BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2886


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          Date of Hearing:  April 6, 2016 


                           ASSEMBLY COMMITTEE ON INSURANCE


                                   Tom Daly, Chair


          AB 2886  
          (Committee on Insurance) - As Amended March 29, 2016


          SUBJECT:  Disability benefits: eligibility determinations:  
          benefit computations: overpayment determinations: appeals


          SUMMARY:  Extends the appeals window for state disability  
          insurance (SDI) and paid family leave (PFL) benefits from 20 to  
          30 days.  Specifically, this bill:  


          1)Extends the period of time to appeal a determination of SDI or  
            PFL benefits from 20 to 30 days, effective March 1, 2018.


          2)Specifies the period of time to appeal to the decision of an  
            administrative law judge (ALJ) regarding SDI or PFL benefits  
            to the California Unemployment Insurance Appeals Board (CUIAB)  
            to be 30 days.


          3)Provides that, until March 1, 2018, any person who appeals a  
            determination of SDI or PFL benefits within 30 days will be  
            deemed to have good cause to submit the appeal after the 20  
            day deadline has passed.


          EXISTING LAW:  








                                                                    AB 2886


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          1)Establishes the SDI system to provide partial wage replacement  
            benefits to workers who lost their job through no fault of  
            their own.

          2)Establishes the PFL system to provide partial wage replacement  
            benefits for workers to bond with a new child or provide care  
            for a sick family member.

          3)Requires appeals to be filed within 20 days of the claimant or  
            employer receiving notice of EDD's determination.

          4)Establishes the California Unemployment Insurance Appeals  
            Board (CUIAB) to hear appeals of unemployment insurance (UI),  
            SDI, and PFL determinations made by EDD.

          FISCAL EFFECT:  Undetermined


          COMMENTS:  


           1)Purpose  .  Senate Bill 1314 (Statutes of 2014, Chapter 399)  
            extended the window for UI appeals from 20-30 days.  The CUIAB  
            hears appeals for all three programs (UI, SDI, and PFL) and  
            having different appeals windows for the distinct programs  
            adds administrative complexity.  This bill simplifies CUIAB  
            operations by establishing a single standard for timely  
            appeals across all three programs.  The bill delays  
            implementation of this change until March 1, 2018 to allow EDD  
            and CUIAB time to make the required changes to their computer  
            systems.  However, the bill effectively implements the 30 day  
            rule as of January 1, 2017 by providing that appeals filed  
            within 30 days have "good cause" to have been filed late.  


          REGISTERED SUPPORT / OPPOSITION:









                                                                    AB 2886


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          Support


          Employment Development Department (sponsor)




          Opposition


          None received




          Analysis Prepared by:Paul Riches / INS. / (916) 319-2086