Senate Study Bill 3138





                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED DEPARTMENT OF
                                            ADMINISTRATIVE SERVICES
                                            BILL)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act concerning accrued sick leave and the conversion of sick
  2    leave for state employees.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5360DP 81
  5 ec/je/5

PAG LIN



  1  1    Section 1.  Section 70A.1, Code 2005, is amended to read as
  1  2 follows:
  1  3    70A.1  SALARIES == PAYMENT == VACATIONS == SICK LEAVE ==
  1  4 EDUCATIONAL LEAVE.
  1  5    1.  Salaries specifically provided for in an appropriation
  1  6 Act of the general assembly shall be in lieu of existing
  1  7 statutory salaries, for the positions provided for in the Act,
  1  8 and all salaries, including longevity where applicable by
  1  9 express provision in the Code, shall be paid according to the
  1 10 provisions of chapter 91A and shall be in full compensation of
  1 11 all services, including any service on committees, boards,
  1 12 commissions or similar duty for Iowa government, except for
  1 13 members of the general assembly.  A state employee on an
  1 14 annual salary shall not be paid for a pay period an amount
  1 15 which exceeds the employee's annual salary transposed into a
  1 16 rate applicable to the pay period by dividing the annual
  1 17 salary by the number of pay periods in the fiscal year.
  1 18 Salaries for state employees covered by the overtime payment
  1 19 provisions of the federal Fair Labor Standards Act shall be
  1 20 established on an hourly basis.
  1 21    2.  All employees of the state earn two weeks' vacation per
  1 22 year during the first year of employment and through the
  1 23 fourth year of employment, and three weeks' vacation per year
  1 24 during the fifth and through the eleventh year of employment,
  1 25 and four weeks' vacation per year during the twelfth year
  1 26 through the nineteenth year of employment, and four and four=
  1 27 tenths weeks' vacation per year during the twentieth year
  1 28 through the twenty=fourth year of employment, and five weeks'
  1 29 vacation per year during the twenty=fifth year and all
  1 30 subsequent years of employment, with pay.  One week of
  1 31 vacation is equal to the number of hours in the employee's
  1 32 normal work week.  Vacation allowances accrue according to
  1 33 chapter 91A as provided by the rules of the department of
  1 34 administrative services.  The vacations shall be granted at
  1 35 the discretion and convenience of the head of the department,
  2  1 agency, or commission, except that an employee shall not be
  2  2 granted vacation in excess of the amount earned by the
  2  3 employee.  Vacation leave earned under this paragraph
  2  4 subsection shall not be cumulated to an amount in excess of
  2  5 twice the employee's annual rate of accrual.  The head of the
  2  6 department, agency, or commission shall make every reasonable
  2  7 effort to schedule vacation leave sufficient to prevent any
  2  8 loss of entitlements.
  2  9    PARAGRAPH DIVIDED.  If the employment of an employee of the
  2 10 state is terminated the provisions of chapter 91A relating to
  2 11 the termination apply.
  2 12    If said the termination of employment shall be is by reason
  2 13 of the death of the employee, such the vacation allowance
  2 14 shall be paid to the estate of the deceased employee if such
  2 15 the estate shall be is opened for probate.  If no an estate be
  2 16 is not opened, the allowance shall be paid to the surviving
  2 17 spouse, if any, or to the legal heirs if no spouse survives.
  2 18    3.  Payments authorized by this section shall be approved
  2 19 by the department subject to rules of the department of
  2 20 administrative services and paid from the appropriation or
  2 21 fund of original certification of the claim.
  2 22    4.  Commencing July 1, 1979 Effective July 1, 2006,
  2 23 permanent full=time and permanent part=time employees of state
  2 24 departments, boards, agencies, and commissions, excluding
  2 25 employees covered under a collective bargaining agreement
  2 26 which provides otherwise, shall accrue sick leave at the rate
  2 27 of one and one=half days for each complete month of full=time
  2 28 employment as provided in this subsection which shall be
  2 29 credited to the employee's sick leave account.  The sick leave
  2 30 accrual rate for part=time employees shall be prorated to the
  2 31 accrual rate for full=time employees.  The sick leave accrual
  2 32 rate for each complete month of full=time employment,
  2 33 excluding employees covered under a collective bargaining
  2 34 agreement which provides for a different rate of accrual,
  2 35 shall be as follows:
  3  1    a.  For employees of the state board of regents, one and
  3  2 one=half days.
  3  3    b.  For all other employees, the rate shall be as follows:
  3  4    (1)  If the employee's accrued sick leave balance is seven
  3  5 hundred fifty hours or less, one and one=half days.
  3  6    (2)  If the employee's accrued sick leave balance is one
  3  7 thousand five hundred hours or less but more than seven
  3  8 hundred fifty hours, one day.
  3  9    (3)  If the employee's accrued sick leave balance is more
  3 10 than one thousand five hundred hours, one=half day.
  3 11    5.  Sick leave shall not accrue during any period of
  3 12 absence without pay.  Employees may use accrued sick leave for
  3 13 physical or mental personal illness, bodily injury, medically
  3 14 related disabilities, including disabilities resulting from
  3 15 pregnancy and childbirth, or contagious disease, which result
  3 16 in any of the following:
  3 17    1.  a.  Which require the The employee's confinement, is
  3 18 required.
  3 19    2.  b.  Which render the The employee is rendered unable to
  3 20 perform assigned duties, or.
  3 21    3.  c.  When The performance of assigned duties would
  3 22 jeopardize the employee's health or recovery.
  3 23    6.  Separation from state employment shall cancel Except as
  3 24 provided in section 70A.23, all unused accrued sick leave in
  3 25 an employee's sick leave account is canceled upon the
  3 26 employee's separation from state employment.  However, if an
  3 27 employee is laid off and the employee is re=employed by any
  3 28 state department, board, agency, or commission within one year
  3 29 of the date of the layoff, accrued sick leave of the employee
  3 30 shall be restored.
  3 31    7.  State employees, excluding state board of regents'
  3 32 faculty members with nine=month appointments, and employees
  3 33 covered under a collective bargaining agreement negotiated
  3 34 with the public safety bargaining unit who are eligible for
  3 35 accrued vacation benefits and accrued sick leave benefits, who
  4  1 have accumulated thirty days of sick leave, and who do not use
  4  2 sick leave during a full month of employment may elect to
  4  3 accrue have up to one=half day of additional vacation added to
  4  4 the employee's accrued vacation account.  The accrual of
  4  5 additional vacation time by added to an employee employee's
  4  6 accrued vacation account for not using sick leave during a
  4  7 month is in lieu of the accrual of up to one and one=half days
  4  8 of sick leave for that month.  The amount of additional
  4  9 vacation for part=time employees shall be prorated to the
  4 10 amount of additional vacation authorized for full=time
  4 11 employees.  The director of the department of administrative
  4 12 services may adopt the necessary rules and procedures for the
  4 13 implementation of this program for all state employees except
  4 14 employees of the state board of regents.  The state board of
  4 15 regents may adopt necessary rules for the implementation of
  4 16 this program for its employees.
  4 17    8.  The head of any department, agency, or commission,
  4 18 subject to rules of the department of administrative services,
  4 19 may grant an educational leave to employees for whom the head
  4 20 of the department, agency, or commission is responsible
  4 21 pursuant to section 70A.25 and funds appropriated by the
  4 22 general assembly may be used for this purpose.  The head of
  4 23 the department, agency, or commission shall notify the
  4 24 legislative council and the director of the department of
  4 25 administrative services of all educational leaves granted
  4 26 within fifteen days of the granting of the educational leave.
  4 27 If the head of a department, agency, or commission fails to
  4 28 notify the legislative council and the director of the
  4 29 department of administrative services of an educational leave,
  4 30 the expenditure of funds appropriated by the general assembly
  4 31 for the educational leave shall not be allowed.
  4 32    9.  A specific annual salary rate or annual salary
  4 33 adjustment commencing with a fiscal year shall commence on
  4 34 July 1 except that if a pay period overlaps two fiscal years,
  4 35 a specific annual salary rate or annual salary adjustment
  5  1 shall commence with the first day of a pay period as specified
  5  2 by the general assembly.
  5  3    Sec. 2.  Section 70A.23, Code 2005, is amended by striking
  5  4 the section and inserting in lieu thereof the following:
  5  5    70A.23  CREDIT FOR ACCRUED SICK LEAVE.
  5  6    1.  For purposes of this section:
  5  7    a.  "Eligible retirement system" means a retirement system
  5  8 authorized under chapter 97A or 97B, including the teachers
  5  9 insurance and annuity association=college retirement equities
  5 10 fund (TIAA=CREF).
  5 11    b.  "Eligible state employee" means a state employee
  5 12 eligible to receive retirement benefits under an eligible
  5 13 retirement system.
  5 14    2.  An eligible state employee, excluding an employee
  5 15 covered under a collective bargaining agreement which provides
  5 16 otherwise, who retires and has applied for retirement benefits
  5 17 under an eligible retirement system, or who dies while in
  5 18 active employment, shall be credited with the number of
  5 19 accrued days of sick leave of the employee.  The employee, or
  5 20 the employee's estate, shall receive a cash payment of the
  5 21 monetary value of the employee's accrued sick leave balance,
  5 22 not to exceed two thousand dollars.  The value of the
  5 23 employee's accrued sick leave balance shall be calculated by
  5 24 multiplying the number of hours of accrued sick leave by the
  5 25 employee's regular hourly rate of pay at the time of
  5 26 retirement.
  5 27    3.  a.  An eligible state employee, excluding an employee
  5 28 covered under a collective bargaining agreement which provides
  5 29 otherwise or an employee of the state board of regents, who
  5 30 retires and receives a payment as provided in subsection 2
  5 31 shall be entitled to elect to have the employee's banked value
  5 32 of eligible accrued sick leave available to be used to pay the
  5 33 state share for the employee's continuation of state group
  5 34 health insurance coverage pursuant to the requirements of this
  5 35 subsection.
  6  1    b.  An eligible state employee's banked value of eligible
  6  2 accrued sick leave shall be calculated as follows:
  6  3    (1)  If the employee's accrued sick leave balance remaining
  6  4 after payment as provided in subsection 2 is seven hundred
  6  5 fifty hours or less, sixty percent of the value of the
  6  6 remaining accrued sick leave balance.
  6  7    (2)  If the employee's accrued sick leave balance remaining
  6  8 after payment as provided in subsection 2 is one thousand five
  6  9 hundred hours or less but more than seven hundred fifty hours,
  6 10 eighty percent of the value of the remaining accrued sick
  6 11 leave balance.
  6 12    (3)  If the employee's accrued sick leave balance remaining
  6 13 after payment as provided in subsection 2 is more than one
  6 14 thousand five hundred hours, one hundred percent of the value
  6 15 of the remaining accrued sick leave balance.
  6 16    c.  An eligible state employee's banked value of eligible
  6 17 accrued sick leave shall be available to pay for that portion
  6 18 of the employee's state group health insurance premium that
  6 19 would otherwise be paid for by the state if the employee were
  6 20 still a state employee.  The benefits provided for in this
  6 21 subsection have no cash value and are not transferable to any
  6 22 other person, including the retiree's spouse.  Payment of
  6 23 state group health insurance premiums pursuant to this
  6 24 subsection continues until the earliest of when the eligible
  6 25 state employee's banked value of eligible accrued sick leave
  6 26 is exhausted, the employee otherwise becomes eligible for
  6 27 federal Medicare program benefits, or the employee dies.  In
  6 28 addition, an employee electing benefits pursuant to this
  6 29 subsection who is reinstated or reemployed in a permanent
  6 30 full=time or permanent part=time position within state
  6 31 government forfeits any remaining benefits for payment of
  6 32 state group health insurance benefits, and such employee is
  6 33 not eligible for restoration of the unused sick leave accrued
  6 34 during the employee's prior employment with the state.
  6 35    4.  Notwithstanding any provision of this section to the
  7  1 contrary, peace officers employed within the department of
  7  2 public safety and the department of natural resources that are
  7  3 not covered under a collective bargaining agreement shall have
  7  4 a sick leave conversion program extended to them that is
  7  5 equivalent to the sick leave conversion program negotiated
  7  6 under chapter 20 between the state and the state police
  7  7 officers council labor union for peace officers.  In addition,
  7  8 an employee of the department of public safety or the
  7  9 department of natural resources who has earned benefits of
  7 10 payment of premiums under a collective bargaining agreement
  7 11 and who becomes a manager or supervisor and is no longer
  7 12 covered by the agreement shall not lose the benefits of
  7 13 payment of premiums earned while covered by the agreement.
  7 14 The payment shall be calculated by multiplying the number of
  7 15 hours of accumulated, unused sick leave by the employee's
  7 16 hourly rate of pay at the time of retirement.
  7 17                           EXPLANATION
  7 18    This bill is submitted by the department of administrative
  7 19 services pursuant to 2005 Iowa Acts, chapter 177, section 12.
  7 20 That Act required the department to submit proposed changes to
  7 21 the Code and administrative rules to the general assembly that
  7 22 are necessary to implement the sick leave conversion program
  7 23 provided by that Act.
  7 24    The bill makes changes to the accrual rate of sick leave
  7 25 for non=board of regents state employees not covered by a
  7 26 collective bargaining agreement and also provides that these
  7 27 employees are eligible, if otherwise qualified, to participate
  7 28 in a sick leave conversion program that allows them to use a
  7 29 portion of their accrued sick leave upon retirement for
  7 30 payment of state group health insurance premiums.
  7 31    The sick leave accrual provisions of Code section 70A.1 are
  7 32 amended by the bill.  The bill provides that state employees,
  7 33 excluding employees covered under a collective bargaining
  7 34 agreement which provides otherwise and employees of the state
  7 35 board of regents, shall accrue sick leave at a rate dependent
  8  1 on the number of hours of sick leave the employee has accrued.
  8  2 If the employee has accrued 750 hours or less, the employee
  8  3 accrues one and one=half days of sick leave per month.  If the
  8  4 employee has accrued 1,500 hours or less, but more than 750
  8  5 hours, the employee accrues one day of sick leave per month.
  8  6 If the employee has accrued more than 1,500 hours, the
  8  7 employee accrues one=half day of sick leave per month.  Under
  8  8 current law, which is still applicable to employees of the
  8  9 state board of regents, employees accrue one and one=half days
  8 10 of sick leave per month regardless of the employee's accrued
  8 11 sick leave amount.
  8 12    Code section 70A.23, concerning the credit for accrued sick
  8 13 leave, is amended by the bill.  That section currently
  8 14 provides, and remains unchanged by the bill, that state
  8 15 employees, excluding employees covered under a collective
  8 16 bargaining agreement which provides otherwise, who retire or
  8 17 are eligible to retire and die while in active employment can
  8 18 receive a cash payment of up to $2,000 for their unused sick
  8 19 leave.  The bill provides that eligible state employees,
  8 20 excluding employees covered under a collective bargaining
  8 21 agreement which provides otherwise and employees of the state
  8 22 board of regents, may participate in a sick leave conversion
  8 23 program.  The program allows eligible state employees who
  8 24 retire and continue state group health insurance coverage to
  8 25 use a portion of the employee's accrued sick leave to pay that
  8 26 portion of the employee's health insurance premium that would
  8 27 otherwise be paid for by the state if the employee were still
  8 28 a state employee.  The portion available to be used to pay
  8 29 premiums is calculated dependent on the number of hours of
  8 30 accrued sick leave the employee has accrued and not used to
  8 31 provide the $2,000 cash payment.  If the employee has
  8 32 remaining unused accrued sick leave of 750 hours or less, the
  8 33 employee receives 60 percent of the remaining accrued sick
  8 34 leave balance for payment of premiums.  If the employee has
  8 35 remaining unused accrued sick leave of 1,500 hours or less,
  9  1 but more than 750 hours, the employee receives 80 percent of
  9  2 the remaining accrued sick leave balance for payment of
  9  3 premiums.  If the employee has remaining unused accrued sick
  9  4 leave of more than 1,500 hours, the employee receives 100
  9  5 percent of the remaining accrued sick leave balance for
  9  6 payment of premiums.  The payment of premiums from accrued
  9  7 sick leave continues until the balance of the employee's
  9  8 banked value of eligible accrued sick leave is exhausted, the
  9  9 retiree otherwise becomes eligible for Medicare, or the
  9 10 employee dies.  In addition, the bill provides that if such an
  9 11 employee returns to permanent full=time or part=time state
  9 12 employment, any unused sick leave balances are forfeited and
  9 13 the employee is not eligible for restoration of the unused
  9 14 sick leave accrued during the prior state employment.
  9 15    Finally, the bill provides that peace officers employed
  9 16 within the department of public safety and the department of
  9 17 natural resources that are not covered under a collective
  9 18 bargaining agreement shall have a sick leave conversion
  9 19 program extended to them that is equivalent to the sick leave
  9 20 conversion program negotiated under Code chapter 20 between
  9 21 the state and the state police officers council labor union
  9 22 for peace officers.
  9 23 LSB 5360DP 81
  9 24 ec:nh/je/5.1