BILL ANALYSIS AB 381 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 381 (Block) As Amended June 1, 2009 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |78-0 |(May 11, 2009) |SENATE: |37-0 |(August 27, | | | | | | |2009) | ----------------------------------------------------------------- Original Committee Reference: INS. SUMMARY : Allows community college districts to elect to provide state disability insurance (SDI) coverage to academic employees who are permanent, part-time, or temporary; and, to management, confidential, and employees who are not part of a bargaining unit. The Senate amendments , modify the Assembly version of the bill as follows: 1)Allow a community college district to elect to become an employer for purposes of the SDI Program with regard to employees who are part of an appropriate collective bargaining unit if the community college district has reached agreement with the certified employee organization on that point. 2)Allow a community college district to elect to provide coverage to its management and confidential employees and to its employees who are not part of an appropriate unit, but the election shall not be contingent upon coverage of other employees of the district. 3)Allow a community college district that employs an academic employee to elect to provide coverage to permanent, part-time, or temporary academic employees, including permanent, part-time, temporary, or substitute faculty or instructors, but the election shall not be contingent upon coverage of other academic employees of the district. EXISTING LAW : 1)Requires private sector employers to provide SDI coverage for their employees, while public agencies (the state, cities, counties, school districts, community college districts, and AB 381 Page 2 other local districts) are not required to provide SDI coverage for employees. 2)Specifies that public agencies that elect to provide SDI coverage must do so under statutory rules including: a) 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; and, b) 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. 3)Specifies that SDI coverage provides a partial wage replacement for up to 52 weeks in the event that a person experiences a non-occupational injury or illness that prevents that person from working. It is paid entirely by wage deductions upon employee earnings. 4)Allows public entities, except school districts 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. AS PASSED BY THE ASSEMBLY , this bill: 1)Allowed a community college district that employs academic employees to elect to provide SDI coverage to permanent, part-time, or temporary academic employees, including substitute faculty or instructors, but the election would not be contingent upon coverage of all other academic employees of the community college district. 2)Defined "academic employee" as a person employed by a community college district in an academic position. FISCAL EFFECT : No direct state fiscal impact. SDI is paid entirely by employee contributions. To the extent this bill results in more community college staff access to SDI, more payroll taxes payable by employees will be collected to pay the benefits. AB 381 Page 3 COMMENTS : 1)According to the author, the purpose of this bill is to provide part-time community college faculty within a wall-to-wall bargaining unit the separate ability to elect, as a group, to participate in the SDI Program. 2)Private sector employers are required to provide for SDI coverage for employees. SDI coverage provides a partial wage replacement for up to 52 weeks in the event that a person experiences a non-occupational injury or illness that prevents working. SDI benefits are paid entirely by employee contributions and the benefits range from $50 to $959 per week, depending upon earnings during a 12-month period. The SDI taxable wage limit is $90,669 per employee for 2009, and the withholding tax on employees is 1.1% of wages earned. Public entities including the state, cities, counties, school districts, and other local districts may elect to cover their employees with SDI coverage. Paid Family Leave is part of the SDI Program and it allows paid time off of work in order to care for a sick family member or to bond with a newborn child. 3)According to the author and the bill's sponsor, the Faculty Association of California Community Colleges, existing law limits the ability of discreet classifications of employees within a bargaining unit to elect into the SDI Program. For community college faculty, this means that temporary and full-time faculty must both participate. The Faculty Association states that tenured faculty may feel that they do not need the SDI Plan since they use few sick days per year and may have access to a sick-leave donation bank. This bill would allow part-time faculty to participate in SDI independent of the full-time faculty, and vice versa. Analysis Prepared by : Manny Hernandez / INS. / (916) 319-2086 FN: 0001793