BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2294| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 2294 Author: Gomez (D) Amended: 6/15/16 in Senate Vote: 21 SENATE EDUCATION COMMITTEE: 7-2, 6/8/16 AYES: Liu, Block, Hancock, Leyva, Mendoza, Monning, Pan NOES: Huff, Vidak SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/11/16 AYES: Lara, Beall, Hill, McGuire, Mendoza NOES: Bates, Nielsen ASSEMBLY FLOOR: 51-26, 5/12/16 - See last page for vote SUBJECT: The California State University: employees: leaves of absence without loss of compensation SOURCE: California Faculty Association DIGEST: This bill requires the California State University (CSU) to grant an employee a leave of absence without loss of compensation to serve as an elected officer of any CSU campus public employee organization. ANALYSIS: Existing law: 1)Establishes the CSU governed by the Board of Trustees AB 2294 Page 2 (Trustees) and provides that that the Trustees are responsible for the rule of government of their appointees and employees. (Education Code § 89500, et seq.) 2)Establishes the Higher Education Employer-Employee Relations Act (HEERA) to provide a statutory framework to regulate labor relations at the University of California, the CSU, and Hastings College of Law and their employees and provides the Public Employment Relations Board (PERB) with the authority to enforce HEERA. (Government Code § 3560-3599) 3)Requires the governing board of a school district to grant any employee, upon request, a leave of absence without loss of compensation for the purpose of enabling the employee to serve as an elected officer of any local school district public employee organization or any statewide or national public employee organization with which the local organization is affiliated. Provides that following the district's payment of the employee for the leave of absence, the district shall be reimbursed by the employee organization of which the employee is an elected officer for all compensation paid the employee on account of the leave. (Education Code § 44987) 4)Requires the governing board of a community college district to grant any employee, upon request, a leave of absence without loss of compensation for the purpose of enabling the employee to serve as an elected officer of any local school district public employee organization or any statewide or national public employee organization with which the local organization is affiliated. Provides that following the district's payment of the employee for the leave of absence, the district shall be reimbursed by the employee organization of which the employee is an elected officer for all compensation paid the employee on account of the leave. (Education Code § 87768.5) This bill: 1)Requires the CSU Trustees to grant any employee, upon a request that provides at least 30 days of notice before commencement, a leave of absence without loss of compensation for the purpose of enabling the employee to serve as an elected officer of any CSU campus public employee organization or any statewide or national public employee organization with AB 2294 Page 3 which the university campus organization is affiliated. 2)Specifies that when possible, an employee shall provide a notice of at least 30 days before the start of the academic term during which the leave will occur. 3)Provides that the leave shall include, but is not limited to, absence for purposes of attendance by the employee at meetings of the organization, as specified. 4)Provides that compensation during the leave shall include retirement fund contributions required of the employer, including any amount necessary to pay any unfunded liability cost for the retirement plan. 5)Provides that the employee shall earn full service credit during the leave of absence and shall pay member contributions as prescribed, and provides that the maximum amount of the service credit earned shall not exceed 12 calendar years. 6)Provides that any employee who serves as a full-time officer of a public employee organization shall not be eligible for disability benefits under the Public Employees' Retirement System while on the leave of absence. 7)Provides that following payment of the employee for the leave of absence, the CSU or campus shall be reimbursed by the employee organization of which the employee is an elected officer for all compensation paid the employee on account of the leave. Requires reimbursement by the employee organization to be made within 10 days after its receipt of the certification of payment of compensation to the employee. 8)Provides that the leave of absence without loss of compensation provided for by this bill is in addition to the released time without loss of compensation granted to representatives of an exclusive representative by Section 3569 of the Government Code. AB 2294 Page 4 Comments Consistency with K-12 school districts and community colleges. Current law requires school districts and the community colleges to grant employees a leave of absence without loss of compensation to serve as elected officers of a union. The districts are then reimbursed by the employee organization of which the employee is an elected officer for all compensation paid to the employee while on leave, including any retirement costs. While each of the CSU's 13 bargaining groups have agreements that provide some level of leave for academic employees to work on behalf of their union, the amounts may vary and are not specified in statute. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee, though this bill requires the employment organization to reimburse the CSU salary and benefits, including the CSU retirement fund contribution, this bill could result in one-time costs to recruit, hire, or train replacement employees to fill in while the employee is on a leave of absence. In some cases the replacement employee could be compensated less than the employee on leave in which case any upfront recruiting and training costs could be recovered and ongoing savings could be achieved. However, to the extent the CSU is unable to fill the temporary vacancy with an employee at a lower compensation the CSU may incur some ongoing costs to pay the employee's compensation while on leave, in addition to the one-time costs. Additionally, according to the CSU's website there are 47,000 faculty and staff employed at the university. CSU indicates that the California Faculty Association is currently using two or three of the 16 leaves available they have in their collective bargaining agreements. To the extent this bill encourages additional use of leaves and five employees go on a leave of absence in a year resulting in costs of $10,000 per employee to recruit a replacement, statewide costs could be about $50,000. However, the effect of this bill on the number of employees taking a leave of absence in the future is unknown. (General Fund) AB 2294 Page 5 SUPPORT: (Verified8/12/16) California Faculty Association (source) California Labor Federation California State University Employees Union California Teachers Association Service Employees International Union OPPOSITION: (Verified8/12/16) California State University ARGUMENTS IN SUPPORT: According to the author's office, "in the state's K-12 and community college systems, employees are routinely granted leaves of absence without loss of pay to enable the employee to serve as an elected officer of a union with which his or her labor union is affiliated. Education Code Sections 44987 (K-12) and 87768.5 (community colleges) specify that compensation during the leave includes retirement costs while on the leave of absence. A recent review of the California Education Code revealed that CSU faculty lack statutory parity for identical leaves of absence." The author argues that legislation is necessary to ensure that CSU employees have the right to take leave time to participate in leadership roles with their union affiliates. The author's office indicates that CSU faculty participation in a union elected leadership position is subject to the discretion of the CSU, under relevant memorandums of understanding (MOUs) and local bargaining agreements. ARGUMENTS IN OPPOSITION: The CSU opposes this bill, arguing that the measure sidesteps the collective bargaining process where union leave requests are a negotiated term of employment and therefore would impact 13 collective bargaining units. This would hinder the CSU's ability to consider these leave requests in the context of its impact on campus operations and instruction. For example, CSU notes that under the current faculty agreement there is a notice requirement and an opportunity to discuss the impact of the release time on AB 2294 Page 6 academic departments. ASSEMBLY FLOOR: 51-26, 5/12/16 AYES: Alejo, Arambula, Atkins, Bloom, Bonilla, Bonta, Brown, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Roger Hernández, Holden, Irwin, Levine, Linder, Lopez, Low, McCarty, Medina, Mullin, Nazarian, O'Donnell, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber, Williams, Wood, Rendon NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang, Dahle, Beth Gaines, Gallagher, Grove, Hadley, Harper, Jones, Kim, Lackey, Maienschein, Mathis, Mayes, Melendez, Obernolte, Olsen, Patterson, Steinorth, Wagner, Waldron, Wilk NO VOTE RECORDED: Burke, Chávez, Jones-Sawyer Prepared by:Lenin DelCastillo / ED. / (916) 651-4105 8/15/16 19:39:48 **** END ****