BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 908 (Gomez) - Disability compensation: family temporary
disability insurance.
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|Version: June 18, 2015 |Policy Vote: L. & I.R. 4 - 1 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 27, 2015 |Consultant: Robert Ingenito |
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*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 27, 2015
Bill
Summary: AB 908 would increase the level and duration of
benefits provided in the Paid Family Leave (PFL) insurance
program, as specified.
Fiscal
Impact:
Increasing the benefit duration and wage replacement
level would likely result in increased payments from the
Unemployment Compensation Disability Fund (UCDF) in the
hundreds of millions of dollars annually, assuming no
change to the program's current utilization rate. If
utilization were to rise, benefit payments would be higher.
The worker contribution rate would be adjusted upward to
AB 908 (Gomez) Page 1 of
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ensure benefit payments can be maintained. The current rate
is 1.0 percent.
The Employment Development Department would incur
IT-related costs ($844,000 one-time, $47,000 on-going) to
implement the expanded benefits (UCDF).
Author
Amendments: Delay implementation dates, reduce the maximum
number of weeks from ten to eight, and specify that participants
would not receive more in PFL benefit payments than they would
in weekly wages.
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