BILL ANALYSIS �
AB 2271
Page 1
( Without Reference to File )
CONCURRENCE IN SENATE AMENDMENTS
AB 2271 (Perea)
As Amended August 22, 2012
Majority vote
----------------------------------------------------------------------
|ASSEMBLY: | |(May 10, 2012) |SENATE: |34-4 |(August 27, 2012) |
----------------------------------------------------------------------
(vote not relevant)
------------------------------------------------------------------------
|COMMITTEE VOTE: |4-1 |(August 30, 2012) |RECOMMENDATION: |concur |
|(P.E.,R. & S.S.) | | | | |
------------------------------------------------------------------------
Original Committee Reference: REV. & TAX.
SUMMARY : 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 (Services Employees International Union
(SEIU), Local 1000, Office and Allied) effective July 1, 2010,
through July 1, 2013. Specifically, this bill :
1)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:
a) Pay the seasonal clerk employee in a lump-sum payment for
accumulated vacation or annual leave credits.
b) By mutual agreement, schedule the seasonal clerk employee
for vacation or annual leave.
c) Allow the seasonal clerk employee to retain his or her
vacation or annual credits.
d) Effect a combination of any or all of the actions described
above.
AB 2271
Page 2
e) Specify that if these provisions are in conflict with the
provisions of a memorandum of understanding (MOU), the MOU
will be controlling.
The Senate amendments delete the Assembly version of the bill and
instead provide the 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.
EXISTING LAW 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.
AS PASSED BY THE ASSEMBLY , this bill provided that a bad debt
deduction or refund shall not be disallowed by the Board of
Equalization solely on the ground that a proper election was not
established prior to claiming the deduction or refund if a proper
election was established after claiming the deduction or refund.
FISCAL EFFECT : According to the Senate Appropriations Committee,
unknown savings in one year, potentially depleted by costs in
future years.
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 sponsor, FTB, states that as part of a lawsuit settlement and
memorandum of understanding, it reached an agreement with 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.
AB 2271
Page 3
This bill was substantially amended in the Senate and the subject
matter has not been heard in an Assembly policy committee this
legislative session.
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
FN:
0005834