFS AND IN OUR
DISTRICT OFFICES BECAME DE FACTO
EMPLOYEES THAT BEAT E D. D. IT
SEEMED, WE ARE HOW MANY CLAIMS
WERE PROCESSED AND THINGS WE
WORKED ON TO HELP HELP OUR
CONSTITUENTS. BUT I WANT TO READ
THIS BECAUSE I THINK, UM,
OBVIOUSLY WE HAVE A HUGE ISSUE
WITH FRAUD. BUT WE ALSO HAVE
ANOTHER ISSUE AND I WILL USE
THIS TO HIGHLIGHT THAT, UM OUR
EPISODE WAS PURE SUFFERING. MY
WIFE LOST HER JOB DUE TO COVID
AND WE APPLIED FOR UNEMPLOYMENT
BENEFITS JUST TO GET STARTED.
APPLICANTS MUST GO THROUGH. I D
ME. THERE IS MUCH TO SAY ABOUT I
D ME. UM I WOULD JUST SAY WE
WERE ON HOLD FOR 11 HOURS
BECAUSE WE NEEDED TO BE PRESENT
WHEN OUR TURN CAME UP. NO
APPOINTMENTS. NO OTHER OPTIONS.
AND THEN AFTER SUCCEEDING WE
WERE MADE TO DO IT ALL OVER
AGAIN BECAUSE OF AN ERROR ON THE
PART OF THE DEPARTMENT. THIS
TIME WE WERE MERCIFULLY ON HOLD
FOR ONLY FIVE HOURS. FINALLY
SUCCESSFUL PROBLEMS, THEN BEGAN
WITH THE DD ITSELF, WHICH WE
COULD NOT BREAK THROUGH. THIS IS
WHERE MY STAFF CAME IN WITH THE
HELP WITH THE LOGJAM, WHICH WAS
RESOLVED THE NEXT DAY. EVEN
THOUGH THERE WERE MORE PROBLEMS
DUE TO E D D ERRORS WHICH FORCED
US TO GO TO OUR BANK WITH
PASSPORTS. I D S ETCETERA MEET
WITH A BANK OFFICER WHERE THEN
THE THREE OF US HAD TO KANT HAD
TO CONTACT B OF A DEBIT CARD
WITH ANOTHER OFFICER PRESENT TO
VERIFY OUR IDENTITY. THIS AFTER
ALL, AFTER GOING THROUGH THE I D
ME PROCESS, SO OUR STAFF HELPED
WITH THE BANK OF AMERICA AS
WELL. WE KNOW THAT HE D LOST
BILLIONS OF DOLLARS TO SCAMMERS
, WHICH THEIR AGENCY COULD NOT
WEED OUT. SO THEN WE JUST SO
THEN THEY DECIDED TO CLOSE THE
BARN DOOR AFTER THE HORSE HAS
BEEN STOLEN. USED I D ME AND
MADE THE PROCESS NEARLY
IMPOSSIBLE FOR LEGITIMATE
CLAIMANTS. I KNOW THIS IS NOT AN
ISOLATED STORY, AND, UM AND THIS
IS KIND OF THE FACE OF PEOPLE
WHO SUFFERED THROUGH THROUGH
THIS PROCESS. MY HOPE IS
OBVIOUSLY WE KNOW THERE HAVE
BEEN AUDITS. WE GOT STACKS OF
PAPER OVER THERE. UM WHAT ARE WE
GOING TO DO IN THE FUTURE? HOW
IS THIS GOING TO GET BETTER? ARE
WE GOING TO BE BETTER ABLE TO
HANDLE THIS? CAN THE PROCESS BE
SIMPLER? UH, DO WE HAVE TO WAIT
AND HAVE TO TRAIN PEOPLE UP? CAN
WE NOT FIGURE OUT A WAY TO HAVE
A SIMPLER PROCESS IN PREPARATION
BECAUSE SOMETHING WILL HAPPEN
AGAIN. I YOU KNOW, CRISES DON'T
JUST APPEAR AND DISAPPEAR. YOU
KNOW, IT'S UH AND FOREVER. WE'RE
GOING TO HAVE SOMETHING AGAIN
AND WE NEED TO BE BETTER
PREPARED. UM, THIS AND I DID
WHAT THE LAST LINE OF THIS WAS,
UM THIS IS PARTICULARLY SAD
BECAUSE THIS IS THE UNITED
STATES OF AMERICA, NOT A THIRD
WORLD COUNTRY. THAT'S A
CONSTITUENT IN MY DISTRICT WHO
REALLY SUFFERED AND I KNOW THAT
PERSON IS SPEAKING FOR THOUSANDS
AND THOUSANDS OF PEOPLE HERE IN
CALIFORNIA. AND I HOPE WE DEMAND
THAT WE DO SOMETHING BETTER.
THANK YOU, MR WOOD. AND, UH, TO
AS A. INFORMATION ITEM, MS
PETRIE-NORRIS AND I WILL BE
DOING A BIT OF A TAG TEAM AND
SHARING THIS MEETING IN CASE ONE
OF US HAS TO LEAVE FOR A BRIEF
TIME, SO I HOPE THAT'S NOT
DISTRACTING. YOU HAVE TWO OF US.
SHARING. AT THE SAME TIME, LET'S
HEAR FROM OUR STATE AUDITOR. ARE
ACTING DEPUTY STATE AUDITOR, MR
BOB HARRIS. WILL GIVE THE
AUDITORS PERSPECTIVE, TOO.
LAUNCH THE TESTIMONY. WELCOME,
MR HARRIS. THANK YOU. CHAIR.
DAILY CHAIR. PETRIE-NORRIS MY
NAME IS BOB HARRIS. I'M AN
ACTING DEPUTY STATE AUDITOR WITH
THE STATE AUDITOR'S OFFICE. AND
I WAS THE PROJECT MANAGER ON OUR
TWO MOST RECENT REVIEWS OF THE
DDS OPERATIONS THIS AFTERNOON,
I'LL PROVIDE THE COMMITTEES WITH
AN OVERVIEW OF THE DEEDS
PROGRESS IN IMPLEMENTING
RECOMMENDATIONS THAT WE MADE AS
A RESULT OF THOSE TWO AUDITS
WITH A SPECIFIC FOCUS ON THE
RECOMMENDATIONS RELATED TO THE
EASE WITH WHICH CALIFORNIANS ARE
ABLE TO ACCESS THEIR
UNEMPLOYMENT INSURANCE BENEFITS.
BY WAY OF BACKGROUND IN JANUARY
OF 2021, OUR OFFICE RELEASED TWO
REPORTS RELATED TO THE DEEDS
OPERATIONS DURING THE FIRST FEW
MONTHS OF THE COVID 19 PANDEMIC,
THE FIRST OF THOSE REPORTS
RELATED TO ED'S OPERATIONAL
PERFORMANCE AND PROCESSING
CLAIMS AND THE SECOND OF THOSE
REPORTS RELATED TO AIDS
DETECTION AND PREVENTION OF
FRAUD IN THE UI PROGRAM. UM.
THAT FIRST FEW MONTHS OF THE
COVID 19 PANDEMIC IS NOTABLE FOR
SEVERAL DIFFERENT REASONS. THE
LEAST OF WHICH IS NOT THE ED WAS
INUNDATED WITH HISTORIC AMOUNT
OF CLAIMS THAT HIT THEM FASTER
THAN THEY HAD EVER SEEN BEFORE,
SO IT REALLY WASN'T
UNPRECEDENTED TIME FOR EDDIE. IN
ADDITION, THEY WERE ASKED TO
STAND UP SEVERAL NEW FEDERAL
ASSISTANCE PROGRAMS IN ORDER TO
PROVIDE THE MOST EFFECTIVE
ASSISTANCE TO CALIFORNIA IS THAT
THEY POSSIBLY COULD. SO THIS
TRULY WAS A CHALLENGING TIME FOR
E. D. D. NONETHELESS OUR AUDITS
FOUND THAT EDDIE HAD NOT
ADEQUATELY PREPARED OR PLANNED
TO BE ABLE TO MANAGE AN ECONOMIC
DOWNTURN. AND SO NOT
SURPRISINGLY, IT STRUGGLED AS
WE'VE HEARD ALREADY DURING THE
PANDEMIC TO PROVIDE EFFECTIVE
ASSISTANCE TO CALIFORNIANS IN
THEIR TIME OF NEED. SPECIFICALLY
WE FOUND THAT HE HAD NOT APPLIED
THE LESSONS LEARNED FROM PAST
ECONOMIC DOWNTURNS TO IMPROVE
ITS PROCESSES AND PREPAREDNESS
FOR FUTURE. SO WE MADE SEVERAL
DIFFERENT RECOMMENDATIONS IN A
VARIETY OF AREAS TO HELP PDD
IMPROVE ITS PERFORMANCE, BOTH IN
THE SHORT TERM AND ON A GOING
FORWARD BASIS TO BE BETTER
PREPARED FOR FUTURE TIMES WHERE
DEMAND FOR THEIR ASSISTANCE
WOULD INCREASE. AND WE MADE 21
RECOMMENDATIONS ACROSS BOTH
REPORTS. 14 IN THE FIRST REPORT
IN SEVEN IN THE SECOND REPORT
RELATED TO FRAUD, PREVENTION AND
DETECTION TO DATE, E G D HAS
IMPLEMENTED ALL BUT TWO OF THOSE
RECOMMENDATIONS, SO THEIR
PROGRESS IS SIGNIFICANT. WE MADE
RECOMMENDATIONS RELATED TO THE
TRANSPARENCY OF EADS OPERATIONS
RECOMMENDATIONS RELATED TO A
BACKLOG OF DEFERRED WORK THAT
WILL NEED TO PROCESS NOW BECAUSE
IT HAD DELAYED WORKING ON IT
DURING THE PANDEMIC. WE MADE
SEVERAL RECOMMENDATIONS, AS I
NOTED, RELATED TO FRAUD,
PREVENTION AND DETECTION, BUT
I'M GOING TO FOCUS THE BULK OF
MY TESTIMONY ON TWO KEY AREAS
RELATED TO CUSTOMER SERVICE. IF
YOU WILL THE WAY E G D
APPROACHES, CLAIMS PROCESSING
AND THE WAY IT MANAGES ITS CALL
CENTER, WHO WHICH IS THE VEHICLE
THROUGH WHICH CLAIMANTS ATTEMPT
TO ACCESS ASSISTANCE WITH THEIR
CLAIMS? RELATED TO CLAIMS
PROCESSING. WE HAD FOUR KEY
RECOMMENDATIONS IN THE FIRST
AUTO REPORT ON HOW HE DID COULD
IMPROVE CLAIMS PROCESSING AND
ITS APPROACH TO THAT. ALL OF
THOSE ARE IMPLEMENTED TO DATE OR
FOCUS ON A COUPLE OF KEY ONES
RIGHT NOW AND THEN TAKE
QUESTIONS ABOUT THE OTHERS
LATER, IF NEED BE. THE FIRST
AREA IS, UM, THE WAY THAT EDDIE
HAD ELEVATED THE AUTOMATION OF
CLAIMS DURING THE PANDEMIC, SO
DURING THE PANDEMIC, A LARGE
PERCENTAGE OF CLAIMS WERE BEING
DIVERTED FROM MANUAL REVIEW,
WHICH SLOWS DOWN THE RATE AT
WHICH SOMEONE CAN END UP GETTING
THEIR FIRST PAYMENT. MANUAL
REVIEW TAKES LONGER. THEREFORE,
THE PERSON WHO CLAMP FILED THE
CLAIM WAITS LONGER FOR PAYMENTS.
SO THE KEY TO INCREASING EDS
PERFORMANCE ELEVATING NEEDS
PERFORMANCES TO ELEVATE THE
PERCENTAGE OF CLAIMS THAT YOU
CAN AUTOMATICALLY FILE AND E D.
D WAS ABLE TO INCREASE THAT
PERCENTAGE DURING THE PANDEMIC
BY USING AN EMERGENCY PROCESSING
TOOL. IT WAS ESSENTIALLY AN IT
SOLUTION THAT THEY USED TO, UH,
INCREASE HOW MANY CLAIMS THEY
COULD JUST FILE AUTOMATICALLY
AND NOT HAVE TO MANUALLY REVIEW.
THE ISSUE WITH THAT EMERGENCY
PROCESSING TOOLS THAT PARTS OF
IT WERE DEPENDENT ON TEMPORARY
SITUATIONAL CIRCUMSTANCES.
RELAXED ELIGIBILITY CRITERIA AT
THE FEDERAL LEVEL, FOR EXAMPLE,
THAT WOULD ONLY APPLY DURING THE
PANDEMIC PERIOD. THERE WERE
OTHER PORTIONS OF THAT TOOL,
THOUGH, THAT WE THOUGHT HE COULD
RECOGNIZE ON A LONG TERM GOING
FORWARD BASIS AND ESSENTIALLY,
CEMENT AND BAKE IN THOSE
EFFICIENCY GAINS GOING FORWARD.
SO WE RECOMMENDED THAT ENDED
ASSESSED THE EMERGENCY
PROCESSING TOOL TO IDENTIFY
WHICH PARTS OF IT THEY COULD
CARRY FORWARD ON A GOING FORWARD
BASIS. AND THEN MAKE THOSE
PERMANENT FEATURE OF ITS CLAIMS
PROCESSING APPROACH, AND THE
DEPARTMENT HAS DONE THAT
ANALYSIS AND HAS NOW FORMALLY
PERMANENTLY IMPLEMENTED THOSE
EFFICIENCY GAINS AND ITS CLAIMS
PROCESSING APPROACH. A SECOND
KEY AREA WAS THE WAY THAT HE DID
WAS PREDICTING FUTURE WORKLOADS
ARE ANTICIPATING THE NEED TO
ELEVATE OR INCREASE ITS STAFFING
LEVELS IN THE FUTURE. DURING THE
AUDIT, WE FOUND THAT ED WAS
TAKING A VERY LIMITED AND
RETROSPECTIVE APPROACH TO
PREDICTING HOW MANY CLAIMS IT
WOULD SEE. IN THE UPCOMING WEEKS
AND MONTHS, IT WAS ESSENTIALLY
USING A NARROW WINDOW OF PAST
CLAIM ACTIVITY TO PREDICT FUTURE
CLAIM ACTIVITY. WE RECOMMENDED E
D T E D D TAKE A MORE ROBUST
APPROACH TO PREDICTING FUTURE
CLAIM ACTIVITY BY USING MORE
PREDICTIVE MODEL AND LOOKING AT
SEASONAL TRENDS AND CLAIM
ACTIVITY. AND THEN DEVELOP A
SUITE OF STAFFING OPTIONS THAT
COULD USE TO EMPLOY WHEN IT
NEEDS TO INCREASE STAFFING IN
CERTAIN AREAS OF ITS OPERATIONS.
HE HAS DEVELOPED THAT PLAN. THEY
NOW HAVE WORKLOAD PROJECTION
PLAN THAT ALLOWS THEM TO MODEL
DIFFERENT. WHAT IF SCENARIOS AND
THEY'VE ALSO TAKEN A LOOK AT THE
SEASONALITY OF THE CLAIM
ACTIVITY. AND THEY HAVE, UH,
MENU OF STAFFING OPTIONS THAT
THEY CAN EMPLOY TO INCREASE
STAFFING LEVELS WHEN NECESSARY
WHEN DEMAND FOR THEIR ASSISTANCE
INCREASES. ON THE CALL CENTER
SIDE. WE MADE SEVERAL DIFFERENT
RECOMMENDATIONS, FIVE ALL BUT
ONE OF WHICH ARE FULLY
IMPLEMENTED, SO I'LL DISCUSS A
COUPLE OF THE FULLY IMPLEMENTED
RECOMMENDATIONS AND THEN
DESCRIBE WHAT PROGRESS HE DID
STILL NEEDS TO MAKE ON THE FINAL
RECOMMENDATION. RELATED TO CALL
CENTER PERFORMANCE WE FOUND
WASN'T PAYING ATTENTION TO KEY
DATA THAT WOULD ASSIST IT AND
KNOWING HOW TO IMPROVE ITS CALL
CENTER PERFORMANCE. WE HAD A
RECOMMENDATION RELATED TO
MEASURING AND MONITORING FIRST
CALL RESOLUTION, WHICH IS AN
INDUSTRY STANDARD METRIC FOR
CALL CENTERS THAT ESSENTIALLY
TELLS YOU HOW OFTEN DO YOU
SUCCESSFULLY ASSIST A COLOR THE
FIRST TIME THEY CALL YOU SO THAT
THEY DON'T BECOME A SECOND OR
THIRD OR FOURTH TIME CALLER.
THAT RELIEVES THE FRUSTRATION ON
THE PART OF THE CLAIMANT WHO
SEEKING ASSISTANCE, AND IT ALSO
ACTUALLY DECREASES PRESSURE ON
THE CALL CENTER BECAUSE THEY'RE
NOT DEALING WITH REPEATED CALLS
HADN'T BEEN TRACKING THAT METRIC
. SO WE RECOMMENDED THAT THEY DO
AND ADOPT A POLICY TO REVIEW IT
ON A MONTHLY BASIS. THEY ARE NOW
DOING THAT THEY ARE TRACKING
FIRST CALL RESOLUTION AND HAVE A
POLICY TO REVIEW THAT DATA ON A
MONTHLY BASIS. SO THAT'S A
POSITIVE STEP FORWARD IN TERMS
OF DATA TRACKING ANOTHER DATA
POINT WE WANTED EDDIE TO
REGULARLY REVIEW WAS DATA ABOUT
THE SUBJECT ABOUT WHICH PEOPLE
ARE CALLING. WHAT WHAT IS THE
SUBJECT THAT PEOPLE NEED
ASSISTANCE WITH? DO THEY NEED
ASSISTANCE? FILING A CLAIM? DO
THEY NEED ASSISTANCE TRACKING
DOWN A PAYMENT THEY EXPECTED TO
RECEIVE BUT HAVEN'T YET
RECEIVED. THAT SUBJECT MATTER.
INFORMATION WOULD ASSIST E, D D
AND ADDRESSING ESSENTIALLY A
LONG TRAINING PERIOD FOR CALL
CENTER AGENTS. THE TRAINING
PERIOD DURING OUR AUDIT WAS
MONTHS LONG TO ONBOARD SOMEBODY
TO BECOME A CALL CENTER AGENT.
WE THOUGHT BY TRACKING THIS DATA
ABOUT THE SUBJECTS ABOUT WHICH
PEOPLE ARE SEEKING ASSISTANCE
NEEDED COULD THEN DEVELOP MODULE
TRAINING THAT IT WOULD BE ABLE
TO DELIVER IN A FASTER MANNER TO
ASSIST CALL CENTER AGENTS IN
BEING ABLE TO ADDRESS THE MOST
FREQUENTLY ASKED ABOUT TOPICS E.
D D S TRACKING THAT INFORMATION.
NOW THEY HAVE DATA ABOUT THE
SUBJECT MATTER ABOUT WHICH
PEOPLE ARE CALLING. AND THEY'VE
DEVELOPED A KNOWLEDGE MANAGEMENT
SYSTEM THAT ALLOWS CALL CENTER
AGENTS TO RECEIVE THE TRAINING
IN A MORE MODULE, QUICK HIT
FASHION SO THAT THEY CAN BE
BETTER PREPARED TO ASSIST PEOPLE
ABOUT THOSE MOST COMMON SUBJECT
AREAS. LASTLY, IN THE AREA OF
THE ONE UNIMPLEMENTED
RECOMMENDATIONS RELATED TO THE
CALL CENTER E D. D HAS MADE
PROGRESS, BUT THEY STILL HAVE A
LITTLE BIT MORE TO GO. THIS IS
ALSORELATED TO TRACKING THE
SUBJECT MATTER ABOUT WHICH
PEOPLE CALL BUT IN THIS CASE
IT'S DESIGNED TO HELP PDD
IMPROVE SELF SERVICE OPTIONS
DOES OFFER SELF SERVICE OPTIONS
THROUGH ITS WEBSITE, WHERE
SOMEONE WHO WANTS INFORMATION
ABOUT CLAIMS FILING OR WANTS TO
KNOW THE STATUS OF THEIR CLAIM
CAN ACCESS THAT INFORMATION
ONLINE. HOWEVER PEOPLE ARE STILL
CALLING THE CALL CENTER ABOUT
THOSE SAME SUBJECTS WHAT WE
NEEDED TO DO TO FULLY IMPLEMENT
OUR RECOMMENDATION IN THIS AREA.
IS TO DO A ROOT CAUSE ANALYSIS
OF WHY PEOPLE CHOOSE TO CALL THE
CALL CENTER FOR ASSISTANCE
RATHER THAN USE THE SELF SERVICE
OPTIONS. CERTAINLY SOME PEOPLE
WILL ALWAYS CHOOSE TO CALL THE
CALL CENTER. BUT IF E D D DOES
THIS ANALYSIS AND DISCOVERS, FOR
EXAMPLE, THAT THE CALLER DIDN'T
KNOW ABOUT THE SELF SERVICE
OPTION, OR TRIED TO USE THE SELF
SERVICE OPTION AND ENCOUNTERED A
PROBLEM. THEN THAT'S INFORMATION
THAT SED COULD THEN USE TO
IMPROVE THE SELF SERVICE OPTIONS
AND MAKE THEM MORE USEFUL FOR
CALIFORNIANS IN NEED. SO IN
SUMMATION, E. D. D HAS MADE
SIGNIFICANT PROGRESS IN
ADDRESSING OUR RECOMMENDATIONS.
I WANNA ENCLOSING ACKNOWLEDGED
THE KEY QUESTION PRESENTED BY
THE CHAIRS AT THE OUTSET, WHICH
IS WHAT NEEDS TO HAPPEN NOW TO
FURTHER IMPROVE. IN OUR
EXPERIENCE. WHAT NEEDS TO HAPPEN
NOW IS INDEED NEEDS TO SUSTAIN
AND CONTINUE IMPLEMENTING THESE
POSITIVE STEPS SEVERAL OF THE
AREAS OF CONCERN THAT WE HAD
DURING THE AUDITS WHERE ISSUES
OF CONCERN ON PRIOR AUDITS, SO
WHAT NEEDS TO HAPPEN NOW FOR
EDDIE IS NOT SO MUCH TAKING OFF
MORE RECOMMENDATIONS BECAUSE
THEY'RE ALMOST DONE IMPLEMENTING
THE RECOMMENDATIONS WE MADE. WE
NEED TO SEE THEM NOW SUSTAINED
AND CONTINUE THAT.
IMPLEMENTATION SO THAT THEY CAN
BE BEST PREPARED TO PROVIDE
EFFECTIVE SERVICE. AND WITH
THAT, I'D BE HAPPY TO TAKE ANY
QUESTIONS THE COMMITTEE'S MIGHT
HAVE. THANK YOU, MR HARRIS
COMMITTEE MEMBERS, UH, ANY
QUESTIONS FOR MR HARRIS? MR.
WOOD HAS ONE YEAH. THANK THANK
YOU, MR CHAIR. JUST JUST THIS
JUST HITS ON THE VERY LAST THING
YOU TALKED ABOUT PEOPLE USING
THE CULTURES CENTER VERSUS THE
SELF SERVICE. SO ARE YOU SAYING
THAT HE, D D DOESN'T HAVE ANY
SERVICE SYSTEM THAT TRACKS TO
FIGURE OUT WHY PEOPLE AREN'T
USING THE SELF SERVICE. THAT'S
WHAT WE NEED THEM TO BE ABLE TO
PRODUCE THAT. AS OF THE LAST
UPDATE ON OUR ON OUR
RECOMMENDATION CHECK INS, WHICH
WE DO EVERY 90 DAYS WITH THE D
D. UH THAT ISSUE REMAINED
UNRESOLVED FOR US. THEY HAVE THE
INFORMATION ABOUT THE SUBJECT
MATTERS PEOPLE ARE CALLING ABOUT
, BUT WE STILL NEED TO KNOW WHY
ARE THEY CALLING RATHER THAN
USING A SELF SERVICE OPTION? SO
NO ET? BUT LAST UPDATE WE HAD
DIDN'T HAVE THAT INFORMATION. SO
THEY DON'T HAVE A CLUE ABOUT
THAT. NOT AT THE TIME OF OUR
LAST UPDATE NOW, WHICH WAS
EARLIER THIS SUMMER. GREAT. MS
PETRIE NORRIS HAS A QUESTION.
THANKS FOR THAT UPDATE, AND IT'S
IT IS ENCOURAGING TO HEAR THAT,
AS YOU SAID SIGNIFICANT PROGRESS
HAS BEEN MADE WITH, UM, 19 OF
YOUR 21 RECOMMENDATIONS BEING
IMPLEMENTED. UM, I GUESS TWO
QUESTIONS SO WHAT? UH HOW WOULD
YOU RATE THE DEEDS ABILITY TO BE
ABLE TO SCALE UP FOR THE NEXT
CRISIS ON A SCALE OF 1 TO 10?
HOW CONFIDENT ARE YOU THAT
HAVING IMPLEMENTED MOST OF THESE
, ALMOST ALL OF THESE
RECOMMENDATIONS WERE NOW BETTER
PREPARED FOR THE NEXT DOWNTURN
WHENEVER THAT OCCURS. UH WE ARE
BETTER PREPARED THAN WE WERE
BEFORE WHEN THE COVID 19
PANDEMIC HIT, SO THERE WERE
BASIC PLANNING AND WORKLOAD
PROJECTION ESTIMATIONS THAT WE
WEREN'T SEEING ED PERFORM THAT
IT NOW HAS IN PLACE.
ADDITIONALLY ED'S BEEN
LEGISLATIVELY REQUIRED TO
DEVELOP A RECESSION PLAN. UM SO
RATHER THAN A 1 TO 10 SCALE ARE
WE BETTER PREPARED NOW THAN WE
WERE BEFORE? YES ARE WE PREPARED
ENOUGH TIME WILL TELL MAYBE. AND
I GUESS HOW DO WE? WHAT DO WE
NEED TO DO TO GET TO? YES WOULD
BE MY FOLLOW UP QUESTION. WELL
CERTAINLY AGAIN I E D D HAS COME
A LONG WAY. UM, AND BY BEING
ABLE TO MODEL DIFFERENT
SCENARIOS WHERE THEY KNOW EVEN
ON THE MORE EXTREME END. WHAT'S
GOING TO HAPPEN IF WE RECEIVE
EVEN AN UNLIKELY NUMBER OF
CLAIMS AND WHAT STAFFING STEPS
CAN WE TAKE TO ADDRESS THOSE?
UM, IT'S BETTER POSITION NOW.
THERE ARE STILL MORE STEPS THAT
NEEDS TO CONTINUE CARRYING OUT.
FOR EXAMPLE, THEY SHELVED MAJOR
I T PROJECT KNOWN AS THE
BENEFITS SYSTEMS MODERNIZATION
PROJECT THAT WAS DONE AT THE
RECOMMENDATION OF THE GOVERNOR'S
STRIKE TEAM. UM THAT OVERHAUL OF
THEIR ENTIRE IT SYSTEM IS STILL
IN PROGRESS. WE HAD A
RECOMMENDATION RELATED TO IT.
ASKING A D D TO IDENTIFY THE
INCREMENTAL STEPS IT COULD TAKE
SORT OF BORROW FROM THAT PROJECT
THINGS THAT IT CAN DO
INCREMENTALLY NOW AND IT HAS
DONE THAT IT'S IDENTIFIED. THE
SMALLER PARTS OF THE BENEFIT
SYSTEMS MODERNIZATION PROJECT
THAT IT CAN IMPLEMENT ON A GOING
FORWARD BASIS. BUT CERTAINLY
THAT'S A MAJOR PROJECT THAT HE'D
STILL NEEDS TO TACKLE, WHICH IS
THE UPDATING OF ITS IT
INFRASTRUCTURE. SO THERE ARE
STILL THINGSET DE NEEDS TO DO
IN ORDER TO BE BEST PREPARED FOR
ANOTHER SURGEON CLAIMS. THAT'S
HELPFUL AND SOMEWHAT RELATED. I
THINK THAT, UH YOU SAID THAT YOU
D D NEEDS TO SUSTAIN AND
CONTINUE IMPLEMENTATION OF THESE
RECOMMENDATIONS. SO CAN YOU JUST
SAY A LITTLE BIT MORE ABOUT WHAT
YOU MEAN BY THAT? SO I THINK
WHEN WE SEE 19 OF 21 THINGS
TICKET OFFICE COMPLETE. HOW IS
THAT DIFFERENT FROM SUSTAINED
IMPLEMENTATION? WHAT MORE IS
NEEDED? ABSOLUTELY SO A LOT OF
OUR RECOMMENDATIONS DIRECTED E D
D TO BEGIN AND CONTINUE DOING
SOMETHING AND WE DON'T FOLLOW UP
IN PERPETUITY. EVENTUALLY WE SEE
WHAT WE CONSIDER TO BE ENOUGH
PROGRESS AND THEN WE CONSIDER
THE RECOMMENDATION RESOLVED. FOR
EXAMPLE, THE FIRST CALL
RESOLUTION RECOMMENDATION I
SPOKE ABOUT E. D D NOW TRACKS
THAT DATA HAS A POLICY TO REVIEW
IT MONTHLY. IT WILL BE IMPORTANT
FOR THEM TO ACTUALLY CONTINUE
DOING SO, THOUGH, SO THAT'S AN
EXAMPLE OF THE TYPE OF SUSTAINED
CONTINUE TO IMPROVE OUR
IMPLEMENTATION THAT I WAS
DISCUSSING UNDERSTOOD SO THAT
IT'S NOT JUST A FLURRY OF
ACTIVITY BUT BECOMES PART OF A
CONSISTENT CHANGE IN BUSINESS
PRACTICES. ABSOLUTELY
UNDERSTOOD. THANK YOU. ALRIGHT
MR HARRIS. THANK YOU, AND WE MAY
HAVE FURTHER QUESTIONS FOR YOU.
THAT WAS WHEN YOU MOVE ON. BUT
NEXT UP IS YEAH. A GROUP FROM
THE E. D. D, INCLUDING THE
DIRECTOR NANCY FARIAS. AMY
FAULKNER, THE CHIEF DEPUTY
DIRECTOR. AND. PROCEED TO STATEN
, DEPUTY DIRECTOR OF
UNEMPLOYMENT INSURANCE PLEASE
TAKE A SEAT AND GO AHEAD WITH
YOUR PRESENTATION. SORRY I JUST
WANT TO START BY SAYING, UM AS
AN ADVOCATE FOR WORKING FAMILIES
NEARLY MY ENTIRE CAREER. I AM AS
FRUSTRATED UM, AS YOU ARE
ASSEMBLYMEMBER'S WOULD ABOUT
YOUR CONSTITUENT AND I HOPE THAT
, UM WHAT I AM ABOUT TO SAY IN
THE PROGRESS THAT HAS MADE, UM
IS COMFORTING. COMMITTEE MEMBERS
. GOOD AFTERNOON. THANK YOU FOR
INVITING US HERE TODAY. FOR THE
RECORD. MY NAME IS NANCY FERRY
ASUS AND I AM THE DIRECTOR OF
THE EMPLOYMENT DEVELOPMENT
DEPARTMENT WITH ME TODAY TO
RESPOND TO ANY QUESTIONS IS AMY
FAULKNER, MY CHIEF DEPUTY
DIRECTOR, AND GRACIA STATON, WHO
IS THE DEPUTY DIRECTOR FOR
UNEMPLOYMENT INSURANCE. AND AS I
MENTIONED AT EVERY HEARING, UM,
WHILE I AM SO GRATEFUL FOR THE
TEAM THAT I HAVE WITH ME TODAY,
I ALSO WANT TO ACKNOWLEDGE AND
THANK THE STAFF. THAT'S NOT HERE
. THOSE WHO DO THE WORK THAT
DIRECTLY IMPACT AND SERVE
CALIFORNIANS, THE ONES IN THE
CALL CENTER, PULLING THE DATA TO
IMPROVE E D D POLICIES HELPING
PEOPLE DIRECTLY. THAT'S THE HARD
WORK AND I WOULD BE REMISS NOT
TO MENTION THE THOUSANDS OF GOOD
EMPLOYEES THAT WE HAVE WHO ARE
DEDICATED TO HELPING
CALIFORNIANS. WITH THAT. I'M NOT
USED TO READING OFF A PIECE OF
PAPER. SORRY. IT'S BEEN A COUPLE
OF YEARS. UM WITH THAT. I JUST
WANT TO HIGHLIGHT SOME OF THE
DEPARTMENT'S ACCOMPLISHMENTS
DURING THE PANDEMIC. UM ACHIEVED
WITH THE SUPPORT OF THE
LEGISLATURE, OF COURSE, AND I'LL
END WITH TWO INITIATIVES THAT I
AM PARTICULARLY FOCUSED ON GOING
FORWARD. THROUGHOUT THE LAST TWO
YEARS, THIS DEPARTMENT HAS MADE
MANY IMPROVEMENTS AND WE'VE
NEEDED TO, AS HAS BEEN POINTED
OUT EARLIER TODAY, THE PANDEMIC
REVEALED SIGNIFICANT GAPS IN OUR
SERVICE DELIVERY RECOMMENDATIONS
BY BOTH THE STATE AUDITOR AND
THE GOVERNOR'S STRIKE TEAM. HAVE
SERVED AS A ROAD MAP. IN THIS
REGARD. WE HAVE IMPLEMENTED 19
OF THE 21 RECOMMENDATIONS AND 82
OUT OF THE 100 STRIKE TEAM
RECOMMENDATIONS WITH PLANS IN
PLACE TO COMPLETE THOSE THAT
REMAIN, AND I WILL ADD ALSO TO
CONTINUE TO DO. THE C S A
RECOMMENDATIONS AS WELL AS THE
STRIKE TEAM RECOMMENDATIONS
BECAUSE SOME OF THEM ARE
CONTINUOUS. THESE
RECOMMENDATIONS ALONG WITH OTHER
PROJECTS COMPLETED DURING THE
PANDEMIC, ALLOWED READY TO TAKE
SEVERAL STEPS FORWARD IN
ENHANCING OUR CUSTOMER SERVICE.
IMPROVING ACCESS TO OUR PROGRAMS
FOR MULTI LINGUAL, MULTI LINGUAL
COMMUNITIES, SPEEDING PAYMENTS
AND REDUCING PAYMENT BACKLOGS
AND PREVENTING FRAUD. FIRST,
I'LL TOUCH ON CUSTOMER SERVICE.
TO OPTIMIZE PROGRAM PERFORMANCE
AND ENHANCE THE CUSTOMER
EXPERIENCE. CDD ESTABLISHED THE
UNEMPLOYMENT INSURANCE COMMAND
CENTER IN JANUARY OF 2021 TO
CENTRALIZE AND PROVIDE OVERSIGHT
OF THE WORKLOAD, PLANNING AND
STAFF RESOURCE ALLOCATIONS FOR
THE U I PROGRAM THE COMMAND
CENTER ALLOWS US TO BETTER
FORECAST WORKLOAD, VOLUMES AND
STAFF ACCORDINGLY TO MEET
PERFORMANCE OBJECTIVES, WHILE
ALSO MONITORING QUALITY
ASSURANCE OF OUR CONTACT
CHANNELS. WE HAVE IMPROVED OUR
MOBILE PHONE VERSION OF THE
DEPARTMENT WEBSITE SINCE WE KNOW
THAT SO MANY PEOPLE SOLELY USE
THEIR SMARTPHONE TO ACCESS THE
INTERNET. DOCUMENT UPLOAD AND AN
INDIVIDUALIZED CLAIM STATUS
TRACKER WHERE OTHER FEATURES WE
ROLLED OUT DURING THE PANDEMIC
TO IMPROVE CUSTOMER SERVICE. IN
FACT, AND I'VE SAID THIS BEFORE
OUR I T UNIT DELIVERED MORE THAN
200 SIGNIFICANT SYSTEM
IMPROVEMENTS DURING THE
PANDEMIC. WE ALSO CLOSELY
CONTINUE. I'M SORRY. WE ALSO
CONTINUE TO CLOSELY MONITOR AND
FIX TRENDING CUSTOMER CONCERNS
THROUGH OUR VOICE OF THE
CUSTOMER PROGRAM. WE IMPLEMENTED
A CHAT BOT ON OUR WEBSITE TO
ANSWER QUESTIONS, CLAIMANTS
QUESTIONS AND CONTINUE ADDING
NEW FEATURES TO OUR PHONE SYSTEM
, SUCH AS SCHEDULED CALLBACKS,
WHICH WILL BE IMPLEMENTED IN
NOVEMBER TO IMPROVE THE CUSTOMER
EXPERIENCE. THESE ENHANCEMENTS
WILL CONTINUE TO MAKE IT EASIER
FOR CALIFORNIANS TO REACH A YOU,
IPHONE AGENT. DURING CALENDAR
YEAR 2021, THE UI CONTACT CENTER
WAS ABLE TO ANSWER 67% OF UNIQUE
CALLS WITHIN 30 MINUTES IN
COMPARISON, SO FAR IN CALENDAR
YEAR, 2022 E D. D HAS BEEN ABLE
TO ANSWER 96% OF UNIQUE CALLERS
WITHIN 30 MINUTES. ACCESS FOR
MULTILINGUAL COMMUNITIES. I'VE
SAID THIS BEFORE ONE IN FIVE
CALIFORNIANS COMMUNICATE IN
LANGUAGES OTHER THAN ENGLISH,
AND IT IS VITAL THAT E D D
PRIORITIZES MULTILINGUAL
SERVICES. WE ARE IMPLEMENTING A
COMPREHENSIVE NEW REGIME OF
LANGUAGE ACCESS SERVICES
DEVELOPED LAST YEAR AND
PARTNERSHIP WITH THE
LEGISLATURE. INCLUDING
MULTILINGUAL ONLINE APPLICATIONS
, MORE DEDICATED LANGUAGE LINES
. TRANSLATION OF ALL VITAL
DOCUMENTS INTO THE MOST COMMONLY
SPOKEN LANGUAGES AND OTHER
VALUABLE MULTILINGUAL SERVICES.
WE'VE BUILT A NEW MULTILINGUAL
ACCESS PORTAL. WHERE WE POST KEY
FORMS AND PUBLICATIONS IN THE
MOST COMMONLY SPOKEN LANGUAGES.
WE'VE ALSO HEAVILY PROMOTED OUR
NEW COST. SORRY NO COST CALL
CENTER TRANSLATION SERVICES THAT
CAN INSIST CALLERS AND OVER 100
LANGUAGES AND HAVE THE TRAIN
STAFF NEEDED TO ENSURE THESE
SERVICES ARE READILY ACCESSED BY
OUR CUSTOMERS. WE ENTERED INTO
TARGETED ADVERTISING
PARTNERSHIPS WITH MEDIA OUTLETS
TO SHARE INFORMATION WITH
COMMUNITIES ABOUT HOW TO APPLY
FOR BENEFITS AND HOW TO AVOID
COMMON ISSUES THAT CAN CAUSE
DELAYS. WE RECENTLY CREATED A
LANGUAGE ACCESS OFFICE, WHICH I
HAVE ALSO TALKED ABOUT AND HIRED
NEW YORK STATE'S FORMER LANGUAGE
ACCESS OFFICER TO HELP GUIDE OUR
MULTILINGUAL EFFORTS. THE
MULTILINGUAL ACCESS OFFICE WILL
CONTINUE TO ENHANCE AND EXPAND
ITS INTERPRETIVE AND TRANSLATION
SERVICES AND PROJECTS ACROSS THE
DEPARTMENT. THIS INCLUDES A NEW
$2 MILLION GRANT PROGRAM TO FUND
11 COMMUNITY BASED EFFORTS AND
LIMITED ENGLISH PROFICIENT AND
DEAF AND HARD OF HEARING
COMMUNITIES. WE WILL CONTINUE TO
PARTNER WITH COMMUNITIES AND
STAKEHOLDERS ACROSS CALIFORNIA
TO PROVIDE INFORMATION AND
SUPPORT AND MANY LANGUAGES IN
ORDER TO MEET THIS CRITICAL
NEED. PAYMENTS. THERE WERE 20
MILLION CLAIMS FOR BENEFITS
DURING THE PANDEMIC COMPARED
WITH 3.8 MILLION DURING THE
WORST YEAR OF THE GREAT
RECESSION TO SPEED PAYMENTS. WE
LAUNCHED A NEW PAY NOW PROGRAM
THAT EXPEDITED APPROXIMATELY
450,000 PAYMENTS FOR CLAIMANTS
WITH CONTINUED CLAIMS AND
VERIFIED IDENTITIES. THESE
CLAIMANTS WERE PAID IMMEDIATELY
AS E. D. D CONTINUED TO WORK TO
VERIFY OTHER ELIGIBILITY ISSUES
. THIS SUCCESSFUL PROGRAM
CONTINUES TODAY. EVEN AS OUR
FEDERAL FUNDING AND STAFFING
HAVE DECREASED THIS YEAR, E. D.
D HAS IMPROVED THE TIMELINESS OF
OUR CLAIM PROCESSING IN
PAYMENTS. IN 2020 E D D PROCESS
78% OF ALL OF YOU. I
APPLICATIONS THROUGH AUTOMATION
OR BY STAFF WITHIN THREE DAYS OF
RECEIPT. CURRENTLY THAT FIGURE
HAS INCREASED TO MORE THAN 99%
IT'S 99.1 TO RE PRECISE AND THE
UI APPLICATIONS ARE PROCESS
PROCESS WITHIN THREE DAYS OF
RECEIPT OF THE APPLICATION 99.1.
I'M VERY PROUD OF OUR TEAM. AND
LAST MONTH, WE PAID 92% OF
CLAIMANTS WITHIN TWO WEEKS OF
RECEIVING THEIR CERTIFICATION.
MOST CLAIMANTS ARE PAID WITHOUT
EVEN EVER NEEDING AN ELIGIBILITY
INTERVIEW FOR CLAIMANTS THAT DO
NEED AN INTERVIEW. WE ARE NOW
PROVIDING THOSE SCHEDULED DATES
WITHIN TWO WEEKS, WHICH IS THE
RESULT OF OUR CONCERTED EFFORTS
TO PRIOR PRIORITIZE THE
PROCESSING OF THESE CLAIMS. FROM
JANUARY THROUGH AUGUST 2022. WE
RESOLVED MORE THAN 3.4 MILLION
ELIGIBILITY ISSUES. IT SHOULD BE
CLEAR THAT WE ARE DEDICATED TO
GETTING PAYMENTS OUT THE DOOR TO
ELIGIBLE CLAIMANTS AS QUICKLY AS
POSSIBLE. FRAUD PREVENTION AND
RECOVERY. MEANWHILE, WE CONTINUE
TO FEND OFF AGGRESSIVE FRAUD
ATTEMPTS. AS THE ASSEMBLY MEMBER
POINTED OUT. FROM THOSE WHO
ATTACKED STATE UNEMPLOYMENT
SYSTEMS ACROSS THE COUNTRY.
UPFRONT PREVENTION AND EARLY
DETECTION IS E. D. T S T D S TOP
PRIORITY IN COMBATING IDENTITY
FRAUD. WE HAVE IMPLEMENTED
MULTIPLE PROCESSES THAT AID IN
THIS EFFORT, SUCH AS ENSURING
UPFRONT IDENTITY VERIFICATION
WITH I D ME, WHICH IS OUR
IDENTITY PROOFING AND
AUTHENTICATION PLATFORM USED BY
OTHER GOVERNMENT AGENCIES. THIS
ENHANCEMENT HELPS EXPEDITE THE
PROCESS OF VERIFYING CLAIMANTS.
IDENTITIES REDUCES THE BACKLOG
OF CLAIMS REQUIRING MANUAL
REVIEW AND STOPS FRAUD BEFORE IT
HAPPENS BY PREVENTING IMPOSTORS
FROM FILING A CLAIM THROUGH UI
ONLINE. WE THANK THE LEGISLATURE
FOR SUPPORTING OUR BUDGET
PROPOSALS ON PREVENTING AND
PROSECUTING FRAUD, INCLUDING THE
CONTINUED FUNDING OF I D ME AS
OUR IDENTITY VERIFICATION
VENDOR. WE CONTINUE TO FOSTER
OUR PARTNERSHIPS WITH MULTIPLE
FEDERAL AND STATE AGENCIES,
INCLUDING, OF COURSE, THE U. S.
DEPARTMENT OF LABOR SOCIAL
SECURITY ADMINISTRATION. CDCR
THANK YOU, MADAM CHAIR FOR THE
CROSS MATCH LEGISLATION, THE DMV
AS WELL AS THOMPSON REUTERS TO
AID IN IDENTIFYING THE
LEGITIMACY OF INFORMATION
PROVIDED THAT CLAIM FILING HAS
ALSO ESTABLISHED AN ENTERPRISE
FRAUD GOVERNANCE WORK GROUP,
WHICH CONSISTS OF MEMBERS FROM
EACH OF OUR BENEFIT PROGRAMS, AS
WELL AS OUR RISK MANAGEMENT
OFFICE AND INFORMATION
TECHNOLOGY BRANCH. THIS WORK
GROUP HAS DEVELOPED AN INTERNAL
FRAUD POLICY THAT GUIDES THE
DEPARTMENT'S EFFORTS IN THIS
AREA. THIS POLICY ACKNOWLEDGES
THAT FIGHTING FRAUD IS IMPORTANT
, BUT UPHOLDING UI PROGRAM
INTEGRITY, INCLUDING THE TIMELY
AND EFFECTIVE ADMINISTRATION OF
BENEFITS TO ELIGIBLE CUSTOMERS
REMAINS EADS TOP PRIORITY. THE
DEPARTMENT STRIVES TO MINIMIZE
ANY INTERRUPTIONS TO THE SERVICE
OF ELIGIBLE CUSTOMERS WHILE IN
THE PURSUIT OF FRAUD,
PREVENTION, DETECTION AND
RESPONSE. IN JUNE, WE ANNOUNCED
RECOVERING MORE THAN $1 BILLION
IN FRAUDULENTLY OBTAINED
BENEFITS THOUSANDS OF OTHER LAW
ENFORCEMENT INVESTIGATIONS
CONTINUE ACROSS THE STATE. ALL
MONEY RECOVERED IS IN NO SMALL
PART DUE TO OUR PARTICIPATION.
AND PARTNERSHIP WITH THE
GOVERNOR'S CREATED OS TASK
FORCE, COMPRISED OF THE DISTRICT
ATTORNEY'S FBI, U. S ATTORNEY'S
OFFICE ATTORNEY GENERAL ROB
VONTAZE OFFICE ALSO INSTRUMENTAL
, OF COURSE TO RECOVERY AND
LEADING THE WAY FOR ED IS OUR
FRAUD SPECIAL COUNSEL MCGREGOR
SCOTT. WHAT'S AHEAD FOR EDDIE D.
THESE IMPROVEMENTS ARE
SIGNIFICANT AND ARE HELPING US
EMERGE FROM THE PANDEMIC
STRONGER THAN BEFORE. WITH YOUR
SUPPORT. WE ARE MAKING HISTORIC
EVENTS. HISTORIC INVESTMENTS IN
MODERNIZING EMBEDDED SYSTEMS AND
PROCESSES TO IMPROVE THE
CUSTOMER EXPERIENCE. IT IS THE
NEXT, WHICH IS OUR IS REPLACING
THE OLD BENEFIT SYSTEM
MODERNIZATION THAT THE AUDITOR
SPOKE OF. E D D NEXT WILL
REPLACE OUR AGING BENEFITS
SYSTEM WITH FLEXIBLE, RESPONSIVE
, CUSTOMER CENTERED AND SECURE
OLINE APPLICATIONS AND SERVICES
THAT PROVIDE TIMELY AND QUALITY
SERVICE FOR ALL CALIFORNIANS.
MODERNIZING OUR SYSTEMS WILL
FREE US FROM RESTRICTIONS THAT
MAKE IT DIFFICULT TO CHANGE AND
MODIFY PROGRAMS, SYSTEMS AND
FORMS QUICKLY TO ENSURE THIS
PROJECT DELIVERS CONCRETE
BENEFITS AS QUICKLY AS POSSIBLE
. WE ARE CONTINUALLY DELIVERING
IMPROVEMENTS ON A ROLLING BASIS.
DURING THE FIRST PHASE, WE ARE
MAKING THE APPLICATION PROCESS
EASIER BY REDESIGNING FORMS AND
BUILDING A SINGLE SIGN ON
ACCOUNT FOR ALL OF OUR BENEFIT
PROGRAMS. IN ADDITION, WE'VE
CREATED A NEW CUSTOMER
EXPERIENCE DIVISION THAT'S
FOCUSED ON MEETING CLAIMANTS
NEEDS. BY TRACKING THE
EXPERIENCE ACROSS ALL
TOUCHPOINTS IN WHICH A CUSTOMER
INTERACTS WITH THE DEPARTMENT.
THIS DIVISION WILL IDENTIFY ANY
GAPS IN THAT EXPERIENCE AND
DEVELOP RECOMMENDATIONS TO
ADDRESS THEM. WE ARE ALSO
PREPARING FOR THE NEXT RECESSION
UNDER SB 3 90, WHICH WAS
AUTHORED BY SENATOR LAIRD, WE
HAVE DEVELOPED A THOROUGH
RECESSION PLAN WHERE WE'RE IN
CERTAIN DEPARTMENT ACTIONS ARE
TRIGGERED WHEN SPECIFIC ECONOMIC
CONDITIONS ARE MET. FOR EXAMPLE
, A PIECE OF THE SUCCESS OF THIS
PLAN IS THE PREVIOUSLY MENTIONED
YOU I COMMAND CENTER AS THEIR
PRIMARY FUNCTIONS INCLUDE
FORECASTING UI WORKLOAD VOLUMES
, CUSTOMER SERVICE DEMANDS AND
STAFFING LEVELS NEEDED TO MEET
PERFORMANCE OBJECTIVES. THE
FORECASTING ESTABLISHES ECONOMIC
DATA FROM THE DEPARTMENT OF
FINANCE AND U C L A, INCLUDING
THE EMPLOYMENT RATE. TO PROJECT
FUTURE INITIAL CLAIM VOLUMES.
THE COMMAND CENTER THEN USES
THAT MODEL TO ASSESS WHERE
STAFFING IS NEEDED IN THE CLAIM
PROCESS TO ADDRESS NEEDS BASED
ON THE CURRENT INFLUX OF INITIAL
CLAIMS. THE CONTINUOUS
MONITORING AND DATA DRIVEN
APPROACH IS PARAMOUNT TO OUR
ABILITY TO MEET THE NEEDS OF
CALIFORNIANS WHENEVER THE NEXT
ECONOMIC DOWNTURN OCCURS. IN
CONCLUSION. I APPRECIATE THE
PARTNERSHIP THAT WE'VE DEVELOPED
WITH THE LEGISLATURE TO MAKE
SIGNIFICANT IMPROVEMENTS. ATI DD
YOUR SUPPORT HAS HELPED US PUT
PUT US ON A NEW PATH FORWARD. UM
APPRECIATE YOUR STAFF'S TIME FOR
ALL THE WORK THAT THEY HAVE DONE
DURING THE PANDEMIC. THAT SHOULD
GO WITHOUT SAYING, BUT I WILL
SAY IT AGAIN. THANK YOU FOR YOUR
TIME, AND WE ARE PREPARED TO
ANSWER ANY QUESTIONS THAT YOU
HAVE. WE'LL GO AROUND THE TABLE
HERE. UH WE'RE QUESTIONS AND
MISS PETRIE-NORRIS. DO YOU HAVE
ANY. THANK YOU, DIRECTOR OF
AREAS FOR THAT REALLY
COMPREHENSIVE OVERVIEW. UM AND I
WOULD SAY, I THINK YOUR
LEADERSHIP REALLY IS MARKED A
TURNING POINT IN MY ASSESSMENT
AT THE DEPARTMENT AND GRATEFUL
FOR YOUR COMMITMENT AND FOR
EVERYTHING THAT YOU AND YOUR
TEAM ARE DOING TO GET THIS
DEPARTMENT IN IN THE PLACE WE
NEEDED TO BE TO SERVE
CALIFORNIA. UM SO QUICK QUESTION
ON A COUPLE OF ITEMS. SO UH,
JUST FIRST ON THE NEXT, AND I
THINK ONE OF THE POINTS THAT, UH
, THE DEPUTY AUDITOR MADE WAS
THAT THE DEPARTMENT HAS NOT DONE
KIND OF ROOT CAUSE ANALYSIS.
UNDERSTAND FOR EXAMPLE, WHY ARE
THINGS GOING? UH, YOU KNOW,
HAVING TO BE REVIEWED MANUALLY,
OR WHY, WHY YOUR CUSTOMERS
CALLING US INSTEAD OF USING THE
SELF SERVICE PLATFORM. WHAT
CAUSES UH, CASES TO NEED TO BE
REVIEWED MANUALLY RATHER THAN
BEING ABLE TO BE REVIEWED USING
THE AUTOMATED SYSTEM? ARE WE
CONDUCTING SORT OF ROOT CAUSE
ANALYSIS AND COST BENEFIT
ANALYSIS? AS PART OF. THE
DEVELOPMENT OF THE BUSINESS
REQUIREMENTS FOR E. D. D NEXT.
UM MADAM CHAIR. I WOULD SAY YES,
WE ARE. UM WE HAVE MANY, UM,
STATE STAFF VENDOR STAFF. THE
HELP OF OD I HAVE APPS C. D. T
UM LABOR AGENCY HELPING IN ALL
GET MAKING SURE THAT THIS
PROJECT IS DONE RIGHT? AND THAT
CERTAINLY INCLUDES THAT? YES.
WHICH I THINK IS GREAT, BECAUSE
WE CERTAINLY HAVE, UM YOU KNOW,
SOME REALLY HUGE CHALLENGES THAT
ARE BASED ON THE UNDERLYING
TECHNOLOGY. BUT I KNOW ONE OF
THE THINGS THAT I HOPE WE
LEARNED FROM WHAT HAPPENED IN
THE PANDEMIC. THERE WERE ALSO
SOME JUST REALLY UNNECESSARILY
ELABORATE BUSINESS PROCESSES.
AND SO I THINK IT'S REALLY
IMPORTANT THAT WE RATIONALIZE
THOSE AS WE ARE GOING THROUGH
THE PROCESS OF REBUILDING THAT
THE TECHNOLOGY AND IT SOUNDS
LIKE SOUNDS LIKE WE ARE A COUPLE
OF QUESTIONS AROUND THE, UH, THE
WORK YOU'VE DONE TO MITIGATE
FRAUD GOING FORWARD AND TO
IMPROVE FRAUD DETECTION. WHAT IS
THE UPDATED ESTIMATE OF THE
AGGREGATE AMOUNT OF FRAUD THAT
WAS COMMITTED THROUGHOUT THE
PANDEMIC? SO WE HAVE PREVENTED
OVER 125 BILLION FRAUD AND WE
HAVE TALKED ABOUT THE 20 BILLION
IN FRAUD. YOU KNOW, THROUGHOUT
LAST YEAR IN COMMITTEE, AND THAT
REALLY REMAINS THE MOST ACCURATE
ASSESSMENT, UM, OF WHAT OCCURRED
. IT'S ABOUT 11% OF THE 180
BILLION THAT WE PAID OUT IN
BENEFITS. UM YOU KNOW, SINCE
THAT TIME WE HAVE WORKED WITH ME
AS I MENTIONED I D ME, THOMPSON
REUTERS. YOU KNOW, CDCR BANK OF
AMERICA, OUR OWN INTERNAL FRAUD
FILTERS, UM, TO MITIGATE FRAUD
AS MUCH AS POSSIBLE. AND, YOU
KNOW, WE WORK CLOSELY WITH LAW
ENFORCEMENT TO HOLD THOSE
ACCOUNTABLE. UM THERE ARE
THOUSANDS OF ACTIVE
INVESTIGATIONS AND HAVE BEEN
HUNDREDS OF ARRESTS ACROSS THE
STATE. AS YOU'VE PROBABLY SEEN
ON OUR WEBSITE. WE LIST ALL
THOSE UM WE, OF COURSE ANNOUNCED
EARLIER ABOUT THE BILLION DOLLAR
IN RECOVERY. UM, THAT WE, UH,
RECEIVED AND YOU KNOW WE'RE
GOING TO CONTINUE TO WORK ON
THAT. AND, UM WE ARE GOING TO GO
AFTER EVERY DIME THAT WE CAN SO
WE'VE RECOVERED ITS, UH A
BILLION SLIGHTLY OVER A BILLION,
BUT THE BIG NUMBER WAS A
BILLION. AND IN TERMS OF ONGOING
INVESTIGATIONS. WHAT IS THE
PIPELINE OF WHAT IS POTENTIALLY
RECOVERABLE. UM I DON'T KNOW THE
ANSWER TO WHAT IS POTENTIALLY
RECOVERABLE. UM I WOULD SAY THAT
A LOT OF THE SOME, YOU KNOW,
FROM OUR UNDERSTANDING FROM
WORKING WITH DEPARTMENT OF LABOR
, THE S TASK FORCE AND YOU KNOW,
LAW ENFORCEMENT EVERYWHERE IS
THAT SOME OF THIS, OF COURSE,
WERE INTERNATIONAL CRIME RINGS.
UM AND YOU KNOW, THE FBI IS
CERTAINLY WE'RE WORKING WITH THE
FBI TO GO AFTER THOSE CRIME
RINGS, AND WE WILL COLLECT EVERY
DIME THAT WE POSSIBLY CAN. UM
BUT I'M I COULDN'T SAY WHAT THE
FINAL NUMBER WOULD BE. OKAY AND
, UM, I KNOW THAT THERE'S BEEN
SOME RECENT NEWS REPORTS THAT
HAVE, UH REPORTED ESTIMATES OF A
SIGNIFICANTLY LARGER FIGURES OR
$32 BILLION FIGURE. CAN YOU
COMMENT ON ON THAT. I SURE CAN.
UM SO YOU KNOW, ONE OF THE
THINGS THAT WE TALKED ABOUT
INTERNALLY WHEN WE SAW THE NEWS
ARTICLE IS THAT WE DON'T KNOW.
UM HOW THEY GOT THEIR NUMBER.
YOU KNOW, WE DON'T KNOW WHAT
DATA WAS USED. WE DON'T KNOW THE
TIMEFRAME. THE METHODOLOGY, UM,
THAT WHEN THEY ARRIVED AT THAT
NUMBER, BUT YOU KNOW, WE DO KNOW
THAT I D ME HAS STOPPED FRAUD AT
THE FRONT DOOR. WE KNOW THAT UM,
BUT AGAIN, THAT'S JUST ONE OF
THE TOOLS THAT WE USE. UM YOU
KNOW, THE MAGNITUDE OF FRAUD WAS
JUST UNPRECEDENTED. YOU KNOW, OF
COURSE, OVER THE PANDEMIC, AND
YOU KNOW, ONE THING I WOULD SAY
IS WE HAVE TWO RESPECTED
ENTITIES IN THE ROOM, OF COURSE,
BESIDES E, D, D AND THE
LEGISLATURE, BUT WE HAVE THE L.
A. OH AND THE AUDITOR, AND, UM,
YOU KNOW, THEY BOTH DISCUSS
FRAUD IN THEIR REPORTS, AND THEY
HAVE DIFFERENT OPINIONS ON WHAT
THEY SUSPECTED FRAUD IS, YOU
KNOW SO WE WORK WITH THE AUDITOR
ON THE METHODOLOGY. UH IT'S NOT
NOT BOB. LUCKY FOR HIM, BUT WE
DO WORK WITH THEIR, UM, AUDIT
SECTION I GUESS OF THE AUDITOR'S
OFFICE BUT TO WORK ON THE TO
REFINE THE METHODOLOGY AND HOW
WE CALCULATE FRAUD. UM AND THAT
IS THE REPORTED NUMBER THAT WE
HAVE, AND THAT'S THAT'S THAT'S
HOW WE USE OUR METHODOLOGY, SO
WE DON'T YOU KNOW, I MEAN,
THERE'S NO WAY TO. I GUESS I'M
NOT SURE WITHOUT KNOWING HOW
THAT WAS CALCULATED. I MEAN, WE
CERTAINLY DON'T FEEL THAT IT'S
THAT HIGH. UM BUT IF THEY WANT
TO SHARE THEIR METHODOLOGY, THAT
WOULD ALSO BE FINE. UNDERSTOOD.
UM AND THAT'S THE TIME BEING.
AND I THINK MR WOOD IS AS A
QUESTION. YEAH FIRST OF ALL,
THANK YOU FOR THE REPORT AND
BRITISH APPRECIATE VERY MUCH
APPRECIATE. THE PROGRESS IS
BEING MADE, UM HOW? HOW LONG DO
YOU IS THERE ANY PROJECTION OF
TIME FOR THE I T SYSTEM TO BE.
AT A POINT WHERE WE CAN AVOID
SOME OF THESE CHALLENGES IN THE
FUTURE. SO WE ARE MAKING AS I
MENTIONED, YOU KNOW, WE ARE
MAKING CHANGES INCREMENTALLY
WITH THE D D NEXT. AND YOU KNOW
THE FIRST, UM, ITERATION, I
SUPPOSE, IS THE CUSTOMER PORTAL
IN THE FORMS. REDESIGN UM, I
HAVE SEEN SOME OF THE FORMS AND
THEY NEED TO BE REDESIGNED. UM,
AND THEY WILL BE IN THIS FIRST
ITERATION THIS FIRST YEAR, BUT
IT IS A LONG TERM PROJECT. I
BELIEVE IT'S ABOUT FIVE YEARS.
THAT'S WHAT WE WHEN WE WENT TO
SUB FOR COMMITTEE. YOU KNOW, WE
MENTIONED LIKE THAT WE HAVE A
ROAD MAP, AND IT'S ABOUT 55
YEARS. UM BUT WE HOPE TO SEE
CHANGES. IN FACT, WE'VE BEEN
MAKING CHANGES. UM, NOW SO IS
PART OF THE GOAL. UH
SIMPLIFICATION OF THE PROCESS
BECAUSE ONE OF THE THINGS THAT
WE HEARD IS THAT WHEN HE DID, HE
WAS TRYING TO BRING STAFF ON THE
TRAINING IS MONTHS. UM AND SO
YOU KNOW YOU GOT WHICH MEANS
YOU'VE GOT PEOPLE WAITING FOR
MONTHS FOR RECLAIMS AND SO ON.
SO IS THERE A WAY IS THERE ANY
ANYTHING IN THE WORKS FOR
SIMPLIFIED TRAINING? BECAUSE I
LOOK SOMETHING ELSE IS GOING TO
HAPPEN. YOU KNOW, AT SOME POINT
, UM AND YOU KNOW, HAVING TO
THEN TURN AROUND AND TRAIN
PEOPLE FOR MONTHS FOR THEM TO BE
IN A POSITION TO BE ABLE TO WORK
WITH CONSTITUENTS WON'T BE
PROGRESS. UNDERSTOOD WE HAVE
SHORTENED THE TRAINING ON SOME
OF FOR THE FOR THE MOST. UM UH,
HIGH, HIGHEST LEVEL PEOPLE THAT
CAN ANSWER THE CALLS AND THE
CALL CENTER. UM PART OF THE PART
OF THE D D NEXT. IF YOU CAN SORT
OF IMAGINE BIG PICTURE IS THAT
PEOPLE WILL RELY LESS ON THE
CALL CENTER. AND WHILE WE
TOTALLY UNDERSTAND THAT PEOPLE
ARE GOING TO CALL THE CALL
CENTER, WE ARE PREPARED WITH
THAT THROUGH OUR RECESSION PLAN.
SO WE HAVE UM, AS I MENTIONED IN
MY OPENING, UM, YOU KNOW, WITH
THE METRICS THAT WE HAVE, WE CAN
FORECAST WHERE WE'RE GOING TO
NEED STAFF. AND THOSE STAFF ARE
ALREADY TRAINED BECAUSE WE DO WE
HAVE ABOUT 4300 PEOPLE THAT WORK
IN IN, UH UI. UM SO WE
DEFINITELY WOULD HAVE THE STAFF
AVAILABLE. BUT AGAIN, THE GOAL
OF THE D NEED NEXT IS TO HAVE
PEOPLE RELY LESS ON THE CALL
CENTER AND MORE JUST ON THE
SYSTEM ITSELF. AND THEN FINAL
THING. IT'S MORE OF A COMMENT.
UM THEN ANYTHING AS I WAS
TALKING WITH MY STAFF BEFORE
THIS HEARING TODAY. ONE OF OUR
STAFF MEMBERS BROUGHT UP. UM,
HOW WHAT ABOUT THE RENT RELIEF
PROGRAM, WHILE OBVIOUSLY E. D D
HAS NOTHING TO DO WITH THE RENT
RELIEF PROGRAM THERE, BUT IT
DOES BREAK THE QUESTION. IF YOU
ARE SOMEBODY WHO WAS TRYING TO
GET UNEMPLOYMENT INSURANCE CLAIM
PROCESS AND WE'RE BEHIND ON YOUR
RENT, AND WE KNOW HOW DIFFICULT
THAT PROGRAM WAS TO NAVIGATE FOR
PEOPLE, NOT YOUR DEPARTMENT,
OBVIOUSLY, AND SOME OF THAT WAS
RUN BY COUNTIES. CAN YOU IMAGINE
THE STRESS OF AN INDIVIDUAL WHO
CAN'T GET THEIR MONEY FROM
UNEMPLOYMENT AND CAN'T PAY THEIR
RENT IS AND BECAUSE THEY CAN'T
ACCESS THAT PROGRAM, EITHER
THERE, AND I DON'T KNOW IF
THERE'S ANY EFFORT OUT THERE TO
CORRELATE AND SEE HOW MANY
PEOPLE SUFFERED ON BOTH OF THOSE
AND WHAT THAT LED TO IN PEOPLE'S
LIVES, BECAUSE, UM AYE. WE WE
HAD TO EXTEND THE TIME FRAME
BECAUSE WE COULDN'T GET THE
MONEY OUT THE DOOR ON THE RENT
RELIEF PROGRAM, AND THAT'S NOT.
I KNOW THAT'S NOT THE FOCUS, BUT
BUT IT'S JUST A DOMINO EFFECT.
AND THESE ARE REAL PEOPLE'S
LIVES. AND THAT'S WHY I READ
THAT LETTER. AND UM AND I KNOW
THERE ARE THOUSANDS OF PEOPLE
OUT THERE THAT WENT THROUGH
SIMILAR THINGS. AND SO GETTING
THIS RIGHT FOR THE FUTURE IS
REALLY, REALLY IMPORTANT. UM YOU
KNOW, IT'S LIKE PREVENTION, AND
WE DON'T DO ENOUGH OF THAT AT
THE STATE LEVEL. UM A LOT OF
PREVENTION. THINGS GET PUSHED
ASIDE BECAUSE THEY'RE EXPENSIVE
, AND THAT'S REALLY, REALLY
FRUSTRATING. WELL, THIS IS
EXPENSIVE. AND WHAT PEOPLE
SUFFER IS EXPENSIVE AND HAVING A
GOOD PROGRAM IN PLACE SO YOU
DON'T HAVE TO. GO THROUGH THIS
AGAIN ALWAYS SAVES THEM WAY MORE
MONEY ON THE BACK END AND WHAT
IT'S GOING TO COST UP FRONT TO
MAKE IT WORK. THANK YOU. MR
LACKEY. OKAY, I THINK I'M ON
NOW. THANK YOU, MS. FARIS I
THINK YOU'RE BRINGING SOME
NEEDED LEADERSHIP TO THIS
ORGANIZATION. AND UH, I DO HAVE
A COUPLE OF QUICK QUESTIONS. UM
AND THEY'RE OF A FAIRLY
SENSITIVE NATURE. FOLLOWING A
FRAUDULENT CLAIM ONCE A
DETERMINATION HAS MADE, HOW IS
THE DEPARTMENT HOLDING
RESPONSIBLE PARTIES ACCOUNTABLE?
ALSO THERE. THE CRIMINALS FILING
, OF COURSE, IS OUT OF YOUR
HANDS. THAT'S PROBABLY FBI OR
LAW ENFORCEMENT. BUT WHAT ABOUT
POTENTIAL COMPLICIT COOPERATION
BY EMPLOYEES WHO APPROVED
FRAUDULENT CASES? WHAT IS YOUR
QUESTION? I'M SORRY. ARE YOU ALL
SIMPLIFY IT? IS YOUR DEPARTMENT
LOOKING INTO POTENTIAL COMPLICIT
COOPERATION BY EMPLOYEES IN THIS
FRAUDULENT CIRCUMSTANCE? YES, WE
HAVE AN INVESTIGATION DIVISION
AS YOU ARE AWARE, AND, UM PART
OF WHAT THEY DO IS THEY DO LOOK
AT INTERNAL. UM UH, WHAT'S
HAPPENING INTERNALLY AND WHEN WE
WORK WITH, UM OUTSIDE LAW
ENFORCEMENT? OF COURSE, ANYTHING
THAT'S BROUGHT TO OUR ATTENTION
IS CERTAINLY INVESTIGATED.
THERE'S NO QUESTION ABOUT THAT.
OKAY AND I GUESS MY FOLLOW UP
QUESTION AS, UH AND I KNOW YEAH
, AND THIS IS PROBABLY SENSITIVE
AND YOU MIGHT NOT BE ABLE TO BE
COMPLETELY ACCURATE. BUT WHAT
KIND OF DISCIPLINE HAS TAKEN
TOWARDS THOSE PEOPLE THAT
ENGAGED IN THIS KIND OF FRAGILE
BEHAVIOR? IT SEEMS LIKE IT'S
COMPLETELY UNACCEPTABLE. I WOULD
SAY JUST GENERALLY WITHOUT
GETTING SPECIFIC. IF SOMEONE IS,
UM IF SOMEONE HAS PERPETRATED A
CRIME. THEY ARE FIRED AND GO TO
PRISON. AND THAT ACTUALLY
HAPPENED WITH A. A VENDOR STAFF
. NOT THAT LONG AGO. OKAY THANK
YOU. I WAS LOOKING FOR THAT. UM
AND IF YOU COULD ANSWER THIS, UH
, UNUSUAL QUESTION. WHY HAS E D
D LOST MORE THAN THOUSANDS OF
EMPLOYEES SINCE MARCH? CAN YOU
ANSWER THAT, OR NO? UM. I COULD
. I CAN SAY THAT, UH, MANY
PEOPLE HAVE RETIRED. I DIDN'T
GIVE THE NUMBER FOR A REASON. I
HAVE A NUMBER HERE, AND I DON'T
WANT TO DO THAT. I'M NOT EXACTLY
SURE WHAT THE NUMBER IS VERY
HIGH HERE. I DON'T KNOW HOW
ACCURATE IT IS. SO SO IF YOU ARE
TALKING ABOUT THE SO WE MAY BE
TALKING ABOUT TWO SEPARATE
THINGS BECAUSE WE DID HIRE HOW
MANY THOUSANDS 3000 PEOPLE
DURING THE PANDEMIC, BUT THEY
WERE LIMITED TERM SO THEY DIDN'T
LI I MEAN, THEY WERE HERE FOR
TWO YEARS, SO AFTER THEIR TWO
YEARS THEY LEFT. FOR LACK OF A
BETTER WAY OF SAYING IT FOR A
VERY SIMPLE WAY OF SAYING IT. SO
IF THAT'S WHAT YOU'RE TALKING
ABOUT, THEN THAT IS JUST THE
NATURAL PROGRESSION OF THE CIVIL
SERVICE THERE TWO YEARS IN
SERVICE, AND THEN THEY LEAVE. I
HAD AN INDICATION THAT IT WAS
MUCH GREATER THAN THAT. SO UM,
IT MUST BE SOMETHING DIFFERENT.
BUT IF YOU'RE NOT ABLE TO ANSWER
THAT, AND THAT'S WHY I CAN SAY
THAT YOU KNOW, PEOPLE RETIRE.
PEOPLE FIND OTHER JOBS. I MEAN,
THE GOOD THING ABOUT CIVIL
SERVICE AND DIFFERENT
CLASSIFICATIONS IS THAT YOU CAN
JUMP AROUND TO DIFFERENT
DEPARTMENTS AND YOU CAN ALWAYS
BE PROMOTED AND PART OF OUR CALL
CENTER. UM YOU KNOW, ARE THE
CLASSIFICATION. IT DOESN'T
REALLY TRANSLATE TO OTHER
DEPARTMENTS. SO SOME OF THOSE
SOME OF THE PEOPLE IN THE CALL
CENTER STAY BUT OTHER PEOPLE IN
DIFFERENT YOU KNOW, WE HAVE
WORKFORCE SERVICES. WE HAVE TAX
BRANCH. WE HAVE DISABILITY
INSURANCE, YOU KNOW, SO WE HAVE
WE HAVE 10,000 PEOPLE THAT WORK
AT AT AT E, D. D SO, UM, WE ARE
HAPPY TO, UM WE ARE HAPPY WHEN
PEOPLE PROMOTE UM, EVEN IF IT IS
OUTSIDE OF E, D D, BUT WE ARE
HAPPY WHEN THAT HAPPENS. THANK
YOU. ALRIGHT. SEEN Ó.
ASSEMBLYMEMBER'S RODRIGUEZ. YEP,
THANK YOU. JUST A QUICK QUESTION
. SOUNDS LIKE THE I D FRAUD WAS
THE NUMBER ONE ISSUE REGARDING
THE FROG? WE'RE NOT E D D. SO
NOW I D ME, RIGHT? THAT'S IN
PLACE NOW TO HELP PREVENT THAT.
SO WHAT'S BEEN DIFFERENT DONE
DIFFERENTLY NOW? I KNOW YOU HAVE
I D ME IN ON BOARD. NOW THEY'RE
PRETTY MUCH STOPPING IT AT THE
DOOR. LIKE YOU SAID. SO, WHAT
WAS THE PROCESS BEFORE? NOW? CAN
YOU ELABORATE A LITTLE BIT ON
THE MORE COMPLEX? THE QUESTIONS
ARE ASKED, OR ARE PEOPLE BEING
VETTED THOROUGHLY? SO UM, I WILL
ADMIT THAT I'M NOT SUPER
TECHNICAL. BUT I DO KNOW THAT
BEFORE I D ME WAS IMPLEMENTED.
WE DID, YOU KNOW, SO THERE'S
KIND OF IT'S A KIND OF TWO
DIFFERENT CONVERSATIONS BECAUSE
STATE UI IS DIFFERENT THAN THE
FEDERAL PANDEMIC. UM PROGRAMS
RIGHT? SO WITH STATE UI, THERE
IS A, UM CROSS MATCH IF YOU WILL
AGAINST EMPLOYERS BECAUSE THERE
IS AN EMPLOYER AND WE ALSO
MATCHED WITH SOCIAL SECURITY
ADMINISTRATION AND THE DMV. UM,
BUT WE DID NOT CHECK THE
IDENTITY. SO IF I STOLE YOUR I D
I WOULD HAVE ALL YOUR
INFORMATION. WHAT I D ME DOES IS
THEY DO AN IDENTITY VERIFICATION
THAT'S LIKE A FEW LEVELS MORE
SOPHISTICATED THAN THAT. SO YOU
TAKE YOU CAN FACE TIME OR
WHATEVER THEY CALL IT AND
PROBABLY NOT FACETIME, BUT, UM,
YOU CAN USE A CAMERA AND THEY
CHECK YOUR, UM FEATURES I GUESS
AGAINST THE LICENSE THAT YOU
SHOW AND WE DON'T HAVE THAT
CAPABILITY RIGHT NOW. HMM. ALL
RIGHT. WELL THANK YOU SO MUCH,
AND, UM, WE'LL GO AHEAD AND
BRING UP OUR NEXT PANELIST,
CHEST ALAMO, WHO'S JOINING US
FROM THE LEGISLATIVE ANALYST'S
OFFICE, AND PERHAPS WE CAN JUST
HAVE A R E D D TEAM STATE. I'M
SURE THERE'LL BE SOME QUESTIONS
THAT WE HAVE. FOR YOU AS WE MOVE
FORWARD. GOOD AFTERNOON. I'M
JAZZ ALAMO WITH THE LEGISLATIVE
ANALYST'S OFFICE. UM THE
COMMITTEE HAS ASKED OUR OFFICE
TODAY TO PREPARE A SHORT
PRESENTATION THAT BASICALLY
SUMMARIZES OF REPORT THAT OUR
OFFICE PUT OUT LAST MONTH.
HAVING TO DO WITH IMPROVING THE
STATE'S UNEMPLOYMENT INSURANCE
PROGRAM. THAT PRESENTATION I
HOPE IS IN FRONT OF YOU HERE
TODAY. IT'S ALSO AVAILABLE ON
OUR WEBSITE AT L A. OH DOT
CA.GOV FOR THOSE WATCHING ALONG.
UM I'M JUST GOING TO WORK
THROUGH VERY BRIEFLY. THE
PRESENTATION HAPPY TO TAKE
QUESTIONS AT THE END. UM I'LL
ASK THE YOU YOU SKIP TO THE PAGE
TWO OF OUR HAND OUT HERE ON THE
FIRST PAGE IS SIMPLY AN
INTRODUCTION TO THE ISSUE ABOUT
YOU. I UM BUT HERE ON PAGE TWO,
WE POINT OUT AS WE'VE DISCUSSED
THROUGHOUT TODAY'S HEARING THAT
THE U I PROGRAM HERE IN
CALIFORNIA FALTERED. DURING THE
PANDEMIC, UM BY OUR ACCOUNT, UH
, AS MANY AS FIVE MILLION
CLAIMANTS EXPERIENCE PAYMENT
DELAYS DURING THE PANDEMIC, AND
POTENTIALLY AS MANY AS A MILLION
CLAIMANTS WERE IMPROPERLY DENIED
BENEFITS DURING THE PANDEMIC.
THESE FAILURES OBVIOUSLY CAUSED
WIDESPREAD FRUSTRATION FOR
UNEMPLOYED WORKERS AND THEIR
FAMILIES. CAUSED ECONOMIC
HARDSHIP FOR THOSE FAMILIES.
THEY ALSO HELD BACK THE STATE'S
ECONOMIC RECOVERY, WHICH IS THE
POINT THAT WE HAVE NOT DISCUSSED
TODAY DURING THE HEARING, AND
THAT IS SIMPLY THAT THE U I
PROGRAM IS ONE OF THE STATE'S
MOST IMPORTANT AUTOMATIC SOCIAL
SAFETY NET PROGRAMS DURING
RECESSIONS. THE FUNDS THAT GO
OUT TO UNEMPLOYED WORKERS ON A
TEMPORARY BASIS HELP PREVENT AN
ECONOMIC COLLAPSE THAT WOULD
OTHERWISE BE MORE SEVERE, SO TO
THE DEGREE THAT THE PROGRAM HAS
INDIVIDUAL BENEFITS FOR
UNEMPLOYED WORKERS, OF COURSE,
UM, LIKE ASSEMBLYMEMBER'S WOODS,
CONSTITUENT. THE PROGRAM ALSO
HAS BROAD BASED BENEFITS FOR THE
STATE'S ECONOMY AND BUDGET GOING
FORWARD WHEN WE HIT THESE HARD
TIMES. DURING THE PANDEMIC, IT
WAS DIFFICULT FOR MANY ELIGIBLE
WORKERS TO GET BENEFITS. OUR
REPORT WE POINT OUT A COUPLE OF
KEY REASONS, FIRST AND FOREMOST,
THE APPLICATION FOR UNEMPLOYMENT
INSURANCE IS LENGTHY AND COMPLEX
. UM THE GOVERNOR STRIKE TEAM
REPORT NOTED THAT IT WAS
DIFFICULT FOR NATIVE ENGLISH
SPEAKERS TO UNDERSTAND, LET
ALONE FOR INDIVIDUALS WHO DID
NOT SPEAK ENGLISH AS A FIRST
LANGUAGE. WORKERS ARE OFTEN
REQUIRED BY THE DEPARTMENT TO
SUBMIT ADDITIONAL BACKUP
DOCUMENTATION TYPICALLY HAVING
TO DO WITH VERIFYING THEIR
IDENTITY. THIS PROCESS CAN TAKE
SEVERAL WEEKS TO COMPLY WITH
BUSINESSES, FOR THEIR PART,
OFTEN CONTEST TO WORKERS CLAIM
FOR UNEMPLOYMENT INSURANCE,
OFTENTIMES RIGHTFULLY S, IF A
RIGHTFUL DISAGREEMENT WITH THE
THEIR FORMER WORKERS CLAIM AND
THEN OTHER TIMES FOR OTHER
REASONS, POTENTIALLY T SET OFF
AN APPEAL AND THE APPELLATE
PROCESS, UM, ABOUT THE CLAIM.
WHEN WORKERS ARE DENIED. AH UI
BENEFIT AND THEY APPEAL. UM THEY
HAVE TO SCHEDULE AN APPEALS
HEARING WITH THE STATE'S APPEALS
BOARD, AND THIS CAN TAKE SEVERAL
WEEKS UNDER NORMAL TIMES DURING
THE PANDEMIC. IT WAS TAKING
SEVERAL MONTHS TO GET AN APPEALS
HEARING ON THE BOOKS. SO AS OUR
OFFICE PAID CLOSE ATTENTION ON
YOUR BEHALF. TO E, D D AND THE
EXPERIENCE DURING THE PANDEMIC
OVER THE LAST TWO YEARS WE SET
ABOUT TRYING TO UNDERSTAND HOW
THE STATE GOT INTO THIS POSITION
WHERE IT WAS GENERALLY DIFFICULT
FOR UNEMPLOYED WORKERS, EVEN
THOSE WHO WERE ELIGIBLE FOR
BENEFITS TO GET BENEFITS QUICKLY
, UM AND WITHOUT TOO MUCH
ADMINISTRATIVE CHALLENGE AND THE
REPORT THAT WE RELEASED LAST
MONTH, IN ESSENCE SUMMARIZED THE
CONDITION AND THAT THE PROGRAM
HAS BECOME DIFFICULT FOR
ELIGIBLE WORKERS TO GET BENEFITS
BECAUSE OF THE BASIC STRUCTURE
OF THE STATE'S UI PROGRAM. AND
BY THAT, I MEAN THE PROGRAM IS
FUNDED BY EMPLOYERS AND EMPLOYER
PAYROLL TAX THAT FUNDS UI
PROGRAM. AND SO THE DEPARTMENT
HAS OVER DECADES DEVELOPED AN
ORIENTATION TOWARD THE BUSINESS
COMMUNITY. UM THE BUSINESS
COMMUNITY HAS BECOME THEIR SORT
OF ONGOING. CONSTITUENCY FOR
UNEMPLOYMENT INSURANCE BECAUSE
THEY'RE REMITTING TAXES ON A
MONTHLY OR QUARTERLY BASIS.
BUSINESSES ARE INTERACTING WITH
REGULARLY. THEY HAVE ACCOUNTS
WITH E. D D TO MANAGE THEIR
UNEMPLOYMENT INSURANCE CLAIMS.
WORKERS ON THE OTHER HAND, MIGHT
APPLY FOR UNEMPLOYMENT INSURANCE
ONCE TWICE, PERHAPS NEVER IN
THEIR ENTIRE CAREERS, SO THEIR
INTERACTIONS WITH THE DEPARTMENT
ARE INFREQUENT AT BEST. UM.
ANOTHER REASON WHY THE BASIC
STRUCTURE OF THE PROGRAM HAS
SORT OF TENDED TO MAKE IT
DIFFICULT FOR WORKERS IS THAT
THE FEDERAL GOVERNMENT OVERSEES
THE STATE'S UI PROGRAM, AND THEY
ALSO PAY FOR MOST OF THE
ADMINISTRATIVE COSTS THAT THE
STATE HAS FOR RUNNING UI, AND AS
A RESULT, THE FEDERAL GOVERNMENT
INSISTS THAT THE STATE MEETS
CERTAIN PERFORMANCE TARGETS. UM
ONE OF THE KEY PERFORMANCE
TARGETS HAS TO DO WITH THE RATE
OF IMPROPER PAYMENTS THAT THE
STATE MAKES. UM AND BECAUSE THE
STATE FOR GOOD REASON WOULD LIKE
TO MEET THESE PERFORMANCE
TARGETS THAT ARE SET BY THE
FEDERAL GOVERNMENT. THE STATE
PAYS PARTICULAR ATTENTION TO
ENSURING, UM. THAT EVERY
BENEFICIARY. HAS MET ALL
POSSIBLE ELIGIBILITY QUESTIONS,
SORT OF ERRING ON THE SIDE OF
CAUTION. ONE PROVIDING BENEFITS
TO WORKERS. AND THE LAST ISSUE
THAT WE POINT OUT HAVING TO DO
WITH THE BASIC STRUCTURE OF THE
STATE'S UI PROGRAM. IT'S KIND OF
CALIFORNIA SPECIFIC AS YOU ALL
KNOW THE STATES YOU I TRUST
FUND, UM, FROM WHICH BENEFITS
ARE PAID IS BUT THEY'RE
SLIGHTLY, UM. AN ISSUE OF
STRUCTURAL BALANCE. THE TRUST
FUND DURING NORMAL ECONOMIC
TIMES IS INTENDED TO GROW
SURPLUSES THAT CAN BE USED TO
PAY OUT BENEFITS DURING
DOWNTURNS. BUT THE STATE'S TRUST
FUND GIVEN LONGSTANDING, UM TAX
LEVELS AND ADMINISTRATIVE
REQUIREMENTS DOES NOT GENERATE
SUFFICIENT RESERVES DURING GOOD
TIMES. TO PAY OUT BENEFITS
DURING RECESSIONS, SO BOTH
DURING THE GREAT RECESSION,
OBVIOUSLY, MOST RECENTLY DURING
THE PANDEMIC, THE TRUST FUND
BECAME INSOLVENT, REQUIRING THE
STATE TO GO TO THE FEDERAL
GOVERNMENT FOR TEMPORARY LOANS
TO KEEP PAYING BENEFITS. AND WE
POINT THIS OUT AS CALIFORNIA
SPECIFIC, INSOFAR AS THERE IS
PRESSURE ON THE DEPARTMENT AND
STATE POLICYMAKERS. TO PREVENT
THE TRUST FUND FROM BECOMING
INSOLVENT DURING NORMAL TIMES
THAT WOULD TEND TO ALIGN WITH
OTHER PRESSURES ON THE
DEPARTMENT TO MAKE SURE THAT, UM. ENACTING POLICIES THAT IN
UNINTENTIONALLY WHEN LOOKED AT
AS A WHOLE MAY MAKE IT DIFFICULT
FOR ELIGIBLE WORKERS TO GET
BENEFITS. UM BEFORE MOVING ON TO
THE EVIDENCE THAT WE PRESENT IN
OUR REPORT, I WANTED TO TAKE A
QUICK MOMENT TO PAUSE AND TALK
BRIEFLY ABOUT THE FRAUDULENT
PAYMENTS THAT WERE MADE DURING
THE PANDEMIC. UM MR HARRIS, WITH
AUDITOR'S OFFICE AND DIRECTOR,
VARIOUS WITH THE D D OF BOTH
SPOKEN ABOUT IT, SO I'LL JUST BE
BRIEF. ON PAGE THREE IN OUR HAND
OUT, WE DO SORT OF POINT OUT
AGAIN THAT THE OVERWHELMING
MAJORITY OF FRAUDULENT PAYMENTS
THAT WERE MADE DURING THE
PANDEMIC WE'RE FROM THE
TEMPORARY FEDERAL BENEFIT
PROGRAMS THAT WERE SET UP DURING
THE PANDEMIC. UM THOSE PROGRAMS
HAVE NOW ENDED. THEY DID NOT
HAVE THE BUILT IN BROAD
SAFEGUARDS THAT THE STATES
REGULAR UNEMPLOYMENT INSURANCE
PROGRAM HAS DIRECTOR VARIOUS
MENTIONED SOME OF THOSE
SAFEGUARDS, BUT ONE THAT I WOULD
POINT OUT IN PARTICULAR IS THAT
IN THE REGULAR UI PROGRAM WHEN A
WORKER APPLIES FOR UNEMPLOYMENT
INSURANCE. ONE OF THE FIRST
THINGS THAT OCCURS IS THAT E G D
SENDS A NOTIFICATION LETTER TO
THE WORKERS. FORMER EMPLOYER
LIST THE NAME OF THE WORKER THE
DAY THAT THEY CLAIMED
UNEMPLOYMENT INSURANCE. IT'S A
NOTIFICATION. THIS IS ALL OCCURS
IN THE STATES. YOU PROGRAM
OBVIOUSLY, IF THE EMPLOYER GETS
THIS NOTIFICATION DOESN'T
RECOGNIZE THE PERSON'S NAME, OR
MAYBE DOES RECOGNIZE THE PERSON
NAMED BUT THAT PERSON STILL
WORKING FOR THEM, THEY'RE GOING
TO NOTIFY ET DE RELATIVELY
QUICKLY AND FLAG THIS CLAIM AS A
FRAUDULENT CLAIM, SO PERHAPS
UNDER THE STATE'S UI SYSTEM, A
CLAIM THAT'S MADE FRAUDULENTLY
MIGHT PROGRESS IN THE FIRST
COUPLE OF WEEKS. BUT IT'S GOING
TO HIT THIS PRETTY QUICK
BACKSTOP WHEN THE EMPLOYER GETS
A NOTIFICATION. AND FOR THAT
REASON, WE THINK THAT THE
STATE'S UI PROGRAM HAS AN
UNDERLYING FRAUD PREVENTION
STRUCTURE THAT THAT FEDERAL
PROGRAM JUST DID NOT HAVE DURING
THE PANDEMIC. UM. THE DEPARTMENT
HAS ESTIMATED THAT THE STATE'S
UI PROGRAM INCURRED $1.3 BILLION
IN FRAUDULENT PAYMENTS DURING
THE PANDEMIC FOR SORT OF
PURPOSES OF REFERENCE. THIS IS A
LITTLE LESS THAN 5% OF THE STATE
UI BENEFITS THAT WENT OUT DURING
THE PANDEMIC. UM WE BELIEVE IN
REVIEWING THAT ESTIMATE THAT
IT'S LIKELY OVERSTATED. THAT'S
BECAUSE THE DEPARTMENT IS
COUNTING AS POTENTIALLY
FRAUDULENT CLAIMS FOR WHICH WHEN
THEY ASKED FOR WORKERS TO COME
BACK TO THEM AND CONFIRM THEIR
IDENTITY. AFTER I D ME, WENT
LIVE, UM CLAIMS WHERE THEY DID
NOT HEAR BACK FROM THE WORKER OR
COUNTED AS POTENTIALLY
FRAUDULENT, BUT WE BELIEVE THERE
MIGHT BE SEVERAL GOOD REASONS
WHY THEY DIDN'T HEAR FROM SOME
WORKERS, NAMELY FIRST AND
FOREMOST THAT SOME WORKERS MAY
HAVE ALREADY HAD THEIR BENEFITS
EXPIRES REALLY HAD NO REASON TO
GET BCK IN TOUCH WITH THE D. D
IN OTHER WORKERS MAY HAVE BECOME
FRUSTRATED BY THE PROCESS AND
GIVEN UP ENTIRELY, WHICH IS AN
ELEMENT THAT WAS POINTED OUT IN
THE GOVERNOR'S STRIKE TEAM
REPORT. SO WE WOULD ENCOURAGE
THINKING OF THE STATE UI FRAUD
NUMBER AS BEING LESS THAN A
BILLION DOLLARS DURING THE
COURSE OF THE PANDEMIC, WHICH
AGAIN PUTS IT AT LESS THAN 5%
JUST GENERALLY IN LINE WITH
OTHER STATE AND FEDERAL BENEFIT
PROGRAMS. UM AND THE KEY REASON
BEING THESE SORT OF UNDERLYING
FRAUD SAFEGUARDS THAT HAVE BEEN
BUILT INTO THE STATE'S UI
PROGRAM. UM, FOR DECADES. UM
TURNING TO PAGE FOUR OF OUR HAND
OUT BEFORE YOU AND WE LIST WHAT
WE CONSIDER THE SIGNS OF
IMBALANCE IN THE STATES. YOU I
PROGRAM AND THIS REALLY IS SORT
OF THE EVIDENCE THAT WE PRESENT
IN OUR REPORT THAT THE
DEPARTMENT AND ADMINISTERING,
UM, UNEMPLOYMENT INSURANCE. HAS
MADE IT UNDULY DIFFICULT FOR
ELIGIBLE WORKERS TO RECEIVE
BENEFITS. THE FIRST SIGN THAT WE
POINT OUT HAS TO DO WITH
IMPROPER DENIALS. UM SO IF
WORKER OR AN EMPLOYER IN THE
STATE DISAGREES WITH AN STD
ELIGIBILITY STAFF DECISION, THEY
CAN APPEAL THAT DECISION TO THE
APPEALS BOARDS AND INDEPENDENT
STATE BODY. WHEN WORKERS APPEAL
E D D S DECISIONS THAT DENY
THEIR BENEFITS. AND THEY
APPEALED THOSE DECISIONS TO AN
AL J AT THE APPEALS BOARD IN
CALIFORNIA ABOUT 50% OF THE TIME
THAT LJ OVERTURNS DEEDS DECISION
TO DENY THE WORKER BENEFITS. WE
LOOKED AT ALL OTHER STATES AND
THIS SAME DYNAMIC AND ON AVERAGE
ACROSS THE REST OF THE COUNTRY.
THEY'RE A LJ'S THAT THEIR
APPEALS BOARDS ARE OVERTURNING
THEIR DEPARTMENTS, DECISIONS
LESS THAN A QUARTER OF THE TIME.
THIS STRIKES US AS A KEY
INDICATION THAT THE DEPARTMENT
IS EITHER UM, DENYING CLAIMS IN
A WAY THAT'S INCONSISTENT WITH
STATE LAW. OR OTHERWISE SENDING
CLAIMS BACK TO WORKERS THAT ARE
DENIALS THAT ARE GETTING
OVERTURNED BY AL J. IS ONE OF
THE KEY RECOMMENDATIONS IN OUR
REPORT IS FOR THE LEGISLATURE TO
ASK THE STATE AUDITOR SO LOOK
MORE CLOSELY INTO THIS DYNAMIC.
UM THE SECOND PIECE OF EVIDENCE
THAT WE POINT OUT IN THE REPORT
THAT'S BEEN DISCUSSED HERE
TODAY. SIMPLY DELAYED PAYMENTS.
UM DURING NORMAL TIMES, UH,
SOMETHING AROUND 10 TO 15% OF
WORKERS WHO APPLY FOR YOU, I
RECEIVE A DELAYED PAYMENT THAT'S
TO FIND UNDER FEDERAL RULES AS A
PAYMENT THAT TAKES LONGER THAN
THREE WEEKS TO GET TO YOU.
DURING THE GREAT RECESSION ABOUT
25% OF APPLICANTS RECEIVED
DELAYED PAYMENTS AND END DURING
THE PANDEMIC. AS YOU ALL KNOW,
BASED ON NEWS REPORTS AND CALLS
YOUR OFFICES BETWEEN 30 AND 50%
OF APPLICANTS FOR UI BENEFITS
RECEIVED DELAYED PAYMENTS, UM
MANY OF WHICH DURING THE
PANDEMIC DURING THE PERIOD WHEN
THE BACKLOG WAS HIGH. SOME OF
THOSE DELAYS WERE QUITE LENGTHY
SEVERAL MONTHS IN SOME CASES.
THE THIRD ELEMENT OR PIECE OF
EVIDENCE THAT WE POINT OUT AS A
SIGN OF IMBALANCE IS SIMPLY THE
DIFFICULTY AND IMPROVING YOUR
ELIGIBILITY FOR BENEFITS. AS A
WORKER. THE ONUS IS CLEARLY ON
WORKERS TO PROVE THAT THEY ARE
ELIGIBLE FOR BENEFITS. UM. ONE
INSTANCE THAT I LIKE TO POINT
OUT THAT THAT SORT OF HIGHLIGHTS
. THIS IMBALANCE IS THAT UNDER
STATE LAW EMPLOYERS AS A WHOLE
ARE REQUIRED TO REPORT NEW HIRES
TO ET DE. AND THIS REPORT TO E D
D HELP CDD ENSURE THAT SOMEONE
DOESN'T CONTINUE COLLECTING
UNEMPLOYMENT INSURANCE AFTER
THEY'VE GOTTEN A NEW JOB. IT'S A
KEY TOOL THAT THE DEPARTMENT
USES TO PREVENT THAT FROM
HAPPENING. BUT THERE IS NO STATE
LAW. THAT REQUIRES EMPLOYERS TO
REPORT UM ALL SEPARATIONS. IF
THERE WERE A LOG THAT SORT OF
EVEN TOKEN, ON THE OTHER HAND,
REQUIRED EMPLOYERS TO REPORT
SEPARATIONS. FOR INSTANCE, UM,
THE DEPARTMENT MIGHT BE ABLE TO
USE THAT INFORMATION TO
PROACTIVELY REACH OUT TO
POTENTIALLY ELIGIBLE UNEMPLOYED
WORKERS TO GET THOSE UI BENEFITS
FLOWING MORE QUICKLY. UM AND THE
LAST PIECE OF EVIDENCE THAT WE
POINT OUT IN OUR REPORT HAS TO
DO WITH RECENT STEPS OR ACTIONS
THAT THE DEPARTMENT TOOK DURING
THE PANDEMIC THAT, IN OUR VIEW,
SUGGEST THE DEPARTMENT WAS NOT
TREATING AS A TOP PRIORITY, UM,
GETTING BENEFITS TO ELIGIBLE
WORKERS QUICKLY. I WON'T GO
THROUGH EACH OF THEM. UM, BUT
THE ONE THAT I DID WANT TO PUT
IN FRONT OF THE TWO COMMITTEES
TODAY HAS TO DO WITH, UH,
ELIGIBILITY DENIALS THAT
OCCURRED DURING THE PANDEMIC. AS
PART OF OUR RESEARCH WORKING
WITH THE DEPARTMENT CLOSELY. UM
WE LEARNED THAT THE DEPARTMENT
DENIED. UH ELIGIBILITY FOR 3.4
MILLION CLAIMS BETWEEN THE
BEGINNING OF THE PANDEMIC AND
JULY 1ST OF 2021 SO A LITTLE
OVER A YEAR. UM AND THESE CLAIMS
WERE DENIED UNDER A STATE LAW IN
THE UI CODE. UM SECTION 12 53 A
, WHICH IS A BROAD PROVISIONS OF
STATE LAW, BUT IN ESSENCE SAYS
YOU'RE ELIGIBLE FOR UI BENEFITS
. SO LONG AS YOU FOLLOW THE
DEPARTMENT'S RULES. IT'S VERY
BROAD, APPLICABLE MEASURE ON THE
DEPARTMENT TOLD US AND WE
CONCURRED BASED ON THE EVIDENCE
THAT WE HAD SEEN THAT MOST OF
THESE DENIALS OR IN INSTANCES
WHEN THE DEPARTMENT HAD ASKED AN
APPLICANT FOR FOLLOW UP I D
INFORMATION AND HADN'T RECEIVED
THAT INFORMATION FROM THE
APPLICANT. CERTAINLY SOME OF
THESE CLAIMS WERE FRAUDULENT. WE
DON'T DISPUTE THAT. WHAT THE
CHALLENGE FOR OUR OFFICE WAS
THAT THESE ELIGIBILITY DENIALS
WERE MADE AT A TIME WHEN THE
DEPARTMENT WAS HAVING
SIGNIFICANT CHALLENGES, OPENING
ITS MAIL. AND ANSWERING. IT'S
PHONE CALLS AT THE CALL CENTERS
DURING THE PEAK OF THE PANDEMIC.
IT MAY BE THE CASE THAT MANY OF
THESE DENIALS HAD, IN FACT SENT
THEIR DOCUMENTATION BACK TO E. D
D OR HAD NOT BEEN ABLE TO GET
THROUGH TO EAT ON THE CALL
CENTERS, UM, BUT WERE
NEVERTHELESS DENIED UNDER
SECTION 12 53, A UM, WORRISOMELY
, IN OUR VIEW ABOUT 200,000 OF
THESE APPLICANTS, WHO ARE DENIED
OF THE 3.4 MILLION FILED AN
APPEAL. UM, AND THEY WENT TO AN
AL J HEARING WITH THE APPEALS
BOARD OF THOSE 200,000
APPLICANTS WHO DID APPEAL. LJ'S
OVERTURNED AIDID'S DENIAL 80% OF
THE TIME. SO WE KNOW THAT MANY
PEOPLE WERE FORCED TO GO THROUGH
AN APPELLATE PROCESS TO GET
BENEFITS FOR WHICH THEY WERE
ELIGIBLE. IMPART POTENTIALLY
BECAUSE OF CHALLENGES AT THE
DEPARTMENT OPENING, UH INCOMING
MAIL AND ANSWERING THE PHONE
CALLS. UM. AN ELEMENT RELATED TO
THIS THAT WE POINT OUT IS
SUGGESTIVE THAT THAT GETTING
BENEFITS TO WORKERS WASN'T A TOP
PRIORITY HAS TO DO WITH SOME
REPORTING REQUIREMENTS THAT THE
LEGISLATURE REQUIRED OF EDDIE D.
AS PART OF THE BUDGETAGREEMENT
JUST AFTER THE BEGINNING OF THE
PANDEMIC. UM THE LEGISLATURE
TASK E G D. WITH REPORTING EVERY
TWO WEEKS THE NUMBER OF WORKERS
WHO HAD APPLIED FOR BENEFITS THE
MAGNITUDE OF THE BACKLOG BECAUSE
THAT WAS THE MAJOR CONCERN AT
THAT TIME, AND THE NUMBER OF
WORKERS WHO HAD BEEN DENIED
BENEFITS. UM AT THE LAST OF
THOSE REPORTS. SO IN THE SUMMER
OF 2021 E D D STATED THAT THEY
HAD DENIED BENEFITS FOR 705,000
ELIGIBLE WORKERS YET. THROUGH
OUR REPORTING. WE WE'VE LEARNED
THAT THE DEPARTMENT HAD DENIED
BENEFITS FOR 3.4 MILLION WORKERS
UNDER JUST ONE PROVISION OF UI
CODE. UM WE SPOKE WITH THIS
ABOUT THIS DISTINCTION WITH THE
DEPARTMENT. UM THEY WERE
INTERPRETING SORT OF THE STAGE
OF THE DENIAL DIFFERENTLY THAN
WE HAD. IN OUR VIEW. IT WAS THEY
WERE REPORTING A VERY NARROW
DEFINITION. OF THE NUMBER OF
WORKERS WHO HAD BEEN DENIED OR
DISQUALIFIED UI BENEFITS DURING
THE PANDEMIC. WE POINT THIS OUT
NOW? BECAUSE IT WOULD HAVE BEEN
AN OPPORTUNITY FOR THE
DEPARTMENT TO COME TO THE
LEGISLATURE WITH A THE BROADEST
INFORMATION POSSIBLE. TO SEEK
ASSISTANCE AND GUIDANCE FROM
FROM THIS BODY AS TO HOW TO
HANDLE SOME OF THESE CLAIMS AT
THAT TIME, INSTEAD OF IT COMING
FORTH AT A LATER DATE. UM THERE
ARE A FEW OTHER INSTANCES THAT
OCCURRED DURING THE PANDEMIC,
BUT I WANT TO BE MINDFUL OF TIME
AND MOVED TO A QUICK OVERVIEW OF
THE RECOMMENDATIONS WE MAKE IN
OUR REPORT. UM THE FIRST TWO
PANELISTS THAT YOU HEARD TODAY
SPOKE IN A DETAILED FASHION
ABOUT THE CRISIS OF THE
PANDEMIC. WHAT NEEDS TO BE DONE
TO ADDRESS THE SPECIFIC DISCRETE
ISSUES THAT OCCURRED DURING THE
PANDEMIC GOING FORWARD? UM
REPORT TAKES A MORE GLOBAL
PERSPECTIVE. AT WHAT KIND OF
PROGRAM UNEMPLOYMENT INSURANCE
CAN BE FOR THE STATE. UM. NOT
JUST SIMPLY MAKING SURE THAT THE
DEPARTMENT CAN HANDLE ITS
WORKLOAD DURING THE NEXT
RECESSION, BUT ENSURING THAT THE
PROGRAM IS BALANCED. UM AND SO
OUR RECOMMENDATIONS ARE BROADER
IN SCOPE THAN THE STATE
AUDITOR'S RECOMMENDATIONS AND A
LOT OF THE WORK THAT THE
DEPARTMENT HAS DONE TO DATE, AND
IT DOES INVITE THE LEGISLATURE
TO TAKE A CLOSER ROLE AND THIS
PROGRAM'S FUTURE. ALMOST ALL OF
OUR RECOMMENDATIONS WILL REQUIRE
LEGISLATIVE ACTION RATHER THAN
SORT OF AN ADMINISTRATIVE CHANGE
AS MANY OF THE AUDITOR'S
RECOMMENDATIONS AND THE THINGS
THAT THE DEPARTMENT ARE
CURRENTLY WORK ON, REQUIRE. WE
HAVE THREE BUCKETS OF
RECOMMENDATIONS AND I'LL BE
BRIEF. THE FIRST IS TO TAKE
STEPS TO UNDERSTAND MORE ABOUT
AND ULTIMATELY LIMIT THE NUMBER
OF CLAIMS THAT ARE DENIED.
IMPROPERLY UM, AS I MENTIONED
BEFORE DENIED CLAIMS ARE
OVERTURNED ABOUT HALF THE TIME
AT THE APPEALS BOARD, AND THIS
IS MORE THAN TWICE THE RATE AS
ANOTHER STATES. UM THE SECOND
BATCH OF RECOMMENDATIONS ARE
OFFICE MAY HAVE TO DO WITH
REDUCING OR MINIMIZING DELAYS SO
SPEEDING UP THE CLAIMS PROCESS
FOR WORKERS. UH, CHAIR.
PETRIE-NORRIS MENTIONED EARLIER
, A COST BENEFIT ANALYSIS AND TO
WHAT DEGREE THE DEPARTMENTS
USING THIS. WE BRING THIS UP IN
THIS REPORT NOW, UM WE DON'T
KNOW THE COSTS AND BENEFITS OF
MANY OF THE EID VERIFICATION
STEPS THAT THE DEPARTMENT HAS
HAD LONG STANDING AND HAS
INSTITUTED SINCE THE PANDEMIC
BEGAN. IN SOME CASES, THEY MIGHT
BE PREVENTING A GREAT DEAL OF
FRAUD. IN OTHER CASES, THEY MAY
NOT BE BUT MIGHT BE SLOWING THE
APPLICATION PROCESS BOTH FOR
APPLICANTS AND FOR THE
DEPARTMENT, AND SO WE RECOMMEND
THE LEGISLATURE DIRECTOR
DEPARTMENT TO PURSUE THAT COST
BENEFIT ANALYSIS. SO WE KNOW
MORE ABOUT HOW THESE DIFFERENT
TOOLS ARE AFFECTING APPLICANTS
AND WHETHER THEY'RE EFFECTIVE IN
PREVENTING FRAUD. UM. WE
UNCOVERED VARIOUS REPORTS OF IN
SOME CASES, EMPLOYERS OR
EMPLOYER REPRESENTATIVES
AUTOMATICALLY FILING DISPUTES
AND APPEALS OF U I CLAIMS FOR
FORMER WORKERS, UM, INSTANCES
WHERE AN APPEAL IS SCHEDULED,
AND A WORKER ARRIVES TO THAT
THAT HEARING THE ALGAE ARRIVES.
THE WORKER HAS PREPARED THE
ALGAE IS PREPARED. MEDIA SENT
DOCUMENTATION OVER BUT THE
EMPLOYER DOESN'T SHOW UP FOR THE
HEARING. UM AND SO THERE ARE
INSTANCES WHERE EMPLOYER APPEALS
OR DISPUTES MAY NOT BE
SUBSTANTIATED. AND RIGHT NOW
THERE IS NO MECHANISM AND STATE
LAW OR E D D PRACTICE, TOO. IN
KRIGE ONLY SUBSTANTIATED APPEALS
, AND WE RECOMMEND THE
LEGISLATURE CONSIDER WAYS TO
ENCOURAGE EMPLOYERS TO ONLY
BRING FORWARD SUBSTANTIATED
APPEALS. THOSE THAT AREN'T
SUBSTANTIATED. DELAY THE PROCESS
FOR WORKERS. THEY ALSO
CONTRIBUTE SIGNIFICANT WORKLOAD
TO THE DEPARTMENT AND PREPARING
FOR THOSE APPEALS GETTING THAT
DOCUMENTATION OF THE APPEALS
BOARD ETCETERA. UM IN OUR LAST
TRANSIT RECOMMENDATIONS HAS TO
DO SIMPLY WITH SIMPLIFYING THE
APPLICATION. UM ASSEMBLYMEMBER'S
, WOULD YOU YOU BROUGHT THIS UP
AT THE VERY BEGINNING OF THE
HEARING. IN MANY WAYS, THE
APPLICATION IS, UH, TOO LENGTHY
AND TOO COMPLEX. UH WE BELIEVE
THAT THERE ARE INSTANCES WHERE
APPLICANTS ARE ASKED TO RIDE
INFORMATION THAT THE STATE
ALREADY HAS. THAT DEPARTMENT
ALREADY HAS HAVING TO DO WITH
WAGE OR BENEFITS OR OTHER
BENEFIT PROGRAMS AND WE COULD DO
THE CROSS MATCH AS A STATE ON
THE BACK END. AND SIMPLIFY THE
APPLICATION FOR WORKERS ON THE
FRONT END. UM SOME GOOD WORK HAS
BEEN DONE TO IMPROVED
NOTIFICATION PROCEDURES FOR WHEN
E. D D REACHES OUT TO A WORKER
OR AN EMPLOYER WITH INFORMATION
ABOUT A CLAIM. UH WE BELIEVE THE
STATE AND THE LEGISLATURE COULD
BUILD ON SOME OF THAT WORK. UM
IT'S JUST ONE EXAMPLE. I WON'T
GO INTO ANY MORE DETAIL BUT
HAPPY TO TAKE QUESTIONS FROM
FROM THE COMMITTEES AND THANK
YOU FOR YOUR TIME. THANK YOU,
SIR. IS, UH. IS A NEW LAW
NECESSARY TO REFORM THE PROCESS
. YOU JUST MENTIONED WHERE
EMPLOYERS. UM QUESTION
ELIGIBILITY AND THEN DON'T SHOW
UP AT THE HEARING. WHERE IS THAT
A CHANGE THAT THE E D D COULD
IMPLEMENT ON ITS OWN? I'M NOT
COUNSEL, SO I DON'T WANT TO
OVERSTEP MY EXPERTISE. MY
UNDERSTANDING OF THE PROGRAM
SUGGESTS THAT LAW WOULD PROBABLY
BE NECESSARY, BUT IT REALLY
DEPENDS ON TO WHAT DEGREE THE
LEGISLATURE INTENDS TO
DISCOURAGE UNSUBSTANTIATED
CLAIMS. THERE MAY BE STEPS THAT
THE DEPARTMENT CAN TAKE TO LIMIT
THE MOST EGREGIOUS EXAMPLES
WITHOUT STATUTORY CHANGES. UM
BUT I WOULD ENCOURAGE YOU AS
CHAIR THE COMMITTEE TO WORK WITH
THE DEPARTMENT. OBVIOUSLY OUR
OFFICE WOULD BE HAPPY TO ASSIST
TO THINK ABOUT POTENTIAL RANGE
AND WHAT KIND OF LEGISLATION
MIGHT BE NECESSARY IN THAT
REGARD. SECOND QUESTION HAS TO
DO WITH THE MRS. UH, FOR AREAS
MENTIONED THE FIVE YEAR
SCHEDULE. TO UPDATE AND
MODERNIZE VARIOUS FORMS. ARE YOU
FAMILIAR WITH THAT SCHEDULE AND
THE VARIOUS STEPS? IN THAT
SCHEDULE. I'M FAMILIAR WITH THE
SCHEDULE AND SOME OF THE STEPS
BUT NOT INTIMATELY. UM I
WOULDN'T BE PREPARED TO ANSWER
SPECIFIC QUESTIONS ABOUT THEM
STRIKES ME AS A REMARKABLY LONG
TIME. BUT I DON'T KNOW HOW MANY
FORMS ARE INVOLVED IN. I
APOLOGIZE. I HAVE NOT DELVED
INTO THIS, BUT THEN AROUND
GOVERNMENT FOR A LONG TIME AND A
FIVE YEAR PROCESS. IS
DISCOURAGING. UM. SO I'VE BUT
THE L A IS NOT BEEN INVOLVED IN
OVERSIGHT OF THAT OR AN ANALYSIS
OF THAT. WE HAVE NOT ASKED MRS
FERRARIS TO COMMENT ON THAT. AH
MR CHAIR, SO THE FORMS REDESIGN
IS ACTUALLY IN THE FIRST STAGE.
SO IT'S NOT A FIVE YEARS IN THE
FIRST YEAR THAT WE'RE DOING
THAT, OKAY? BUT WHY IS IT WHY IS
IT FIVE YEARS? THAT JUST SEEMS
LIKE AN EXTRAORDINARILY LONG
TIME TO UPDATE FORUMS. HOW MANY
FORMS ARE THE FIVE YEAR THE FIVE
YEARS IS THE NEXT PROJECT AS A
WHOLE, WHICH INCLUDES OUR ENTIRE
I T SYSTEM, SO IT'S MORE THAN
JUST YES, THE FORMS IS JUST THE
CUSTOMER PORTAL IN THE FORMS ARE
JUST YEAR ONE. SO IT'S THANK
YOU. THANK YOU. OTHER COMMITTEE
MEMBERS. MR. JIM WOOD. ALRIGHT,
FREQUENT FREQUENT QUESTIONER
HERE TODAY, BUT, UH UM, BUT THE
SO THE NEW FORMS IN THE NEXT
YEAR WILL BE PLUGGED INTO THE
OLD IT SYSTEM. IF THE I T SYSTEM
IS NOT GOING TO BE UP AND
RUNNING FOR FIVE YEARS, RIGHT?
WAS THAT? HOW IS THAT? HOW IS
THAT GOING TO BE HELPFUL? AMY
FAULKNER, CHIEF DEPUTY E D D.
THAT'S A GOOD QUESTION. SO OUR
MAIN GOAL WITHIN THE NEXT
PARTICULARLY IN PHASE ONE IS ALL
THE TOUCH POINTS OF THE
CUSTOMER, WHICH INCLUDES THE
FORMS FORMS REDESIGN SO THAT
CUSTOMER WILL INTERACT THROUGH
THE CUSTOMER PORTAL ARE REVISED
FORMS, SO IT ALL OCCURS AT THE
SAME TIME. IF IT'S A PAPER FORM
THAN WHATEVER'S TRANSLATED VIA
THE AUTOMATION SYSTEM WILL BE
TRANSLATED TO THE PAPER PAPER
FORM, SO THE IMPROVEMENT OCCURS
SIMULTANEOUSLY. HISLEY. OKAY,
OKAY. UM AND THIS IS KIND OF
MORE OF A GENERAL QUESTION. I
MEAN, THE ECONOMY IS NOT FIRING
ON ALL CYLINDERS RIGHT NOW, UM,
THERE. NUMEROUS, UM PROJECTIONS
OF RECESSION. WE'RE LOOKING AT
YOU SEE THE GOVERNOR'S VETO
MESSAGES ON A LOT OF BILLS, UM,
PUTTING A COUPLE OF MINE WE
CITING, UM YOU KNOW, UNCERTAIN
ECONOMIC TIMES IN THE FUTURE. IF
WE ENTER INTO A RECESSION AND
START TO SEE A RAMP UP IN
UNEMPLOYMENT. YOU KNOW IT. AND
WE'RE IN THE PROCESS OF DOING
DOING THIS, YOU KNOW, REBOOT
HERE. IS THERE A THRESHOLD AT
WHICH THIS ALL KIND OF UNRAVELS
AGAIN? AND SO THE QUESTION? THE
QUESTION IS TO THE ELIO AND ALSO
TO THE DEPARTMENT. AND THEN I
HAVE A FOLLOW UP TO THAT.
ASSEMBLYMEMBER'S CHAZ IF HE
NEEDS ME, AND I GUESS I GUESS
WHAT I GUESS WHAT IT GETS, TOO.
IS THAT YOU KNOW, OBVIOUSLY, YOU
KNOW THE DEPARTMENT'S MAKING
PROGRESS 19 OF THE 21
RECOMMENDATIONS. HOW WILL WE
FAIR? IF AND IN 68 MONTHS WE
ENTER INTO RECESSION AND
UNEMPLOYMENT TAKES UP TO 34. AND
WE GET A INFLUX OF CLAIMS WE'VE
HAD. WE'VE HAD AN EXODUS OF
PEOPLE WORKING FOR THE
DEPARTMENT. WE'RE REDOING FORMS
AND A PORTAL. UH HELP. HOW IS
THIS ALL GOING TO WORK? FROM
YOUR FROM YOUR PERSPECTIVE AS
THE L A. AND IF I'M NOT ASKING
YOU TO, YOU KNOW, OPERATIONALLY
, BUT I'M CURIOUS, UNDERSTAND?
ASSEMBLY MEMBER THINK I'LL START
BY SAYING THAT OUR OFFICE SHARES
THE AUDITORS PERSPECTIVE THAT
THE DEPARTMENT IS IN A BETTER
POSITION NOW THAN IT WAS WHEN
THE PANDEMIC BEGAN TO HANDLE
WORKLOADS. UM THE EXAMPLE THAT
YOU PUT FORTH THAT UNDER WHICH
UNEMPLOYMENT INCREASES 345% FROM
ITS CURRENT LEVELS, UM, WOULD
STILL PALE IN COMPARISON TO THE
EXPERIENCE DURING THE PANDEMIC.
THAT'S GOING FOR US. UM ON THE
OTHER HAND, YOU ALSO BROUGHT UP
SOME GOOD POINTS THAT UM STAFF
HAVE LEFT, UM THAT WE'RE IN THE
PROCESS OF RE EVALUATING SOME OF
THESE FORMS AND OTHER PROCEDURES
THAT COULD MAKE IT COMPLEX TO
HANDLE HIGH WORKLOAD. UM I'M
CERTAIN THAT THERE IS A
THRESHOLD BEYOND WHICH THINGS
BECOME UNWORKABLE. UM OUR OFFICE
FOR ONE COULDN'T TELL YOU WHAT
THAT THRESHOLD IS RIGHT NOW.
THANK YOU. BESIDES THE FACT THAT
WE HAVE AMAZING STAFF AT E D D,
UM I WOULD SAY THAT DURING THE
PANDEMIC AS I MENTIONED WE
COMPLETED OVER 200 I T PROJECTS
THAT HELP WITH THE AUTOMATION.
OF UM THE CLAIMS AND CLAIMS
PROCESSING AND YOU KNOW
DIFFERENT THINGS THAT GO WITH
THE TOUCH POINTS AS AMY
MENTIONED FOR CLAIMANTS. UM IN
ADDITION TO THAT THE RECESSION
PLAN AND WE'RE HAPPY TO PROVIDE
IT TO THE LEGISLATURE. EXCUSE ME
. I THINK IT WENT TO YOU EARLIER
IN THE YEAR WHEN THINGS WERE A
LITTLE HECTIC, UM, THE RECESSION
PLANS BASICALLY SETS FORTH. YOU
KNOW SOME OF THE STEPS LIKE I
MENTIONED THE COMMAND CENTER SO
WE CAN QUICKLY REDIRECT STAFF
BECAUSE WE FOUND DURING THE
PANDEMIC. I MEAN, IT'S CLICHE OR
NOT, BUT LESSONS LEARNED IS WHAT
WE USED TO, UM, PUT THE
RECESSION PLAN TOGETHER AND WHAT
WE SEE. COULD BE, UM YOU KNOW,
SOMETHING THAT HAPPENS IN THE
FUTURE. SO IF WE HAVE A
RECESSION, AND WE HAVE THAT
UPTICK YOU FEEL CONFIDENT THAT
THAT WILL BE IN MUCH BETTER
SHAPE I DO. I COULDN'T SPEAK IF
THERE'S ANOTHER PANDEMIC BECAUSE
THAT IS JUST OUT OF MY
WHEELHOUSE, BUT, UM, BUT I
CERTAINLY FEEL COMFORTABLE IF
THERE IS A RECESSION THAT WE CAN
HANDLE IT. YEAH AND I AND I
GUESS I WOULD I GO BACK TO THE
NUMBER. IT WAS STARTLING NUMBER
THAT, UM THE DISPARITY BETWEEN
THE DEPARTMENT'S NUMBERS ON WHAT
IT WHAT A REJECTED CLAIM WAS AND
WHAT YOU KNOW THE 750,000 VERSUS
3.4 MILLION. UM I GUESS IF I GOT
A LETTER IN THE MAIL THAT SAID
MY CLAIM HAD BEEN REJECTED. UM
AND I WAS ONE OF THOSE 3.4
MILLION. I WOULDN'T BE SPLITTING
HAIRS ON, YOU KNOW? WELL, IT WAS
KIND OF A REJECTION, BUT IT
WASN'T REALLY A REJECTION. YOU
NEED TO PROVIDE MORE
INFORMATION. UM, UM SO I GUESS.
AND THEN I THINK THE OTHER
NUMBER THAT THAT STRUCK ME WAS
THAT, UM 200,000 PEOPLE. T
FILED AN APPEAL WENT TO AN
ADMINISTRATIVE LAW JUDGE. 80% OF
THOSE WERE OVERTURNED. SO ARE WE
GOING TO BE ABLE TO OPEN THE
MAIL IN THE FUTURE? UM AND SO
THAT SOME OF THAT STUFF DOESN'T
HAPPEN AGAIN? PART OF YOUR
PLANNING? YEAH ONE OF THE THINGS
THAT THE STRIKE THE GOVERNOR'S
STRIKE TEAM, UM BACK A COUPLE OF
YEARS AGO NOW HAD RECOMMENDED IS
THAT WE WORK WITH THE, UH KIÞM
THE CALIFORNIA UNEMPLOYMENT
INSURANCE APPEALS BOARD. UM. TO
TRACK AND ANALYZE THE APPEALS TO
ACTUALLY LOOK AT THE CAUSE OF
WHY THOSE APPEALS ARE OVERTURNED
. AND ARE THEY IN FAVOR OF THE
EMPLOYER OR THE EMPLOYEE AND TO
LOOK AT EXACTLY WHAT THE ISSUES
ARE? UM THIS MAY NOT BE
COMFORTING, BUT 200,000 IS A
VERY SMALL NUMBER COMPARED TO
THE NUMBER OF CLAIMS THAT WERE
PAID OUT. BUT I APPRECIATE THE
STATISTIC AND IT IS CERTAINLY
SOMETHING THAT, UM YOU KNOW THAT
WE ARE LOOKING AT AS A AS A
COMPARISON TO THE OTHER STATES.
I MEAN, IT'S HARD TO KNOW WHAT
THEIR LAWS ARE. YOU KNOW, WE TRY
. WE DON'T TRY TO ASK FOR A LOT
OF INFORMATION FROM CLAIMANTS,
SO IT'S NOT ONEROUS ON CLAIMANTS
. UM AND OTHER STATES MAY ASK
FOR MORE DOCUMENTATION OR, YOU
KNOW, WE HAVEN'T DONE THAT
ANALYSIS TO SEE WHAT OTHER
STATES HAVE DONE. UM BUT WE
POINT TAKEN ON THAT. AND THAT IS
SOMETHING THAT WE ARE WORKING
WITH. UM, QUÊ? YEAH, BÀN, BUT I
GUESS I GUESS PART OF THAT IS IT
WOULD HAVE TAKEN QUITE AN EFFORT
FOR THOSE 200,000 PEOPLE TO GET
TO THAT POINT THAT WOULD HAVE
TAKEN MONTHS AND MAYBE EVEN
LONGER THAN THAT. TO GET TO THAT
POINT. 200,000 IS 40% OF THE
SIZE OF MY DISTRICT, SO I THINK
THAT'S PRETTY GOOD. PRETTY GOOD
SIZED NUMBER SPREAD OUT INTO 20
, YOU KNOW, 40 MILLION PEOPLE IN
THE STATE. BUT IF YOU'RE ONE OF
THOSE 200,000 AND YOU KNOW, AND
IT TOOK YOU MONTHS TO GET TO
THAT POINT, AND THEN AND THEN
YOUR CLAIM WAS OVERTURNED. UM AS
80% OF THEM WERE THAT'S YEAH,
THAT'S THAT'S PRETTY STARTLING.
IT'S PRETTY STARTLING SO THANK
YOU. MS PETRIE NORRIS HAS A
QUESTION. HE HAD A FOLLOW UP IF
YOU DON'T MIND. I'M SORRY OR
COMMENT, ANYWAY. FORGIVE ME. I
JUST DON'T CARE. BRIEFLY
ASSEMBLYMEMBER'S WOULD. WE'RE A
SMALL STAFF OF ANALYSTS. THE L
A. OH UM, WE POINTED OUT THE
DISTINCTION THAT YOU'RE YOU'RE
TALKING ABOUT, AND THIS IS
SPECIFIC TO THE PANDEMIC AND OUR
KEY FIRST AND FOREMOST
RECOMMENDATION TO THE
LEGISLATURE IS SIMPLY TO LEARN
MORE ABOUT WHY CLAIMS ARE
OVERTURNED AT THE APPEALS BOARD
TO BRING IN STAFF AND THE BOARD
MEMBERS AND TALK WITH THEM AND
MORE THAN IF THERE ARE ANY
SYSTEMATIC. ISSUES THAT THEY SEE
. THAT WOULD BE SIMPLE FOR
EITHER THE DEPARTMENT OR THE
LEGISLATURE TO STEP IN AND
IMPROVE. UM AND SO THAT WAS OUR
FIRST RECOMMENDATION. THINKING
ABOUT THESE OVERTURNS RIGHTS. I
JUST WANTED TO FOLLOW UP ON YOUR
COMMENTS. THANK YOU. ALRIGHT
MISS PETRIE-NORRIS SOMEWHAT OF A
FOLLOW UP TO ASSEMBLYMEMBER'S
WOODS QUESTIONS BECAUSE I THINK
I ALSO WAS STRUCK BY THE IDEA
THAT WE HAD 3.4 MILLION. I GOT
DENIED CLAIMS. UM. AT A TIME
WHEN THE DEPARTMENT AND REPORTED
TO THE LEGISLATURE THAT WE ONLY
HAD 705,000 DENIED CLAIMS, CAN
YOU, UH, EXPLAIN TO US THAT
INCONSISTENCY AND COMMENT ON
THAT BECAUSE I THINK, UM, IN
ESTABLISHING A 2020 STATE LAW,
THE DIRECTOR OF THE DEPARTMENT
TO ISSUE REPORTS THE LEGISLATURE
ABOUT THE NUMBER OF WORKERS WHO
WAS DISQUALIFIED. IT WAS IN
ORDER FOR US TO UNDERSTAND IF
THERE WAS ANYTHING THAT WAS AN
ISSUE THAT REQUIRED
INTERVENTION. OBVIOUSLY, THERE
WAS BUT THE DEPARTMENT DID NOT.
SEEMS TO BE YOU KNOW, THEY
ACTIVELY WITHHELD THAT
INFORMATION THAT MADE IT
IMPOSSIBLE FOR US TO TAKE ACTION
TO ADDRESS THAT ISSUE. SO AT A
VERY HIGH LEVEL, AND THEN I WILL
ASK GRACIA TO, UM, ADD ANYTHING
THAT I MAY MISS, UM YOU KNOW, IN
ADDITION TO IT BEING DIFFERENT
DATA POLLS PROBABLY DATES. I
THINK THE DATES WERE A LITTLE
BIT OFF. BUT THAT DOESN'T
ACCOUNT FOR THE 3.4 MILLION. I
MEAN, WE WORKED REALLY HARD WITH
THE LEGISLATURE ON, UM MANY
DIFFERENT DASHBOARDS THAT WE
HAD. WE HAD ONE IN LEGISLATION
WE HAD. WE CHANGED IT WORKING
WITH THE L. A AND THE
LEGISLATURE. UM THE AND WE
REFINED IT TO WHAT WE THOUGHT
WAS WHAT WAS WANTED. BASICALLY
THE ONE THING THAT DIDN'T CHANGE
IS THE DEFINITION OF ELIGIBILITY
. AND SO, UM, I HAVE TO READ IT
BECAUSE IT COMPLICATES I EVEN
IT'S COMPLICATED, BUT SO
CLAIMANT CAN BE FOUND ELIGIBLE.
AND THEN DISQUALIFIED BECAUSE
THEY RETURNED TO WORK. LET'S SAY
AND THEN ELIGIBLE, GET ELIGIBLE
AGAIN. AND THEN, OF COURSE, THE
REVERSE IS ALSO TRUE. AND SO THE
DIFFERENCE WITH THE 705,000
VERSUS THE 3.4 IS THAT THE
705,000 THAT WERE INELIGIBLE
WERE NEVER ELIGIBLE. AND SO THE
DELTA OF THAT WERE FOUND
ELIGIBLE AT ONE POINT AND DID
RECEIVE A PAYMENT. IF THAT MAKES
SENSE AND GOT IT SO AFTER THEY
WERE DENIED, THEN THEY WERE, YOU
CAN BE DISQUALIFIED AND DENIED
AND DISQUALIFIED OR PROBABLY TWO
DIFFERENT DEFINITIONS. ALTHOUGH
I WOULD I WOULD USE THEM
INTERCHANGEABLY AS WELL. BUT, UM
AND, UM, YOU CAN BE DISQUALIFIED
AND THEN FOUND ELIGIBLE AGAIN
EVERY TWO WEEKS. I MEAN, IF YOU
YOU CAN, YOU KNOW AGAIN, YOU
HAVE TO CERTIFY EVERY TWO WEEKS
SO YOU CAN HAVE A HAVE A JOB AND
THEN YOU CAN LOSE YOUR JOB AND
THEN YOU CAN HAVE A JOB AGAIN.
SO THE DEFINITION THE STATE
DEFINITION AS WELL AS OUR
FEDERAL REPORTING REQUIREMENTS.
DEFINE WHAT ELIGIBILITY IS AND
INELIGIBILITY AND IF YOU ARE
INELIGIBLE, YOU'VE NEVER
RECEIVED A PAYMENT. I DO THINK I
UNDERSTAND THAT. THE DISTINCTION
BETWEEN THOSE TWO NUMBERS NOW,
UM AND I THINK IT SHOULD GO
WITHOUT SAYING, BUT I'M GOING TO
SAY IT ANYWAY, LIKE THE IDEA
THAT WE WOULD DENY 3.4 MILLION
CLAIMANTS BECAUSE THEY DIDN'T
RETURN THEIR DOCUMENTS TRUST BY
MAIL. WHEN IT WAS REALLY BECAUSE
WE HAD, YOU KNOW, A STOREROOM
FULL OF ENVELOPES THAT WEREN'T
GETTING OPENED. UM THAT'S REALLY
BAD. AND SO IF THERE'S SOME,
LET'S JUST LET IT CHANGE THAT'S
NEEDED TO AVOID ANYTHING ABOUT
REGIS LIKE THAT HAPPENING IN THE
FUTURE. PLEASE TELL US RIGHT NOW
, I WILL SAY PART OF E D D NEXT
IS, AS I MENTIONED THE DOCUMENT
MANAGEMENT AND UPLOAD, AND SO WE
ARE. THAT THAT YOU KNOW, WE ARE
HOPEFUL THAT THAT IS GOING TO
HELP. AND THAT PEOPLE WON'T BE
MAILING THINGS INTO E. D. D.
YEAH AND IF I MAY ADD, UM I CAN
AFFIRMATIVELY CONFIRMED THAT THE
3.4 MILLION THAT WERE
DISQUALIFIED. WE DID NOT
ACTUALLY HAVE STACKS OF MAIL
WITH THE IDENTITY VERIFICATION
THAT WAS PENDING PROCESSING. WE
CLEARED ALL THOSE BEFORE THE
DISQUALIFICATIONS ACTUALLY TOOK
PLACE. SO IT WAS QUITE A FEW
MONTHS BETWEEN THE REQUEST IN
WHICH WE ASKED THEM TO VERIFY
THEIR IDENTITY, AND WHEN WE
ACTUALLY ENTER THE
DISQUALIFICATION DUE TO THEIR NO
RESPONSE. ALL RIGHT. AND THEN,
UM NEXT QUESTION, AND THIS IS
FAIRLY BROAD. BUT I THINK THAT
THIS IS A REALLY SO I WANT TO
THANK THE LAO FOR YOUR WORK ON
THIS AND FOR THIS SET OF
RECOMMENDATIONS. IT WOULD BE
REALLY INTERESTED DIRECTOR AND
YOUR REACTIONS TO OTHER
RECOMMENDATIONS THAT HAVE BEEN
SET FORTH SPECIFICALLY, ARE ARE
THERE, UH, ITEMS ON HERE THAT
THE DEPARTMENT IS ALREADY
WORKING ON? ARE THERE NEW ITEMS
ON HERE THAT HAVING REVIEWED
THIS REPORT, YOU WILL NOW BE
WORKING ON THE SHORT ANSWER IS
YES, WE HAVE. YOU KNOW, SOME A
LOT OF WHAT THE L A. OH REPORTED
ON OUR THING, YOU KNOW, UM,
RECOMMENDATIONS TO SOME EXTENT,
THE AUDITOR INTO A LOT OF
EXTENT, THE, UM TO A LARGE
EXTENT, THE, UM STRIKE TEAM
RECOMMENDATIONS, SO WE ARE WELL
ON OUR WAY AGAIN WITH THE STRIKE
TEAM RECOMMENDATIONS, UM E D D
NEXT. THERE ARE A COUPLE OF LAO
RECOMMENDATIONS. I THINK THAT
WILL BE TAKEN CARE OF DURING IN
ANY DID NEXT. AND THERE ARE A I
KNOW A FEW THAT WE ARE LOOKING
INTO THAT I HAD A REPORT THAT
SAID, THIS IS A GOOD IDEA. WE'LL
LOOK INTO THAT, SO WE WILL TAKE
A RECOMMENDATION FROM ANYONE.
THAT HAS A GOOD ONE. THANK YOU.
AND I THINK ONE THING THAT I
WOULD FIND USEFUL AND THE ONE
THING THAT WE HAVE BEEN DOING IS
HAVING THESE THESE HEARINGS
PERIODICALLY, REALLY, TO CHECK
IN ON THE PROGRESS THAT'S BEEN
MADE ON THE STRIKE TEAM
RECOMMENDATIONS AND ON THE
AUDITOR RECOMMENDATIONS, AND I
DO THINK THAT THAT HAS BEEN VERY
EFFECTIVE MECHANISM AND I THINK
REALLY IMPORTANT OVERSIGHT. I
KNOW I WOULD, AS THE CHAIR OF
THE ACCOUNTABILITY COMMITTEE
FIND IT REALLY USEFUL FOR US TO
CONTINUE SOME SORT OF A REGULAR
SO IF WE CAN UNDERSTAND, WE'VE
GOT A FIVE YEAR PLAN NOW FOR A D
D. NEXT. WHAT ARE THE KEY
MILESTONES AND DELIVERABLES? AND
AS WE PIVOT FROM ADDRESSING THE
, UH, AUDITOR RECOMMENDATIONS
AND STRIKE TEAM RECOMMENDATIONS
AND LOOKING TOWARDS, UH, KIND OF
THIS NEXT GENERATION OF TDD
SERVICE, I THINK THAT THAT WOULD
BE REALLY PRODUCTIVE ACTIVITY
FOR US TO ENGAGE IN AS WE MOVE
FORWARD, SO WE'LL CONTINUE THAT
CONVERSATION WITH YOUR TEAM, BUT
LOOK FORWARD TO CONTINUING AS WE
MOVE FORWARD, THANKS. GOOD UM,
MR LACKEY ANYMORE QUESTIONS JUST
ONE QUICK, CLARIFYING QUESTION
FOR THE L A. OH, AND YOU
MENTIONED THAT SIMPLIFYING THE
APPLICATION WILL LEAD TO LESS
FRAUD. ANDIF I COULD JUST HAVE
YOU KIND OF ELABORATE HOW UM,
FORGIVE ME, MR. LUCKY, UM I
DIDN'T INTEND TO SUGGEST THAT A
SIMPLER APPLICATION WOULD RESULT
IN LESS FRAUD. UM THE SORT OF.
ONUS OF OUR REPORT IS THAT WE
BELIEVE THERE ARE OPPORTUNITIES
TO SIMPLIFY THE APPLICATION THAT
WOULDN'T RESULT IN MORE FRAUD.
IF THE DISTINCTION OR THE NUANCE
MAKES SENSE. THERE MAY BE
HANGING FRUIT, SO TO SPEAK THAT
THE LEGISLATURE AND THE
DEPARTMENT COULD APPROACH TO
IMPROVE THE PROGRAM, INCLUDING
ELEMENTS OF SIMPLIFYING THE
APPLICATION THAT HAVE NO COST,
UM, EITHER IN TERMS OF
ADDITIONAL WORKLOAD FOR THE
DEPARTMENT OR ADDITIONAL RISK OF
FRAUD. AND SO THAT WAS THE SORT
OF KEY ELEMENT WE THINK THERE
ARE, UM SEVERAL OPPORTUNITIES
THROUGHOUT THE PROGRAM THAT
THROUGH A VALUATION COULD BE
TAKEN ADVANTAGE OF IN THIS
REGARD. THAT'LL DO. THANK YOU.
ALL RIGHT. THANK YOU, MR LACKEY.
UH OH. THIS IS THE POINT WHERE
I'D LIKE TO INVITE ANY PUBLIC
COMMENT. LEARNING MEMBERS OF THE
PUBLIC WHO HAVE HEARD ALL THE
TESTIMONY AND WOULD LIKE TO
COMMENT. I SEE TOO. ONE IS
COMING TO THE MICROPHONE. AND
THEN MA'AM, YOU'LL BE NEXT. GO
AHEAD, SIR. THANK YOU. MR CHAIR
, REMEMBERS MITCH STEIGER WITH
THE CALIFORNIA LABOR FEDERATION
. APPRECIATE THE OPPORTUNITY TO
TESTIFY TODAY. EXCUSE ME, CHAIRS
DAILY AND PETRIE-NORRIS
APPRECIATE THE OPPORTUNITY TO
TESTIFY TODAY. UM WE WOULD
LARGELY ECHO THE COMMENTS OF
EVERY LEGISLATOR ON THE
COMMITTEE TODAY. THEY LINE UP
PRETTY EXACTLY WITH WHAT WE'VE
HEARD FROM UNEMPLOYED WORKERS
AND HAVE BEEN HEARING FOR YEARS
OFF THE TOP OF MY HEAD. I CAN'T
THINK OF A SINGLE UNEMPLOYED
WORKER I'VE EVER SPOKEN TO WHO
SAID I TRIED TO GET UNEMPLOYMENT
BENEFITS, AND IT WENT OFF
WITHOUT A HITCH. THE BENEFITS
SHOWED UP QUICKLY. 100% OF THE
TIME THERE IS SOME SORT OF
STRUGGLE THAT ENDS WITH EITHER
THE WORKERS SPENDING 11 HOURS OR
FIVE HOURS ON HOLD. MY WIFE
SPENT FIVE HOURS ON HOLD TRYING
TO GET YOU I TWO YEARS AGO OR
THEY WIND UP GETTING DENIED
ENTIRELY, OR THEY JUST GIVE UP
AND GO AWAY. AND OBVIOUSLY
THAT'S COMPLETELY UNACCEPTABLE,
BUT IT SOUNDS LIKE A LOT OF GOOD
IDEAS HAVE BEEN DISCUSSED TODAY
AND THERE'S A LOT OF WORK BEING
PUT FORTH TOWARDS SOLVING THAT
PROBLEM, AND IT SOUNDS LIKE
PROGRESS IS BEING MADE. AND WE
DEFINITELY APPRECIATE THAT. WE
VERY MUCH APPRECIATE THE LAO
STUDY AND THE VERY COMPELLING
ARGUMENT WE THINK IT MAKES
TOWARDS REFOCUSING AWAY FROM
THIS. JUST RELENTLESS FOCUS ON
PREVENTING WORKER FRAUD AND
REALLY FOCUSING ON WHAT WE THINK
IT SHOULD BE, WHICH IS GETTING
BENEFITS TO WORKERS AS QUICKLY
AND AS EASILY AS POSSIBLE. WE
WOULD ALSO GENTLY RECOMMENDED
THAT ANOTHER HUGE PROBLEM IN THE
SYSTEM THAT WE THINK MAY BE
DWARFS THE ISSUE OF WORKER FRAUD
AS EMPLOYER FRAUD, THAT EMPLOYER
MISCLASSIFICATION IS VERY COMMON
, AND WE THINK THE AMOUNT OF
MONEY LOST PROBABLY DWARFS
WHAT'S LOST TO WORKER FRAUD AND
, AS A RESULT SHOULD BE AT LEAST
AS BIG A FOCUS AS PREVENTING
WORKER FRAUD. AND FINALLY, WE
WOULD JUST POINT OUT THAT FROM
THE WORKER PERSPECTIVE, NO
DISCUSSION OF AN UNEMPLOYED
WORKERS STRUGGLES IN THE U. S
SYSTEM IS COMPLETE WITHOUT
TALKING ABOUT BENEFIT INADEQUATE
INADEQUACY. SO RIGHT NOW, WEEKLY
BENEFITS ARE ABOUT $334 A WEEK.
STRETCH THAT OUT TO A MONTH.
THAT'S ABOUT $1452 A MONTH. SO
WHEN YOU THINK ABOUT WHAT YOUR
AVERAGE CALIFORNIAN SPENDS IN
RENT OR TOWARDS A MORTGAGE, AND
THEN YOU ADD IN BILLS AND
INSURANCE AND FOOD AND HEALTH
CARE AND EVERYTHING ELSE WE HAVE
TO PAY FOR IT JUST CAN'T BE DONE
ON THAT AMOUNT OF MONEY. THE
ONLY THING THAT KEPT CALIFORNIA
GOING TWO YEARS AGO WERE THOSE
FEDERAL SUPPLEMENTS. THE
ADDITIONAL $600 A WEEK OR $300 A
WEEK THAT WORKERS GOT WITHOUT
THAT. WHO KNOWS WHAT WOULD HAVE
HAPPENED TO THIS STATE? AND SO
WE WOULD URGE THE LEGISLATURE TO
REALLY PAY ATTENTION TO THAT
PROBLEM AND REALLY START HAVING
THE CONVERSATION OF HOW DO WE
BRING BENEFITS UP TO A LEVEL
THAT IS MORE ADEQUATE? THAT
GIVES WORKERS WHAT THEY NEED TO
SURVIVE? ANDTHAT GIVES THE
EMPLOYER COMMUNITY WHAT THEY
NEED. A BIG PART OF THE
UNEMPLOYMENT INSURANCE SYSTEM IS
MAKING SURE THAT THE GROCERY
STORES AND THE LANDLORDS AND
EVERYONE ELSE THAT WORKERS NEED
TO DO BUSINESS WITH TO GET BY,
GET WHAT THEY NEED. THAT WAS ONE
OF THE MAIN REASONS FOR THE
SYSTEM IN IN THE BEGINNING. BUT
IT'S REALLY GETTING SHORT
CHANGED BY THE FACT THAT WORKERS
JUST DON'T MAKE ENOUGH MONEY
WHEN THEY GET BENEFITS SO WE
WOULD URGE ATTENTION TO THAT AS
WELL AS ALL OF THE ISSUES WITH
BENEFIT ACCESS AND THANK YOU FOR
THE OPPORTUNITY TO TESTIFY.
THANK YOU, MR STEIGER. AND THIS
IS AN OPPORTUNITY NOW FOR THE
FOR YOUR. TESTIMONY MA'AM, GO
AHEAD. MY NAME IS CAROL SADLER.
AND I, UM WAS ONE OF THOSE THAT
GOT STOPPED AT I D ME GET THE
SYSTEM DIDN'T WORK. I WAS ABLE
TO UPLOAD A COUPLE OF DOCUMENTS
AND NOT FINISH IT, AND THEIR
SYSTEM DOESN'T ALLOW. UM, A
PHONE CALL. I SENT THEM AN EMAIL
REACHING OUT SAYING I HOPE MY
BENEFITS, YOU KNOW, HAVEN'T
BEEN, UM DELAYED OR DENIED
BECAUSE OF MY NON TIMELY
RESPONSE BECAUSE OF YOUR SYSTEM,
AND ALL I GOT WAS A, UM, A
AUTOMATED RESPONSE SING. WE'VE
RECEIVED YOUR REQUEST. YOU KNOW,
WE'RE BACKLOGGED. WE'LL GET TO
YOU. AND I CONTINUE TO REACH OUT
, REACH OUT REACH OUT AND I
CONTINUE TO GET THE SAME
RESPONSE. SO AFTER THAT, I GOT
THE DENIAL THAT SAID YOU DIDN'T
RESPOND. YOU DIDN'T PROVIDE YOUR
I D. AND I APPEALED AND I WENT
THROUGH THAT PROCESS, AND IT WAS
LENGTHY AND THE JUDGE DETERMINED
THAT, UM, I WAS ELIGIBLE.
ACTUALLY, THAT WASN'T THE
WORDING, IT SAID. I WASN'T
INELIGIBLE. SO, UM. AND THAT I
WOULD BE RECEIVING A LETTER FROM
E D D SO I DID AND THEY DO OPEN
THEIR MAIL, THOUGH IT TAKES A
LITTLE BIT OF TIME. AND I
FINALLY GOT A LETTER SAYING, UM
, YOU WILL RECEIVE YOUR
CONTINUED CLAIM BENEFITS, UM
CONTINUED, UH, SO THAT YOU CAN
CONTINUE YOUR I ONLY NEED SIX
MONTHS WORTH OF FORMS. ANYWAY I
NEVER DID RECEIVE IT. THAT WAS
APRIL. OF THIS YEAR, APRIL 29TH
2022 AFTER TWO MONTHS OF NOT
RECEIVING MY CONTINUED CLAIM
BENEFITS FORMS, I DECIDED TO
SEND LETTERS. AND SO ABOUT EVERY
OTHER WEEK, I WOULD SAY PLEASE
SEE THE HIGHLIGHTED AREA BELOW
AND LET ME KNOW WHEN I'M
SUPPOSED TO RECEIVE THESE FORMS,
AND THEN I WOULD TAKE A COPY OF
THAT PREDATE IT. SEND IT AGAIN.
AND I STILL HAVE YET TO RECEIVE.
THE CONTINUED CLAIM BENEFITS
FORMS. SO I JUST NEED PAYABLE
BENEFITS FROM OCTOBER 11TH OF
2020 THROUGH MAY 29TH OF 2021.
AND I HAVEN'T GOTTEN HIM. WE
WILL ASK THE STAFFERS WHO ARE
HERE. UM THERE ARE THREE OF THEM
AND WE'LL ASK, ASK THEM TO FOCUS
ON YOUR PARTICULAR SITUATION.
YEAH UH, ON BEHALF OF THE FIVE
ASSEMBLYMEMBER'S WHO
PARTICIPATED TODAY WE'RE IF WE
APOLOGIZE THAT YOU'VE HAD THIS
SITUATION THANK YOU. I DO THINK
THAT UPLOADING THE FORMS WOULD
BE EASIER. AND NOBODY WOULD HAVE
TO ACTUALLY OPEN MAIL, RIGHT?
YEP. THANK YOU REFORM. THAT IS
ON THE WAY. I HOPE THANK YOU FOR
ATTENDING AND PARTICIPATING.
THANK YOU VERY MUCH. THANK YOU.
GOOD AFTERNOON TO TURNER AND I
CONCEDE WITH WHAT SHE'S JUST
SAID, AND I WOULD ASK MYSELF TO
TALK WITH ONE OF THE LADIES HERE
BECAUSE THEY DENIED ME AND IT
DURING THAT TIME, UPLOADING AND
EVERYTHING. THERE WAS A DELAY.
AND THEN THERE IS A BALANCE ON
MY LITTLE P. AU $1000. AND THEY
TOLD ME YOU CAN'T GET IT BECAUSE
IT'S CUT OFF AND I FELT WELL, IT
WAS CUTE. DELAYED ME. YOU SHOULD
GIVE ME MY MONEY. SO THAT'S WHY
I'M HERE. I WANT TO UNDERSTAND
WHAT IS GOING ON. BECAUSE IF
YOU'RE OUT HERE TRYING TO LIVE
OFF OF FIXED INCOME AND THEY'RE
TELLING YOU 13 96. YOU CAN PAY
THEM 2500. I WANT TO KNOW HOW
YOU DO IT, YOU KNOW, SO IT'S
JUST BEEN A REALLY BAD SITUATION
HERE AND I SENT LETTERS AND
INFORMATION, ASKING THEM ABOUT
MY IDENTITY THEFT THAT IT
STARTED IN 2009 AND PEOPLE HAVE
BOUGHT A HOUSE. THEY BOUGHT A
CAR AND ALL OF THIS IN MY NAME,
AND I REPORTED IT ALL TO THE
THREE CREDIT BUREAUS. BUT I'M
STILL GETTING STUFF IN HERE
WHERE THEY OPENED UP A PAYPAL
ACCOUNT WITH ME AND THEY'RE
BUYING. $650 COINS AND THEY GOT
TO BALANCE OUT THERE OF 6500.
ALL OF THIS STARTED AND I DON'T
KNOW WHAT TO DO. I REPORTED IT.
I DIDN'T ACCEPT EVERYTHING.
NOBODY'S GOTTEN BACK TO ME. WHAT
IS YOUR NAME? WHAT IS YOUR NAME?
MA'AM MARLENA TURNER. OKAY MISS
TURNER AGAIN. WE HAVETHE E. D.
HE D D EXECUTIVE STAFF WHO WERE
HERE SO THEY WILL FOCUS ON YOUR
SITUATION. APPRECIATE IT BECAUSE
, LIKE I SAID, DOING CUSTOMER
SERVICE THIS THIS LINE OF
TREATMENT IS TOTALLY IN IN IT
ACCEPTABLE. OKAY. THANKYOU.
THANK YOU FOR ATTENDING MRS
TURNER. ARE THERE ANY OTHER
MEMBERS OF THE PUBLIC WHO ARE
HERE TO SPEAK? UM IF NOT
COMMITTEE MEMBERS. THIS IS A
FINAL OPPORTUNITY TO ASK A
QUESTION OR TO MAKE A CLOSING.
COMMENT MR LACKEY, MR. WOULD
MISS PETRIE NORRIS. WELL THANK
YOU. CHAIR DAILY AND, UM TO OUR
OTHER MEMBERS WHO ARE ABLE TO
JOIN US TODAY FOR THIS HEARING,
AND I DO WANT TO THANK OUR
PANELISTS FOR OFFERING YOUR
INSIGHTS AND CONTRIBUTIONS. THE
CONTRIBUTIONS YOU'VE MADE TO
KIND OF UNRAVELING THE
DEFICIENCIES THAT RESULTED IN
AND JUST SUCH REALLY A
CATASTROPHIC FAILURE IN THIS
DEPARTMENT IN THE PANDEMIC, AND
I KNOW THAT MEMBERS OF THE
PUBLIC WHO SPOKE REALLY PUT A
HUMAN FACE ON THAT LOST. THIS IS
NOT JUST ABSTRACT. LOSS OF MONEY
AND ABSTRACT NUMBER OF PEOPLE
THAT WERE LEFT WITHOUT BENEFITS
IS ASSEMBLYMEMBER'S WOOD SAID.
THESE ARE PEOPLE'S LIVES. AND UM
, WE TAKE IT VERY SERIOUSLY THAT
OUR ROLE IS GOVERNMENT IS TO BE
THERE FOR OUR CITIZENS IN A TIME
OF NEED, AND IN A TIME OF
CRISIS, AND, UM, THE FAILURES
THAT WE SAW WERE SHAMEFUL AND I
WILL NOTE. THEY CERTAINLY
PREDATED THE TEAM THAT'S SITTING
BEFORE US. UM AND I THINK WE'RE
ALSO YOU UNIFIED IN OUR
COMMITMENT TO ENSURING THAT WE
ADDRESS THESE FAILURES, BOTH
ADDRESSING THE SHORT TERM
RECOMMENDATIONS, BUT ALSO IN
ENSURING THAT WE ARE BUILDING AN
E D. D THAT, UH, IS NIMBLE, UM,
AND IS PREPARED FOR THE NEXT
DOWNTURN SO THAT WE ARE ABLE TO
MEET THE NEEDS OF CALIFORNIANS.
UM IN IN A MOMENT OF CRISIS, SO
AGAIN. AH! JUST PLEDGE MY
COMMITMENT TO CONTINUE OVERSIGHT
ON THIS DEPARTMENT AND, UH, LOOK
FORWARD TO OUR CONTINUED
PARTNERSHIP TO ENSURE THAT THAT
WE TAKE THE STEPS NEEDED TO, UH,
TO DELIVER FOR CALIFORNIA. THANK
YOU. THANK YOU, MRS
PETRIE-NORRIS, UM, ALL CLOSE
WITH JUST A COUPLE OF COMMENTS.
I THINK THIS WAS VERY PRODUCTIVE
TODAY BECAUSE WE SEE ALL THE
PLAYERS INVOLVED IN REFORMING
THE SYSTEM AND MAKING IT BETTER
. THE STATE AUDITOR, THE L. A
AND THE EXECUTIVES AT E. D. D UM
YOU'VE INHERITED A VERY
CUMBERSOME OLD SYSTEM. IT REALLY
DOESN'T FIT THE MODERN AGE AND
PAINFULLY MILLIONS OF
CALIFORNIANS SO LEARNED THAT
WHEN THEY NEEDED THEIR BENEFITS
UM, IF WE DON'T LEARN FROM
RECENT HISTORY, WE ARE CONDEMNED
TO REPEAT IT. AND LET'S HOPE
THAT EVERYONE WILL PITCH IN.
WITH THE IDEAS. IT WAS NICE TO
HEAR YOU SAY THAT YOU ACTUALLY,
UM, HEARD A COUPLE OF PRODUCTIVE
IDEAS RECENTLY FROM THE L A. OH,
SO THERE'S VARIOUS OVERSIGHT.
THERE'S THE, UH BUDGET SUB FOR
COMMITTEE. THERE'S THE ASSEMBLY
INSURANCE COMMITTEE, AND THERE'S
MS PETRIE NORRIS'S
ACCOUNTABILITY COMMITTEE. THERE
MAY BE A NEW PERSON. UM AT SUB
FOUR, AND THERE ABSOLUTELY WILL
BE A NEW PERSON AT THE ASSEMBLY
INSURANCE COMMITTEE. UM, COME A
FEW MONTHS FROM NOW. SO UM, BUT
I'LL BE PAYING ATTENTION
WHEREVER I AM, AND I APPRECIATE
ALL THE PROFESSIONAL A COLLEGIAL
DISCUSSION TODAY. THANK YOU VERY
MUCH. AND THANKS TO THE MEMBERS
OF THE PUBLIC WHO PARTICIPATED.
LET'S HOPE THAT OUR STAFF CAN
WORK OUT THOSE ISSUES THAT YOU
THAT YOU LAID OUT. AND WITH
THAT, UNLESS THERE ARE ANY
FURTHER COMMENTS. IS THIS YOUR
FINAL HEARING ASSEMBLYMEMBER'S
YOU WANT TO DO AN OVERSIGHT
COMMITTEE NEXT WEEK? WELL WITH
THAT, SO YES, ASSEMBLYMEMBER'S
THIS IS HIS HIS LAST YEAR IN
NOVEMBER 30TH. TECHNICALLY I'M
HERE TILL NOVEMBER 30TH SO IT'S
NOT TOO LATE. WE MIGHT DO A
LITTLE BIT MORE OVERSIGHT. BUT
IF NOT, IT'S BEEN A PLEASURE TO
WORK WITH YOU ASSEMBLYMEMBER'S
AND IT'S BEEN GOOD. SO WE DO OUR
BEST IN LIFE, RIGHT? AND BUT
THIS IS A BIG STATE AND WE HAVE
PROBLEMS. THEY GROW REAL FAST
AND LARGE, SO WE'LL DO OUR BEST,
AND A LOT OF GOOD IDEAS HAVE
BEEN PUT FORTH. AND WITH THAT,
THANK YOU, MISS PETRIE-NORRIS
FOR THE JOINT HEARING, AND THIS
IS ADJOURNED.