BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
381 (Block)
Hearing Date: 7/6/2009 Amended: 6/1/2009
Consultant: Bob Franzoia Policy Vote: Labor 5-1
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BILL SUMMARY: AB 381 would permit a community college district
(CCD) to elect to become an employer relating to disability
insurance coverage with respect to (1) all employees who are
part of a bargaining unit if the election is the result of a
negotiated agreement between the CCD and the bargaining unit,
(2) management and confidential employees not part of an
appropriate unit, and (3) specified permanent, part time, or
temporary academic employees if the election would not be
contingent upon coverage of other employees of the CCD. By
increasing the pool of potential recipients of payments from,
and potential contributions into the Unemployment Compensation
Disability Fund (Disability Fund), a continually appropriated
fund, this bill would make an appropriation.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
CCD option to provide No new state costs; optional costs
(wageSpecial*
disability insurance coverage tax) to employees
* Disability Fund (DF)
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STAFF COMMENTS:
Under current law, employees of a CCD must be treated the same
for the purposes of a disability insurance election. Depending
on whether they are full or part time, faculty have different
and limited access to, benefits with full time faculty tending
not to elect disability insurance coverage. This limits part
time faculty access to disability insurance or sick leave
options. This bill would permit part time faculty to elect to
be covered by disability insurance through employee payroll
deductions.
Disability insurance provides partial wage replacement to
eligible workers who are unable to work because of a disability.
Unemployment Insurance Code 2626 defines disability as any
mental or physical illness or injury which an employee from
performing regular or customary work. The program taxes covered
employees up to a ceiling set by Unemployment Insurance Code
985.
The DF balance was $0.9 billion on December 31, 2008. The DF
balance is projected to be $1.4 billion at the end of 2009, and
$2.3 billion at the end of 2010.