Despite $31 Billion in Fraud, Legislative Democrats Hold EDD Fraud Prevention Bill in Committee

Senator Shannon Grove (R-Bakersfield) today released the following statement in response to the Assembly Appropriations Committee choosing to hold SB 39 in committee. SB 39 would require the California Employment Development Department (EDD) to cross check applications for unemployment assistance with current state prison rolls.

“I am at a loss to explain why the Democrat majority decided to hold this important bill that has received unanimous, bipartisan support this year. Governor Newsom’s EDD is the most mismanaged department in the country with audits finding billions of dollars in fraud since last year’s government shutdown. SB 39 is a common sense effort to cut down on fraud committed by state prison inmates, a policy that most states have already implemented,” said Senator Grove. 

 “The California State Auditor has made it clear that EDD was both poorly managed and vulnerable to fraud especially when the COVID-19 pandemic hit. Given the Department’s historic failure and continued unwillingness to implement audit recommendations, it is critical that the Legislature hold EDD’s feet to the fire to better serve unemployed Californians. Unfortunately, Legislative Democrats have sent a message that Governor Newsom’s status quo is acceptable.”