BILL NUMBER: SBX8 29	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Steinberg

                        FEBRUARY 5, 2010

   An act to add Sections 19852.2, 19852.3, and 19852.4 to the
Government Code, relating to public employment.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 29, as introduced, Steinberg. Public employment: furloughs.
   Existing law sets forth the general policy that the workweek of a
state employee shall be 40 hours and authorizes workweeks of
different hours to be established in order to meet varying needs of
different state agencies. Existing law also authorizes the Governor
to require that the 40-hour workweek be worked in 4 days in any state
agency or part thereof when the Governor determines that the best
interests of the state would be served thereby. Existing law vests
the Department of Personnel Administration with the duties and
responsibilities exercised by the State Personnel Board with respect
to the administration of salaries, hours, and other personnel-related
matters.
   This bill would exempt employees in positions funded at least 95%
by sources other than the General Fund, employees of the Franchise
Tax Board, and employees of the State Board of Equalization from
furloughs implemented by any state agency, board, or commission. The
bill would also prohibit a state agency, board, or commission from
directly or indirectly implementing, or assisting in implementing, a
furlough of those employees. The bill would define "employee" for the
purpose of those provisions and would also specify that nothing in
those provisions shall be construed as legal authorization for the
imposition of furloughs on employees through an Executive order. The
bill would also make related findings and declarations in support of
this measure.
   The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on January
8, 2010.
   This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on January 8, 2010,
pursuant to the California Constitution.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 19852.2 is added to the Government Code, to
read:
   19852.2.  The Legislature finds and declares all of the following:

   (a) Executive Orders S-16-08 and S-13-09 imposed three unpaid
furlough days on state employees. These furloughs, instituted outside
the collective bargaining process, constitute an annual pay cut of
14 percent. The imposition of involuntary furlough time on state
employees has resulted in tremendous hardship to employees and their
families.
   (b) Although the Executive orders declare an emergency pursuant to
Section 3516.5 based upon the General Fund deficit, the furloughs
apply to virtually all state employees, without regard to whether
they are paid through the General Fund or whether the furloughs
result in any state savings.
   (c) Several dozen state agencies are user funded or federally
funded. Furloughing the employees of these agencies creates no
General Fund savings and simply makes these agencies less efficient.
   (d) Not only do delays harm California's most vulnerable
residents, but they also deprive the state of various sources of
federal funding at a time when we must maximize all revenue sources
to improve our economy. A report by the Social Security
Administration's inspector general concluded that just two furlough
days would decrease California's capacity to process disability
claims by 10 percent, delaying 2,375 disability cases per month.
Currently, the State Department of Social Services, which administers
the program, is losing ten million dollars ($10,000,000) per month
in federal funds.
   (e) With the unemployment rate at a record high, furloughing
workers at the Employment Development Department and the California
Unemployment Insurance Appeals Board will only make it harder for the
unemployed to access benefits. It is estimated that the wait time
for an appeal to be heard will increase from seven weeks to three
months. These departments are federally funded so the hardship
inflicted will not result in any state savings.
   (f) In addition to departments whose employees are not paid from
the General Fund, the furloughs extend even to those departments that
generate new revenue, including the Franchise Tax Board and the
State Board of Equalization. For example, the Franchise Tax Board
says the state will lose five hundred million dollars ($500,000,000)
over the next three years because collections and audits will decline
due to employee furloughs. The Franchise Tax Board has already seen
a three hundred seventy-two million dollar ($372,000,000) reduction
in income tax revenue for the fiscal year that ended June 30. These
furloughs are actually exacerbating the General Fund deficit they
were intended to help reduce.
   (g) California's budget deficit is a product of the national and
global economic downturn. Solutions to the budget crisis should focus
on improving the economy, rather than cutting the pay of, and
decreasing consumer spending by, California workers. The Sacramento
region is already losing five hundred million dollars ($500,000,000)
to six hundred million dollars ($600,000,000) a month in worker
wages, forcing many local businesses to lay off workers or close
their doors.
  SEC. 2.  Section 19852.3 is added to the Government Code, to read:
   19852.3.  (a) Employees in positions funded at least 95 percent by
sources other than the General Fund shall be exempt from furloughs
implemented by any state agencies, boards, and commissions.
   (b) A state agency, board, or commission shall not directly or
indirectly implement or assist in implementing a furlough of an
employee when the position is funded at least 95 percent from sources
other than the General Fund.
   (c) Nothing in this section shall be construed as legal
authorization for the imposition of furloughs on employees through an
Executive order.
   (d) For the purposes of this section:
   (1) "Employee" means a civil service employee of the State of
California.
   (2) "General Fund" has the same meaning as described in Section
16300.
   (3) The "State of California" as used in this section includes all
state agencies, boards, and commissions, as may be designated by
law, that employ civil service employees.
  SEC. 3.  Section 19852.4 is added to the Government Code, to read:
   19852.4.  (a) Employees of the of the Franchise Tax Board and the
State Board of Equalization shall be exempt from furloughs
implemented by any state agency, board, or commission.
   (b) A state agency, board, or commission shall not directly or
indirectly implement or assist in implementing a furlough of an
employee of the Franchise Tax Board or the State Board of
Equalization.
   (c) Nothing in this section shall be construed as legal
authorization for the imposition of furloughs on employees through an
Executive order.
   (d) For the purposes of this section, "employee" means a civil
service employee of the State of California.
  SEC. 4.  This act addresses the fiscal emergency declared by the
Governor by proclamation on January 8, 2010, pursuant to subdivision
(f) of Section 10 of Article IV of the California Constitution.