BILL NUMBER: AB 908AMENDED BILL TEXT AMENDED IN SENATE AUGUST 31, 2015 AMENDED IN SENATE JUNE 18, 2015 AMENDED IN ASSEMBLY MARCH 18, 2015 INTRODUCED BY Assembly Members Gomez and Burke (Coauthor: Assembly Member Gonzalez) FEBRUARY 26, 2015 An act toamendamend, repeal, and add Section 3301 of the Unemployment Insurance Code, relating to disability compensation, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 908, as amended, Gomez. Disability compensation: family temporary disability insurance. Existing unemployment compensation disability law provides a formula for determining benefits available to qualifying disabled individuals. For an individual who has quarterly base wages of greater than $1,749.20, the weekly benefit is calculated by multiplying base wages by 55% and dividing the result by 13. For a benefit that is not a multiple of $1, existing law provides that the benefit shall be computed to the next higher multiple of $1. However, existing law provides that this amount may not exceed the maximum workers' compensation temporary disability indemnity weekly benefit amount. Under existing law, the family temporary disability insurance program provides up to 6 weeks of wage replacement benefits to workers who take time off work to care for specified persons, or to bond with a minor child within one year of the birth or placement of the child in connection with foster care or adoption. Existing law defines "weekly benefit amount" for purposes of this program to mean the amount of benefits available to qualifying disabled individuals pursuant to unemployment compensation disability law. This bill would require the family temporary disability insurance program to provide up to108 weeks of wage replacement benefits on and after January 1, 2018 . This bill would, for purposes of this program on and after January 1, 2017 , require the weekly benefit amount to be calculated with a specified formula. However, the amount would be prohibited from being less than $250 , except as specified, and more than the maximum workers' compensation temporary disability indemnity weekly benefit amount, as specified. Under existing law, workers are required to pay contributions to the Unemployment Compensation Disability Fund, a special fund in the State Treasury, and those funds are continuously appropriated for the purpose of providing disability benefits and making payment of expenses in administering those provisions. This bill, by authorizing an increase in the expenditure of money from the Unemployment Compensation Disability Fund, would make an appropriation. Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 3301 of the Unemployment Insurance Code is amended to read: 3301. (a) (1) The purpose of this chapter is to establish, within the state disability insurance program, a family temporary disability insurance program. Family temporary disability insurance shall provide up to six weeks of wage replacement benefits to workers who take time off work to care for a seriously ill child, spouse, parent, grandparent, grandchild, sibling, or domestic partner, or to bond with a minor child within one year of the birth or placement of the child in connection with foster care or adoption. (2) Nothing in this chapter shall be construed to abridge the rights and responsibilities conveyed under the CFRA or pregnancy disability leave. (b) An individual's "weekly benefit amount" shall be the amount provided in Section 2655. An individual is eligible to receive family temporary disability insurance benefits equal to one-seventh of his or her weekly benefit amount for each full day during which he or she is unable to work due to caring for a seriously ill or injured family member or bonding with a minor child within one year of the birth or placement of the child in connection with foster care or adoption. (c) The maximum amount payable to an individual during any disability benefit period for family temporary disability insurance shall be six times his or her "weekly benefit amount," but in no case shall the total amount of benefits payable be more than the total wages paid to the individual during his or her disability base period. If the benefit is not a multiple of one dollar ($1), it shall be computed to the next higher multiple of one dollar ($1). (d) No more than six weeks of family temporary disability insurance benefits shall be paid within any 12-month period. (e) An individual shall file a claim for family temporary disability insurance benefits not later than the 41st consecutive day following the first compensable day with respect to which the claim is made for benefits, which time shall be extended by the department upon a showing of good cause. If a first claim is not complete, the claim form shall be returned to the claimant for completion and it shall be completed and returned not later than the 10th consecutive day after the date it was mailed by the department to the claimant, except that such time shall be extended by the department upon a showing of good cause. (f) This section shall becomeoperative on July 1, 2014.inoperative and shall be repealed on January 1, 2017. SEC. 2. Section 3301 is added to the Unemployment Insurance Code , to read: 3301. (a) (1) (A) The purpose of this chapter is to establish, within the state disability insurance program, a family temporary disability insurance program. Family temporary disability insurance shall provide wage replacement benefits to workers who take time off work to care for a seriously ill child, spouse, parent, grandparent, grandchild, sibling, or domestic partner, or to bond with a minor child within one year of the birth or the placement of the child in connection with foster care or adoption. (B) Before January 1, 2018, up to six weeks of wage replacement benefits shall be provided. (C) On and after January 1, 2018, up to eight weeks of wage replacement benefits shall be provided. (2) Nothing in this chapter shall be construed to abridge the rights and responsibilities conveyed under the CFRA or pregnancy disability leave. (b) An individual is eligible to receive family temporary disability insurance benefits equal to one-seventh of his or her weekly benefit amount for each full day during which he or she is unable to work due to caring for a seriously ill or injured family member or bonding with a minor child within one year of the birth or the placement of the child in connection with foster care or adoption. (c) (1) Before January 1, 2018, the maximum amount payable to an individual during any disability benefit period for family temporary disability insurance shall be six times his or her "weekly benefit amount," but in no case shall the total amount of benefits payable be more than the total wages paid to the individual during his or her disability base period. (2) On and after January 1, 2018, the maximum amount payable to an individual during any disability benefit period for family temporary disability insurance shall be eight times his or her "weekly benefit amount," but in no case shall the total amount of benefits payable be more than the total wages paid to the individual during his or her disability base period. (d) (1) Before January 1, 2018, no more than six weeks of family temporary disability insurance benefits shall be paid within any 12-month period. (2) On and after January 1, 2018, no more than eight weeks of family temporary disability insurance benefits shall be paid within any 12-month period. (e) An individual shall file a claim for family temporary disability insurance benefits not later than the 41st consecutive day following the first compensable day with respect to which the claim is made for benefits, which time shall be extended by the department upon a showing of good cause. If a first claim is not complete, the claim form shall be returned to the claimant for completion and it shall be completed and returned not later than the 10th consecutive day after the date it was mailed by the department to the claimant, except that such time shall be extended by the department upon a showing of good cause. (f) For purposes of this chapter, an individual's "weekly benefit amount" shall be as follows: (1) When the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest is not more than four thousand sixty three dollars ($4,063), then two hundred fifty dollars ($250), except that the weekly benefit amount shall not exceed the amount of wages paid to the individual during the quarter of the person's disability base period in which these wages were highest divided by 13. (2) When the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest is more than four thousand sixty three dollars ($4,063), but not more than five thousand dollars ($5,000), then 80 percent of the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest, divided by 13. If the weekly benefit amount is not a multiple of one dollar ($1), it shall be computed to the next higher multiple of one dollar ($1). (3) When the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest is more than five thousand dollars ($5,000), but is not more than fifteen thousand dollars ($15,000), then either (A) three hundred eight dollars ($308) or (B) 75 percent of the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest divided by 13, whichever amount is greater. If the weekly benefit amount is not a multiple of one dollar ($1), it shall be computed to the next higher multiple of one dollar ($1). (4) Except as provided in paragraph (5), when the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest exceeds fifteen thousand dollars ($15,000), then either (A) eight hundred sixty five dollars ($865) or (B) 65 percent of the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest divided by 13, whichever amount is greater. If the weekly benefit amount is not a multiple of one dollar ($1), it shall be computed to the next higher multiple of one dollar ($1). (5) An individual's "weekly benefit amount" shall not exceed the maximum workers' compensation temporary disability indemnity weekly benefit amount established by the Department of Industrial Relations pursuant to Section 4453 of the Labor Code. (g) This section shall become operative on January 1, 2017.SECTION 1.Section 3301 of the Unemployment Insurance Code is amended to read: 3301. (a) (1) The purpose of this chapter is to establish, within the state disability insurance program, a family temporary disability insurance program. Family temporary disability insurance shall provide up to 10 weeks of wage replacement benefits to workers who take time off work to care for a seriously ill child, spouse, parent, grandparent, grandchild, sibling, or domestic partner, or to bond with a minor child within one year of the birth or the placement of the child in connection with foster care or adoption. (2) Nothing in this chapter shall be construed to abridge the rights and responsibilities conveyed under the CFRA or pregnancy disability leave. (b) An individual is eligible to receive family temporary disability insurance benefits equal to one-seventh of his or her weekly benefit amount for each full day during which he or she is unable to work due to caring for a seriously ill or injured family member or bonding with a minor child within one year of the birth or the placement of the child in connection with foster care or adoption. (c) The maximum amount payable to an individual during any disability benefit period for family temporary disability insurance shall be 10 times his or her "weekly benefit amount," but in no case shall the total amount of benefits payable be more than the total wages paid to the individual during his or her disability base period. (d) No more than 10 weeks of family temporary disability insurance benefits shall be paid within any 12-month period. (e) An individual shall file a claim for family temporary disability insurance benefits not later than the 41st consecutive day following the first compensable day with respect to which the claim is made for benefits, which time shall be extended by the department upon a showing of good cause. If a first claim is not complete, the claim form shall be returned to the claimant for completion and it shall be completed and returned not later than the 10th consecutive day after the date it was mailed by the department to the claimant, except that such time shall be extended by the department upon a showing of good cause. (f) For purposes of this chapter, an individual's "weekly benefit amount" shall be as follows: (1) When the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest is not more than four thousand sixty three dollars ($4,063), then two hundred fifty dollars ($250). (2) When the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest is more than four thousand sixty three dollars ($4,063), and does not exceed 25 percent of the amount of the annual full-time minimum wage level, then 80 percent of the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest, divided by 13. If the weekly benefit amount is not a multiple of one dollar ($1), it shall be computed to the next higher multiple of one dollar ($1). (3) When the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest exceeds 25 percent of the amount of the annual full-time minimum wage level, but does not exceed 75 percent of the amount of the annual full-time minimum wage level, then either (A) 20 percent of the annual full-time minimum wage level divided by 13 or (B) 75 percent of the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest divided by 13, whichever amount is greater. If the weekly benefit amount is not a multiple of one dollar ($1), it shall be computed to the next higher multiple of one dollar ($1). (4) Except as provided in paragraph (5), when the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest exceeds 75 percent of the amount of the annual full-time minimum wage level, then either (A) 56.25 percent of the annual full-time minimum wage level divided by 13 or (B) 65 percent of the amount of wages paid to the individual for employment by employers during the quarter of the individual's disability base period in which these wages were highest divided by 13, whichever amount is greater. If the weekly benefit amount is not a multiple of one dollar ($1), it shall be computed to the next higher multiple of one dollar ($1). (5) An individual's "weekly benefit amount" shall not exceed the maximum workers' compensation temporary disability indemnity weekly benefit amount established by the Department of Industrial Relations pursuant to Section 4453 of the Labor Code. (g) For purposes of this chapter, the "annual full-time minimum wage level" means 2,000 hours multiplied by the hourly minimum wage in effect pursuant to Section 1182.12 of the Labor Code.