BILL ANALYSIS SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 2742 Lou Correa, Chair Hearing date: June 28, 2010 AB 2742 (Blakeslee) as amended 6/07/10 FISCAL: YES STATE EMPLOYEES: CATASTROPHIC LEAVE DONATIONS HISTORY : Sponsor: Author Prior legislation: AB 747 (Blakeslee), Chapter 528, Statutes of 2005 ASSEMBLY VOTES : PER & SS 6-0 4/21/10 Appropriations 16-0 5/05/10 Assembly Floor 75-0 5/13/10 SUMMARY : Would allow establishment of a catastrophic leave bank for a deceased state retiree, and accumulation of leave credit donations, which in turn could be cashed out by the person designated to receive the deceased individual's leave balance. This program would be available to an employee for up to 12 months following retirement; the leave bank would be limited to a value of no more than $50,000. BACKGROUND AND ANALYSIS : 1) Existing law : a) allows state employees, as administered by the employing state agency or department, to establish a catastrophic leave bank and donate their accumulated leave credits (for unused vacation, annual leave, holiday leave credits, personal leave, or compensating time off) to an employee who has exhausted all of his or her own leave due to illness of the employee or a member of the employee's family. Pamela Schneider Date: 6/8/10 Page 1 b) allows bargaining units to agree in a memoranda of understanding (MOU) to allow the establishment of a catastrophic leave bank for an employee who dies while in service and to have accumulated leave credits donated to the survivor of that employee who died prior to retirement; State Bargaining Units 5 (Highway Patrol) and 6 (Correctional Peace Officers) have provisions in their MOUs that allow this type of leave donation. 2) This bill : a) allows a catastrophic leave bank to be established for a deceased retired state employee, providing that that retiree was a member of a bargaining unit that had bargained for a survivor benefit authorizing the donation of leave credits for active employees who die from non-work related illnesses or injuries. b) requires that the retired state worker died from non-work related causes within 12 months of retirement. a) limits the total amount of leave donated to the bank to no more than $50,000, and allows the leave to be cashed out to the individual designated by the retiree to receive the deceased retiree's leave balance. d) requires that the section apply retroactively to anyone who retired on or after December 1, 2009 and specifies that any leave donations for a retiree who died on or before December 31, 2010 shall be accepted until January 31, 2011. FISCAL : This bill would minimally expand an already existing program that allows donation of leave credits to a catastrophic leave bank established on behalf of a co-worker. Leave credits transferred are the property of donating employees and would otherwise remain in those employees' personal leave banks and be cashed out at separation or retirement, or used by the employees. Pamela Schneider Date: 6/8/10 Page 2 COMMENTS : 1) Argument in Support : According to the author, this bill ; Is written in response to a situation in which a terminally ill state correctional officer died a few days after his medical retirement for brain cancer, leaving behind a spouse and daughter. His co-workers wished to donate leave credits to his survivors but were unable to do so because the current law and MOU only allow this type of donation when the employee dies prior to retirement. According to supporters: Many state employees would like to contribute to the family of a fallen co-worker, but cannot afford to do so directly. "Allowing employees to donate leave credits gives state workers an option that will financially permit more generosity in these trying times." 2) SUPPORT : California Correctional Peace Officers Association (CCPOA) California Statewide Law Enforcement Association (CSLEA) 3) OPPOSITION : None to date ##### Pamela Schneider Date: 6/8/10 Page 3 Pamela Schneider Date: 6/8/10 Page 4