BILL ANALYSIS
AB 381
Page 1
Date of Hearing: April 1, 2009
ASSEMBLY COMMITTEE ON INSURANCE
Joe Coto, Chair
AB 381 (Block) - As Introduced: February 23, 2009
SUBJECT : SUBJECT : State Disability Insurance Benefits
SUMMARY : Allows community college districts to elect to
provide state disability insurance (SDI) coverage to permanent
or temporary academic employees under specified conditions.
Specifically, this bill :
1)Allows a community college district to elect to provide SDI
coverage to all eligible permanent or temporary academic
employees, with the exception of employees covered under a
community college district bargaining unit, who are part of a
labor organization, if the election is the result of a
negotiated agreement between the employer and the recognized
employee organization.
2)Defines "academic employee" as a person employed by a
community college district in an academic position.
EXISTING LAW :
1)Requires private sector employers to provide SDI coverage for
their employees, while public agencies (the state, cities,
counties, school districts, community college districts, and
other local districts) are not required to provide SDI
coverage for employees.
2)Specifies that public agencies that elect to provide SDI
coverage must do so under statutory rules including:
a) All of the eligible employees who are part of a labor
organization are parties to an election that is the result
of a negotiated agreement between the employer and the
recognized employee organization.
b) All of the eligible employees in one or more places of
business who are not part of a labor organization are
parties to an election requested by a written petition
signed by a majority of the eligible employees.
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3)Specifies that SDI coverage provides a partial wage
replacement for up to 52 weeks in the event that a person
experiences a non-occupational injury or illness that prevents
that person from working. It is paid entirely by wage
deductions upon employee earnings.
4)Allows public entities, except school districts and community
college districts, to elect to cover all of their employees
who are part of an appropriate unit, provided the election is
the result of a negotiated agreement between the public agency
and the recognized employee organization.
FISCAL EFFECT : Undetermined.
COMMENTS :
1)Purpose of bill. According to the Author, the purpose of this
bill is to provide part-time community college faculty within
a wall-to-wall bargaining unit the separate ability to elect,
as a group, to participate in the State Disability Insurance
(SDI) Program.
2)State Disability Insurance (SDI) Program. Private sector
employers are required to provide for SDI coverage for
employees. SDI coverage provides a partial wage replacement
for up to 52 weeks in the event that a person experiences a
non-occupational injury or illness that prevents that person
from working. The SDI benefits are paid entirely by
contributions from employees. The benefits range from $50 to
$959 per week, depending upon earnings during a 12-month base
period. The SDI taxable wage limit is $90,669 per employee
for 2009 and the withholding tax on employees is 1.1% of wages
earned.
Public entities including the state, cities, counties, school
districts, and other local districts may elect to cover their
employees with SDI coverage. Paid Family Leave is part of the
SDI Program and it allows paid time off of work in order to
care for a sick family member or to bond with a newborn child.
3)Reason for bill. According to the Author and the bill's
sponsor, the Faculty Association of California Community
Colleges, the current law limits the ability of discreet
classifications of employees within a bargaining unit to elect
into the SDI Program. For community college faculty, this
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means that temporary and full-time faculty must both
participate. The Faculty Association states that tenured
faculty may feel that they do not need the SDI Plan since they
use few sick days per year and may have access to a
sick-leave donation bank. This bill would allow part-time
faculty to participate in SDI independent of the full-time
faculty. Also, this bill would allow full-time faculty to
participate in SDI independent of the part-time faculty.
4)Proposed technical amendment. The Author is proposing to make
a technical correction to the bill in which the proposed
provisions of this bill will amend Section 710.5, instead of
Section 702.6, of the Unemployment Insurance Code. The
Committee Chair recommends that this reference correction be
made.
REGISTERED SUPPORT / OPPOSITION :
Support
California Federation of Teachers
Faculty Association of California Community Colleges
Opposition
None received.
Analysis Prepared by : Manny Hernandez / INS. / (916) 319-2086