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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