BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 381
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 381 (Block)
          As Amended  June 1, 2009
          Majority vote
           
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          |ASSEMBLY:  |78-0 |(May 11, 2009)  |SENATE: |37-0 |(August 27,    |
          |           |     |                |        |     |2009)          |
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           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
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            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
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           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
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