BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 804
                                                                  Page  1

          Date of Hearing:   May 4, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 804 (Yamada) - As Amended:  April 5, 2011 

          Policy Committee:                              InsuranceVote:8 - 
          2 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill extends eligibility for the state's family leave act 
          temporary disability insurance benefits to grandparents, 
          grandchildren, siblings or parents-in-law. 

           FISCAL EFFECT  

          1)Unknown, but likely significant increase in claims for the 
            Paid Family Leave (PFL) program.  Every one percent increase 
            in claims will cost between $500,000 and $600,000.  The 
            program, however, is self-supporting and is covered by 
            employee contributions.

          2)One-time costs in excess of $250,000 for necessary automation 
            changes. 

           COMMENTS  

           1)Rationale  .  The author contends California's diverse 
            population has resulted in a variety of familial arrangements 
            with unique caregiving needs. By expanding PFL, more family 
            members will be able to care for seriously ill siblings, 
            grandparents, and grandchildren without jeopardizing their 
            economic security. Supporters note that this need is 
            especially great for grandparents who are increasingly raising 
            their grandchildren.

           2)Related Legislation  . In 2007, SB 727 (Kuehl) a substantially 
            similar bill was vetoed by the governor. In his veto message, 
            Governor Schwarzenegger wrote that he was vetoing this bill 
            along with two others because of the expense associated with 








                                                                  AB 804
                                                                  Page  2

            the expansion. He notes, "While some expansion of existing law 
            may have merit, these laws in combination are too expansive 
            and also fail to recognize the need for reforms to current 
            law."


           Analysis Prepared by :    Julie Salley-Gray / APPR. / (916) 
          319-2081