BILL ANALYSIS Ó AB 2886 Page 1 Date of Hearing: April 13, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2886 (Committee on Insurance) - As Amended March 29, 2016 ----------------------------------------------------------------- |Policy |Insurance |Vote:|13 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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: AB 2886 Page 2 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 AB 2886 Page 3