BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 381|
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                                 THIRD READING


          Bill No:  AB 381
          Author:   Block (D)
          Amended:  6/1/09 in Senate
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COMM  :  6-0, 6/25/09
          AYES: DeSaulnier, Wyland, Ducheny, Hollingsworth, Leno, Yee

           SENATE APPROPRIATIONS COMMITTEE  :  11-0, 7/6/09
          AYES:  Kehoe, Cox, Corbett, Hancock, Leno, Price, Runner,  
            Walters, Wolk, Wyland, Yee
          NO VOTE RECORDED:  Denham, Oropeza

           ASSEMBLY FLOOR  :  78-0, 5/11/09 - See last page for vote


           SUBJECT  :    Unemployment compensation disability benefits:  
          academic
                      employees

           SOURCE  :     Faculty Association of California Community  
          Colleges


           DIGEST  :    This bill allows community college districts to  
          elect to provide State Disability Insurance (SDI) coverage  
          for certain employees, as specified, but stipulates that  
          the election would not be contingent upon coverage of other  
          employees of the community college district employer.  

           ANALYSIS  :    Existing law requires private sector employers  
          to provide SDI coverage for their employees, while public  
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          agencies (the state, cities, counties, school districts,  
          community college districts, and other local districts) are  
          not required to provide SDI coverage for employees.   
          California's SDI program is a partial wage-replacement  
          insurance plan for California workers that provides  
          affordable, short-term benefits to eligible workers for up  
          to 52 weeks in the event that a person suffers a  
          non-occupational injury or illness that prevents that  
          person from working.  SDI benefits range from $50 to $959  
          per week, depending upon earnings during a 12-month base  
          period.  Paid Family Leave is part of the SDI program and  
          replaces lost income to care for a sick relative or to bond  
          with a new child.  The SDI programs are state-mandated, and  
          funded through employee payroll deductions.  The SDI  
          program is administered through the Employment Development  
          Department.

          Under existing law, public agencies that elect to provide  
          SDI coverage must do so under statutory rules that include:  


          1.All of the eligible employees who are part of a labor  
            organization are parties to an election that is the  
            result of a negotiated agreement between the employer and  
            the recognized employee organization.  

          2.All of the eligible employees in one or more places of  
            business who are not part of a labor organization are  
            parties to an election requested by a written petition  
            signed by a majority of the eligible employees.  

          Existing law allows public entities, except school district  
          and community college districts, to elect to cover all of  
          their employees who are part of an appropriate unit,  
          provided the election is the result of a negotiated  
          agreement between the public agency and the recognized  
          employee organization.  

          This bill allows community college districts to elect to  
          provide SDI coverage for certain employees, as specified,  
          but stipulates that the election would not be contingent  
          upon coverage of other employees of the community college  
          district employer.  Specifically, this bill allows a  
          community college district: 







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          1.To elect to provide SDI coverage to all eligible  
            employees who are part of an employee organization  
            bargaining unit, as specified, but would not make the  
            election contingent upon coverage of other employees. 

          2.To elect to provide coverage to its management and  
            confidential employees and to its employees who are not  
            part of an appropriate unit, but would not make the  
            election contingent upon coverage of other employees.  

          3.To elect to provide disability compensation coverage to  
            specified permanent, part-time, or temporary academic  
            employees that is not contingent upon coverage of other  
            academic employees.  "Academic employee" is defined as a  
            person employed by a community college district in an  
            academic position.  

           Comments
           
          The SDI program provides partial wage-replacement insurance  
          for California workers that provides affordable, short-term  
          benefits to eligible workers in the event that a person  
          suffers a non-occupational injury or illness that prevents  
          that person from working.  Existing law requires private  
          sector employers to provide SDI coverage for their  
          employees, while public agencies, including a community  
          college district, are not.  Community college districts  
          employ academic faculty in both temporary part-time and  
          permanent full-time capacities.

          Because of difference in sick leave, paid time off and  
          other personnel policies that might apply to workers in  
          either of these classifications, each set of workers might  
          have different perspectives on the need to opt in or out of  
          the SDI program.  This legislation recognizes these  
          differences and would instead allow the different  
          classification of employees to choose whether or not to  
          participate in the SDI program.  This bill allows those  
          employees who find value in the cost to participate in the  
          SDI program to do so, while at the same time those who do  
          not want to participate would not be required to pay for a  
          plan that they find no benefit.








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           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  7/7/09)

          Faculty Association of California Community Colleges  
          (source) 
          American Federation of State, County and Municipal  
          Employees, AFL-CIO 
          California Federation of Teachers 
          California Labor Federation, AFL-CIO 
          Community College League of California


           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          even in a good economy a short-term disability can be  
          economically disastrous for a part-time worker.  The author  
          argues that currently, California's part-time community  
          college faculty lack adequate financial protection in the  
          event of a non-work related short-term disability.   
          Proponents argue that since public employers are not  
          required to provide SDI, part-time community college  
          faculty have only their accumulated leave, which can only  
          be used during an academic term in which they are employed,  
          to rely on in the event of an extended illness.  To make  
          matters worse, proponents argue, if a faculty member is  
          collecting unemployment insurance and becomes ill and is  
          unable to look for work, he or she will become ineligible  
          to continue to receive unemployment benefits.  However, if  
          the part-time faulty member participates in the SDI  
          program, he or she would be seamlessly transferred out of  
          UI and into SDI.  

          Proponents of the bill state that current law limits the  
          ability of employees within a bargaining unit to elect into  
          SDI, and when the district chooses to participate in SDI  
          both temporary and permanent full time faculty are required  
          to contribute.  Proponents argue that since SDI is  
          completely employee paid, tenured faculty may feel that  
          they do not have need for the SDI plan considering they  
          have, on average, 10 sick days per year, and many have  
          access to a sick leave donation bank.  This bill would  
          allow part-time faculty to participate in SDI even if the  
          tenured faculty of a bargaining unit choose differently.   







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          Similarly, this bill would also allow the full time faculty  
          to elect into SDI, even if the part-time faculty did not  
          want to.  


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,  
            Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huber, Huffman, Jeffries, Jones, Knight, Krekorian, Lieu,  
            Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning,  
            Nava, Nestande, Niello, Nielsen, John A. Perez, V. Manuel  
            Perez, Portantino, Price, Ruskin, Salas, Saldana, Silva,  
            Skinner, Smyth, Solorio, Audra Strickland, Swanson,  
            Torlakson, Torres, Torrico, Tran, Villines, Bass
          NO VOTE RECORDED:  Duvall, Yamada


          AGB:nl  7/7/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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