California Unconditional Benefit Program: employment replaced by automation or artificial intelligence: pilot program.

Existing law requires the Employment Development Department to implement and administer the unemployment insurance program in this state, and provides for the payment of unemployment compensation benefits to eligible individuals who are unemployed through no fault of their own. Under existing law, unemployment compensation benefit award computations are based on wages paid in the base period. Existing law provides that an individual who is unemployed in any week and is eligible for unemployment compensation benefits shall be paid an unemployment compensation benefit with respect to that week in an amount equal to their weekly benefit amount, as provided. Existing law provides the maximum amount of unemployment compensation benefits payable to an individual during any one benefit year shall not exceed the lower of 26 times their weekly benefit amount or 12 the total wages paid to the individual during their base period. This bill would establish, until January 1, 2029, the California Unconditional Benefit Income (CalUBI) Pilot Program, to be administered by the Employment Development Department upon appropriation by the Legislature, for the purpose of providing assistance to individuals who are unemployed because of automation or artificial intelligence. The bill would authorize an eligible individual, as defined, to submit an application to the department to receive $1,000 each month for a period of 12 months, starting as late as January 1, 2027, and until January 1, 2028, upon a determination that the individual is unemployed because of automation or artificial intelligence and has received the maximum amount of unemployment compensation benefits described in the paragraph above before the first $1,000 is distributed. The bill would require the department to adopt regulations to implement the CalUBI Pilot Program, on or before January 1, 2026, pursuant to the Administrative Procedure Act. The bill would provide that income received pursuant to the program is not considered taxable income for the purpose of state income taxes, shall not be considered in calculating any state tax credits, and does not affect income eligibility for any other programs administered and funded by the state. The bill would require the department to submit a report to the Legislature of policy recommendations based on the performance of the CalUBI Pilot Program, as specified, no later than December 31, 2028. This bill would make findings and declarations related to a gift of public funds.