BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 221| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 221 Author: Jackson (D) Amended: 4/20/15 Vote: 21 SENATE VETERANS AFFAIRS COMMITTEE: 5-0, 4/14/15 AYES: Nielsen, Hueso, Allen, Nguyen, Roth SENATE PUBLIC EMP. & RET. COMMITTEE: 5-0, 4/27/15 AYES: Pan, Morrell, Beall, Fuller, Hall SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15 AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen SUBJECT: State public employees: sick leave: veterans with service-related disabilities SOURCE: Author DIGEST: This bill permits state employees, who are military veterans with service-connected disabilities, to receive 96 hours of additional sick leave dedicated to health care treatment of those disabilities. ANALYSIS: Existing federal law directs the United States Department of Veterans Affairs (USDVA) to analyze and rate the service-connected disabilities of qualified military veterans, and to provide health care treatment and monetary compensation to veterans with rated, service-connected disabilities. Existing state law: SB 221 Page 2 1)Provides that state agency employees may accrue and apply sick leave, and establishes procedures for agency administration of those sick leave benefits. 2)Authorizes the Legislature to provide preferences to veterans and their surviving spouses in state employment. (California Constitution) This bill: 1)Grants a state officer or employee, who is a military veteran with a service-connected disability rated at 30% or more by USDVA, and who is hired on or after January 1, 2016, an additional credit for sick leave with pay of up to 96 hours. 2)Limits use of this sick leave to medical treatment of the employee's military service-connected disability. 3)Requires that this sick leave be credited on the first day of employment and remain available for use for the following 12 months of employment. 4)Prohibits this sick leave from being carried over after 12 months. 5)Permits employing agencies to require "submission of satisfactory proof" that the sick leave is being used for treatment of a service-connected disability, pursuant to rules adopted by the Department of Human Resources (CalHR). Background Sick leave for state employees. Employees of California state SB 221 Page 3 government agencies are eligible to accrue sick leave credits, which they may use to take time off from work at full pay. Provided they have sufficient accrued credits, sick leave compensates employees during periods of absence due to: Being physically or mentally unable to work due to illness or injury. Obtaining professional diagnosis of treatment for a medical condition. Other medical reasons, such as pregnancy or obtaining a physical examination. Attending to illness of a child, parent, spouse, or domestic partner. The Government and Labor codes contain provisions for sick leave with actual benefits for represented employees further specified by collective bargaining agreements or memorandums of understanding. Benefits for nonrepresented employees, who are designated as managerial, supervisory, and confidential, are further specified in CalHR regulations. Federal benefits for service-connected disabilities. USDVA provides health care treatment and monetary compensation to veterans with service-connected disabilities. 1)Health care: USDVA's Veterans Health Administration (VHA) operates the nation's largest integrated health care system with over 1,700 sites of care, serving 8.76 million veterans each year. California veterans are served by the numerous hospitals and clinics owned, operated, and regionally administered by the VHA. 2)Disability compensation: USDVA's Veterans Benefits Administration provides disability compensation as a tax-free monetary benefit to veterans rated with disabilities incurred or aggravated during active military service. Compensation may also be paid for post-service disabilities that are considered related or secondary to disabilities occurring in service and for disabilities presumed to be related to circumstances of SB 221 Page 4 military service, even though they may arise after service. Generally, the degrees of disability specified are also designed to compensate for considerable loss of working time from exacerbations or illnesses. USDVA disability ratings. The USDVA rates disabilities to facilitate health care and compensation claims for injuries or diseases that happened during active duty, or were made worse by active military service. The amount of basic benefit paid varies depending on the rated severity of the condition. A veteran need not be totally disabled in order to be eligible for compensation. USDVA rates disability along a continuum of 0%-to-100% in 10% increments, depending upon the level of disability determined. The disability percentage also can be derived by analyzing the composite condition of an individual veteran with multiple disabilities. The 10% rating is the lowest for which compensable income is awarded. A veteran with a 100% rating will have one or more disabilities that significantly interfere with normal life functions. A veteran with a 0% rating may have a service-connected condition, but the condition does not interfere with normal life functions. The majority of disabled veterans are rated between 10% to 30%. As time passes, a veteran's disability claim may require re-rating. Re-ratings can be caused by changes in law, advances in medical knowledge, or fluctuations in the veteran's physical or mental condition. A re-rating can cause an individual's percentage to go up or down. Related Legislation AB 1522 (Gonzalez, Chapter 317, Statutes of 2014), the "Healthy Workplaces, Healthy Families Act of 2014," among other things: SB 221 Page 5 Provides, for the purposes of the Act, that "employer" includes the state, political subdivisions of the state, and municipalities. Provides that an employee, who works in California for seven or more days in a calendar year, is entitled to paid sick days, as specified, on and after July 1, 2015. Provides that an employee shall accrue paid sick days at the rate of not less than one hour per every 30 hours worked, beginning at the commencement of employment or the operative date of the bill, whichever is later. Provides that an employee shall be entitled to use accrued paid sick days beginning on the 90th calendar day of employment, after which the employee may use paid sick days as they are accrued. Provides that an "employee" does not include an employee covered by a valid collective bargaining agreement that expressly provides for paid sick days or similar policy, as specified. AB 1397 (Committee on Veterans Affairs, Chapter 645, Statutes of 2014) adds veterans preference to the list of selection devices that CalHR must review and examine the validity of, and adds veterans status to the list of specified data collected in order to determine utilization of certain groups. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee: Unknown, potentially over $50,000 for sick leave credit (General/Special Funds) SB 221 Page 6 Unknown, potentially minor, administrative costs (General) Exact costs will depend on the number of military veterans who are hired into state service and who have a service-connected disability rated at 30 percent or higher. Additionally, the source of funding (General or Special) will depend on the department that hires the veteran. Assuming the new employee has a monthly salary of $4,000, the cost of an additional 96 hours in sick leave would be approximately $2,220 per employee. There will be additional, unknown but likely minor, costs for administering and tracking this new benefit. SUPPORT: (Verified5/28/15) American Legion - Department of California AMVETS - Department of California California Association of County Veterans Service Officers California State Commanders Veteran Council Military Officers Association of America - California Council of Chapters National Association of Social Workers - California Chapter Veterans of Foreign Wars - Department of California Vietnam Veterans of American - California State Council OPPOSITION: (Verified5/28/15) None received Prepared by:Wade Cooper Teasdale / V.A. / (916) 651-1503 5/30/15 17:22:06 SB 221 Page 7 **** END ****