BILL ANALYSIS                                                                                                                                                                                                    �






          SENATE PUBLIC EMPLOYMENT & RETIREMENT   BILL NO:  AB 2271
          Gloria Negrete McLeod, Chair HEARING DATE:  June 25, 2012
          AB 2271 (Perea)    as amended   6/12/12      FISCAL:  YES

           FRANCHISE TAX BOARD:  SEASONAL CLERKS' LEAVE CARRYOVER OPTION
           

           HISTORY  :

            Sponsor:  Franchise Tax Board

            Other legislation:  AB 1393 (Perea) 2011, (August 15, 2011 
            amendments)

          ASSEMBLY VOTES  :

           Not relevant - new bill with June 12, 2012, amendments
          
          SUMMARY  :
          
          AB 2271 provides the Franchise Tax Board (FTB) with 
          flexibility to offer its seasonal clerks the option to carry 
          over their accumulated leave to future seasons instead of 
          having to cash out the clerks' leave balances at the end of 
          their seasonal work period.

           BACKGROUND AND ANALYSIS  :
          
           1)Existing law  :

             a)   requires that a separated employee be promptly paid 
               all compensation (including wages and accrued benefits 
               such as leave credits) at the time of separation.  
               Violation of the prompt payment obligation results in 
               the imposition of penalties.

           1)This bill  :
           
              a)   specifically authorizes the FTB to do any one of the 
               following with the accumulated vacation or annual leave 
               credits of seasonal clerks placed on unpaid leave due to 
               a lack of work:

          Glenn A. Miles
          Date:  6/18/12                                          Page 
          1









                     Pay the seasonal clerk employee in a lump-sum 
                 payment for accumulated vacation/annual leave credits.
                     By mutual agreement, schedule the seasonal clerk 
                 employee for vacation/annual leave.
                     Allow the seasonal clerk employee to retain 
                 his/her vacation/annual credits.
                     Effect a combination of a, b, or c above.

             a)   enables the FTB to comply with the collective 
               bargaining agreement with State Bargaining Unit 4.

           COMMENTS  :

           1)Arguments in Support
          
          The author states that currently FTB "does not have the 
          ability to retain seasonal employees without permanent 
          separation?(and)?seasonal clerks do not have the ability to 
          retain their vacation time and annual leave credits even if 
          they return to the same position in the following year."

          The sponsor states that as part of a lawsuit settlement and 
          memorandum of understanding, it reached an agreement with the 
          Services Employees International Union (SEIU) to comply with 
          the prompt payment requirements of existing law and to also 
          seek legislative authorization to continue providing 
          opportunities to roll over accrued leave to future years for 
          those seasonal clerks who do not want to cash out their 
          vacation at the end of their seasonal employment period.  
          This bill would provide FTB the ability to comply with 
          existing prompt payment statutes and with its commitments 
          under the settlement agreement and the memorandum of 
          understanding.  This bill is necessary to implement the 
          memorandum of understanding between FTB and its seasonal 
          clerks.

           2)SUPPORT  :

            Franchise Tax Board, Sponsor

           3)OPPOSITION  :

            None to date
          Glenn A. Miles
          Date:  6/18/12                                          Page 
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          Glenn A. Miles
          Date:  6/18/12                                          Page 
          3