Bill Text: CA AB102 | 2019-2020 | Regular Session | Amended
Bill Title: Retirement savings.
Spectrum: Committee Bill
Status: (Passed) 2020-06-29 - Chaptered by Secretary of State - Chapter 21, Statutes of 2020. [AB102 Detail]
Download: California-2019-AB102-Amended.html
Amended
IN
Senate
June 22, 2020 |
Amended
IN
Senate
June 13, 2019 |
Introduced by Committee on Budget (Assembly Members Ting (Chair), Arambula, Bloom, Chiu, Cooper, Frazier, Cristina Garcia, Jones-Sawyer, Limón, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O’Donnell, Ramos, Reyes, Luz Rivas, Blanca Rubio, Mark Stone, Weber, Wicks, and Wood) |
December 03, 2018 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law provides that a provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees that requires the expenditure of funds does not become effective unless approved by the Legislature in the annual Budget Act.
This bill would approve provisions requiring the expenditure of funds in the memorandum of understanding entered into between the state employer and State Bargaining Unit 6, the California Correctional Peace Officers Association.
This bill would provide that provisions of the memorandum of understanding described above and approved by this bill that require the expenditure of funds will not take effect unless
funds for those provisions are specifically appropriated by the Legislature. The bill would authorize the state employer and State Bargaining Unit 6 to meet and confer to renegotiate the affected provisions if funds for those provisions are not specifically appropriated by the Legislature. The bill would require that the provisions of this memorandum of understanding that require the expenditure of funds become effective even if these provisions are approved by the Legislature in legislation other than the annual Budget Act.
The bill would appropriate to the Controller from the General Fund unallocated special funds, including federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, in the amount necessary for the payment of compensation and employee benefits to state employees covered by the memorandum of understanding described above if the Budget Act is not enacted on or before July 1 in the 2020–21
fiscal year, as specified.
The bill would appropriate $131,163,000 in augmentation of certain items of the Budget Act of 2019, according to a specified schedule, for State Bargaining Unit 6 employee compensation for expenditure in the 2019–20 fiscal year.
This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Digest Key
Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 26163 is added to the Business and Professions Code, to read:26163.
(a) Licensing authorities shall, upon the request of the CalSavers Retirement Savings Board, furnish to the board, as applicable, the following information with respect to every licensee:SEC. 2.
The heading of Title 21 (commencing with Section 100000) of the Government Code is amended to read:TITLE 21. THE CALIFORNIA SECURE CHOICE CALSAVERS RETIREMENT SAVINGS TRUST ACT
SEC. 3.
Section 100000 of the Government Code is amended to read:100000.
For purposes of this title, the following definitions shall apply:SEC. 4.
Section 100002 of the Government Code is amended to read:100002.
(a) (1) There is hereby created within state government the(1)(A)For up to three years following the initial implementation of the program, the board shall establish managed accounts invested in United States Treasuries, myRAs, or similar investments.
(B)
SEC. 5.
Section 100004 of the Government Code is amended to read:100004.
(a) There is hereby established a retirement savings trust known as theSEC. 6.
Section 100010 of the Government Code is amended to read:100010.
(a) The board shall have the power and authority to do all of the following:SEC. 7.
Section 100014 of the Government Code is amended to read:100014.
(a)SEC. 8.
Section 100024 of the Government Code is amended to read:100024.
The board shall include a notice of the existence of, and theSEC. 9.
Section 100028 of the Government Code is amended to read:100028.
(a) The actual cost of establishing the vendor registration system and the Retirement Investments Clearinghouse shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a one-time establishment fee equal to a pro rata share of the establishment costs charged to vendors that register with the board prior to the close of the initial registration period, as determined by the board. The one-time establishment fee charged to vendors that register with the board after the completion of the initial registration period shall be distributed equally among registered vendors that have paid the establishment fee and credited toward subsequent maintenance and administrative fees charged to each vendor.SEC. 10.
Section 100032 of the Government Code is amended to read:100032.
(a)SEC. 11.
Section 100033 is added to the Government Code, to read:100033.
(a) The CalSavers Retirement Savings Board shall have the power and duties necessary to administer the enforcement of employer compliance with this title.SEC. 12.
Section 100034 of the Government Code is amended to read:100034.
(a) Employers shall not have any liability for an employee’s decision to participate in, or opt out of, theSEC. 13.
Section 100038 of the Government Code is amended to read:100038.
(a) Notwithstanding Section 10231.5, the board shall submit an annual audited financial report, prepared in accordance with generally accepted accounting principles, on the operations of theSEC. 14.
Section 100043 of the Government Code is amended to read:100043.
(a) The board shall notSEC. 15.
Article 6 (commencing with Section 19285) is added to Chapter 5 of Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:Article 6. Collection of Amounts Imposed by CalSavers Retirement Savings Board and Related Appeals
19285.
For purposes of this article:19286.
(a) (1) Penalties imposed pursuant to Title 21 (commencing with Section 100000) of the Government Code, upon an eligible employer for failure to comply with Title 21 (commencing with Section 100000) of the Government Code, may be referred by the CalSavers Retirement Savings Board to the Franchise Tax Board for collection under guidelines prescribed by the Franchise Tax Board.19287.
(a) The Franchise Tax Board shall issue a first notice of the imposition of a penalty for noncompliance with Title 21 (commencing with Section 100000) of the Government Code to an eligible employer after the CalSavers Retirement Savings Board informs the Franchise Tax Board of the eligible employer’s noncompliance19288.
(a) Within 90 days after the issuance of the notice described in subdivision (a) of Section 19287, an eligible employer may appeal the imposition of a penalty for noncompliance under Title 21 (commencing with Section 100000) of the Government Code.19289.
Amounts collected under this article shall be transmitted to the CalSavers Retirement Savings Board for deposit in the CalSavers Retirement Savings Trust pursuant to Title 21 (commencing with Section 100000) of the Government Code, or remitted by means of the Fi$Cal accounting system.19290.
The Franchise Tax Board shall seek additional resources needed to accept referrals from CalSavers Retirement Savings Board pursuant to Section 19286.19290.1.
The Franchise Tax Board may prescribe regulations necessary or appropriate to carry out the purposes of this article. The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) shall not apply to any regulation adopted by the Franchise Tax Board, pursuant to this article.SEC. 16.
Section 19567 is added to the Revenue and Taxation Code, to read:19567.
Notwithstanding Section 19542, the Franchise Tax Board may disclose information to the CalSavers Retirement Savings Board to facilitate the collection of amounts due pursuant to Section 19286 or Title 21 (commencing with Section 100000) of the Government Code and the appeals of the determination of the CalSavers Retirement Savings Board in a final notice of penalty application.SEC. 17.
Section 1088.9 of the Unemployment Insurance Code is repealed.(a)The department shall have the power and duties necessary to administer the enforcement of employer compliance with Title 21 (commencing with Section 100000) of the Government Code.
(b)Each eligible employer that, without good cause, fails to allow its eligible employees to participate in the CalSavers Retirement Savings Program pursuant to Sections 100014 and 100032 of the Government Code, on or before 90 days after service of notice by the director pursuant to Section 1206 of its failure to comply, shall pay a penalty of two hundred fifty dollars ($250) per eligible employee if noncompliance extends 90 days or more after the notice, and if found to be in noncompliance 180 days or more after the notice, an additional penalty of five hundred dollars ($500) per
eligible employee.
(c)The department shall enforce this penalty as part of its existing investigation and audit function.
(d)The provisions of this article, the provisions of Article 9 (commencing with Section 1176), with respect to refunds and overpayments, and the provisions of Article 11 (commencing with Section 1221), with respect to administrative appellate review shall apply to the penalty imposed by this section. Penalties collected pursuant to this section shall be deposited in the contingent fund.
(e)If the department participates in the implementation and administration of the program, it may charge the board a reasonable fee for costs it incurs for implementing and administering the program.
(f)This section shall only become operative
when both of the following occur:
(1)The board notifies the Director of Employment Development that enforcement should proceed.
(2)The board and the Director of Employment Development agree to a reasonable implementation timeline.
(g)Upon satisfaction of the conditions in subdivision (f), the department shall post on its internet website a notice of the operative date of the section.
SEC. 18.
Section 1095 of the Unemployment Insurance Code is amended to read:1095.
The director shall permit the use of any information in the director’s possession to the extent necessary for any of the following purposes, and may require reimbursement for all direct costs incurred in providing any and all information specified in this section, except information specified in subdivisions (a) to (e), inclusive:SEC. 19.
This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.The Legislature finds and declares that the purpose of this act is to approve the agreement entered into by the state employer and State Bargaining Unit 6 pursuant to Section 3517.5 of the Government Code.
The provisions of the memorandum of understanding prepared pursuant to Section 3517.5 of the Government Code and entered into by the state employer and State Bargaining Unit 6, dated July 3, 2019, and that require the expenditure of funds, are hereby approved for the purposes of Section 3517.61 of the Government Code.
The provisions of the memorandum of understanding approved in Section 2 of this act that require the expenditure of funds shall not take effect unless funds for these provisions are specifically appropriated by the Legislature. If funds for these provisions are not specifically appropriated by the Legislature, either the state employer or State Bargaining Unit 6 may reopen negotiations on all or part of the memorandum of understanding.
Notwithstanding Section 3517.61 of the Government Code, the provisions of the memorandum of understanding included in Section 2 of this act that require the expenditure of funds shall become effective even if the provisions of the memorandum of understanding are approved by the Legislature in legislation other than the annual Budget Act.
(a)Notwithstanding Section 13340, for the 2020–21 fiscal year, if the Budget Act of 2020 is not enacted by July 1, 2020, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2019, to July 2, 2020, inclusive), State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive), and State Bargaining Unit 10 (effective July 1, 2018, to July 1, 2020, inclusive), there is hereby continuously appropriated to the Controller from the General
Fund, unallocated special funds, including, but not limited to, federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, the amount necessary for the payment of compensation and employee benefits to state employees covered by the above memoranda of understanding until the Budget Act of 2020 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memoranda of understanding for work performed between July 1, 2020, of the 2020–21 fiscal year and the
enactment of the Budget Act of 2020.
(b)If the
memoranda of understanding entered into between the state employer and State Bargaining Unit 6 (effective July 3, 2019, to July 2, 2020, inclusive), State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive), and State Bargaining Unit 10 (effective July 1, 2018, to July 1, 2020, inclusive), are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by
these bargaining units shall be at a rate consistent with the memoranda of understanding referenced above.
(c)Expenditures related to any warrant drawn pursuant to subdivision (a) are not augmentations to the expenditure authority of a department. Upon the enactment of the Budget Act of 2020, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2020 for each affected department.
(d)This section shall
only apply to an employee covered by the terms of the
State Bargaining Unit 6 (effective July 3, 2019, to July 2, 2020, inclusive), State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive), and State Bargaining Unit 10 (effective July 1, 2018, to July 1, 2020, inclusive) memoranda of understanding. Notwithstanding Section 3517.8, this section shall not apply after the terms of the
memoranda of understanding have expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 6 expires on July 2, 2020, the memorandum of understanding for State Bargaining Unit 10 expires on July 1, 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.
The sum of one hundred thirty-one million one hundred sixty-three thousand dollars ($131,163,000) is hereby appropriated for State Bargaining Unit 6 for expenditure in the 2019–20 fiscal year in augmentation of, and for the purpose of, state employee compensation, as provided in Items 9800-001-0001, 9800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget Act of 2019, in accordance with the following schedule:
(a)One hundred twenty-eight million two hundred eighty thousand dollars ($128,280,000) from the General Fund in augmentation of Item
9800-001-0001 of Section 2.00 of the Budget Act of 2019.
(b)One million nine hundred thirty-two thousand dollars ($1,932,000) from unallocated special funds in augmentation of Item 9800-001-0494 of Section 2.00 of the Budget Act of 2019.
(c)Nine hundred fifty-one thousand dollars ($951,000) from other unallocated nongovernmental cost funds in augmentation of Item 9800-001-0988 of Section 2.00 of the Budget Act of 2019.
This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.