BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 2742|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 2742
          Author:   Blakeslee (R)
          Amended:  6/7/10 in Senate
          Vote:     21

           
           SENATE PUBLIC EMP. & RET. COMMITTEE  :  6-0, 6/28/10
          AYES: Correa, Ashburn, Corbett, Ducheny, Hollingsworth, Liu

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

          ASSEMBLY FLOOR  :  75-0, 5/13/10 - See last page for vote


           SUBJECT  :    Public employment: retirement:  survivors  
          benefits

           SOURCE  :     Author


           DIGEST  :    This bill allows 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 by the deceased individuals  
          leave balance.  

           ANALYSIS  :    

           Existing Law

           1.Allows state employees, as administered by the employing  
            state agency or department, to establish a catastrophic  
            leave bank and donate their accumulated leave credits  
                                                           CONTINUED





                                                               AB 2742
                                                                Page  
          2

            (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.

          2.Allows bargaining units to agree in a memoranda of  
            understanding (MOU) to allow the establishment of a  
            catastrophic leave bank for any 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  
            the MOU's that allow this type of leave donation.  

           This bill:

          1.Allows a catastrophic leave bank to be established for a  
            deceased retired state employee, providing that the  
            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.

          2.Requires that the retired state worker died from non-work  
            related causes within 12 months of retirement.

          3.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.

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

           SUPPORT  :   (Verified  8/3/10)

          California Correctional Peace Officers Association

                                                           CONTINUED





                                                               AB 2742
                                                                Page  
          3

          California Statewide Law Enforcement Association

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          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 from 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."


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Bass, Beall,  
            Bill Berryhill, Tom Berryhill, Blakeslee, Block,  
            Blumenfield, Bradford, Brownley, Buchanan, 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, Hall, Harkey, Hayashi,  
            Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight,  
            Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza, Miller,  
            Monning, Nava, Nestande, Niello, Nielsen, V. Manuel  
            Perez, Portantino, Ruskin, Salas, Saldana, Silva, Smyth,  
            Solorio, Audra Strickland, Swanson, Torlakson, Torres,  
            Torrico, Tran, Villines, Yamada, John A. Perez
          NO VOTE RECORDED:  Caballero, Hagman, Norby, Skinner,  
            Vacancy


          CPM:cm  8/3/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****




                                                           CONTINUED