BILL ANALYSIS                                                                                                                                                                                                    �






                          SENATE COMMITTEE ON EDUCATION
                              Alan Lowenthal, Chair
                             2011-12 Regular Session
                                         

          BILL NO:       AB 2307
          AUTHOR:        Butler
          INTRODUCED:    March 22, 2012
          FISCAL COMM:   No             HEARING DATE:  June 20, 2012
          URGENCY:       No             CONSULTANT:Beth Graybill

           SUBJECT  :  Classified school employees.
          
           SUMMARY   

          This bill provides that classified employees in school and 
          community college districts who pass a prescribed period of 
          probation are permanent employees of the district.  

           BACKGROUND  

          Existing law defines "permanent" in a nonmerit system school 
          district, as used in the phrase 'permanent employee' includes 
          tenure in the classification in which the employee passed the 
          required probationary period, and includes all the incidents 
          of that classification.  (Education Code � 45101, � 88001)

          Current law specifies that classified employees who are laid 
          off are eligible for reemployment for a period of 39 months 
          and must be reemployed in preference to new applicants.  (EC 
          � 45298, � 88117)

          Current law further specifies that any permanent classified 
          employee of a school district who voluntarily resigned from 
          his or her permanent classified position may be reinstated or 
          reemployed by the governing board of the district within 39 
          months after his or her last day of paid service to a 
          position in his former classification as a permanent or 
          limited-term employee, or as a permanent or limited-term 
          employee in a related lower class or a lower class in which 
          the employee formerly had permanent status.  (EC � 45309, � 
          88128)

          Existing law requires the governing boards of school and 
          community college districts to prescribe written rules and 
          regulations governing the personnel management of the 




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          classified service, whereby employees are designated as 
          permanent employees of the district after serving a 
          prescribed, specific probationary period, not to exceed one 
          year.  The length of a probation period varies depending on 
          the position and is determined through collective bargaining. 
           Under current law, a permanent employee who accepts a 
          promotion and fails to complete the probationary period for 
          that promotional position returns to the classification from 
          which he or she was promoted.  (EC � 45113, � 88013)


           ANALYSIS  

           This bill  applies to only to nonmerit system school and 
          community college districts.  Specifically, this bill

          1)   Revises the definition of "permanent" as used in the 
               phrase "permanent employee" to mean an employee who has 
               served the prescribed period of probation and further 
               states that:  

               a)        A permanent employee remains a permanent 
                    employee of the public school employer when the 
                    employee is moved to another classification.  

               b)        A permanent employee who is placed on a 
                    reemployment list and is subsequently reemployed by 
                    the same public school employer that placed him or 
                    her on the reemployment list continues being a 
                    permanent employee when reemployed regardless of 
                    the classification in which he or she is placed 
                    when reemployed.  

           STAFF COMMENTS  

          1)   Need for the bill  :  Current law requires classified 
               employees to complete a period of probation for each 
               classification in which they are appointed.  An employee 
               who is promoted to a higher classification must complete 
               a new period of probation for the new classification.  
               Similarly, an employee who moves to a different 
               classification must also complete a new period of 
               probation for that specific classification.  Upon 
               satisfactory completion of the probation period, the 
               employee attains permanency in the classification, which 
               means the employee cannot be fired or removed from the 




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               classification without observation of due process.  If 
               the employee does not complete or fails the probation, 
               he or she has return rights to a previous position in 
               which permanency was attained.  The sponsor of this 
               bill, the California School Employees Association 
               (CSEA), maintains that a classified employee should 
               remain a permanent employee when he or she moves to 
               another classification.  

          According to the author, this bill is necessary to protect 
               the rights of classified employees by clarifying when 
               permanency is attained.  The state's fiscal crisis and 
               the resulting budget reductions in school and community 
               college districts has had a significant, if not 
               disproportionate, impact on classified employees.  By 
               one estimate, nearly 30,000 classified employees have 
               been laid off for lack of work or lack of funds as 
               districts have reduced or eliminated positions and 
               services.  The CSEA maintains that laid-off employees 
               who are reemployed in a position for which they had not 
               previously attained permanent status should not be at 
               risk of being dismissed and should have the right to be 
               returned to the district's reemployment list.  


           2)   CSEA v. East Side Union High School District  .  The need 
               for this bill is prompted by a case in which an employee 
               had been employed in the position of school community 
               liaison (SCL) for several years.  Following a reduction 
               in force (RIF), in which the position was eliminated and 
               the employee was laid off, the employee applied for and 
               was hired into a campus monitor (CM) position (a lower 
               position), which the employee had not previously held.  
               At the outset, the employee was informed that she would 
               be on a probationary status for six months.  Prior to 
               the end of the probationary period, the employee was 
               released from her position.  Subsequently, the employee 
               and CSEA filed suit against the district arguing that 
               the employee's permanent status did not end when she was 
               laid off from the SCL position and should have continued 
               once reemployed in the CM position.  In CSEA v. East 
               Side Union High School District (2011) 193 Cal.App. 4th 
               540, the California Court of Appeal affirmed that the 
               permanent status of a classified employee in a nonmerit 
               system district is restricted to the position or class 
               in which permanency is attained, thus confirming that 




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               classified employee protections, including re-employment 
               and due process rights, are limited to positions and 
               classifications previously held.  

           3)   The importance of permanency  .  Permanent status becomes 
               important when an employee is dismissed from his or her 
               job or when an employee is laid off.  In a dismissal, 
               permanency gives an employee certain property rights to 
               his or her job.  In Skelly v. State Personnel Board 
               (1974) 15 Cal. 3d 194, the California Supreme Court 
               ruled that employees who can be dismissed only for 
               "cause" (i.e. permanent employees) have a property 
               interest in continued employment and may not be deprived 
               of their job without the observation of due process.  
               When a district finds it necessary to dismiss a 
               permanent classified employee from his or her job or 
               move the employee to a different position, the employee 
               has certain rights, including the right to a "Skelly" 
               hearing, which enables the individual to respond to the 
               charges brought against him or her by the employer.  

          In a layoff, classified employees who have attained permanent 
               status have the right to reemployment for 39 months and 
               have preference over new applicants in positions for 
               which they are qualified.  They must complete a new 
               probationary period if reemployed in a different 
               position from that in which they attained permanent 
               status.  Although employers indicate that employees who 
               do not successfully complete their probation are 
               returned to the 39-month reemployment list, CSEA argues 
               the practice is not consistent across districts.  

          This bill would make an employee a permanent employee once he 
               or she completes a single, initial probationary period.  
               Employers have expressed concern that the effect of this 
               change would be to grant an employee property rights to 
               any subsequent position taken, irrespective of whether 
               the employee demonstrates the ability to do the job.  
               Employers argue they would no longer have the 
               opportunity a probation period provides to ascertain 
               whether an employee demonstrates competence in the 
               position before granting permanent status.  Opponents 
               maintain AB 2307 could have "a chilling effect on school 
               hiring practices" and give employers an incentive to 
               hire staff from "outside" over existing employees 
               because a "new" employee would be required to complete a 




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               probation period.  

           4)   Interaction with Tucker rights  .  In Tucker v. Grossmont 
               Union High School District (2008) 168 Cal.App.4th 640, 
               (Tucker) the court held that the reemployment preference 
               applied not only to positions previously held by the 
               person who was laid off, but also to lateral or lower 
               positions not previously held.  (Employees already had 
               the right to return to any classification in which they 
               previously completed probation).  Since Tucker grants 
               preference for employment in any position for which an 
               employee is qualified (meets the minimum 
               qualifications), school employers must give preference 
               to laid off employees over new applicants who may be 
               more qualified.  

          Opponents maintain that if AB 2307 is enacted, school 
               employers would (as a result of Tucker) be required to 
               give laid-off employees preferences to any lateral/lower 
               position for which they meet the minimum qualifications 
                and  grant permanency to those positions.  Opponents 
               further argue that the bill creates confusion.  Does the 
               proposed language give more rights to a returning 
               laid-off employee than to a continuing employee?  How 
               would the rights established by AB 2307 interact with 
               rights bargained for in local collective bargaining 
               agreements?  

          Restricting permanency to the position after completion of a 
               probation period enables employers to continue to 
               thoroughly assess an employee in a new position and 
               would ensure that school employers can place candidates 
               in positions for which they are qualified and in which 
               they can succeed.  Opponents argue that AB 2307 
               interaction with Tucker rights would have the effect of 
               "securing permanent employment status to someone who has 
               not proven that they are fit for the new classification 
               and thereby limit a district's flexibility to make 
               adjustments as may be necessary."  

          To maintain the ability of employers to assess the skills of 
               individuals placed in a different classification yet 
               ensure that laid-off employees who unsuccessfully 
               attempt reemployment in another position can be returned 
               to the reemployment list, staff recommends the bill be 
               amended to delete the provisions that would make an 




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               employee permanent when moved to another classification 
               and instead specify that a permanent employee who is 
               placed on a reemployment list and is subsequently 
               reemployed by the same district that placed him or her 
               on the list retains the right to be returned to the 
               reemployment list for the remainder of the initial 39 
               month period, regardless of the classification in which 
               he or she is placed when reemployed.  

           5)   Potential cost pressure  ?  This bill is keyed non-fiscal. 
                However because employers would be required to observe 
               due process in the event a permanent employee proves 
               unsuccessful in a new position, this bill could result 
               in districts facing increased costs due to the potential 
               for more Skelly hearings.  

           6)   Related and prior legislation  .  

          AB 1908 (Alejo) increases, from 45 to 60 days, the layoff 
               notice requirement for classified employees working in 
               California public schools and community 
               colleges.  This measure was heard by this Committee on 
               June 13, 2012 and passed on a 6-0 vote.  

               AB 2125 (Hall) authorizes the Los Angeles Unified School 
               District to make appointments to specified 
               classifications of positions from other than the first 
               three ranks on an eligibility list.  This measure was 
               heard by this Committee on June 13, 2012 and passed on a 
               6-0 vote.  

           SUPPORT
           
          American Federation of State, County and Municipal Employees, 
          AFL-CIO
          California Federation of Teachers
          California Labor Federation
          California Professional Firefighters
          California School Employees Association
          Laborers' Local 777
          Service Employees International Union

           OPPOSITION
           
          Association of California Community College Administrators
          Association of California School Administrators




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          California Association of School Business Officials
          California County Superintendents Educational Services 
          Association
          California School Boards Association
          Riverside County School Superintendents' Association
          Riverside County Superintendent of Schools, Kenneth M. Young