BILL ANALYSIS                                                                                                                                                                                                    Ó






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                                   THIRD READING 


          Bill No:  AB 2886
          Author:   Committee on Insurance   
          Amended:  3/29/16 in Assembly
          Vote:     21 

           SENATE LABOR & IND. REL. COMMITTEE:  4-0, 6/8/16
           AYES:  Mendoza, Stone, Leno, Mitchell
           NO VOTE RECORDED:  Jackson

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 8/1/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           ASSEMBLY FLOOR:  79-0, 4/21/16 (Consent) - See last page for  
            vote

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


          SOURCE:    Author


          DIGEST:  This bill extends the California Unemployment Insurance  
          Appeals Board appeals window for State Disability Insurance and  
          Paid Family Leave benefits from 20 to 30 days.


          ANALYSIS:  


          Existing law: 









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          1)Establishes the State Disability Insurance (SDI) system to  
            provide partial wage replacement benefits to workers who are  
            unable to work due to non-work-related illness, injury, or  
            pregnancy (Unemployment Insurance Code §2601-2614 and  
            §2625-2630).


          2)Establishes the Paid Family Leave (PFL) system to provide  
            partial wage replacement benefits for workers who take time  
            off work and have a wage loss in order to bond with a new  
            child or provide care for a sick family member (Unemployment  
            Insurance Code §3300-3306).


          3)Establishes the California Unemployment Insurance Appeals  
            Board (CUIAB) to hear the appeals of Unemployment Insurance  
            (UI), SDI, and PFL determinations made by the  Employment  
            Development Department (EDD) (Unemployment Insurance Code  
            §401-413, §1221-1224 and California Code of Regulations Title  
            22, Division 1, Subdivision 2).


          4)Requires SDI and PFL appeals to be filed within 20 days of the  
            claimant or employer receiving notice of EDD's determination  
            (Unemployment Insurance Code §2707.2, 2707.4, 2737).


          This bill:


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


          2)Specifies the window to appeal the decision of an  
            administrative law judge regarding SDI or PFL benefits to the  
            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. This facilitates the transition to  







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            the new requirement by effectively making the appeals window  
            30 days until the change takes full effect in statute. 


          Background


          SB 1314 (Monning, Chapter 399, Statutes of 2014) extended the  
          window for UI appeals from 20 to 30 days.  The CUIAB hears  
          appeals for all three programs (UI, SDI, and PFL) yet the author  
          believes that having different appeals windows for the distinct  
          programs adds administrative complexity.  The author states that  
          this bill will simplify CUIAB operations by establishing a  
          single unified standard for timely appeals across all three  
          programs.  This 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 author further  
          states that this 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. According to the  
          author, this will allow these appeals to be filed during this  
          window without repercussions.   


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee:


           EDD would incur costs of $100,000 per year over three years to  
            update and test information technology systems (Unemployment  
            Compensation Disability Fund). Costs related to changes to  
            publications and procedures would be minor and absorbable.


           CUIAB would incur minor and absorbable costs to update  
            policies and procedures.


          SUPPORT:   (Verified8/3/16)









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          California Employment Development Department


          OPPOSITION:   (Verified8/3/16)


          None received


          ARGUMENTS IN SUPPORT:     The Employment Development Department  
          states that AB 2886 brings the SDI and PFL appeals timeframes  
          into consistency with the State's UI program. An estimated 17.9  
          million workers are covered by the SDI and PFL programs. This  
          bill will provide more days for claimants to submit appeals  
          under a unified system and thus take advantage of their  
          due-process protections under these programs. This allows  
          claimants to provide additional information or clarification  
          that may demonstrate their eligibility for these benefits. AB  
          2886 will ensure consistency across the concerned programs,  
          reduce confusion, and decrease the administrative burden  
          associated with the current varying appeals times. Finally,  
          proponents state that this bill will ensure immediate access for  
          claimants to the 30-day filing timeframe for appeals while EDD  
          makes the necessary programing changes and administrative  
          updates associated with this shift.  




          ASSEMBLY FLOOR:  79-0, 4/21/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth  
            Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto,  
            Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper,  
            Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim,  
            Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,  
            Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Quirk, Rodriguez, Salas,  
            Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner,  
            Waldron, Weber, Wilk, Williams, Wood, Rendon
          NO VOTE RECORDED:  Ridley-Thomas








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          Prepared by:Brandon Seto / L. & I.R. / (916) 651-1556
          8/3/16 19:11:08


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