BILL ANALYSIS Ó
AB 228
Page 1
ASSEMBLY THIRD READING
AB 228 (Fuentes)
As Introduced February 2, 2011
Majority vote
INSURANCE 11-0
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|Ayes:|Solorio, Hagman, Charles | | |
| |Calderon, Carter, Feuer, | | |
| |Hayashi, Miller, Olsen, | | |
| |Alejo, Torres, Wieckowski | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Clarifies that employees of the State Compensation
Insurance Fund (SCIF) are exempt from work furlough orders.
Specifically, this bill adds "furloughs" to the Insurance Code
Section that exempts SCIF employees from "hiring freezes" and "staff
cutbacks" that are otherwise required by law.
EXISTING LAW :
1)Establishes the SCIF to provide workers' compensation insurance
both as a competitor to private insurers and as the insurer of
last resort for employers unable to procure insurance from private
insurers.
2)Provides that employees of SCIF, other than statutorily exempt
employees, are subject to the civil service laws applicable to
state employees. However, SCIF employees are paid entirely from
premium and other revenues derived from SCIF's insurance
operations.
3)Provides that SCIF is not subject to any other provisions of the
Government Code, except where certain provisions are expressly
made applicable.
4)Provides that employees of SCIF are not subject to hiring freezes
and staff cutbacks otherwise required by law.
FISCAL EFFECT : None anticipated. This bill is keyed nonfiscal.
COMMENTS :
AB 228
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Purpose : The purpose of this bill is to clarify that "furloughs" do
not apply to SCIF.
Background : Former Governor Schwarzenegger included SCIF employees
in the furlough orders that he issued as cost-saving measures during
the past several years. While many lawsuits were filed raising
various legal issues surrounding these furlough orders, the lawsuit
filed by representatives of SCIF employees, which SCIF itself
joined, was one of the first to be decided. In that case, the
courts ruled that "furloughs" were just another word for the hiring
freezes and staff cutbacks from which SCIF was already exempt. The
bill merely conforms the statute to this ruling so that there is no
doubt in the future that furloughs of state employees do not apply
to SCIF employees.
Analysis Prepared by : Mark Rakich / INS. / (916) 319-2086FN:
0000155