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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