BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2886| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: AB 2886 Page 2 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 AB 2886 Page 3 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) AB 2886 Page 4 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 AB 2886 Page 5 Prepared by:Brandon Seto / L. & I.R. / (916) 651-1556 8/3/16 19:11:08 **** END ****