Amended  IN  Senate  August 24, 2018
Amended  IN  Senate  June 13, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1832

Introduced by Committee on Budget (Assembly Members Ting (Chair), Arambula, Bloom, Caballero, Chiu, Cooper, Jones-Sawyer, Limón, McCarty, Medina, Mullin, Muratsuchi, O’Donnell, Rubio, Mark Stone, Weber, and Wood)

January 10, 2018

An act to amend Sections 45060, 45168, 87833, and 88167 of the Education Code, to amend Sections 1150, 1152, 1153, 1157.3, 1157.10, 3550, 3551, 3552, 3555.5, 3556, 18502, 18525.3, 18528, 18577, 18939, 18950, 19050.4, 19054.1, 19057.1, 19057.3, 19243, 19816.18, 19827.2, 22944.5, 23725, 31552.5, 71638, and 71824 of, to add Sections 1157.12, 3553, and 19995.1.5 to, to repeal Section 19995.5 of, and to repeal and add Section 19051 of, the Government Code, to amend Section 101853.1 of the Health and Safety Code, to add Section 2716.5 to the Penal Code, to add Section 14038 to, to add Article 4 (commencing with Section 14040) to Chapter 3 of Division 7 of, and to add and repeal Article 5 (commencing with Section 14100) of Chapter 3 of Division 7 of, the Unemployment Insurance Code, and to amend Section 3.60 of the Budget Act of 2017 (Chapter 181 of the Statutes of 2017), 19829.9847, 19829.9848, and 22944.5 of, and to add Sections 20683.6, 20683.61, 20683.62, 20683.7, 20683.71, 20683.72, and 22958.1.7 to, the Government Code, relating to state public employment, and making an appropriation therefor, to take effect immediately, bill related to the budget.


LEGISLATIVE COUNSEL'S DIGEST


AB 1832, as amended, Committee on Budget. Employment. State public employment: memorandum of understanding: approval: State Bargaining Units 9 and 10.
(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 provisions requiring the expenditure of funds in the memorandum of understanding entered into between the state employer and State Bargaining Unit 9, Professional Engineers, and State Bargaining Unit 10, Professional Scientific.
This bill would provide that provisions of the memoranda 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 the affected employee organization 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 memoranda 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 memoranda of understanding described above if the Budget Act is not enacted on or before July 1 in the 2019–20 fiscal year or, in the case of State Bargaining Unit 10 only, July 1 in the 2020–21 fiscal year, as specified.
(2) The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System for the purpose of providing pension and other benefits to public employees, which are funded by employee and employer contributions and investment returns. PERL prescribes different normal rates for employee contributions depending on bargaining unit, employer, and inclusion of service in the federal Social Security system, among other factors.
This bill, on and after July 1, 2019, would adjust the normal rate of contribution for specified employees of State Bargaining Unit 9 and 10 to 50% of the normal cost rate rounded to the nearest quarter 1%, as specified, if certain conditions occur. The bill would authorize the Director of the Department of Human Resources to exercise his or her discretion to establish the normal rate of contribution for a related state employee or an officer or employee of the executive branch who is not a member of the civil service. The bill would revert to the normal rate of contribution on July 1, 2020, in the case of State Bargaining Unit 9, or July 1, 2021, in the case of State Bargaining Unit 10.
(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 requires the employer contribution for an employee or annuitant who is in the employment of or retired from state service to be adjusted by the Legislature in the annual Budget Act, as specified. PEMHCA prescribes different ways of calculating the employer contributions for employees and annuitants depending on date of hire, years of service, and bargaining unit.
PEMHCA establishes the Public Employees’ Contingency Reserve Fund for the purpose of funding health benefits and funding administrative expenses. 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 defines “prefunding” for these purposes. Existing law requires the state and employees of State Bargaining Unit 10 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019, and prescribes schedules of contribution percentages in this regard.
This bill, effective July 1, 2020, would require that the contribution percentages the state and employees of State Bargaining Unit 10 be increased or decreased to maintain a 50% cost sharing of the actuarially determined total normal costs, as provided. The bill, effective July 1, 2021, would require that the contribution percentage for employees of State Bargaining Unit 10 to prefund retiree health care, and the matching contribution of the state, be 2.8% of pensionable compensation.
(4) Existing law, the State Employees’ Dental Care Act, authorizes the state to enter into contracts, upon negotiations with employee organizations, with carriers for dental care plans for employees, annuitants, and eligible family members. Existing law permits these plans to include premiums to be paid by employees and annuitants and also authorizes the plans to be self-funded if an employer determines it to be cost effective. Existing law prohibits specified employees from receiving an employer contribution for these benefits for annuitants unless the person is credited with 10 or more years of state service or for other specified employees unless the person is credited with 15 or more years of state service.
This bill would prohibit state employees, as specified, who are first employed and become members of the retirement system on or after January 1, 2019, as specified, and are represented by, or related to, State Bargaining Unit 9, from receiving an employer contribution for dental benefits, as described above, for annuitants unless the person is credited with 15 or more years of state service. The bill would prescribe the percentage of the employer contribution payable for these dental benefits for these employees based on the number of completed years of credited state service at retirement, with 50% after 15 credited years of service and 100% after 25 or more years of service.
(5) This bill would appropriate the sum of $132,786,000 for State Bargaining Units 9 and 10 for expenditure in the 2018–19 fiscal year, in augmentation of, and for the purpose of, state employee compensation, as provided.
(6) 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 prescribes various duties of the Controller in connection with deductions requested by employee organizations and other bona fide organizations regarding requests for deductions from the salaries and wages of their members. Existing law defines employee organization in this context as one which represents employees of the state or the California State University and which is registered or recognized, as specified, and defines bona fide association as an organization of employees or former employees of an agency of the state and the California State University, which does not have as one of its purposes representing employees in their employment relations. Existing law prescribes the duties of the governing boards of school districts in regard to requests by certificated and classified employees for deductions from their salaries and wages and prescribes similar duties for the governing boards of community college districts with respect to academic and classified employees. Existing law authorizes a trial court employee or interpreter to permit a dues deduction from his or her salary in the same manner provided to public agency employees pursuant to specified law applicable to the state and the Controller, as described above.

This bill would revise and recast these provisions. The bill would expand certain authorizations and requirements currently applicable to the Controller and employees of the state and California State University to apply also to the Regents of the University of California, the Judicial Council, counties, cities, and public authorities, including transit districts, among others, and would correspondingly broaden the definition of an employee organization. In this context, the bill would authorize employee organizations and bona fide associations to request payroll deductions and would require public employers to honor these requests. The bill would prohibit requiring an employee organization that certifies that it has and will maintain individual employee authorizations to provide a copy of an individual authorization to the public employer or the Controller unless a dispute arises about the existence or terms of the authorization. The bill would prescribe procedures for the making, canceling, and changing a deduction for an organization or association and would require that these requests be directed to the employee organization rather than the public employer or Controller. The bill would require the public employer or Controller to rely on information provided by the employee organization regarding whether deductions were properly canceled or changed. The bill would require the employee organization to indemnify the public employer or Controller for any claims made by employees for deductions made in reliance on information provided by the employee organization.

The bill would revise authorizations granted to state employees and retired employees to make deductions for dues in, and for services provided by, a bona fide organization, as specified, instead to apply to employee organizations for dues in, or for any other service, program, or committee provided or sponsored by, an employee organization or a bona fide association and would apply them to the employers described above generally. The bill would require employers to honor these authorizations and would require that the revocability of an authorization be determined by its terms. The bill would apply the changes described above to trial court employees and court interpreters, as specified. The bill would distinguish governing boards of school districts and of community college districts from other public employers for the purposes of transmitting payroll deductions to professional organizations or employee organizations. The bill would grant generally equivalent authorizations to, and requirements in connection with, the certificated and classified employees of governing boards of school districts, which the bill would revise to refer to as public school employers, and to certificated and classified employees of community college districts. The bill would also make clarifying, conforming, and other nonsubstantive changes.

By increasing the duties of local agencies, school districts, and community college districts, this bill would impose a state-mandated local program.

(2)Existing law prohibits the state and specified local public employers from deterring or discouraging public employees from becoming or remaining members of an employee organization. Existing law grants the Public Employment Relations Board jurisdiction over violations of these provisions.

This bill would prohibit a public employer from deterring or discouraging applicants to be public employees, as defined, from becoming or remaining members of an employee organization. The bill would prohibit a public employer from deterring or discouraging public employees or applicants to be public employees from authorizing representation by an employee organization or authorizing dues or fee deduction to an employee organization. This bill would include Judicial Council in the definition of “public employer” and would also include a public transit district with respect to its public employees who are not in bargaining units not otherwise subject to specified law regulating public employee collective bargaining. The bill would except specified employers from the enforcement jurisdiction of the Public Employment Relations Board.

If an employee organization has been recognized or certified as an exclusive representative of employees in a bargaining unit, the bill would require a public employer that elects to provide certain mass communications, as defined, to meet and confer with the representative concerning the content of the communication. If the employer and the representative do not come to agreement about the content of the communication, the bill would require a public employer that elects to disseminate the mass communication to distribute to the employees, with its communication, a communication of reasonable length provided by the exclusive representative. By creating new duties for various local agencies, this bill would impose a state-mandated local program. The bill would except certain communications from these provisions.

(3)Existing law requires the state and specified local public employers to grant the exclusive representative of those employees access to new employee orientations. Existing law requires the exclusive representative to receive at least 10 days’ notice in advance of an orientation and requires that the structure, time, and manner of exclusive representative access be determined through mutual agreement between the employer and the exclusive representative, subject to specified requirements, including compulsory interest arbitration, as defined. Existing law requires an affected public employer to provide the exclusive representative with the name, job title, department, work location, work, home, and personal cellular telephone numbers, personal email addresses on file with the employer, and home address of newly hired employees within 30 days of hire or by the first pay period of the month following hire. Existing law also requires affected public employers to provide the exclusive representative with this information for all employees in a bargaining unit at least every 120 days, except as specified.

This bill would expand the application of these provisions to the Judicial Council. The bill would also expand the application of these provisions to public transit districts with respect to their public employees who are in bargaining units not subject to specified law regulating public employee collective bargaining. By creating new duties for various local agencies, this bill would impose a state-mandated local program.

This bill would also require that the date, time, and place of new employee orientations, as described above, be confidential and prohibit sharing that information with anyone other than employees, the exclusive representative, or a vendor that is contracted to provide a service for purposes of the orientation.

(4)Existing law creates the Department of Human Resources, which succeeds to and is vested with all of the powers and duties exercised and performed by the Department of Personnel Administration. Existing law specifically grants the department the powers, duties, and authority necessary to operate the state civil service system in accordance with Article VII of the California Constitution, the Government Code, the merit principle, and applicable rules duly adopted by the State Personnel Board.

Existing law requires the State Personnel Board to prescribe rules consistent with a merit-based civil service system to govern classification, examinations, probationary periods, disciplinary actions, and other matters related to the board’s authority under the California Constitution.

This bill would extend these rulemaking requirements to appointments.

(5)Existing state civil service law defines a “transfer” to mean, among other things, the appointment of an employee to a different class that has substantially the same level of duties, responsibility, and salary as the employee’s current class under the same or another appointing authority.

This bill would instead define “transfer” to mean the appointment of an employee to a different class to which the employee satisfies the minimum qualifications and that has substantially the same level of duties, responsibility, and salary, as determined by board rule, and would make related conforming changes.

(6)Existing law authorizes the Department of Human Resources or a designated appointing power to receive applications, conduct examinations, and create eligible lists continuously; however, this authority is limited to classes of positions for which the department or a designated appointing power finds it difficult to maintain adequate eligible lists.

This bill would delete the above limitation and instead would authorize the department and designated appointing powers to receive applications, conduct examinations, and create eligible lists on a continual basis consistent with board rules.

(7)Under existing state civil service law, the Department of Human Resources administers the Limited Examination and Appointment Program (LEAP) to provide an alternative to the traditional civil service examination and appointment process to facilitate the hiring of persons with disabilities. Existing law defines a “permanent employee” to mean an employee with “permanent status,” which, in turn, means the status of an employee who is lawfully retained after completion of the probationary period.

This bill would revise the definition of “permanent status” to include an employee who is lawfully appointed to his or her position after successful completion of the probationary period or job examination period under LEAP.

(8)Existing law requires vacancies in state civil service positions to be filled in a manner that is consistent with the best interests of the state from among employees holding positions in appropriate classes. Existing law also requires promotional lists to be established to facilitate this purpose, except in limited cases.

Existing law authorizes the Department of Human Resources to prescribe the conditions under which eligibility may be transferred from one promotional list to another; however, this authority is limited to when the lists are for the same class and have been established as a result of the same or a similar examination.

This bill would delete the above limitation. The bill would additionally require the department, when prescribing conditions under which state employees and others may compete in promotional exams to attain eligibility and prescribing conditions for transfers from one promotional list to another, to act in a manner that is consistent with board rules.

(9)Existing state civil service law prohibits a person from being appointed under a class not appropriate to the duties to be performed.

This bill would instead allow civil service appointments to only be made to a class that is appropriate for the duties, functions, and responsibilities that will be performed.

(10)Existing law generally requires, with specified exceptions, that those eligible persons whose names and addresses represent the 3 highest ranks on a state employment list be certified to the appointing power. Existing law specifies additional rules that apply if the names on the list represent fewer than 3 ranks and authorizes both the Department of Human Resources and the Department of Corrections and Rehabilitation to provide for certifying less than 3 ranks where the size of the certified group is disproportionate to the number of vacancies.

This bill would revise and recast those provisions. The bill would require, when an appointing power seeks to fill a vacant position using an employment list, that the Department of Human Resources provide the appointing power with the certified list of the names and addresses of all eligible candidates whose scores represent the 3 highest ranks on the list. The bill would require the department, if there is more than one employment list or LEAP referral list, to provide a single certified list of eligibles that combines the names and addresses of all eligible candidates.

(11)Existing law authorizes the appointing power, with approval of the Department of Human Resources, to appoint a successful candidate, who qualified in an examination, to an appropriate position without further examination, as specified.

This bill would eliminate the requirement that the department provide approval for these appointments.

(12)Existing law authorizes the Department of Human Resources to self-fund or self-insure a benefit program under its administration when it is cost-effective to do so. Existing law authorizes the department to administer the self-funded or self-insured benefit program directly or to contract with a third-party administrator.

Existing law creates the Public Employees’ Retirement System, the management and control of which is vested in its board of administration. Existing law creates the Public Employees’ Retirement Fund, which is a continuously appropriated trust fund under the exclusive control of the board, to be administered in accordance with the Public Employees’ Retirement Law (PERL), solely for the benefit of the members and retired members of the system and their survivors and beneficiaries. PERL prohibits expenditure of retirement fund moneys for purposes other than administration of the system, investments for the benefit of the system, reduction of employer contributions, and the provision of benefits to the members and retired members of the system and their survivors and beneficiaries. PERL defines “benefit” for its purposes.

This bill would require the Public Employees’ Retirement System to assist the Department of Human Resources by providing retiree names and addresses to the department for the purpose of notifying those retirees of eligibility for enrollment into specified benefit programs offered by the department. The bill would require information provided to the department to be treated as confidential by the department. By authorizing moneys in a continuously appropriated fund to be spent for a new purpose, this bill would make an appropriation.

(13)Existing law requires the Department of Human Resources to review and analyze specified existing information regarding the setting of salaries and also declares the Legislature’s intent to establish a state policy of setting salaries for female-dominated jobs on the basis of comparability of the value of the work.

This bill would instead require the department’s review and analysis to include studies from other jurisdictions regarding the setting of salaries for jobs that employ a higher proportion of females than males. The bill would make related changes to the legislative intent statement regarding the state’s policy of setting salaries.

(14)Existing law requires the Department of Human Resources to devise plans for, and cooperate with appointing powers and other supervising officials in the conduct of, employee training programs so that the quality of service rendered by persons in the state civil service may be continually improved. Existing law authorizes the department to enter into agreements, which the Director of General Services is required to approve, to make available their services with specified state and local entities.

This bill would authorize the department to provide training programs to any public employee or officer so that the quality of service rendered by those persons may be continually improved. The bill would define “public employee or officer” to refer to specified state, local, and federal entities. The bill would authorize the department to collect registration fees from the employing entity of the employee or officer participating in the training without entering into a written agreement as described above. The bill would also repeal an obsolete provision establishing the State Employee Scholarship Fund, which was abolished in 2001.

(15)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 state employer and employee contributions 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, and prescribes a schedule of employee contribution percentages for this purpose based on membership in specified bargaining units. Existing law requires state and employee contributions based on those percentages to be deposited in the Annuitants’ Health Care Coverage Fund.

This bill would authorize the Director of the Department of Human Resources to establish employee contribution percentages, pursuant to a specified goal, for prefunding retiree health care in relation to pensionable compensation for specified state employees who are not related to specified bargaining units who are excepted from the definition of “state employee” with respect to collective bargaining and for officers or employees of the executive branch of state government who are not members of the civil service. By increasing contributions to a continuously appropriated fund, this bill would make an appropriation. The bill would require the state to match the contributions of these employees and officers.

(16)Existing law generally authorizes the amendment of a county charter by proposals submitted by the governing body or by a petition signed by 10% of the qualified electors of the county, computed upon the total number of votes cast in the county for all candidates for Governor at the last general election at which a Governor was elected, as specified. Existing law additionally authorizes the amendment of the charter of the County of San Diego by proposals submitted to the county electors by the board of supervisors or by a petition signed by 10% of the qualified electors in the county, to require that candidates for county office be elected at the general election, as specified.

This bill would, for an amendment to the charter of the County of San Diego to require that candidates for county office be elected at the general election, clarify that the calculation of the 10% of qualified electors in the county is computed upon the total number of votes cast in the county for all candidates for Governor at the last general election at which a Governor was elected, as specified. This bill would apply this provision retroactively, commencing January 1, 2018, and would require the elections official to examine or reexamine whether the number of valid signatures filed by the proponents is sufficient to qualify a measure for the ballot pursuant to these provisions, to the extent that petition signatures for an initiative measure proposing an amendment to the charter of the County of San Diego have been submitted prior to the effective date of this act.

By imposing additional duties on the local elections official, this bill would impose a state-mandated local program.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of San Diego.

(17)Existing law, the Kern County Hospital Authority Act, authorizes the board of supervisors of the County of Kern to, among other things, establish the Kern County Hospital Authority to manage, administer, and control the Kern Medical Center. Existing law requires the board of supervisors to adopt and implement a personnel transition plan for the transfer of specified personnel from the control of the medical center by the county to the Kern County Hospital Authority. Existing law provides that certain employees of the authority may participate, subject to the personnel transition plan and the applicable memorandum of understanding, in the Kern County Employees’ Retirement Association and prohibits the modification of medical center or county employment benefits for transferred employees, as provided.

This bill would require an employee hired by the authority on or after the operative date of this act to participate in the Kern County Employees’ Retirement Association, as provided.

(18)Existing law requires the Department of Corrections to require of every able-bodied prisoner imprisoned in any state prison as many hours of faithful labor in each day and every day during his or her term of imprisonment as shall be prescribed by the rules and regulations of the Director of Corrections. Existing law authorizes the Director of Corrections to enter into agreements with other state agencies for the use of inmates confined in the state prisons to perform work in facilities of those state agencies for the purpose of vocational training and the improvement of job skills preparatory to release.

This bill would establish the Pre-Release Construction Trades Certificate Program within the department to increase employment opportunities in the construction trades for inmates upon release. The bill would require the department to establish a joint advisory committee, composed of representatives from specified organizations and state agencies, for the purpose of implementation of the program and specify the duties of the committee with respect to the program.

(19)Under existing law, the California Workforce Development Board is the body responsible for assisting the Governor in the development, oversight, and continuous improvement of California’s workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce. Existing law, until January 1, 2021, establishes the Supervised Population Workforce Training Grant Program to be administered, as provided, by the board. Existing law also establishes the Breaking Barriers to Employment Initiative to be implemented, as provided, by the board.

This bill would require the board to administer a prison-to-employment program and award grants for purposes that include the development of regional partnerships and regional plans to provide and coordinate the necessary workforce, education, supportive, and related services, as defined, that formerly incarcerated and other justice-involved individuals, as defined, need to secure and retain employment and reduce the chances of recidivism. The bill would require the board to develop, consistent with specified provisions of existing law, guidelines for the program, including, but not limited to, required regional plan content, required and optional regional plan partners, required activities of the regional partnerships, and guidelines for the allocation of grants, including planning guidance, timelines, and selection criteria for the distribution and evaluation of grant awards.

This bill would authorize the board to adopt criteria, guidelines, and policies regarding the prison-to-employment program, as specified; would exempt those criteria, guidelines, and policies from the rulemaking provisions of the Administrative Procedures Act; and would require the board to make the criteria, guidelines, and policies available to the public. The bill would also exempt all criteria, guidelines, and polices development by the board for the administration of the Breaking Barriers to Employment Initiative from the rulemaking provisions of the Administrative Procedures Act.

(20)Existing law establishes various programs for job training and employment development, including, among others, establishing the California Workforce Development Board as the body responsible for assisting the Governor in the development, oversight, and continuous improvement of California’s workforce investment.

This bill would create a 3-year pilot program in the Counties of Sacramento and Los Angeles for the purposes of increasing long-term employment opportunities for young adults with autism and autism spectrum disorder. The bill would provide that the pilot program be administered by the California Workforce Development Board and accomplish specified goals. The bill would require the board to submit a report to the Legislature on or before December 31, 2021, regarding information on the success of the program in accomplishing specified goals.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Los Angeles and Sacramento.

(21)The Budget Act of 2017, as amended, authorized the Department of Finance to direct the Controller to transfer up to $146,000,000 from the General Fund to supplement the state’s retirement contributions for the 2017–18 fiscal year.

This bill would revise the Budget Act of 2017 to authorize the Department of Finance, instead, to direct the Controller to transfer up to an amount identified for appropriation for unfunded state pension liabilities and prefunding postemployment benefits, as specified, equivalent to the amount described in a specified section of the Budget Act of 2017, which identifies the amount of the transfer to the Budget Stabilization Account for the 2017–18 fiscal year.

(22)Existing federal law requires the enumeration of the population of the United States every 10 years, known as the federal decennial census.

This bill would require the California Complete Count Census to submit reports relating to various aspects of the federal decennial census to the Joint Legislative Budget Committee, the Assembly Select Committee on the Census, and the Senate Select Committee on the 2020 United States Census, as provided.

(23)Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

(24)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

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

Vote: MAJORITY   Appropriation: YES   Fiscal Committee: YES   Local Program: YESNO  

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 the agreements entered into by the state employer and State Bargaining Units 9 and 10 pursuant to Section 3517.5 of the Government Code.

SEC. 2.

 Notwithstanding Section 19829.5 of the Government Code, the provisions of the memoranda of understanding prepared pursuant to Section 3517.5 of the Government Code and entered into by the state employer and State Bargaining Unit 9, dated August 21, 2018, and State Bargaining Unit 10, dated August 22, 2018, and that require the expenditure of funds, are hereby approved for the purposes of subdivision (b) of Section 3517.6 of the Government Code.

SEC. 3.

 The provisions of the memoranda 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 the affected employee organization may reopen negotiations on all or part of the memorandum of understanding.

SEC. 4.

 Notwithstanding Section 3517.6 of the Government Code, the provisions of the memoranda 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.

SEC. 5.

 Section 19829.9847 of the Government Code is amended to read:

19829.9847.
 (a) Notwithstanding Section 13340, for the 2019–20 fiscal year, if the Budget Act of 2019 is not enacted by July 1, 2019, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 6 (effective July 3, 2018, to July 2, 2019, inclusive), State Bargaining Unit 9 (effective July 1, 2018, to June 30, 2020, inclusive), State Bargaining Unit 10 (effective July 1, 2018, to July 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 16 (effective July 1, 2016, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 2019 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, 2019, of the 2019–20 fiscal year and the enactment of the Budget Act of 2019.
(b) If the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 6 (effective July 3, 2018, to July 2, 2019, inclusive), State Bargaining Unit 9 (effective July 1, 2018, to June 30, 2020, inclusive), State Bargaining Unit 10 (effective July 1, 2018, to July 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 16 (effective July 1, 2016, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), and State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, 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 applicable memorandum 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 2019, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2019 for each affected department.
(d) This section shall only apply to an employee covered by the terms of the State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 (each effective July 2, 2016, to January 1, 2020, inclusive), State Bargaining Unit 6 (effective July 3, 2018, to July 2, 2019, inclusive), State Bargaining Unit 9 (effective July 1, 2018, to June 30, 2020, inclusive), State Bargaining Unit 10 (effective July 1, 2018, to July 1, 2020, inclusive), State Bargaining Unit 12 (effective July 1, 2015, to July 1, 2020, inclusive), State Bargaining Unit 16 (effective July 1, 2016, to July 1, 2020, inclusive), State Bargaining Unit 19 (effective July 1, 2016, to July 1, 2020, inclusive), or State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the applicable memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 6 expires on July 2, 2019, the memoranda of understanding for State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 expire on January 1, 2020, the memorandum of understanding for State Bargaining Unit 9 expires on June 30, 2020, the memoranda of understanding for State Bargaining Units 10, 12, 16, and 19 expire on July 1, 2020, and the memorandum of understanding for State Bargaining Unit 8 expires on July 1, 2021.

SEC. 6.

 Section 19829.9848 of the Government Code is amended to read:

19829.9848.
 (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 memorandum of understanding entered into between the state employer and 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 memorandum 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 memorandum 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 memorandum of understanding entered into between the state employer and 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), is in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by this bargaining unit shall be at a rate consistent with the memorandum 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 8 (effective January 1, 2017, to July 1, 2021, inclusive) and State Bargaining Unit 10 (effective July 1, 2018, to July 1, 2020, inclusive) memorandum of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the memorandum of understanding has expired. For purposes of this section, 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.

SEC. 7.

 Section 20683.6 is added to the Government Code, to read:

20683.6.
 (a) Notwithstanding Sections 20677.4 and 20677.71, effective July 1, 2019, the normal rate of contribution for state miscellaneous members who are represented by State Bargaining Unit 9 shall be adjusted in accordance with this section when both of the following occur:
(1) The total normal cost rate for the category in effect for the 2016–17 fiscal year has increased by at least 1 percent.
(2) Fifty percent of the new normal cost rate, rounded to the nearest one-quarter of 1 percent, is greater than the normal contribution rate established in Section 20677.71.
(b) If on July 1, 2019, the board determines that the requirements of paragraphs (1) and (2) of subdivision (a) have been met, the normal rate of contribution for state miscellaneous members who are represented by State Bargaining Unit 9 shall be adjusted to 50 percent of the normal cost rate rounded to the nearest one-quarter of 1 percent, but not to increase by more than 0.5 percent.
(c) The normal rate of contribution established pursuant to this section shall be applied to the compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system or in excess of five hundred thirteen dollars ($513) for one whose service is included in the federal system.
(d) After June 30, 2020, the normal rate of contribution shall return to the normal contribution rate established in Section 20677.71.
(e) Consistent with the normal rate of contribution for all members identified in this subdivision, the Director of the Department of Human Resources may exercise his or her discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.
(f) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless and until approved by the Legislature in the annual Budget Act.

SEC. 8.

 Section 20683.61 is added to the Government Code, to read:

20683.61.
 (a) Notwithstanding Sections 20677.4, 20677.71, and 20683.2, effective July 1, 2019, the normal rate of contribution for state industrial members who are represented by State Bargaining Unit 9 shall be adjusted in accordance with this section when both of the following occur:
(1) The total normal cost rate for the category in effect for the 2016-17 fiscal year has increased by at least 1 percent.
(2) Fifty percent of the new normal cost rate, rounded to the nearest one-quarter of 1 percent, is greater than the normal contribution rate established in Section 20683.2.
(b) If on the July 1, 2019, the board determines that the requirements of paragraphs (1) and (2) of subdivision (a) have been met, the normal rate of contribution for state industrial members who are represented by State Bargaining Unit 9 shall be adjusted to 50 percent of the normal cost rate rounded to the nearest one-quarter of 1 percent, but not to increase by more than 0.5 percent.
(c) The normal rate of contribution established pursuant to this section shall be applied to the compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system or in excess of five hundred thirteen dollars ($513) for one whose service is included in the federal system.
(d) After June 30, 2020, the normal rate of contribution shall return to the normal contribution rate established in Section 20683.2.
(e) Consistent with the normal rate of contribution for all members identified in this subdivision, the Director of the Department of Human Resources may exercise his or her discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.
(f) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless and until approved by the Legislature in the annual Budget Act.

SEC. 9.

 Section 20683.62 is added to the Government Code, to read:

20683.62.
 (a) Notwithstanding Sections 20683, 20677.91, and 20683.2, the normal rate of contribution for state safety members who are represented by State Bargaining Unit 9 shall be adjusted in accordance with this section when both of the following occur:
(1) The total normal cost rate for the category in effect for the 2016–17 fiscal year has increased by at least 1 percent.
(2) Fifty percent of the new normal cost rate, rounded to the nearest one-quarter of 1 percent, is greater than the normal contribution rate established in Section 20683.2.
(b) If on July 1, 2019, the board determines that the requirements of paragraphs (1) and (2) of subdivision (a) have been met, the normal rate of contribution for state safety members who are represented by State Bargaining Unit 9 shall be adjusted to 50 percent of the normal cost rate rounded to the nearest quarter of 1 percent, but not to increase by more than 0.5 percent.
(c) The normal rate of contribution established pursuant to this section shall be applied to the compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system or in excess of five hundred thirteen dollars ($513) for one whose service is included in the federal system.
(d) After June 30, 2020, the normal rate of contribution shall return to the normal contribution rate established in Section 20683.2.
(e) Consistent with the normal rate of contribution for all members identified in this subdivision, the Director of the Department of Human Resources may exercise his or her discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.
(f) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless and until approved by the Legislature in the annual Budget Act.

SEC. 10.

 Section 20683.7 is added to the Government Code, to read:

20683.7.
 (a) Notwithstanding Sections 20677.4 and 20677.71, effective July 1, 2019, the normal rate of contribution for state miscellaneous members who are represented by State Bargaining Unit 10 shall be adjusted in accordance with this section when both of the following occur:
(1) The total normal cost rate for the category in effect for the 2016–17 fiscal year has increased or decreased by at least 1 percent.
(2) Fifty percent of the new normal cost rate, rounded to the nearest one-quarter of 1 percent, is greater than or less than the normal contribution rate established in Section 20677.71.
(b) On the July 1 of the fiscal year that the board determines that the requirements of paragraphs (1) and (2) of subdivision (a) have been met, the normal rate of contribution for state miscellaneous members who are represented by State Bargaining Unit 10 shall be adjusted to 50 percent of the normal cost rate rounded to the nearest one-quarter of 1 percent, but not to increase or decrease by more than 1 percent.
(c) Once established, the normal rate of contribution shall not be adjusted on account of a change to the normal cost rate unless the normal cost rate increases or decreases by more than 1 percent of payroll above or below the normal cost rate in effect at the time the normal rate of contribution is first established or, if later, the normal cost rate in effect at the time of the last adjustment to the normal rate of contribution under this subdivision. Furthermore, the increase or decrease to the normal rate of contribution in any given fiscal year shall not exceed 1 percent per year.
(d) The normal rate of contribution established pursuant to this section shall be applied to the compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system or in excess of five hundred thirteen dollars ($513) for one whose service is included in the federal system.
(e) On July 1, 2021, the normal rate of contribution shall return to the normal contribution rate established in Section 20677.71.
(f) Consistent with the normal rate of contribution for all members identified in this subdivision, the Director of the Department of Human Resources may exercise his or her discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.
(g) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless and until approved by the Legislature in the annual Budget Act.

SEC. 11.

 Section 20683.71 is added to the Government Code, to read:

20683.71.
 (a) Notwithstanding Sections 20677.4, 20677.71, and 20683.2, effective July 1, 2019, the normal rate of contribution for state industrial members who are represented by State Bargaining Unit 10 shall be adjusted in accordance with this section when both of the following occur:
(1) The total normal cost rate for the category in effect for the 2016–17 fiscal year has increased or decreased by at least 1 percent.
(2) Fifty percent of the new normal cost rate, rounded to the nearest one-quarter of 1 percent, is greater than or less than the normal contribution rate established in Section 20683.2.
(b) On the July 1 of the fiscal year that the board determines that the requirements of paragraphs (1) and (2) of subdivision (a) have been met, the normal rate of contribution for state industrial members who are represented by State Bargaining Unit 10 shall be adjusted to 50 percent of the normal cost rate rounded to the nearest quarter of 1 percent, but not to increase or decrease by more than 1 percent.
(c) Once established, the normal rate of contribution shall not be adjusted on account of a change to the normal cost rate unless the normal cost rate increases or decreases by more than 1 percent of payroll above or below the normal cost rate in effect at the time the normal rate of contribution is first established or, if later, the normal cost rate in effect at the time of the last adjustment to the normal rate of contribution under this subdivision. Furthermore, the increase or decrease to the normal rate of contribution in any given fiscal year shall not exceed 1 percent per year.
(d) The normal rate of contribution established pursuant to this section shall be applied to the compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system or in excess of five hundred thirteen dollars ($513) for one whose service is included in the federal system.
(e) On July 1, 2021, the normal rate of contribution shall return to the normal contribution rate established in Section 20683.2.
(f) Consistent with the normal rate of contribution for all members identified in this subdivision, the Director of the Department of Human Resources may exercise his or her discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.
(g) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless and until approved by the Legislature in the annual Budget Act.

SEC. 12.

 Section 20683.72 is added to the Government Code, to read:

20683.72.
 (a) Notwithstanding Sections 20683, 20677.91, and 20683.2, the normal rate of contribution for state safety members who are represented by State Bargaining Unit 10 shall be adjusted in accordance with this section when both of the following occur:
(1) The total normal cost rate for the category in effect for the 2016–17 fiscal year has increased or decreased by at least 1 percent.
(2) Fifty percent of the new normal cost rate, rounded to the nearest one-quarter of 1 percent, is greater than or less than the normal contribution rate established in Section 20683.2.
(b) On the July 1 of the fiscal year that the board determines that the requirements of paragraphs (1) and (2) of subdivision (a) have been met, the normal rate of contribution for state safety members who are represented by State Bargaining Unit 10 shall be adjusted to 50 percent of the normal cost rate rounded to the nearest quarter of 1 percent, but not to increase or decrease by more than 1 percent.
(c) Once established, the normal rate of contribution shall not be adjusted on account of a change to the normal cost rate unless the normal cost rate increases or decreases by more than 1 percent of payroll above or below the normal cost rate in effect at the time the normal rate of contribution is first established or, if later, the normal cost rate in effect at the time of the last adjustment to the normal rate of contribution under this subdivision. Furthermore, the increase or decrease to the normal rate of contribution in any given fiscal year shall not exceed 1 percent per year.
(d) The normal rate of contribution established pursuant to this section shall be applied to the compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system or in excess of five hundred thirteen dollars ($513) for one whose service is included in the federal system.
(e) On July 1, 2021, the normal rate of contribution shall return to the normal contribution rate established in Section 20683.2.
(f) Consistent with the normal rate of contribution for all members identified in this subdivision, the Director of the Department of Human Resources may exercise his or her discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.
(g) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless and until approved by the Legislature in the annual Budget Act.

SEC. 13.

 Section 22944.5 of the Government Code is amended to read:

22944.5.
 (a) (1) The state and employees in State Bargaining Unit 2, 7, 8, 9, 10, 13, 18, or 19 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2019.
(2) The state and employees in State Bargaining Units 6 and 16 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2018.
(3) The state and employees in the judicial branch shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2017.
(4) The state and employees in State Bargaining Unit 1, 3, 4, 11, 12, 14, 15, 17, 20, or 21 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2020.
(b) (1) The employees in State Bargaining Unit 9 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.5 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 0.5 percent for a total employee contribution of 1.0 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(2) The employees in State Bargaining Unit 10 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.7 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 0.7 percent for a total employee contribution of 1.4 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 2.8 percent of pensionable compensation.
(D) Effective July 1, 2020, the employer and employee contribution percentages will be increased or decreased to maintain a 50-percent cost sharing of the actuarially determined total normal costs. Adjustments to both the employer and employee contribution percentages will occur if the actuarially determined total normal costs increase or decrease by more than one-half of 1 percent from the total normal cost contribution percentages in effect on July 1, 2019. The increase or decrease to the employer or employee contribution shall not exceed 0.5 percent per year.
(E) Effective July 1, 2021, 2.8 percent of pensionable compensation.
(3) The employees in State Bargaining Unit 6 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2016, 1.3 percent of pensionable compensation.
(B) Effective July 1, 2017, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C) Effective July 1, 2018, an additional 1.4 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(4) The state employees in the judicial branch shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2016, 1.5 percent of pensionable compensation.
(B) Effective July 1, 2017, up to an additional 1.5 percent for a total employee contribution of up to 3.0 percent of pensionable compensation. The additional amount shall be determined by the Director of Finance no later than April 1, 2017, based on the actuarially determined normal costs identified in the state valuation.
(C) This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(5) The employees in State Bargaining Unit 12 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.5 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.0 percent for a total employee contribution of 2.5 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 3.5 percent of pensionable compensation.
(D) Effective July 1, 2020, an additional 1.1 percent for a total employee contribution of 4.6 percent of pensionable compensation.
(6) The employees in State Bargaining Unit 2 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.7 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 0.6 percent for a total employee contribution of 1.3 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 0.7 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(7) The employees in State Bargaining Unit 7 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.3 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.4 percent for a total employee contribution of 2.7 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(8) The employees in State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2018, 1.2 percent of pensionable compensation.
(B) Effective July 1, 2019, an additional 1.1 percent for a total employee contribution of 2.3 percent of pensionable compensation.
(C) Effective July 1, 2020, an additional 1.2 percent for a total employee contribution of 3.5 percent of pensionable compensation.
(9) The employees in State Bargaining Unit 8 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.5 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.5 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 4.4 percent of pensionable compensation.
(10) The employees in State Bargaining Unit 13 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.3 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 3.9 percent of pensionable compensation.
(11) The employees in State Bargaining Unit 18 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.3 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(12) The employees in State Bargaining Unit 19 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.0 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.0 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(13) The employees in State Bargaining Unit 16 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 0.4 percent for a total employee contribution of 1.4 percent of pensionable compensation.
(c) This section only applies to employees who are eligible for health benefits, including permanent intermittent employees.
(d) Contributions paid pursuant to this section shall be deposited in the Annuitants’ Health Care Coverage Fund and shall not be refundable under any circumstances to an employee or his or her beneficiary or survivor.
(e) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if those provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(f) This section shall also apply to a state employee related to a bargaining unit described in subdivision (a) who is excepted from the definition of “state employee” in subdivision (c) of Section 3513.
(g) (1) With the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2020, the Director of the Department of Human Resources may establish the total employee contribution to prefund retiree health care as a percentage of pensionable compensation for the following:
(A) A state employee who is not related to a bargaining unit described in subdivision (a) and who is excepted from the definition of “state employee” in subdivision (c) of Section 3513.
(B) An officer or employee of the executive branch of state government who is not a member of the civil service.
(2) An employee or officer to whom this subdivision applies shall make contributions to prefund retiree health care based on the percentages established in paragraph (1), and the state shall match the contributions.

SEC. 14.

 Section 22958.1.7 is added to the Government Code, to read:

22958.1.7.
 (a) Notwithstanding Sections 22953, 22957, and 22958, the following employees shall not receive any portion of the employer contribution payable for annuitants unless the person is credited with 15 or more years of state service, as defined by this section, at the time of retirement:
(1) A state employee, as defined by subdivision (c) of Section 3513, who is first employed by the state and becomes a state member of the system on or after January 1, 2019, and is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2019.
(b) The percentage of the employer contribution payable for postretirement dental care benefits for an employee subject to this section shall be based on the funding provision of the plan and the completed years of credited state service at retirement as shown in the following table:
Credited Years of ServicePercentage of Employer Contribution
15 ........................ 50
16. ........................ 55
17 ........................ 60
18 ........................ 65
19 ........................ 70
20 ........................ 75
21 ........................ 80
22 ........................ 85
23 ........................ 90
24 ........................ 95
25 or more ........................ 100
(c) This section shall apply only to state employees that retire for service. For purposes of this section, “state service” means service rendered as an employee of the state or an appointed or elected officer of the state for compensation.
(d) This section does not apply to:
(1) Former state employees previously employed prior to January 1, 2019, who return to state employment on or after January 1, 2019.
(2) State employees hired prior to January 1, 2019, who become subject to representation by State Bargaining Unit 9 or 10 on or after January 1, 2019.
(3) State employees on an approved leave of absence employed before January 1, 2019, who return to active employment on or after January 1, 2019.
(4) State employees hired after January 1, 2019, who are first represented by a State Bargaining Unit other than Bargaining Unit 9 or 10, who later become represented by State Bargaining Unit 9 or 10.
(e) In those cases where the state has assumed from a public agency a function and the related personnel, service rendered by that personnel for compensation as employees or appointed or elected officers of that public agency may not be credited as state service for the purposes of this section unless the former employer has paid or agreed to pay the state the amount actuarially determined to equal the cost for any employee dental benefits that were vested at the time that the function and the related personnel were assumed by the state, and the Department of Finance finds that the contract contains a benefit factor sufficient to reimburse the state for the amount necessary to fully compensate for the postretirement dental benefit costs of those personnel. For noncontracting public agencies, the state agency that has assumed the function shall certify the completed years of public agency service to be credited to the employee as state service credit under this section.

SEC. 15.

 The sum of one hundred thirty-two million seven hundred eighty-six thousand dollars ($132,786,000) is hereby appropriated for State Bargaining Units 9 and 10 for expenditure in the 2018–19 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 2018, in accordance with the following schedule:
(a) Six million two hundred twenty-two thousand dollars ($6,222,000) from the General Fund in augmentation of Item 9800-001-0001 of Section 2.00 of the Budget Act of 2018.
(b) Eighty-four million seven hundred ninety-eight thousand dollars ($84,798,000) from unallocated special funds in augmentation of Item 9800-001-0494 of Section 2.00 of the Budget Act of 2018.
(c) Forty-one million seven hundred sixty-six thousand dollars ($41,766,000) from other unallocated nongovernmental cost funds in augmentation of Item 9800-001-0988 of Section 2.00 of the Budget Act of 2018.

SEC. 16.

 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.