BILL ANALYSIS
AB 1765
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CORRECTED - 06/02/2010 Technical change (Member name)
ASSEMBLY THIRD READING
AB 1765 (Solorio)
As Amended March 11, 2010
Majority vote
PUBLIC EMPLOYEES 4-0 APPROPRIATIONS 12-5
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|Ayes:|Torrico, Hernandez, Ma, |Ayes:|Fuentes, Ammiano, |
| |Nestande | |Bradford, |
| | | |Charles Calderon, Coto, |
| | | |Davis, |
| | | |Monning, Ruskin, Skinner, |
| | | |Solorio, |
| | | |Torlakson, Torrico |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Conway, Harkey, Miller, |
| | | |Nielsen, Norby |
| | | | |
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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 prohibits a state employee from
being furloughed when all of the following criteria apply:
1)The state's unemployment rate during the previous month reached
or exceeded 8.5%.
2)At least 95% of the position's funding is from the federal
government.
3)The employee provides services that combat the state's recession
which includes performing services related to the Unemployment
Insurance Program.
4)The employee works for the CUIAB or EDD.
EXISTING LAW :
AB 1765
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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 the
duties and responsibilities exercised by the State Personnel
Board with respect to the administration of salaries, hours, and
other personnel-related matters.
4)Imposes, under Executive Orders S-16-08 and S-13-09, 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 : According to the Assembly Appropriations
Committee, according to the State Controller, there are about
10,000 employees at EDD and 800 employees at CUIAB, the majority
of which are funded from federal funds. The impact of the bill
depends on future unemployment rates and the extent to which
furloughs are implemented in the future. As an illustration, if
the Governor were to order three-day per month furloughs in
2011-12 and the unemployment rate were above 8.5%, the bill would
result in $50 million in annual compensation related costs (mostly
federal funds)."
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
AB 1765
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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 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), pending in the
Assembly, which
would exempt employees of the Department of Corrections and
Rehabilitation, EDD, FTB, and BOE from being furloughed.
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
FN: 0004603