BILL ANALYSIS
AB 2188
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CONCURRENCE IN SENATE AMENDMENTS
AB 2188 (Bradford and Niello)
As Amended August 20, 2010
2/3 vote. Urgency
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|ASSEMBLY: |55-17|(June 2, 2010) |SENATE: |35-0 |(August 24, |
| | | | | |2010) |
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Original Committee Reference: INS.
SUMMARY : Removes the requirement that the Employment
Development Department (EDD) pay state disability insurance
(SDI) benefits by checks drawn on a bank or public depository,
and clarifies the conditions in which a nurse practitioner may
certify eligibility for SDI benefits.
The Senate amendments :
1)Remove the Assembly provisions of the bill that would have
established criteria for any contract between the Employment
Development Department (EDD) and a vendor for the electronic
payment of state disability insurance (SDI) benefits.
2)Define "practitioner" in the Unemployment Insurance Code the
same as an existing provision of the Business and Professions
Code to clarify that a person who is duly licensed or
certified in California as a nurse practitioner may certify
the disability of an applicant for SDI, after performing a
physical examination and collaborating with a physician and
surgeon,.
EXISTING LAW :
1)Requires claims for SDI benefits to be made in accordance with
regulations adopted by the Director of EDD, and when the
claimant establishes medical eligibility for a period of
disability that is supported by a certificate of a treating
physician or "practitioner."
2)Defines a "practitioner" as a person duly licensed or
certified in California who is a dentist, podiatrist, or as to
normal pregnancy or childbirth, a midwife, nurse midwife, or
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nurse practitioner.
3)Requires the payment of SDI benefits to be paid by checks
drawn on a disability benefit payment account from a bank or
public despository selected by the director of EDD, with the
approval of the Department of Finance.
AS PASSED BY THE ASSEMBLY , this bill:
1)Required that any contract between the EDD and a vendor for
the electronic payment of SDI benefits shall include the
following criteria:
a) Provide claimants with a process to resolve disputes in
a timely manner;
b) Require that claimants have free and unlimited access to
customer service that meets or exceeds the services
provided by EDD prior to the implementation of electronic
payment of benefits;
c) Prohibit the assessment of fees to claimants to access
the electronic payment of benefits in connection with a
transaction with a teller at a financial institution, a
point of sale transaction where an electronic benefit card
is utilized to purchase goods or services, and a
transaction at any automatic teller machine in the vendor's
financial network;
d) Allow for inquiries on account balances from automatic
teller machines;
e) Charge no fees wherever the vendor can exercise that
option;
f) Require the vendor to meet or exceed federal and state
laws for financial privacy and language access;
g) Meet the standards for use of personal service contracts
required by existing state law;
h) Create a procedure to prevent overdraft fees; and
i) Prohibit the deduction of any fees, charges, or debt
AB 2188
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from future SDI benefits.
2)Eliminated the requirement that SDI benefits be paid by check.
FISCAL EFFECT : Minor absorbable cost to EDD to revise internal
documents to reflect the revised authority of nurse
practitioners in determining disability for purposes of SDI.
Cost savings (undetermined dollar amount) expected from
authorizing EDD to pay SDI benefits by electronic means.
COMMENTS :
1)This bill will authorize EDD to pay SDI benefits by electronic
means, such as by direct deposit or the issuance of pay cards,
and modify the instances when a nurse practitioner may certify
that a claimant for SDI benefits is eligible for benefits.
2)Electronic pay cards can benefit "unbanked" individuals who do
not have access to a bank account and resort to payday lenders
and check cashers that charge exorbitant fees.
3)An existing provision of the Business and Professions Code
(Section 2835.7) authorizes a person who is a duly licensed or
certified in California as a nurse practitioner to certify the
disability of an applicant for SDI after a physical
examination and collaboration with a physician and surgeon (SB
819 (Yee), Chapter 308, Statutes of 2009). AB 2188 makes the
conforming change to the Unemployment Insurance Code (Section
2708) which provides direction to EDD, the agency responsible
for administering the SDI Program.
Analysis Prepared by : Manny Hernandez / INS. / (916) 319-2086
FN: 0006590