CAL LEG Prepaid Card Disability Pay


On Sep. 11, CAL LEG passed bill extending for two years use of cards.


  • CAL LEG passed bill AB 1239 to extend disability payments deposited on prepaid cards.
  • Amends Labor Code (LAB), CAL LEG 4-2-2-3-4651 Sections 1, 2 (disability payments).
  • Bill Provisions
  • Extends by two years employer workers' compensation indemnity payments deposited on a prepaid card; program set to expire Jan. 1, 2025 revised to expire Jan. 1, 2027.
  • Current law requires employee written consent to receive disability indemnity by card.
  • AB 1239 revises section of the law until Jan. 1, 2027, and on that date is repealed.
  • Legislative History
  • On Feb. 16, 2023, bill introduced in Assembly; on May 25, 2023, bill passed Assembly.
  • On May 26, 2023, bill introduced in Senate; on Aug. 12, 2024, bill passed in Senate.
  • On Sep. 11, 2024, bill was enrolled and presented to the governor; pending review.
  • Effectiveness
  • No effective date specified; generally effective Jan. 1 after enactment, on Jan. 1, 2025.
  • Sep. 28, 2024 CAL LEG Governor Approval
  • On Sep. 28, 2024, CAL LEG reported bill AB 1239 approved by governor, Chapter 806.

Regulators CAL LEG
Entity Types Ins
Reference Ch. 806, 9/28/2024; Bill AB1239, 9/11/2024; Citation: CAL LEG 4-2-2-3-4651;
Functions Claims/Accelerated Benefits; Compliance; Legal; Operations
Countries United States of America
Category
State
Products Cards; Disability; Insurance; Workers Comp
Regions Am
Rule Type Final
Rule Date 9/11/2024
Effective Date 1/1/2025
Rule Id 225962
Linked to N/A
Reg. Last Update 9/28/2024
Report Section US Consumer

Last substantive update on 10/02/2024