BILL ANALYSIS Ó
AB 2886
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Date of Hearing: April 13, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2886 (Committee on Insurance) - As Amended March 29, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill extends the appeals window for state disability
insurance (SDI) and paid family leave benefits from 20 to 30
days.
FISCAL EFFECT:
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1)Costs to the Employment Development Department (EDD) of
$100,000 per year over three years to update information
technology systems (Unemployment Compensation Disability Fund
(SDI Fund)).
2)Minor and absorbable costs to EDD and to the California
Unemployment Insurance Appeals Board (Appeals Board) to update
policies and procedures (SDI Fund).
COMMENTS:
1)Purpose. Senate Bill 1314 (Statutes of 2014, Chapter 399)
extended the window for UI appeals from 20-30 days. The
Appeals Board hears appeals for three programs (Unemployment
Insurance, SDI, and Paid Family Leave), and having different
appeals windows for the distinct programs adds administrative
complexity. This bill establishes a single standard for
timely appeals across all three programs.
2)Delayed Implementation. The bill delays implementation of this
change until March 1, 2018 to allow EDD and the Appeals Board
time to make the required changes to their computer systems.
However, the bill effectively implements the change to 30 days
as of January 1, 2017 by providing that appeals filed within
30 days have "good cause" to have been filed late.
Analysis Prepared by:Lisa Murawski / APPR. / (916)
319-2081
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