BILL NUMBER: AB 1215	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 15, 2010
	AMENDED IN SENATE  SEPTEMBER 4, 2009
	AMENDED IN ASSEMBLY  MAY 12, 2009

INTRODUCED BY   Assembly Member De La Torre

                        FEBRUARY 27, 2009

   An act to add Sections 19852.2  and   , 
19852.3  , and 19852.4  to the Government Code, relating to
public employment.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1215, as amended, De La Torre. Public employment: furloughs.
   Existing law authorizes the Governor to require that the 40-hour
workweek be worked in 4 days in any state agency or part thereof when
the Governor determines that the best interests of the state would
be served thereby. Existing law vests the Department of Personnel
Administration with the duties and responsibilities exercised by the
State Personnel Board with respect to the administration of salaries,
hours, and other personnel-related matters.
   This bill would exempt employees in positions funded at least 95%
by sources other than the General Fund  , employees of the
Franchise Tax Board, and employees of the State Board of Equalization
 from furloughs implemented by any state agencies, boards, and
commissions. The bill would also prohibit a state agency, board, or
commission from directly or indirectly implementing or assisting in
implementing a furlough of those employees. The bill would define
"employee" for the purpose of those provisions and would also specify
that nothing in those provisions shall be construed as legal
authorization for the imposition of furloughs on employees through
Executive order. The bill would also make related findings and
declarations.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 19852.2 is added to the Government Code, to
read:
   19852.2.  The Legislature finds and declares all of the following:

   (a) Executive Orders S-16-08 and S-13-09 imposed three unpaid
furlough days on state employees. These furloughs, instituted outside
the collective bargaining process, constitute an annual pay cut of
14 percent. The imposition of involuntary furlough time on state
employees has resulted in tremendous hardship to employees and their
families.
   (b) Although the Executive orders declare an emergency pursuant to
Section 3516.5 based upon the General Fund deficit, the furloughs
apply to virtually all state employees, without regard to whether
they are paid through the General Fund or whether the furlough
results in any state savings.
   (c) Several dozen state agencies are user-funded or federally
funded. Furloughing the employees of these agencies creates no
General Fund savings and simply makes these agencies less efficient.
   (d) Not only do delays harm California's most vulnerable residents
but they also deprive the state of various sources of federal
funding, at a time when we must maximize all revenue sources to
improve our economy. A report by the Social Security Administration's
inspector general concluded that just two furlough days would
decrease California's capacity to process disability claims by 10
percent, delaying 2,375 disability cases per month. Currently the
Department of Social Services, which administers the program, is
losing ten million dollars ($10,000,000) per month in federal funds.
   (e) With the unemployment rate at a record high, furloughing
workers at the Employment Development Department and the California
Unemployment Insurance Appeals Board will only make it harder for the
unemployed to access benefits. It is estimated that the wait time
for an appeal to be heard will increase from seven weeks to three
months. These departments are federally funded so the hardship
inflicted will not result in any state savings.
   (f) In addition to departments whose employees are not paid from
the General Fund, the furloughs extend even to those departments that
generate new revenue. The Franchise Tax Board says the state will
lose five hundred million dollars ($500,000,000) over the next three
years because collections and audits will decline due to employee
furloughs. The Franchise Tax Board has already seen a three hundred
seventy-two million dollar ($372,000,000) reduction in income tax
revenue for the fiscal year that ended June 30. These furloughs are
actually exacerbating the General Fund deficit they were intended to
help reduce.
   (g) California's budget deficit is a product of the national and
global economic downturn. Solutions to the budget crisis should focus
on improving the economy, rather than cutting the pay of and
decreasing consumer spending by California workers. The Sacramento
region is already losing five hundred million dollars ($500,000,000)
to six hundred million dollars ($600,000,000) a month in worker
wages, forcing many local businesses to lay off workers or close
their doors.
  SEC. 2.  Section 19852.3 is added to the Government Code, to read:
   19852.3.  (a) Employees in positions funded at least 95 percent by
sources other than the General Fund shall be exempt from furloughs
implemented by any state agencies, boards, and commissions.
   (b) A state agency, board, or commission shall not directly or
indirectly implement or assist in implementing a furlough of an
employee when the position is funded at least 95 percent from sources
other than the General Fund.
   (c) Nothing in this section shall be construed as legal
authorization for the imposition of furloughs on employees through
Executive order.
   (d) For the purposes of this section, "employee" means a civil
service employee of the State of California. The "State of California"
as used in this section includes such state agencies, boards, and
commissions as may be designated by law that employ civil service
employees.
   SEC. 3.    Section 19852.4 is added to the  
Government Code   , to read:  
   19852.4.  (a) Employees of the Franchise Tax Board and the State
Board of Equalization shall be exempt from furloughs implemented by
any state agency, board, or commission.
   (b) A state agency, board, or commission shall not directly or
indirectly implement or assist in implementing a furlough of an
employee of the Franchise Tax Board or the State Board of
Equalization.
   (c) Nothing in this section shall be construed as legal
authorization for the imposition of furloughs on employees through an
Executive order.
   (d) For the purposes of this section, "employee" means a civil
service employee of the State of California.