BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 770
                                                                  Page  1

          Date of Hearing:   August 21, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

            SB 770 (Jackson and DeSaulnier) - As Amended:  August 5, 2013 

          Policy Committee:                             InsuranceVote:7 -  
          2 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill extends eligibility for the paid family leave program  
          (PFL) to employees who need to care for a seriously ill  
          grandparent, grandchild, sibling, or parent-in-law.   

           FISCAL EFFECT  

          1)Unknown, but likely significant increase in claims for the  
            Paid Family Leave (PFL) program.  The Employment Development  
            Department (EDD) estimates that claims could increase by as  
            much as 50% resulting in a $36 million cost to the Disability  
            Insurance Trust Fund. 

          2)The increased claim workload, based on a 50% increase, would  
            cost in excess of $700,000 per year (Disability Insurance  
            Trust Fund). 

          3)The Disability Insurance Trust Fund is estimated to have a  
            fund balance of $2.2 billion by the end of 2013. 

           COMMENTS  

           1)Rationale  .  The authors contend California's diverse  
            population has resulted in a variety of familial arrangements  
            with unique caregiving needs. By expanding PFL, more family  
            members will be able to care for seriously ill siblings,  
            grandparents, and grandchildren without jeopardizing their  
            economic security. Supporters note that this need is  
            especially great for grandparents who are increasingly raising  
            their grandchildren.









                                                                  SB 770
                                                                  Page  2

           2)Related Legislation  . AB 804 (Yamada) of 2011, a substantially  
            similar bill which also proposed to extend the PFL program to  
            caring for grandparents, grandchildren, siblings, and  
            parents-in-law and was held on this committee's Suspense File.  


            In 2007, SB 727 (Kuehl) a substantially similar bill was  
            vetoed by the governor. In his veto message, Governor  
            Schwarzenegger wrote that he was vetoing this bill along with  
            two others because of the expense associated with the  
            expansion. He notes, "While some expansion of existing law may  
            have merit, these laws in combination are too expansive and  
            also fail to recognize the need for reforms to current law."

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081