BILL ANALYSIS Ó
AB 2271
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CONCURRENCE IN SENATE AMENDMENTS
AB 2271 (Perea)
As Amended June 12, 2012
Majority vote
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|ASSEMBLY: | |(May 10, 2012) |SENATE: |29-7 |(August 13, |
| | | | | |2012) |
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(vote not relevant)
Original Committee Reference: REV. & TAX.
SUMMARY : Provides seasonal clerks at the Franchise Tax Board
(FTB) with the option to carry over their accumulated leave to
future work seasons, as previously negotiated in the agreement
between the State and Bargaining Unit 4 (Services Employees
International Union (SEIU), Local 1000, Office and Allied)
effective July 1, 2010, through July 1, 2013. Specifically,
this bill :
1)Authorizes the FTB to do any one of the following with the
accumulated vacation or annual leave credits of seasonal
clerks placed on unpaid leave due to a lack of work:
a) Pay the seasonal clerk employee in a lump-sum payment
for accumulated vacation or annual leave credits.
b) By mutual agreement, schedule the seasonal clerk
employee for vacation or annual leave.
c) Allow the seasonal clerk employee to retain his or her
vacation or annual credits.
d) Effect a combination of any or all of the actions
described above.
The Senate amendments delete the Assembly version of the bill
and instead provide the FTB with flexibility to offer its
seasonal clerks the option to carry over their accumulated leave
to future seasons instead of having to cash out the clerks'
leave balances at the end of their seasonal work period.
EXISTING LAW requires that a separated employee be promptly paid
all compensation (including wages and accrued benefits such as
AB 2271
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leave credits) at the time of separation. Violation of the
prompt payment obligation results in the imposition of
penalties.
AS PASSED BY THE ASSEMBLY this bill provided that a bad debt
deduction or refund shall not be disallowed by the Board of
Equalization solely on the ground that a proper election was not
established prior to claiming the deduction or refund if a
proper election was established after claiming the deduction or
refund.
FISCAL EFFECT : According to the Senate Appropriations
Committee, unknown savings in one year, potentially depleted by
costs in future years.
COMMENTS : The author states that currently FTB "does not have
the ability to retain seasonal employees without permanent
separation and seasonal clerks do not have the ability to retain
their vacation time and annual leave credits even if they return
to the same position in the following year."
The sponsor, FTB, states that as part of a lawsuit settlement
and memorandum of understanding, it reached an agreement with
SEIU to comply with the prompt payment requirements of existing
law and to also seek legislative authorization to continue
providing opportunities to roll over accrued leave to future
years for those seasonal clerks who do not want to cash out
their vacation at the end of their seasonal employment period.
This bill would provide FTB the ability to comply with existing
prompt payment statutes and with its commitments under the
settlement agreement and the memorandum of understanding. This
bill is necessary to implement the memorandum of understanding
between FTB and its seasonal clerks.
This bill was substantially amended in the Senate and the
subject matter has not been heard in an Assembly policy
committee this legislative session.
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
FN:
AB 2271
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0004639