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.