BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2742
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2742 (Blakeslee)
          As Amended April 22, 2010
          Majority vote 

           PUBLIC EMPLOYEES    6-0         APPROPRIATIONS      16-0        
           
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          |Ayes:|Torrico, Harkey,          |Ayes:|Fuentes, Conway, Ammiano, |
          |     |Furutani, Hernandez, Ma,  |     |Bradford, Charles         |
          |     |Nestande                  |     |Calderon, Coto, Davis, De |
          |     |                          |     |Leon, Hall, Harkey,       |
          |     |                          |     |Miller, Nielsen, Skinner, |
          |     |                          |     |Solorio, Torlakson,       |
          |     |                          |     |Torrico                   |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Allows state employees to donate leave credits to a  
          leave bank of an eligible retired state employee who died from a  
          non-work related illness or injury within 12 months of  
          retirement.   Specifically,  this bill  :  

          1)Allows a request to be made of an employer to allow state  
            employees to donate leave credits to a leave bank (Survivor  
            Benefit Account) established for a retired state employee who  
            dies from a non-work related illness or injury within 12  
            months of retirement.

          2)Specifies that the donated leave cannot exceed $50,000 and  
            will be cashed out to the person designated to receive the  
            deceased employee's leave balance.

          3)Allows donations to be accepted for 30 days following approval  
            of the request.

          4)Applies these provisions retroactively to anyone who retired  
            on or after December 1, 2009.  Leave donations for a retired  
            state employee who died on or before December 31, 2010, will  
            be accepted until January 31, 2011.

          5)Defines "leave" to include annual leave, vacation, holiday,  
            personal leave, or excess leave.









                                                                  AB 2742
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          6)Defines "retired state employee" as any retired state employee  
            who at the time of retirement was a member of a collective  
            bargaining unit that had bargained for this benefit for active  
            employees who die from a non-work related illness or injury. 

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, unknown, probably minor increase in state costs from  
          utilization of leave credits allowed by this bill.

           COMMENTS  :  State Bargaining Unit 6 (Corrections) has agreed,  
          through collective bargaining, to language allowing Survivor  
          Benefit Accounts to be established for active employees who die  
          as a result of a non-work related illness or injury.  Employees  
          are allowed to donate annual leave, vacation, holiday, personal  
          leave or excess time to the leave bank of the deceased employee.  
           The donated time must be cashed out to provide direct financial  
          assistance to the person entitled to receive the value of the  
          deceased employee's leave balances.  The maximum limit of  
          contributions/compensation is limited to $50,000 and donations  
          are only accepted for a period of 30 days following approval of  
          the request.  The only other state bargaining unit that has  
          agreed to a similar contract provision is Bargaining Unit 5  
          (Highway Patrol).

           According to the author, "On January 7, 2010, CCPOA  
          correctional officer Lt. VanHoose, died of brain cancer.  He  
          left behind his wife Stacy and a daughter.  Lt. VanHoose had  
          continued to work throughout his illness.  He took an early  
          medical retirement on December 29, 2009, only days before his  
          death.  After he passed away, many of his co-workers wanted to  
          honor their colleague and support his family by donating their  
          leave time to a Survivor Benefit Account. The request was denied  
          by the California Department of Corrections and Rehabilitation's  
          (CDCR's) Office of Labor Relations and Human Resources. 

          "In response to the inquiries made by my Assembly office,  
          management from both CDCR's Office of Labor Relations and Human  
          Resources met to reevaluate the denial of the Survivor Benefit  
          Account.  They discussed the possibility of approving the  
          request to set up an account despite the issue of the medical  
          retirement prior to his death.  Because Lt VanHoose did not  
          possess active status as an employee of the State at the time of  
          his death it was determined that there was no mechanism that  
          would allow for the donation of leave credits to a Survivor  








                                                                  AB 2742
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          Benefit Account.  The Legislative Analyst for CDCR explained  
          that survivor benefits, with respect to an excluded employee  
          specifically provide that: 'If an excluded employee on pay  
          status dies due to an illness or injury that was not incurred in  
          the line of duty, a request may be made to the appointing  
          authority to allow employees to donate (various types of leave)  
          to a leave bank for the deceased employee'.   Those parameters  
          are not applicable as Lt. VanHoose was retired (not an employee  
          on pay status) at the time of his death."

          According to supporters, "Many state employees would like the  
          opportunity to contribute to a family of one of their fallen  
          co-workers; however, given the current economy and the financial  
          pinch of furloughs, an employee may not be able to afford a  
          monetary contribution.  Allowing employees to donate leave  
          credits gives state workers an option that will financially  
          permit more generosity in these trying fiscal times."


           Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957 



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