BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 1973 (Hernandez) - State holidays: Native American Day.
          
          Amended: May 23, 2014           Policy Vote: GO 10-0
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                            
          Consultant: Mark McKenzie       
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: AB 1973 would designate the fourth Friday in  
          September as a state holiday to be known as "Native American  
          Day."

          Fiscal Impact: No direct state costs, as there is no provision  
          in the bill that requires state and local entities to close  
          public offices in observance of Native American Day as a paid  
          holiday.  However, the bill could result in major cost pressures  
          because it creates another negotiable paid holiday.  If Native  
          American Day were to be designated as a paid holiday, it could  
          result in state costs in the tens of millions annually.

          Background: Existing law designates the following days as state  
          holidays:
                 Every Sunday.
                 January 1st
                 The third Monday in January (Dr. Martin Luther King, Jr.  
               Day).
                 February 12th (Lincoln Day).
                 The third Monday in February (President's Day).
                 March 31st (Cesar Chavez Day).
                 The last Monday in May (Memorial Day).
                 July 4th (Independence Day).
                 The first Monday in September (Labor Day).
                 September 9th (Admission Day).
                 The second Monday in October (Columbus Day).
                 November 11th (Veterans Day).
                 December 25th 
                 Good Friday from 12 noon until 3 p.m. (declared by the  
               courts to be unconstitutional)
                 Every day appointed by the President or Governor for a  
               public fast, thanksgiving, or holiday.








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          If any of these holidays are in conflict with the provisions of  
          a memorandum of understanding (MOU), existing law provides that  
          the MOU shall take precedent without further legislative action.  
           Existing law requires city public offices to be closed on these  
          holidays unless otherwise provided by charter, ordinance, or  
          resolution.

          Existing law also requires the Governor to proclaim various days  
          of remembrance and observance, including a requirement that the  
          Governor annually proclaim the fourth Friday in September to be  
          "Native American Day." 

          Proposed Law: AB 1973 would designate the fourth Friday in  
          September as a state holiday known as "Native American Day."   
          The bill also states legislative findings and declarations  
          recognizing the contributions and endurance of Native Americans  
          in California.

          Related Legislation: AB 55 (Hernandez), which was held on the  
          Assembly Appropriations Suspense File in 2013, would have  
          designated the fourth Friday in September as a state holiday  
          known as "Native American Day."

          Staff Comments: There is no provision in state law that requires  
          businesses to provide employees with paid holidays or that they  
          give employees the day off for any particular holiday.  An  
          employer's decision to close a particular business on holidays  
          and give employees time off from work with or without pay, or to  
          pay overtime wages on holidays, results from an adopted employer  
          policy or practice, the terms of a collective bargaining  
          agreement, or the terms of an employment agreement.  Typically,  
          cities specify a schedule of paid holidays provided to employees  
          by charter, ordinance, or resolution.  Paid holidays provided to  
          state workers are negotiated with the Governor through  
          collective bargaining and bound by various MOUs.

          According to the California Department of Human Resources, state  
          employees currently get 11 paid state holidays, and most also  
          receive one personal holiday per fiscal year.  The 2014 state  
          holiday schedule generally conforms to the list of holidays  
          enumerated in existing law, except that Lincoln Day, Columbus  
          Day, and Admission Day are not paid holidays.  Staff notes that  
          prior to 2009, state workers also received paid holidays for  
          Lincoln Day and Columbus Day, and most workers received two  








          AB 1973 (Hernandez)
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          "floating" holidays in 2010 to offset the loss of the state  
          holidays.

          AB 1973 would elevate "Native American Day" from a proclaimed  
          day of observation to an official state holiday, similar to  
          Lincoln Day and Columbus Day.  This designation creates cost  
          pressures by creating the possibility that Native American Day  
          could be negotiated as a paid holiday in the future.