BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair 381 (Block) Hearing Date: 7/6/2009 Amended: 6/1/2009 Consultant: Bob Franzoia Policy Vote: Labor 5-1 _________________________________________________________________ ____ BILL SUMMARY: AB 381 would permit a community college district (CCD) to elect to become an employer relating to disability insurance coverage with respect to (1) all employees who are part of a bargaining unit if the election is the result of a negotiated agreement between the CCD and the bargaining unit, (2) management and confidential employees not part of an appropriate unit, and (3) specified permanent, part time, or temporary academic employees if the election would not be contingent upon coverage of other employees of the CCD. By increasing the pool of potential recipients of payments from, and potential contributions into the Unemployment Compensation Disability Fund (Disability Fund), a continually appropriated fund, this bill would make an appropriation. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2009-10 2010-11 2011-12 Fund CCD option to provide No new state costs; optional costs (wageSpecial* disability insurance coverage tax) to employees * Disability Fund (DF) _________________________________________________________________ ____ STAFF COMMENTS: Under current law, employees of a CCD must be treated the same for the purposes of a disability insurance election. Depending on whether they are full or part time, faculty have different and limited access to, benefits with full time faculty tending not to elect disability insurance coverage. This limits part time faculty access to disability insurance or sick leave options. This bill would permit part time faculty to elect to be covered by disability insurance through employee payroll deductions. Disability insurance provides partial wage replacement to eligible workers who are unable to work because of a disability. Unemployment Insurance Code 2626 defines disability as any mental or physical illness or injury which an employee from performing regular or customary work. The program taxes covered employees up to a ceiling set by Unemployment Insurance Code 985. The DF balance was $0.9 billion on December 31, 2008. The DF balance is projected to be $1.4 billion at the end of 2009, and $2.3 billion at the end of 2010.