SACRAMENTO — On Sept. 1, the Assembly passed Senate Bill 390 authored by Senator John Laird (D-Santa Cruz) with a bipartisan vote of 65 – 0. Senate Bill 390 will require the Employment Development Department (EDD) to establish and routinely revise a recession plan to ensure the department can rapidly and efficiently respond to an increase of claims due to an economic downturn. The recession plan will contain procedures, practices, and protocols to ensure the department is equipped to handle an increased workload due to an economic downturn.

“The EDD’s inability to promptly and efficiently respond to the increased amount of claimants is an issue that has spanned the administration of three governors of both parties,” stated Senator Laird. “But it is up to us now to make sure these problems are corrected. SB 390 will provide the EDD with a recession plan that will serve as a road map of what to do in times of great need.”

Senator Laird, who also serves as Vice-Chair of the Joint Legislative Audit Committee, introduced SB 390 in response to the State Auditor’s report released earlier this year, Employment Development Department: EDD’s Poor Planning and Ineffective Management Left It Unprepared to Assist Californians Unemployed by COVID‑19 Shutdowns. According to the report, “had EDD begun the recession planning process earlier, it likely would have been able to provide more timely assistance to more Californians during 2020.”

Senator Laird’s SB 390 received unanimous bipartisan support through both chambers of the Legislature. The bill garnered more than a dozen bipartisan and bicameral co-authors and is supported by business and labor advocates.

Senate Bill 390 will be heard next on the Senate Floor for a concurrence vote, pending passage, SB 390 will then be sent to Governor Newsom for consideration.