Appropriations Committee Passes Debit Card Payment Bill

The Assembly Appropriations Committee passed a bill that would allow California employers to use prepaid debit cards to pay indemnity benefits. The committee on Wednesday voted 17-0 to pass SB 880, by Sen. Richard Pan, D-Sacramento. The bill would explicitly authorize payers to use debit cards for wage-replacement benefits, starting Jan. 1, 2019. A fiscal analysis of the measure prepared for the committee projects minor costs for the Commission on Health and Safety and Workers’ Compensation, which would be required to issue a report evaluating the use of prepaid cards. The upfront cost...