BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 2271 (Perea) - Franchise Tax Board: Seasonal Employees
Amended: June 12, 2012 Policy Vote: PE&R 3-1
Urgency: No Mandate: No
Hearing Date: August 6, 2012
Consultant: Maureen Ortiz
This bill does not meet the criteria for referral to the
Suspense file.
Bill Summary: AB 2271 provides seasonal clerks at the Franchise
Tax Board (FTB) with the option to carry over their accumulated
leave to future work seasons, as previously negotiated in the
agreement between the State and Bargaining Unit 4 (SEIU, Local
1000, Office and Allied) effective July 1, 2010 through July 1,
2013.
Fiscal Impact:
Unknown savings in one year, potentially depleted by costs
in future years.
Background: The MOU between the state and Bargaining Unit 4
(SEIU Office and Allied) was ratified by the Legislature
pursuant to AB 1625 (Perez) Chapter 728/2010. Ratification is
necessary when implementation of an agreement requires the
expenditure of funds. Although the MOU contained a provision
that would allow seasonal clerks at the Franchise Tax Board to
carry over their accumulated leave from one tax season to the
next, the statutory changes needed for this authorization were
never made.
Clerks hired by the Franchise Tax Board are seasonal and
temporary employees who are separated from state service at the
end of each tax season.
Section 201 of the Labor Code permits an employee, upon
discharge by a state employer, to elect to defer into the next
calendar year payment of any or all of the employee's unused or
accumulated vacation, annual leave, holiday leave, or time off,
but only to the extent of the portion of leave that extends past
AB 2271 (Perea)
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the November pay period.
The Franchise Tax Board hires between 100 and 200 seasonal
clerks annually.
Proposed Law: AB 2271, notwithstanding Section 201 of the
Labor Code, makes statutory changes necessary so that the
seasonal clerks at the Franchise Tax Board will have the
following options with regard to their accumulated leave:
a) Receive a lump-sum payment for accumulated vacation or
annual leave credit.
b) By mutual agreement between the employer and the clerk,
schedule time off for the vacation or annual leave.
c) Retain his or her vacation or annual leave credit.
d) Effect a combination of any or all of the actions
described above.
Staff Comments: In a Legislative Counsel Opinion dated May 1,
2012 entitled State Employees: Prompt Payment, it was opined
that although the authorization to allow seasonal clerks to
carry over accumulated leave was negotiated and agreed to by the
State and Bargaining Unit 4, statutory changes to the Government
Code are necessary before this provision can be implemented.