BILL ANALYSIS                                                                                                                                                                                                    






                 Senate Committee on Labor and Industrial Relations
                               Mark DeSaulnier, Chair

          Date of Hearing: April 14, 2010              2009-2010 Regular  
          Session                              
          Consultant: Gideon L. Baum                   Fiscal:Yes
                                                       Urgency: No
          
                                  Bill No: SB 1304
                                 Author: DeSaulnier
                      Version: As Introduced February 19, 2010
          

                                       SUBJECT
          
                           Employment: leave and benefits.


                                      KEY ISSUE

          Should the Legislature require employers to provide paid leave  
          for employees who volunteer to donate bone marrow or organ  
          tissue, as well as prohibit employer discrimination against any  
          employee who utilizes this leave?  
          

                                       PURPOSE
          
          To provide job protection and paid leave for bone marrow and  
          organ tissue donors in the event of the donor being matched with  
          a patient.


                                      ANALYSIS
          
           Existing federal and state laws,  known as the federal Family  
          Medical Leave Act (FMLA) and the California Family Rights Act  
          (CFRA), require all employers with 50 or more employees within a  
          75 mile radius to grant 12 weeks of unpaid family leave in a  
          12-month period to any employee who is eligible.  This leave can  
          be taken by an employee for the purposes of child birth, care of  
          a newly adopted child or newly placed foster child, and serious  
          health conditions for the employee, the employee's spouse or  
          registered domestic partner, or for the employee's parent.  With  
          certain exceptions, the employee taking the leave must be  
          reinstated.  









           
          Existing law  requires that employees of the state who have  
          exhausted all available sick leave be allowed to take a leave of  
          absence with pay, not exceeding 30 days for the purpose of organ  
          donation and not exceeding 5 days for bone marrow donation.

           This bill  would eliminate the requirement that a state employee  
          exhaust all available sick leave prior to being entitled to the  
          above-recited paid leaves of absence. 

           This bill  would also require any business entity that employs 15  
          or more employees to provide up to 30 days of paid leave for an  
          organ donation and up to 5 days of paid leave for a bone marrow  
          donation.  

           This bill  would prohibit a private employer from interfering  
          with an employee taking organ or bone marrow donation and from  
          retaliating against an employee for taking such leave or  
          opposing an unlawful employment practice related to organ or  
          bone marrow donation leave. 

           This bill  would also create a private right of action for an  
          aggrieved employee to seek enforcement of these provisions.


                                      COMMENTS
          
          1.  Need for this bill?

            Existing law provides employment leave for either certain  
            classes of employees, such as volunteer members of the Civil  
            Air Patrol, or for employees that are employed by an employer  
            of a certain size for medical reasons or child bonding, such  
            as the California Family Rights Act (CFRA) or Paid Family  
            Leave (PFL).  However, current employment leave provided for  
            medical reasons does not allow an employee to take leave from  
            their employment for non-relatives, with the exception of a  
            spouse or domestic partner.  

            Existing law also provides for the State Disability Insurance  
            (SDI), which provides partial wage replacement if a worker  
            becomes disabled.  Bone marrow or organ tissue donation would  
          Hearing Date:  April 14, 2010                            SB 1304  
          Consultant: Gideon L. Baum                               Page 2

          Senate Committee on Labor and Industrial Relations 
          








            qualify since these procedures would prohibit someone from  
            working.  However, the current structure of SDI would pose  
            some challenges for a worker seeking wage replacement due bone  
            marrow or organ tissue donation.

            For one, SDI requires that an employee be disabled for at  
            least 8 days before that employee would be eligible for  
            benefits.  According to the National Marrow Donor Program,  
            which operates the bone marrow registry, the period of  
            disability for the average bone marrow donor would be 2 to 7  
            days, which would prevent the utilization of SDI.  Another  
            challenge is that SDI can only begin when a worker becomes  
            disabled.  For an employee donating bone marrow or organ  
            tissue, this period of disability would begin after the  
            donation, when the employee would already be unable to work,  
            creating a delay between the surgery and the successful filing  
            of a SDI claim.  Finally, SDI only provides partial wage  
            replacement, which may not provide enough financial assistance  
            to allow an employee to donate bone marrow or organ tissue.

            Therefore, SB 1304 is a departure from the structure of  
            existing employment leave provisions and addresses perceived  
            short fallings in the SDI program.  While similar to CFRA in  
            providing protected leave and PFL in providing paid leave,  
            this bill would extend these provisions to employees that seek  
            voluntary medical procedures to treat diseases and prolong the  
            lives of patients which may or may not be known to the  
            employee taking the leave.  Unlike State Disability Insurance  
            (SDI), SB 1304 would provide full wage replacement and begin  
            as soon as the donation occurred.
          2.    Bone Marrow and Organ Tissue Donation in Brief:  

            Currently, the National Marrow Donor Program (NMDP) is the  
            national bone marrow registry for the United States.  The NMDP  
            provides bone marrow tissue for individuals that require new  
            bone marrow for the treatment of a variety of diseases and  
            cancers, including leukemia, lymphoma, and certain pediatric  
            diseases, such as sickle cell anemia and certain  
            immunodeficiency disorders.  In FY 2009, 266 bone marrow  
            donations occurred in California, and that number is expected  
            to increase by 12% in FY 2010.

          Hearing Date:  April 14, 2010                            SB 1304  
          Consultant: Gideon L. Baum                               Page 3

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            Generally, a patient is more likely to find a bone marrow  
            match from a relative or a member of the same ethnic group.   
            Nationally, the demographic breakdown of the NMDP bone marrow  
            registry was:


                  ------------------------------------------------- 
                 |Composition of the Be The   |Percentage of       |
                 |Match                       |Potential           |
                 |Registry by Race and        |Adult Donors        |
                 |Ethnicity                   |(Rounded)           |
                 |----------------------------+--------------------|
                 |African American or Black   |7%                  |
                 |----------------------------+--------------------|
                 |American Indian/Alaska      |1%                  |
                 |Native                      |                    |
                 |----------------------------+--------------------|
                 |Asian                       |7%                  |
                 |----------------------------+--------------------|
                 |Hispanic (identified as     |10%                 |
                 |either Hispanic             |                    |
                 |or Latino ethnicity)        |                    |
                 |----------------------------+--------------------|
                 |Multiple Race               |3%                  |
                 |----------------------------+--------------------|
                 |Native Hawaiian or          |.1%                 |
                 |Other Pacific Islander      |                    |
                 |----------------------------+--------------------|
                 |White                       |74%                 |
                  ------------------------------------------------- 

            As such, patients that are white have a higher chance of  
            finding a bone marrow match, and therefore receiving  
            successful treatment.  Therefore, the NMDP and other bone  
            marrow donation organizations are currently involved with a  
            variety of activities to increase minority participation in  
            the bone marrow registry.  However, at least one study has  
            demonstrated that wage loss is a significant barrier to bone  
            marrow donation.

            Currently, organ tissue donation largely remains an  
            end-of-life issue, and therefore is outside the scope of  
          Hearing Date:  April 14, 2010                            SB 1304  
          Consultant: Gideon L. Baum                               Page 4

          Senate Committee on Labor and Industrial Relations 
          








            employment leave issues.  One notable exception is kidney  
            donation, where a donor donates one of his or her two kidneys,  
            providing the patient with a fully functioning organ with  
            limited health implications.  Moreover, as medical science  
            advances, treatments are in development that utilize of part  
            of an organ, rather than the entire organ, which could  
            increase both the need and utilization of organ tissue  
            donation.  

          3.  Proponent Arguments  :
            
            Proponents note that, even with 7 million potential donors on  
            the U.S. Registry, some patients are unable to find a match  
            due to the rareness of their tissue traits.  When rare  
            conditions or tissue requirements arise, it may be that only a  
            single match or small number of matches can be found.   
            However, proponents believe that unavailability due to work is  
            a growing problem, and potential donors are unable to take the  
            necessary time off of work for various reasons, including no  
            vacation or sick time, pressure at work, or having the support  
            of their employers.  Proponents note that the lack of  
            available donors in these cases may lead to that patient dying  
            before another donor can register and be identified as a  
            match.  Proponents argue that this outcome not only affects  
            the patient and the patient's family, but the extended family,  
            friends, and community as well. 

          4.  Opponent Arguments :

            Opponents argue that, while this legislation is  
            well-intentioned and organ and bone marrow donations ought to  
            be encouraged in our society, they do not believe a new  
            private sector mandate is the appropriate role of government  
            or the correct policy approach for advancing this laudable  
            goal.  Opponents argue that creating a new paid leave mandate  
            removes employer flexibility that is necessary to the  
            operation of a business.  Opponents also note that small  
            business bankruptcies are at an all-time high, and argue that  
            a new paid leave mandate will increase the cost of doing  
            business and may unfortunately translate into fewer jobs or  
            other leaves and benefits that employers currently provide.

          Hearing Date:  April 14, 2010                            SB 1304  
          Consultant: Gideon L. Baum                               Page 5

          Senate Committee on Labor and Industrial Relations 
          








          5.  Prior Legislation  :

            AB 485 (Carter), Statutes of 2009, Chapter 242, requires  
            employers to provide unpaid leave for employees who are  
            volunteer members of the California Wing of the Civil Air  
            Patrol when they respond to an authorized emergency  
            operational mission, and prohibits employer discrimination  
            against any employee who is a member of the Civil Air Patrol.   


            AB 392 (Lieu), Statues of 2007, Chapter 361, allows the  
            spouses of service members of the armed forces to take up to  
            10 days of unpaid leave when their spouse is on qualified  
            leave from military deployment.

            AB 1825 (Nakano), Statutes of 2002, Chapter 869, provides for  
            the current leave provisions discussed above for state  
            employees.  

             6.       NOTE:   SB 1304 has been double-referred to the  
               committee on Rules.



                                       SUPPORT
          
          American Federation of State, County and Municipal Employees  
          (AFSCME), AFL-CIO
          Asian & Pacific Islander American Health Forum
          Association of California State Supervisors
          California Employment Lawyers Association
          California Nurses Association/National Nurses Organizing  
          Committee
          California State Employees Association
          California State Employees Association Retirees, Inc.
          California State University Employees Union
          California Transplant Donor Network - Oakland, Modesto, and  
          Fresno, CA
          Consumer Attorneys of California
          Donate Life California, Sacramento, CA
          Lakeview Family Medicine, PLLC, Seattle, WA
          Madison P. Nguyen, Councilmember, Dist. 7 - City of San Jose
          Hearing Date:  April 14, 2010                            SB 1304  
          Consultant: Gideon L. Baum                               Page 6

          Senate Committee on Labor and Industrial Relations 
          








          National Kidney Foundation - Northern California
          Service Employees International Union Local 1000
          Viet Lam, MD, San Francisco
          Form letter from 517 individuals
          

                                     OPPOSITION
          
          Associated General Contractors
          California Chamber of Commerce
          California Construction & Industrial Materials Association
          California Employment Law Council
          California Independent Grocers Association
          National Federation of Independent Business
          Western Electrical Contractors Association

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          Hearing Date:  April 14, 2010                            SB 1304  
          Consultant: Gideon L. Baum                               Page 7

          Senate Committee on Labor and Industrial Relations