Bill Text: CA AB142 | 2021-2022 | Regular Session | Amended

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Bill Title: State employment: State Bargaining Units: memoranda of understanding: addenda.

Sponsorship: Committee Bill

Status: (Engrossed - Dead) 2022-02-09 - Re-referred to Com. on B. & F.R. [AB142 Detail]

Download: California-2021-AB142-Amended.html

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Amended  IN  Senate  February 01, 2022

Amended  IN  Senate  June 25, 2021

Amended  IN  Assembly  February 18, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 142

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Introduced by Committee on Budget (Assembly Members Ting (Chair), Arambula, Bennett, Bloom, Carrillo, Chiu, Cooper, Frazier, Friedman, Cristina Garcia, Jones-Sawyer, Lee, McCarty, Medina, Mullin, Nazarian, O’Donnell, Ramos, Reyes, Luz Rivas, Blanca Rubio, Stone, Wicks, and Wood)

January 08, 2021

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An act to amend Sections 19829.9849, 19829.9850, 19829.9851, 20683.6, 20683.61, 20683.62, 20683.9, 20683.91, and 22944.5 of the Government Code, relating to state employment, and making an appropriation therefor, to take effect immediately, bill related to the budget. relating to state employment, and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL'S DIGEST

AB 142, as amended, Committee on Budget. State employment: State Bargaining Units. State employment: State Bargaining Units: memoranda of understanding: addenda.

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.

Existing law requires the Department of Human Resources to provide a memorandum of understanding to the Legislative Analyst who then has 10 calendar days from the date the tentative agreement is received to issue a fiscal analysis to the Legislature. Existing law prohibits the memorandum of understanding from being subject to legislative determination until either the Legislative Analyst has presented a fiscal analysis of the memorandum of understanding or until 10 calendar days has elapsed since the memorandum was received by the Legislative Analyst.

This bill, notwithstanding the above provisions, would approve provisions of agreements entered into between the state employer and State Bargaining Units 2, 7, 9, 10, 12, and 13. The bill would provide that the provisions of the addenda included above that require the expenditure of funds will not take effect unless funds for these provisions are specifically appropriated by the Legislature. The bill would authorize the state employer or these state bargaining units to reopen negotiations if funds for these provisions are not specifically appropriated by the Legislature. The bill would require the provisions of these agreements that require the expenditure of funds to become effective even if the provisions are approved by the Legislature in legislation other than the annual Budget Act.

This bill would appropriate the sum of $27,005,000 for State Bargaining Units 2, 7, 9, 10, 12, and 13, and all employees excluded from collective bargaining, for the purpose of state employee compensation, as provided in specified items of the Budget Act of 2021, in accordance with a specified schedule.

This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

(1)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 the provisions of the memoranda of understanding or addenda, or both, entered into by the state employer and State Bargaining Units 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, and 21. The bill would provide that provisions of the memoranda of understanding or addenda, or both, described above that require the expenditure of funds will not take effect unless funds for these provisions are specifically appropriated by the Legislature. The bill would authorize the state employer or these state bargaining units to reopen negotiations if funds for those provisions are not specifically appropriated. This bill would require the provisions of these memoranda of understanding or addenda, or both, that require the expenditure of funds to become effective even if these provisions are approved by the Legislature in legislation other than the annual Budget Act.

Existing law, for the 2021–22 fiscal year, continuously appropriates 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, the amount necessary for the payment of compensation and employee benefits covered by specified memoranda of understanding, if the Budget Act is not enacted by July 1, 2021.

This bill would further include, within these continuous appropriation provisions, the amount necessary for the payment of compensation and employee benefits to state employees covered by the memoranda of understanding for State Bargaining Unit 2 (effective July 1, 2021, to June 30, 2022, inclusive), State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive), State Bargaining Unit 12 (effective July 1, 2021, to June 30, 2023, inclusive), and State Bargaining Unit 19 (effective July 2, 2020, to July 1, 2023, inclusive). The bill would also change the expiry date of the memorandum of understanding for State Bargaining Unit 16 to July 1, 2023.

Existing law, for the 2022–23 fiscal year, continuously appropriates 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, the amount necessary for the payment of compensation and employee benefits to state employees covered by specified memoranda of understanding, if the Budget Act of 2022 is not enacted by July 1, 2022.

This bill would also include, within these continuous appropriation provisions, the amount necessary for the payment of compensation and employee benefits to state employees covered by the memoranda of understanding for State Bargaining Unit 12 (effective July 1, 2021, to June 30, 2023, inclusive) and State Bargaining Unit 19 (effective July 2, 2020, to July 1, 2023, inclusive). The bill would also change the expiry date of the memorandum of understanding for State Bargaining Unit 16 to July 1, 2023.

Existing law, for the 2023–24 fiscal year, continuously appropriates 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, the amount necessary for the payment of compensation and employee benefits to state employees covered by State Bargaining Unit 5 if the Budget Act of 2023 is not enacted by July 1, 2023.

This bill would further include, within these continuous appropriation provisions, the amount necessary for the payment of compensation and employee benefits to state employees covered by the memorandum of understanding for State Bargaining Unit 16 (effective July 1, 2020, to July 1, 2023, inclusive) and State Bargaining Unit 19 (effective July 2, 2020, to July 1, 2023, inclusive).

(2)The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System for the purpose of providing public employees pension and other benefits, which are funded by employee and employer contributions and investment returns. Contributions and investment returns are deposited in the Public Employees’ Retirement Fund, which is continuously appropriated for the payment of benefits and administration of the system. PERL and labor agreements prescribe different normal rates of contribution for employees depending on bargaining unit, employer, and inclusion of service in the federal social security system, among other factors.

Existing law adjusts the normal rate of contribution for specified state miscellaneous, industrial, and safety members who are represented by State Bargaining Unit 9, as prescribed. Existing law provides that on July 1, 2022, or a later date as determined by the provisions of the memorandum of understanding for that bargaining unit, the normal rate of contribution shall return to the normal rate that was in place on July 1, 2019, for a period of one year. Existing law also adjusts the normal contribution rate for specified patrol and state miscellaneous members who are represented by Bargaining Unit 5, as prescribed.

This bill, with respect to the above members represented by State Bargaining Unit 9, would instead specify that on July 1, 2021, the normal rate of contribution shall return to the normal contribution rate that was in place on July 1, 2019, for a period of one year. The bill, with respect to patrol and state miscellaneous members represented by State Bargaining Unit 5, would also adjust the normal rate of contribution effective July 1, 2021, based on specified criteria. The bill would make conforming changes to the normal rate of contribution for related employees.

(3)The Public Employees’ Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees’ Retirement System, prescribes methods for calculating the state employer contribution for postemployment health care benefits for eligible retired public employees and their families and for the vesting of these benefits. PEMHCA establishes the Annuitants’ Health Care Coverage Fund, which is continuously appropriated, for the purpose of prefunding health care coverage for annuitants, including administrative costs.

PEMHCA requires the state and employees in specified State Bargaining Units to prefund retiree health care and other postemployment benefits, subject to certain conditions. PEMHCA suspends those employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 and 2021–22 fiscal years beginning on the first day of the pay period following ratification and ending on June 30, 2022.

This bill would instead suspend the above employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year only. The bill would specify that the employer’s monthly contribution for prefunding other post employment benefits continues in the 2020-21 fiscal year.

PEMHCA requires employees in State Bargaining Unit 12 to prefund retiree health care and the state to make a matching contribution. PEMHCA suspends the employees’ monthly contribution for prefunding postemployment benefits for the 2020–21 fiscal year.

This bill would increase or decrease the employer and employee contribution percentages, as specified, to maintain a 50% cost sharing of the actuarially determined total normal costs, subject to certain timeframes and limits.

PEMHCA requires the state and employees in State Bargaining Unit 5 to prefund retiree health care, based on a specified schedule.

The bill would adjust the cost-sharing amounts applicable to the state and employees in State Bargaining Unit 5 for prefunding retiree health care, as specified. The bill would make related and conforming changes to these prefunding provisions.

(4)The bill would appropriate the sum of $1,287,279,000 for State Bargaining Units 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, and 21 for expenditure in the 2021–22 fiscal year in augmentation of, and for the purpose of, state employee compensation, in accordance with a specified schedule.

This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

This bill would incorporate additional changes to Sections 19829.9849, 19829.9850, 19829.9851, and 22944.5 of the Government Code proposed by AB 159 to be operative only if this bill and Assembly Bill 159 are enacted and this bill is enacted last.

Digest Key

Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 The Legislature finds and declares that the purpose of this act is to approve and make conforming changes to the agreements entered into by the state employer and State Bargaining Units 2, 7, 9, 10, 12, and 13 pursuant to Section 3517.5 of the Government Code.

SEC. 2.

 Notwithstanding Section 19829.5 of the Government Code, the provisions of the agreements prepared pursuant to Section 3517.5 of the Government Code and entered into by the state employer and State Bargaining Unit 2, dated September 30, 2021, State Bargaining Unit 7, dated September 28, 2021, State Bargaining Unit 9, dated October 1, 2021, State Bargaining Unit 10, dated September 29, 2021, State Bargaining Unit 12, dated September 30, 2021, and State Bargaining Unit 13, dated September 30, 2021, and that require the expenditure of funds, are hereby approved for purposes of Section 3517.6 of the Government Code.

SEC. 3.

 The provisions of the addenda included 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 Units 2, 7, 9, 10, 12 and 13 may reopen negotiations on all or part of the agreements.

SEC. 4.

 Notwithstanding Section 3517.6 of the Government Code, the provisions of the agreements included in Section 2 of this act that require the expenditure of funds shall become effective even if the provisions of the addenda are approved by the Legislature in legislation other than the annual Budget Act.

SEC. 5.

 The sum of twenty-seven million five thousand dollars ($27,005,000) is hereby appropriated for State Bargaining Units 2, 7, 9, 10, 12, 13, and all employees excluded from collective bargaining 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 2021, in accordance with the following schedule:

(a) Eight million nine thousand dollars ($8,009,000) from the General Fund in augmentation of Item 9800-001-0001 of Section 2.00 of the Budget Act of 2021.

(b) Twelve million seven hundred twenty-seven thousand dollars ($12,727,000) from unallocated special funds in augmentation of Item 9800-001-0494 of Section 2.00 of the Budget Act of 2021.

(c) Six million two hundred sixty-nine thousand dollars ($6,269,000) from other unallocated nongovernmental cost funds in augmentation of Item 9800-001-0988 of Section 2.00 of the Budget Act of 2021.

SEC. 6.

 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.