BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 791|
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THIRD READING
Bill No: SB 791
Author: Yee (D)
Amended: 5/19/09
Vote: 27 - Urgency
SENATE HUMAN SERVICES COMMITTEE : 5-0, 4/28/09
AYES: Liu, Maldonado, Alquist, Runner, Yee
SUBJECT : In-home supportive services: providers: COBRA
SOURCE : American Federation of State, County and
Municipal
Employees
United Domestic Workers of America Homecare
Providers
Union
DIGEST : This bill provides that, for purposes of in-home
supportive services providers, the entity that administers
health benefits under the federal Consolidated Omnibus
Budget Reconciliation Act (COBRA) shall be the same entity
that implements a specified federal COBRA subsidy program
for these providers.
ANALYSIS : Existing law:
1.Establishes the in-home supportive services (IHSS)
program through which eligible aged, blind, and disabled
individuals receive services that enable them to stay
safely in their homes.
CONTINUED
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2.Provides that counties are responsible for the
administration of the IHSS program.
3.Directs counties to act as an employer for IHSS providers
or to establish a public authority or a non-profit
consortium to act as an employer for IHSS providers.
4.Provides, through federal law, for temporary continuation
of health care coverage, at group rates, for certain
former employees, retirees, spouses, former spouses, and
dependent children. (Consolidated Omnibus Budget
Reconciliation Act, 1986)
5.Provides, through federal law, for certain employees,
whose employment involuntarily ends between September 1,
2008, and December 31, 2009, to have a lower payment for
health care benefits through COBRA for up to nine months.
Background
Changes in federal law . Effective as of March 1, 2009, the
American Recovery and Reinvestment Act of 2009, the federal
stimulus bill, amends COBRA to provide that certain COBRA
qualified beneficiaries will only have to pay 35 percent of
their regular COBRA premium. The federal government will
pay the other 65 percent through a credit on payroll taxes
paid by the individual's employer or former employer.
According to the author's office, this COBRA subsidy will
be available to employees who are terminated involuntarily
between September 1, 2008 and December 31, 2009, and other
qualified beneficiaries who lose coverage in connection
with the termination of employment (such as a spouse or a
dependent).
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 5/21/09)
American Federation of State, County and Municipal
Employees (co-source)
United Domestic Workers of America Homecare Providers
Union (co-source)
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3
OPPOSITION : (Verified >)
>
ARGUMENTS IN SUPPORT : According to the sources, this
legislation is needed to clarify that counties and their
public authorities or non-profit consortia that are
established to be the employer of record of IHSS providers
are indeed the employer for the purposes of giving an
eligible worker access to the COBRA subsidy.
ARGUMENTS IN OPPOSITION : >
CTW:nl 5/21/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
SUPPORT/OPPOSITION: NONE RECEIVED
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