BILL NUMBER: AB 908	CHAPTERED  08/11/03

	CHAPTER  213
	FILED WITH SECRETARY OF STATE  AUGUST 11, 2003
	APPROVED BY GOVERNOR  AUGUST 9, 2003
	PASSED THE SENATE  JULY 21, 2003
	PASSED THE ASSEMBLY  APRIL 24, 2003

INTRODUCED BY   Assembly Member Chan

                        FEBRUARY 20, 2003

   An act to add Section 89536.1 to the Education Code, relating to
the California State University.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 908, Chan.  California State University:  disability
retirement: temporary disability allowances for employees.
   Existing law establishes the California State University and its
various campuses under the administration of the Trustees of the
California State University.  Existing law generally requires that,
when a state employer has determined that an employee is unable to
perform the work of his or her present position, or any other
position in the agency, the employer remove the employee from the
job, place the employee on involuntary leave, and apply, on that
employee's behalf, for disability retirement.  Existing law also
generally requires that, while the application for disability
retirement is pending, the state employer permit the employee to use
leave credits or, if the leave credits have been exhausted, the state
employer pay the employee a sufficient temporary allowance so that
the employee receives payment equal to the estimated retirement
allowance.  This provision is not applicable to employees of the
California State University.
   This bill would require the trustees to provide disability
retirement temporary disability allowances for employees of
California State University in a manner similar to what is required
in existing law by other state employers.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 89536.1 is added to the Education Code, to
read:
   89536.1.  (a) If, after considering the conclusions of a medical
examination or medical reports from an employee's physician or other
pertinent information, the trustees determine that the employee is
unable to perform the work of his or her present position or any
other position in the state university system, and the employee is
eligible for, and does not waive the right to, retire for disability,
the trustees shall file an application for disability retirement on
the employee's behalf.  The trustees shall give the employee 15 days'
written notice of their intention to file the application and a
reasonable opportunity to respond prior to the filing of the
application.  However, the decision to file the application is final,
and is not appealable to the State Personnel Board.
   (b) Notwithstanding Section 21153 of the Government Code, upon
filing the application for disability retirement, the trustees may
remove the employee from his or her job and place the employee on
involuntary leave status.  The employee may use any accrued leave
during the period of the involuntary leave.  If the employee's leave
credits and programs are exhausted, or if they do not provide
benefits that are at least equal to the estimated retirement
allowance, the trustees shall pay the employee an additional
temporary disability allowance so that the employee receives payment
that is equal to the estimated retirement allowance.  The trustees
shall continue to make all employer contributions to the employee's
health insurance plan during the period of involuntary leave.
   (c) If the application for disability retirement is subsequently
granted, the retirement system shall reimburse the trustees for the
temporary disability allowance, which shall be deducted from any back
disability retirement benefits that are otherwise payable to the
employee.  If the application is denied, the trustees shall reinstate
the employee to his or her position, with back salary and benefits,
less any temporary disability allowance paid by the trustees.  The
trustees shall also restore any leave credits that the employee used
during the period of the involuntary leave.