BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 908 (Gomez) - Disability compensation: family temporary disability insurance. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 18, 2015 |Policy Vote: L. & I.R. 4 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 27, 2015 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- *********** 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 ? 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. -- END --