BILL ANALYSIS �
SB 770
Page 1
ASSEMBLY THIRD READING
SB 770 (Jackson)
As Amended
August 5, 2013
Majority vote
INSURANCE 7-2 APPROPRIATIONS 12-5
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|Ayes:|Perea, Bradford, Ian |Ayes:|Gatto, Bocanegra, |
| |Calderon, Cooley, | |Bradford, |
| |Gonzalez, Mitchell, | |Ian Calderon, Campos, |
| |Wieckowski | |Eggman, Gomez, Hall, |
| | | |Holden, Pan, Quirk, Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Beth Gaines, Nestande |Nays:|Harkey, Bigelow, |
| | | |Donnelly, Linder, Wagner |
| | | | |
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SUMMARY : 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.
Specifically, this bill :
1)Extends eligibility for the PFL program to employees who take
time off from work to care for a seriously ill grandparent,
grandchild, sibling, or parent-in-law.
2)Defines "grandchild" as the child of the employee's child.
3)Defines "grandparent" as a parent of the employee's parent.
4)Defines "parent-in-law" as the parent of a spouse or a
domestic partner.
5)Defines "sibling" as person related to another person by
blood, adoption, or affinity through a common legal or
biological parent.
6)Defers implementation until July 1, 2014.
EXISTING LAW :
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1)Establishes the PFL program that provides up to six weeks of
wage replacement benefits to workers who take time off work to
care for a seriously ill child, spouse, parent, domestic
partner, or to bond with a minor child within one year of
birth or placement of the child in connection with foster care
or adoption.
2)Establishes the State Disability Insurance (SDI) Program for
individuals who are unable to work due to sickness or injury,
the sickness or injury of a family member, or the birth,
adoption, or foster care placement of a new child.
3)Requires a claimant for SDI or PFL benefits to establish his
or her medical eligibility for each period of disability by
obtaining a certificate from a treating physician or
practitioner that establishes the sickness, injury, or
pregnancy of the employee, or the condition of the family
member that warrants the care of the employee. As part of the
certificate of eligibility to care for a family member, the
physician or practitioner must provide an estimate of the time
needed by the employee to care for the child, parent, spouse,
or domestic partner.
4)Requires each employee to contribute to the Disability Fund to
pay the costs of DI benefits. The rate of these employee
contributions ranges from 0.1% to 1.5% of wages, and are
calculated and announced annually by the director of the
Employment Development Department (EDD) based on the financial
condition of the disability fund.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
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
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fund balance of $2.2 billion by the end of 2013.
COMMENTS :
1)Purpose . According to the author, the definition of family
within the Paid Family Leave insurance program is overly
narrow and does not reflect many Californians' caregiving
responsibilities. Workers are unable to use the program while
providing care to seriously ill siblings, grandparents,
grandchildren and parents-in-law. The author cites the
following in support of the need for broadening eligibility
for paid family leave:
a) A 2007 Senate Office of Research Report, Balancing Work
and Family, found the Employment Development Department
rejected about 10% of PFL claims because the employee
sought leave to care for an excluded family member. Most of
these denied claims were filed for siblings (35%), followed
by grandparents (19%) and mothers- and fathers-in-law
(10%).
b) California has the second highest percentage of
multi-generational households in the country.
c) Nearly half of Californians are single and their closest
relative may be a sibling.
d) A recent study of caregivers of Alzheimer's patients
showed that nearly 40% of caregivers were not covered by
the definition of family in California's PFL law.
e) A study found that nearly 20% of primary caregivers for
chronically disabled individuals are neither the spouse nor
the child of the person receiving care.
2)Paid Family Leave Program . PFL was enacted in 2002 to extend
disability compensation to individuals who take time off work
to care for a seriously ill child, spouse, parent, domestic
partner, or to bond with a new minor child. California was the
first state in the nation to implement a paid family leave
benefit with benefit payments beginning on July 1, 2004. The
PFL program provides weekly benefits ranging from $50 - $1011
for a maximum of six weeks within a 12 month period. In
calendar year 2011, 205,833 PFL claims were filed, and 89% of
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them were filed to take time off to bond with a new child.
The average duration of PFL claims has consistently hovered
around five weeks (out of a total possible six week benefit
period) and the average weekly benefit is $504.
3)Previous Legislation .
a) SB 1661 (Kuehl), Chapter 901, Statutes of 2002, created
the PFL program which began on January 1, 2004.
b) SB 727 (Kuehl), Chapter 797, Statutes of 2003, made
changes that clarified the role of EDD in maintaining the
program as well as ensuring the accumulation of enough
funds to pay for the benefits.
c) SB 727 (Kuehl), of 2007, which proposed to extend the
PFL Program to caring for grandparents, grandchildren,
siblings, and parents-in-law, was vetoed by the Governor.
d) AB 804 (Yamada) of 2011, which proposed to extend the
PFL program Program to caring for grandparents,
grandchildren, siblings, and parents-in-law and was held in
the Assembly Appropriations Committee.
Analysis Prepared by : Paul Riches / INS. / (916) 319-2086
FN: 0002221