STATEMENT TO

 

 

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 1786

 

with Assembly Floor Amendments

(Proposed By Assemblyman ZECKER and Assemblywoman WRIGHT)

 

ADOPTED: MAY 2, 1996

 

 

      These Assembly amendments make the following changes in the bill:

      1. The changes that the bill makes in the reserve ratios used to determine which tax schedule is applied to employers are modified so that the fund reserve ratio that "triggers" the change from tax schedule "B" to tax schedule "A" is increased from 5% to 6% and the trigger from tax schedule "E" to schedule "D" is increased from 2% to 2.5%;

      2. The years in which the Treasurer will transfer from the General Fund the amount necessary to raise the reserve ratio to a level of 3.00% are changed from 1998 and 1999 to 1997 and 1998; and

      3. The cost of administrating the provisions of the bill is paid from contributions made to the Health Care Subsidy Fund.