BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 37|
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UNFINISHED BUSINESS
Bill No: SB 37
Author: Strickland (R)
Amended: 6/25/09
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 7-0, 4/20/09
AYES: Correa, Ashburn, Benoit, Ducheny, Liu, Padilla,
Wiggins
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 36-0, 5/11/09
AYES: Aanestad, Alquist, Ashburn, Benoit, Cogdill, Corbett,
Correa, Cox, Denham, DeSaulnier, Ducheny, Dutton, Florez,
Hancock, Harman, Hollingsworth, Huff, Kehoe, Leno, Liu,
Lowenthal, Maldonado, Negrete McLeod, Oropeza, Padilla,
Pavley, Romero, Runner, Steinberg, Strickland, Walters,
Wiggins, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Calderon, Cedillo, Simitian
ASSEMBLY FLOOR : 74-0, 8/27/09 (Consent) - See last page
for vote
SUBJECT : State employees: statement of deductions
SOURCE : Author
DIGEST : This bill provides that state employees who
participate in the direct deposit program shall receive
their statement of earnings and deductions by an electronic
CONTINUED
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method unless the employee requests, in writing, to receive
a paper version of the statement.
Assembly Amendments made clarifying changes.
ANALYSIS : Existing law:
1.Permits state employees of the state to voluntarily
authorize the direct deposit by electronic fund transfer
of their salary or wages into an account at the financial
institution of their choice.
2.Allows each employing agency to establish the
participation eligibility criteria, and
3.Provides that participants enrolled in the direct deposit
program do not receive payroll warrants, but continue to
receive a statement of earnings and deductions
(participants receive a non-negotiable paper direct
deposit advice).
Other state law:
1.Requires each state agency that issues a payment of
salary or wages, whether by direct deposit or otherwise,
to provide each employee, at his or her discretion, an
itemized statement in writing or electronically, and
2.Provides that the electronic statement is contingent upon
the funding and implementation of the State Controllers
Office's (SCO's) new 21st Century Human Resources system.
This bill:
1.Provides that employees who participate in the direct
deposit program employees shall receive their statement
of earnings and deductions by an electronic method unless
the employee requests, in writing, to receive a paper
version of the statement, and
2.Continues the requirement in existing law that the
provision of the electronic statement of deductions shall
be contingent on the funding and implementation of the
SCO's new 21st Century Human Resources system.
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Related Legislation
Similar legislation is AB 232 (Hill), 2009 which allows the
California State Teachers Retirement System to prescribe
the form for accepting electronically signed applications
and documents and not mail a copy of benefit payment
information when payments are made by electronic funds
transfer, unless there is a change in the net amount paid.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/28/09)
State Controller's Office
City of Carpinteria
Contra Costa Taxpayers Association
Howard Jarvis Taxpayer Association
National Tax Limitation Committee
Natural Resources Defense Council
People's Advocate
Santa Barbara County Taxpayers Association
Santa Barbara Technology and Industry Association
Sierra Club California
OPPOSITION : (Verified 8/28/09)
California Association of Professional Scientists
ARGUMENTS IN SUPPORT : The State Controller writes that
this bill, "?would allow state employees who participate in
the direct deposit program to receive their itemized
earnings statements electronically when the State
Controller's Office has developed the capability. These
employees will also have the ability to continue to receive
earning statements on paper if they choose to do so.
Existing law mandates that the State provides each employee
an itemized statement of wages and deductions. This law
will provide greater support for moving employees to an
electronic statement. If every direct deposit participant
elected to receive electronic earnings statements, the
Controller's Office could realize an estimated annual
savings in excess of $162,000, while the State could save
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as much as $3.7 million annually. We believe it is good
business practice to use e-commerce tools wherever and
whenever possible to meet the goals of more efficient and
cost-effective services. This is especially important when
cost savings are crucial to the State. SB 37 will help
achieve those goals and I look forward to working with you
to ensure its enactment."
Contra Costa Taxpayers Association states that, "SB 37 is
an excellent example of combining cost savings for the
state with convenience for the employee by requiring the
electronic deposit of paychecks. It is surprising to learn
that this was no already required since most large firms
have already gone that route. The opt out provision
adequately protects those who would have an objection for
any particular reason."
ARGUMENTS IN OPPOSITION : California Association of
Professional Scientists states, "There are many reasons
that an employee may wish to receive a hard copy of their
statement as opposed to an electronic version. It seems to
us the current opt in version as it pertains to receiving
the statement electronically is sufficient and the
responsibility should remain with the employer should they
want employees to receive them electronically."
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
DeVore, Duvall, Emmerson, Eng, Feuer, Fletcher, Fong,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hagman, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, John A. Perez, V. Manuel Perez,
Portantino, Ruskin, Salas, Silva, Skinner, Smyth,
Solorio, Audra Strickland, Swanson, Torlakson, Torres,
Torrico, Tran, Villines, Yamada
NO VOTE RECORDED: Evans, Fuentes, Hall, Saldana, Bass
DLW:nl 8/28/09 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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