BILL ANALYSIS                                                                                                                                                                                                    Ó



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          SENATE THIRD READING
          SB 299 (Evans)
          As Amended  August 31, 2011
          Majority vote

           SENATE VOTE  :27-11  
           
           LABOR & EMPLOYMENT        4-2   APPROPRIATIONS      12-5        
           
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          |Ayes:|Swanson, Allen, Furutani, |Ayes:|Fuentes, Blumenfield,     |
          |     |Yamada                    |     |Bradford, Charles         |
          |     |                          |     |Calderon, Campos, Davis,  |
          |     |                          |     |Gatto, Hall, Hill, Lara,  |
          |     |                          |     |Mitchell, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Morrell, Beth Gaines      |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY :   This bill requires employers to maintain and pay for 
          a pregnant employee's medical coverage during pregnancy leave.   
          Specifically,  this bill  :   

          1)Makes it unlawful for an employer to refuse to maintain and 
            pay for coverage for an eligible female employee who takes 
            leave under the conditions that coverage would have been 
            provided if the employee had continued in employment 
            continuously for the duration of the leave.

          2)Allows an employer to recover premium costs from the employee 
            for maintaining coverage for the employee under the group 
            health plan if both of the following conditions occur:

             a)   The employee fails to return from leave after the period 
               of time to which the employee is entitled; and, 

             b)   The employee's failure to return from leave is for a 
               reason other than one of the following:

               i)     The employee takes leave under the California Family 
                 Rights Act (Sections 12945.2 and 19702.3 of the 
                 Government Code); or, 








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               ii)    The continuation, recurrence or onset of a health 
                 condition that entitles the employee to pregnancy leave 
                 or other circumstances beyond the employee's control.

          3)Requires the collective bargaining agreements of state 
            agencies govern maternity coverage specified in this bill.

          4)Contains language to avoid a chaptering conflict with AB 592 
            (Lara).

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee, this bill will have negligible costs to the 
          Department of Fair Employment Housing to enforce this measure.  
          DFEH reports they currently investigate complaints related to 
          pregnancy disability leave (PDL) and the California Family 
          Rights Act (CFRA). 

           COMMENTS  :  According to the author, the lack of maternity 
          coverage assurance under current state law discourages and 
          prevents women from taking pregnancy leave despite their health 
          needs and the needs of their baby.  The author states that women 
          who are forced to pay out-of-pocket costs for health coverage 
          delay or cut short their leave despite well-documented benefits 
          to maternal and child health.  In addition, the author notes 
          that approximately four-fifths of pregnant women report that 
          they were unable to take leave because they could not afford it. 
           
          According to the author, meaningful access to leave - including 
          the maintenance of health insurance coverage - is essential to 
          the health and economic security of working women and their 
          families. 

          The federal Pregnancy Discrimination Act (PDA) requires 
          employers who provide health insurance to cover expenses for 
          pregnancy-related conditions.  In addition, PDA requires 
          employers who provide benefits to workers on leave to provide 
          the same benefits for those who are on leave for 
          pregnancy-related conditions. 

          A 2008 report on women and health insurance by the American 
          College of Obstetricians and Gynecologists (ACOG) found that 
          women who lack health insurance also lack adequate access to 
          care and have poorer health outcomes than insured women.  ACOG 
          notes that uninsured pregnant women are less likely to seek 








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          prenatal care and are 31% more likely than their insured 
          counterparts to experience adverse health outcomes after giving 
          birth - including higher rates of infant and maternal mortality.

          In a letter expressing co-sponsorship of this bill, the 
          California Commission on the Status of Women (CCSW) writes that 
          the current gap in state law puts the health and well-being of 
          women and their infants at risk.  CCSW notes that access to 
          health care is absolutely crucial for pregnant women and the 
          lack of protection in the current law discourages and prevents 
          women from taking pregnancy leave despite their health needs and 
          the needs of their babies.  CCSW states that it is extremely 
          important for pregnant women and new mothers to have access to 
          both leave from work and continued health care coverage.  
          Writing in support, the California Nurses Association asserts 
          that pregnant women have a stronger connection to the workforce 
          than ever before and health care benefits for women who are 
          pregnant or have just given birth should not be terminated at a 
          time when they are needed most. 


           Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091 


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