BILL ANALYSIS
Senate Committee on Industrial Relations 1995-1996
Regular Session Hilda L. Solis, Chair
Fiscal: Yes
Urgency: No
Bill No: SB 1682 Author: Hughes
Version: February 21, 1996
Subject:
Employment Development Department: Compton Office
Purpose:
To prevent the closure of the Employment Development
Department office in Compton.
Analysis:
Existing law provides for the establishment of offices by
the Employment Development Department (EDD). EDD is
mandated to perform many services, including the
administration and operation of the following major
programs: Unemployment Insurance (UI), Job Service (JS),
the Job Training Partnership Act, Labor Market Information,
Employment Tax Collection, and Disability Insurance. EDDos
Operation Branch administers the UI and JS programs.
This Bill requires that the existing Compton EDD office
shall not be closed until another is physically located
within the Compton community. Additionally, after
consultation with public and private agencies, EDD will
work to ensure the establishment of a oone stop career
centero within the City of Compton.
Comments:
1. Proponents argue that EDD should not close its Compton
locations because of its importance to the community,
suffering twice as much unemployment than that of the
state. A potential closure would create hardship on
unemployed persons seeking UI and JS services. A closure
would further the erosion of employment services existing
for the last several years.
The City of Compton passed a resolution calling for the
retention of an EDD office in Compton. As well, the City
of Lynwood has initiated legal action against the agency
moving an office outside of Compton.
Hearing Date: April 24, 1996 SB
1682
Consultant: Patrick W. Henning
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Senate Committee on Industrial Relations
2. EDD Operations. With over 300 offices statewide
covering all of its programs, EDD has 127 UI offices, of
which 25 are located in Los Angeles County. The Compton
EDD office serves the communities of Compton, Lynwood,
Paramount; it has 6 field offices serving Carson,
Norwalk, South Central Los Angeles, Torrance, Southgate,
and Long Beach.
3. EDD Strategic Plan. EDDos ongoing Operations Branch
Strategic Plan for 1995-2000 (Plan) attempts to respond
to changing demands at the local, state and federal
levels; one constant demand is the call for more
consolidation of services in light of diminishing federal
resources. The Plan, operating as a vision statement,
provides definition and direction to branch staff.
EDD is regionalizing the UI workload, as well as further
initiating its Telephone Claim Filing (TCF) system which
EDD claims to be highly successful. The agency argues
that a UI transaction does not always require in-person
contact; its experiments in the San Diego are have met
high levels of satisfaction.
However, EDD states that its JS services are not
conducive to a telephone service program; local offices
will not necessarily be subject to closure, but may be
re-located to more central service locations.
The current Compton facility is leased, operating on a
month-to-month tenancy. In its February 1995 version of
the Plan, EDD stated its intent to re-locate its UI and
JS services to the Carson office. It argued that the
Compton building is older, not availing itself to modern
wiring, etc., to facilitate its TCF program.
Yet, in its recent 1996 Plan update, EDD added other
elements to be considered before a UI office left the
community. A full service office would exist if the
locale had many workers who didnot have telephones, or
where TCF was not an accepted service option, due to,
among other things, language barriers. Safety of EDD
Hearing Date: April 24, 1996 SB
1682
Consultant: Patrick W. Henning
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Senate Committee on Industrial Relations
staff and the population served are also new
considerations before an office is to be closed or open.
4. One Stop Centers. EDD staff states that the federally
initiated oone stop centerso for employment services
require the decision for office locations be made by the
Governor and local officials. Staff argues that, as
written, this measure would be contradictory to federal
legislation.
5. Similar Legislation. AB 2211 (Tucker) requires that EDD
must keep an office with a city if its population has
more than 90,000 people and the unemployment rate is 5%
higher than the statewide average. EDD staff indicates
that the department is currently meeting with legislators
to resolve the issue before Assembly budgetary
committees.
Hearing Date: April 24, 1996 SB
1682
Consultant: Patrick W. Henning
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Senate Committee on Industrial Relations
Support:
Service Employees International Union, AFL-CIO
Opposition:
None registered as of April 22, 1996.
Hearing Date: April 24, 1996 SB
1682
Consultant: Patrick W. Henning
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Senate Committee on Industrial Relations