BILL ANALYSIS                                                                                                                                                                                                    

                                                                  AB 381
                                                                  Page  1

          Date of Hearing:   April 29, 2009

                                Kevin De Leon, Chair

                    AB 381 (Block) - As Amended:  April 14, 2009 

          Policy Committee:                              Insurance  

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              


          This bill authorizes community colleges to elect to provide  
          state disability insurance (SDI) coverage to permanent,  
          part-time, or temporary employees that is not contingent upon  
          coverage of all other academic employees. 

           FISCAL EFFECT  

          No direct state fiscal impact. SDI is fully supported by  
          employee premiums paid through payroll taxes of 1.1% of wages up  
          to an annual wage ceiling of $90,669. To the extent this bill  
          results in more community college staff access to SDI, more  
          payroll taxes will be collected to pay benefits. 

           COMMENTS  :

           1)Purpose of bill.   This bill is sponsored by the Faculty  
            Association of the California Community Colleges (FACCC) to  
            provide part-time community college faculty with greater  
            access to SDI benefits. Under current law, cohorts of  
            community college employees must be treated uniformly for the  
            purposes of SDI election. Because faculty members often have  
            sick leave, a sick leave donation bank, or other resources  
            available to them in the case of wage loss, faculty elects SDI  
            coverage less often. When full-time faculty fails to elect  
            coverage, part-time employees are unable to access the  
            benefit. Therefore, part-time faculty and temporary employees  
            often have neither SDI coverage nor sick leave options. This  
            bill disaggregates the election of the SDI benefit to allow  
            smaller groups of employees to elect the benefit.


                                                                  AB 381
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           2)Disability Coverage  . The SDI program provides temporary  
            benefit payments to workers for non-work-related disabilities.  
            The tax paid by employees supports both SDI and paid family  
            leave benefits available under state law since 2004. SDI  
            benefits are paid to workers for up to a year and up to 55% of  
            wage replacement when recipients are unable to work due to  
            illness or injury. The benefits are between $50 and $959 per  
            week. The average benefit in 2007-08 was $413 per week for  
            a14-week duration. 

           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081