BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 375


                                                                    Page  1





          Date of Hearing:  May 27, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          375 (Campos) - As Amended May 4, 2015


           ----------------------------------------------------------------- 
          |Policy       |Education                      |Vote:|6 - 0        |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          Yes


          SUMMARY:


          This bill expands the provision of differential pay to  
          certificated school employees for purposes of maternity or  
          paternity leave. Current law provides this benefit for leave  








                                                                     AB 375


                                                                    Page  2





          related to illness or accident. Specifically, this bill:  


          1)Specifies an employee shall not be provided more than one  
            five-month period per maternity leave or paternity leave.  
            However, if a school year terminates before the five-month  
            period is exhausted, the employee may take the balance of the  
            five-month period in a subsequent school year.


          2)Specifies, to the extent that the changes made by this measure  
            conflict with a provision of a collective bargaining agreement  
            entered into by a public school employer and an exclusive  
            bargaining representative before January 1, 2016, the changes  
            made by this measure shall not apply until expiration or  
            renewal of that collective bargaining agreement.


          FISCAL EFFECT:


          1)Unknown Proposition 98/GF state mandated reimbursable costs  
            associated with the expansion of the existing Differential Pay  
            and Reemployment mandate (see comments).  


          2)This bill results in increased employer costs to provide  
            differential pay to employees not currently eligible for this  
            benefit. Employer costs based on the differential pay program  
            should not exceed what is normally paid to a school employee  
            who would otherwise be working; however, this bill may place  
            additional cost pressures on school district budgets to the  
            extent they no longer experience cost savings as a result of  
            not paying employees during a leave of absence due to  
            maternity and paternity leave.  


          COMMENTS:









                                                                     AB 375


                                                                    Page  3






          1)Purpose. The Moore-Brown-Roberti Family Rights Act (CFRA) is  
            the state-law equivalent of the federal Family and Medical  
            Leave Act (FMLA).  Both acts provide for up to 12 weeks of  
            unpaid family and medical leave for public and private  
            employees. During this time, the certificated employee may be  
            able to use accrued sick leave, but once that time is  
            exhausted, the certificated employee is unpaid for the  
            remaining weeks. This bill would extend differential pay  
            through the 12 week leave period under FMLA for both mothers  
            and fathers.



            Differential pay is calculated by subtracting the cost of a  
            substitute employee from the certificated employee's salary.  
            As an example, if the certificated employee made $50,000 and  
            the substitute cost $35,000, then the certificated employee  
            would be paid the difference of $15,000 during maternity or  
            paternity leave, after exhausting all accrued sick time.




            The California Teachers Association (CTA) supports the bill  
            and states maternity leave is essential, not only for a  
            mother's full recovery from childbirth, but also to facilitate  
            a stronger mother-child bond. CTA notes when more workers are  
            able to take leave, they're more likely to choose to remain in  
            the labor market, and paid parental leave is associated with  
            higher employment in economies around the world.  
          
          2)Differential pay mandate. On July 31, 2003, the Commission on  
            State Mandates (CSM) adopted the Statement of Decision for the  
            Differential Pay and Reemployment program. The CSM found that  
            certain administrative activities around the provision of  
            differential pay constituted a new program or higher level of  
            service. Accordingly, the CSM approved a test claim for the  
            following reimbursable activities:








                                                                     AB 375


                                                                    Page  4






             a)   When calculating differential pay, the sick leave,  
               including accumulated sick leave, and the five-month period  
               of differential pay shall run consecutively. (One-time  
               administrative activity for shifting the calculation of  
               differential pay from running concurrently to consecutively  
               with accumulated sick leave.) 

             b)   When a certificated employee is not medically able to  
               resume the duties of his or her position following the  
               exhaustion of all sick leave and the five-month  
               differential pay period has been exhausted, place the  
               employee, if not placed in another position, on a  
               reemployment list for 24 months for probationary employees,  
               or 39 months for permanent employees. (This activity  
               includes the one-time activity of establishing a  
               reemployment list for this purpose, and ongoing activities  
               of maintaining the list.) 



             c)   When the employee is medically able, return the employee  
               to a position for which he or she is credentialed and  
               qualified. (This activity includes the administrative  
               duties required to process the re-employment paperwork, but  
               not reimbursement of salary and benefits for the employee  
               once they return to work.) 

          This bill expands the provision of law that provides for  
          differential pay to also include leave related to injury,  
          maternity and paternity leave. This expansion could result in  
          increased cost claims related to this existing mandate.  On  
          average, annual mandated costs were approximately $27,000 per  
          year. The Differential Pay mandate is currently included in the  
          K-12 Education Block Grant.  Under the block grant, a school  
          district, charter school, or county office of education may  
          choose to receive a per-pupil allocation to conduct existing  
          K-12 mandated activities rather than receive full payment under  
          the existing claims process. The Legislature could face pressure  








                                                                     AB 375


                                                                    Page  5





          to increase the mandate should this bill result in increased  
          cost claims. 





          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  
          319-2081