Attorney General No.

SA94RF0013

Secretary of State No.

646

Description

ELIMINATION OF STATE NONINDUSTRIAL DISABILITY INSURANCE. INITIATIVE STATUTE. Prohibits state involvement in nonindustrial disability insurance payments (e.g., wage replacement payments for non-work-related illness, injury or pregnancy). Prohibits state collection of nonindustrial disability premiums. Eliminates the State Disability Insurance which is part of the State Department of Employment Development. Prohibits state involvement in insurance and risk financing, other than workers' compensation. Does not affect State Compensation Insurance Fund or current provisions of Labor and Vehicle Codes. Contains provision regarding changes by voters and severability clause. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Decreased special fund revenues and expenditures in the range of $2 billion to $3 billion annually from eliminating the Disability Insurance Program. A one-time revenue increase of $1.7 billion from the transfer of the residual balance of the Unemployment Compensation Disability Fund to the General Fund. Potential General Fund costs in the range of $39 million annually for support of existing programs partially funded by the disability insurance tax, and lower child support recoupments. Annual savings to various state funds of approximately $8 million from no longer making disability payments to state employees.

Proponents

Glen J. Dulac, P.O. Box 6313, Huntington Beach, Ca 92615 (714) 968-8570

Date

4-26-1994

Document Type

Initiative

Qualified

Failed to Qualify

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