BILL ANALYSIS
AB 1765
Page 1
Date of Hearing: April 7, 2010
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Alberto Torrico, Chair
AB 1765 (Solorio) - As Amended: March 11, 2010
SUBJECT : Public employment: furloughs.
SUMMARY : Prohibits a state employee from being furloughed,
during a time in which California's unemployment rate reaches or
exceeds 8.5%, if the employee is in a position funded at least
95% by the federal government, performs services that combat the
state's recession, and works for the California Unemployment
Insurance Appeals Board (CUIAB) or the Employment Development
Department (EDD). Specifically, this bill :
1)Prohibits a state employee from being furloughed when all of
the following criteria apply:
a) The state's unemployment rate during the previous month
reached or exceeded 8.5%.
b) At least 95% of the position's funding is from the
federal government.
c) The employee provides services that combat the state's
recession which includes performing services related to the
Unemployment Insurance Program.
d) The employee works for the CUIAB or EDD.
EXISTING LAW :
1)Sets forth the general policy that the workweek of a state
employee shall be 40 hours and authorizes workweeks of
different hours to be established in order to meet varying
needs of different state agencies.
2)Authorizes the Governor to require that the 40-hour workweek
be worked in four days in any state agency or part thereof
when the Governor determines that the best interests of the
state would be served thereby.
3)Vests the Department of Personnel Administration (DPA) with
AB 1765
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the duties and responsibilities exercised by the State
Personnel Board with respect to the administration of
salaries, hours, and other personnel-related matters.
4)Executive Orders S-16-08 and S-13-09 imposed mandatory
furloughs on state civil service employees, regardless of
funding source and with limited exemptions. The current
furlough program is scheduled to end on June 30, 2010.
FISCAL EFFECT : Unknown.
COMMENTS : According to the author, "Employee furloughs in EDD
and the CUIAB impede employees' ability to review applications
for unemployment insurance, pay unemployment benefits, and
approve training that will help unemployed individuals regain
marketable skills. Additionally, furloughs are creating a
long-term liability for the state when the affected employees
begin to utilize their required banked furlough days."
As stated in the findings and declarations of the bill,
"Furloughing state employees whose positions are financed by the
federal government and who work in programs designed to combat
the state's economic recession fails to produce savings to the
state General Fund, reduces services to the public, contributes
to the late payment of vital unemployment benefits to unemployed
people in California, and delays the state's economic recovery."
According to supporters, "In addition, the furloughs have caused
tremendous pain to those who rely on state service. Labor law
enforcement, unemployment benefits assistance, and highway
maintenance and safety - all of these programs have been
derailed by furloughs. Not only have furloughs caused serious
backlogs throughout state government, but they have also
jeopardized essential enforcement work due to the inability of
furloughed workers to meet statutes of limitations. This
misguided policy has harmed nearly all Californians and
especially hurt the most vulnerable."
This bill is similar to SBX8 29 (Steinberg) which was vetoed by
the Governor on March 24, 2010. SBX8 29 would have exempted
state civil service employees from being furloughed if employed
in positions funded at least 95% by sources other than the
General Fund, prohibited state agencies, boards, and commissions
from implementing, or assisting with implementation of,
furloughs for such employees, and specifically exempted all
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employees of the Franchise Tax Board (FTB) and Board of
Equalization (BOE) from being furloughed.
In his veto message of SBX8 29, the Governor stated, in part,
"It is necessary to apply furloughs across the board, with
limited exemptions as needed to protect public health and
safety, to effectively manage the workforce, and to avoid
inequities and morale problems for state employees. Further,
this bill as written would be difficult, if not impossible to
implement. Many positions are funded through multiple funding
sources and as such it is not always possible to determine if
they are funded at least 95 percent by sources other than the
General Fund."
This bill is also similar to AB 2008 (Arambula) which will be
heard by this Committee on April 21, 2010. AB 2008 exempts
employees of the Department of Corrections and Rehabilitation,
EDD, FTB, and BOE from being furloughed.
REGISTERED SUPPORT / OPPOSITION :
Support
California Labor Federation
California Nurses Association
Professional Engineers in California Government
Opposition
None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957