BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2271|
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THIRD READING
Bill No: AB 2271
Author: Perea (D)
Amended: 6/12/12 in Senate
Vote: 21
SENATE PUBLIC EMPLOY. & RETIRE. COMMITTEE : 3-1, 6/25/12
AYES: Negrete McLeod, Padilla, Vargas
NOES: Walters
NO VOTE RECORDED: Gaines
SENATE APPROPRIATIONS COMMITTEE : 5-1, 8/6/12
AYES: Kehoe, Alquist, Lieu, Price, Steinberg
NOES: Walters
NO VOTE RECORDED: Dutton
ASSEMBLY FLOOR : Not relevant
SUBJECT : Franchise Tax Board: seasonal clerks
SOURCE : Franchise Tax Board
DIGEST : This bill provides that, notwithstanding any
other law, if the Franchise Tax Board (FTB) determines
there is a lack of work for a seasonal clerk employed by
the board, the board may (1) pay the clerk a lump-sum
payment for accumulated vacation or annual leave credit,
(2) by mutual agreement between the board and the clerk,
schedule the clerk for vacation or annual leave, (3) allow
the clerk to retain his/her vacation or annual leave
credit, or (4) effect any combination of the above.
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ANALYSIS : Under existing law, if an employer discharges
an employee, the wages earned and unpaid at the time of
discharge are due and payable immediately, as specified.
Existing law also provides that, unless otherwise provided
for by a collective bargaining agreement, if an employment
contract or policy provides for paid vacations, and an
employee is terminated, the employer must pay the employee
for the employee's unused vested vacation time, as
specified.
This bill 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:
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.
Enables the FTB to comply with the collective
bargaining agreement with State Bargaining Unit 4.
Comments :
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 FTB, the sponsor of this bill 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
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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 provides 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, unknown
savings in one year, potentially depleted by costs in
future years.
SUPPORT : (Verified 8/8/12)
Franchise Tax Board (source)
DLW:d 8/8/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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