Bill Text: CA SB321 | 2011-2012 | Regular Session | Amended
Bill Title: State employees: memorandum of understanding.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB321 Detail]
Download: California-2011-SB321-Amended.html
BILL NUMBER: SB 321 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 17, 2011
INTRODUCED BY Senator Negrete McLeod
FEBRUARY 14, 2011
An act to amend Section 21570 of the Government Code,
relating to the Public Employees' Retirement System.
An act to amend Sections 19829.97, 19829.98, 20677.5, 20682, 20683.1,
and 22944.3 of, and to amend and re number Section
18929.96 of, the Government Code, relating to state employees, making
an appropriation therefor, and declaring the urgency thereof, to
take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 321, as amended, Negrete McLeod. Public Employees'
Retirement System. State employees: memorandum of
understanding.
Under existing law, 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 of a memorandum of
understanding entered into between the state employer and State
Bargaining Unit 2, the California Attorneys, Administrative Law
Judges and Hearing Officers in State Government, that require the
expenditure of funds, and would provide that these provisions will
become effective even if these provisions are approved by the
Legislature in legislation other than the annual Budget Act. The bill
would provide that provisions of the memorandum of understanding
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, and would require 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 annual Budget Act appropriates specified amounts from the
General Fund, unallocated special funds, and unallocated
nongovernmental cost funds, for state employee compensation. In the
event that the annual Budget Act is not enacted prior to July 1 of
each year covered by the memoranda of understanding for State
Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, existing law
provides for a continuous appropriation for the amount necessary for
the payment of compensation and benefits to members of those
bargaining units.
This bill would expand that provision to also include members of
State Bargaining Unit 2.
The Public Employees' Retirement Law (PERL) prescribes
contribution rates for state employees who are state miscellaneous,
state industrial, state safety members, patrol members, or state
peace officer/firefighter members, among others, in amounts based on
percentages of monthly compensation. PERL reduces those contributions
by excepting from the definition of monthly compensation specified
amounts ranging between $238 and $863, based on member
classification, among other things. Member contributions are
deposited into the Public Employees' Retirement Fund, which is a
continuously appropriated trust fund.
This bill would increase the contribution rates by 3% for
specified membership classifications that are represented by State
Bargaining Unit 2, beginning on the first day of the pay period
following the operative date of the amendments made by this bill. By
increasing member contributions into a continuously appropriated
fund, this bill would make an appropriation. The bill would reduce
the contribution rates by 1% for excluded state miscellaneous or
state industrial members related to State Bargaining Unit 2.
Existing law requires the state to pay sworn members of the
California Highway Patrol who are rank-and-file members of State
Bargaining Unit 5 the estimated average total compensation for each
corresponding rank in specified local police departments. Existing
law requires any increase in total compensation resulting from a
survey of the average compensation for those departments to be
implemented through a memorandum of understanding negotiated pursuant
to the Ralph C. Dills Act. Existing law requires that any amount
that would otherwise be used to permanently increase compensation for
those members of State Bargaining Unit 5 pursuant to those
provisions, effective on July 1, 2009, and on July 1, 2010, to
permanently prefund postemployment health care benefits for patrol
members, as provided.
This bill would authorize the Director of the Department of
Personnel Administration to apply the provision directing the use of
those amounts to prefund postemployment health care benefits for
patrol members to excluded patrol members and an officer or employee
of the executive branch who is not a member of civil service.
This bill would declare that it is to take effect immediately
as an urgency statute.
Existing law provides for the payment of preretirement survivor
benefits to the beneficiary of a deceased member of the Public
Employees' Retirement System, as specified. Existing law also
provides that no person shall receive more than one allowance of the
preretirement survivor benefits.
This bill would make technical, nonsubstantive changes to that
provision.
Vote: majority 2/3 . Appropriation:
no yes . Fiscal committee: no
yes . State-mandated local program: no.
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 an agreement pursuant to
Section 3517.5 of the Government Code entered into by the state
employer and State Bargaining Unit 2.
SEC. 2. The provisions of the memorandum of
understanding prepared pursuant to Section 3517.5 of the Government
Code and entered into by the state employer and State Bargaining Unit
2, dated March 7, 2011, 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 memorandum of
understanding approved by 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, the state employer and the affected employee
organization shall meet and confer to renegotiate the affected
provisions.
SEC. 4. Notwithstanding Section 3517.6 of the
Government Code, the provisions of the memorandum of understanding
included in Section 2 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 18929.96 of the
Government Code is amended and renumbered to read:
18929.96. 19829.96. (a)
Notwithstanding Section 13340, for the 2011-12 fiscal year, if the
2011-12 Budget Act is not enacted by July 1, 2011, 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 1, 2010, to July 1, 2013, inclusive), or State Bargaining
Unit 2 (effective April 1, 2011, to July 1, 2013, 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 2011-12 Budget Act 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, 2011, of the 2011-12
fiscal year and the enactment of the 2011-12 Budget Act.
(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 1, 2010, to July 1, 2013, inclusive),
or State Bargaining Unit 2 (effective April 1, 2011, to July 1,
2013, 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 2011-12 Budget Act, these
expenditures shall be subsumed by the expenditure authority approved
in the 2011-12 Budget Act 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
memoranda of understanding (each effective July 1, 2010, to July 1,
2013, inclusive) , or State Bargaining Unit 2 (effective April
1, 2011, to July 1, 2013, inclusive) .
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 each unit
expires on July 1, 2013.
SEC. 6. Section 19829.97 of the
Government Code is amended to read:
19829.97. (a) Notwithstanding Section 13340, for the 2012-13
fiscal year, if the 2012-13 Budget Act is not enacted by July 1,
2012, 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 1, 2010, to July 1, 2013, inclusive),
or State Bargaining Unit 2 (effective April 1, 2011, to July 1,
2013, 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 2012-13 Budget Act 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, 2012, of the 2012-13 fiscal year and the enactment of
the 2012-13 Budget Act.
(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 1, 2010, to July 1, 2013, inclusive),
or State Bargaining Unit 2 (effective April 1, 2011, to July 1,
2013, 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 2012-13 Budget Act, these
expenditures shall be subsumed by the expenditure authority approved
in the 2012-13 Budget Act 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
memoranda of understanding (each effective July 1, 2010, to July 1,
2013, inclusive) , or State Bargaining Unit 2 (effective April
1, 2011, to July 1, 2013, inclusive) . 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 each unit expires on July 1, 2013.
SEC. 7. Section 19829.98 of the
Government Code is amended to read:
19829.98. (a) Notwithstanding Section 13340, for the 2013-14
fiscal year, if the 2013-14 Budget Act is not enacted by July 1,
2013, 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 1, 2010, to July 1, 2013, inclusive),
or State Bargaining Unit 2 (effective April 1, 2011, to July 1,
2013, 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 2013-14 Budget Act 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, 2013, of the 2013-14 fiscal year and the enactment of
the 2013-14 Budget Act.
(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 1, 2010, to July 1, 2013, inclusive),
or State Bargaining Unit 2 (effective April 1, 2011, to July 1,
2013, 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 2013-14 Budget Act, these
expenditures shall be subsumed by the expenditure authority approved
in the 2013-14 Budget Act 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
memoranda of understanding (each effective July 1, 2010, to July 1,
2013, inclusive) , or State Bargaining Unit 2 (effective April
1, 2011, to July 1, 2013, inclusive) . 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 each unit expires on July 1, 2013.
SEC. 8. Section 20677.5 of the
Government Code is amended to read:
20677.5. (a) Notwithstanding any provisions of Section 20677.4 to
the contrary, effective with the beginning of the July 2006
on the first day of the pay period
following the operative date of the amendments to this section made
by Senate Bill 321 of the 2011-12 Regular Session , the normal
rate of contribution for state miscellaneous or state industrial
members who are subject to Section 21354.1, and are represented by
State Bargaining Unit 2, shall be:
(1) Seven Ten percent of 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.
(2) Six Nine percent of compensation
in excess of five hundred thirteen dollars ($513) per month paid to
that member whose service has been included in the federal system.
(b) 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.
(c) The Director of the Department of Personnel Administration may
establish the normal rate of contribution for a 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.
The normal rate of contribution shall be the same for all members
identified in this subdivision. The contribution rate shall be
effective the beginning of the pay period indicated by the Director
of the Department of Personnel Administration but shall be no earlier
than the beginning of the pay period following the date the board
receives notification.
SEC. 9. Section 20682 of the Government
Code is amended to read:
20682. Notwithstanding Sections 20677.4, 20677.5, 20677.6,
20677.9, 20683, 20683.1, 20686, and 20687, effective with the
beginning of the pay period following enactment of this section, the
normal rate of contribution for a 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 shall be the
following:
(a) For state miscellaneous or state industrial members:
(1) Nine percent of 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.
(2) Eight percent of compensation in excess of five hundred
thirteen dollars ($513) per month paid to that member whose service
has been included in the federal system.
(b) For state miscellaneous or state industrial members who are
excepted from the definition of "state employee" in subdivision (c)
of Section 3513 and related to State Bargaining Unit 2:
(1) Ten Nine percent of 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.
(2) Nine Eight percent of
compensation in excess of five hundred thirteen dollars ($513) per
month paid to that member whose service has been included in the
federal system.
(c) State safety members shall be 9 percent of 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) Peace officer/firefighter members shall be 11 percent of
compensation in excess of eight hundred sixty-three dollars ($863)
for state employees who are excepted from the definition of "state
employee" in subdivision (c) of Section 3513 and related to State
Bargaining Unit 6.
(e) Peace officer/firefighter members shall be 11 percent of
compensation in excess of five hundred thirteen dollars ($513) for
state employees who are excepted from the definition of "state
employee" in subdivision (c) of Section 3513 and related to State
Bargaining Unit 7.
SEC. 10. Section 20683.1 of the
Government Code is amended to read:
20683.1. (a) For each state safety member subject to Section
21369 or 21369.1 who are represented by State Bargaining Unit 2, the
normal rate of contribution shall be 7 10
percent of compensation in excess of three hundred seventeen
dollars ($317) per month paid to a member whose service is not
included in the federal system beginning with the July 2006
on the first day of the pay period
following the operat ive date of the amendments to this
section made by Senate Bill 321 of the 2011-12 Regular Session
. 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 the memorandum of understanding require the expenditure of funds,
those provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
(b) The Director of the Department of Personnel Administration may
establish the normal rate of contribution for a 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.
The normal rate of contribution shall be the same for all members
identified in this subdivision. The contribution rate shall be
effective the beginning of the pay period indicated by the Director
of the Department of Personnel Administration but shall be no earlier
than the beginning of the pay period following the date the board
receives notification.
SEC. 11. Section 22944.3 of the
Government Code is amended to read:
22944.3. (a) Any amount that would otherwise be used to
permanently increase compensation pursuant to Section 19827,
effective on July 1, 2009, and on July 1, 2010, shall instead be used
to permanently prefund postemployment health care benefits for
patrol members. The amount used to prefund benefits relative to any
increases under the survey methodology effective July 1, 2010, shall
not exceed 2 percent. The state shall take credit for these
prefunding contributions in the survey methodology established in
Section 19827 in the same manner as it would for an increase to the
base salary for patrol members.
(b) Patrol members shall contribute an additional 0.5 percent of
base pay toward prefunding retiree health benefit obligations
effective on the first day of the pay period following the effective
date of the act adding this section and the ratification of the
addendum by the members of State Bargaining Unit 5. This contribution
shall not reduce the base salary of patrol members under the survey
methodology established by Section 19827.
(c) Effective July 1, 2012, the state shall contribute toward
prefunding retiree health benefits, on a prospective basis, an amount
at least equal to the combined contribution rate established
pursuant to subdivisions (a) and (b). These contributions may be used
in the survey methodology established by Section 19827 if mutually
agreed in a memorandum of understanding.
(d) Contributions paid pursuant to this section shall be used
exclusively for the cost of providing postemployment health care to
eligible enrolled patrol member annuitants and their eligible
enrolled dependents, beneficiaries, and survivors.
(e) Contributions paid pursuant to this section shall not be
refundable under any circumstances to a patrol member or his or her
beneficiary or survivor.
(f) Any amount used to prefund postemployment health care for
patrol members pursuant to subdivision (a) shall not be included in
any calculation for benefits using final compensation.
(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 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.
(h) For purposes of this section, "patrol member" has the same
meaning as in Section 20390. This section shall not apply to an
employee of a county.
(i) The Director of the Department of Personnel Administration may
exercise his or her discretion to apply the provisions of this
section to patrol members who are 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, provided that the application of these
provisions is the same for all patrol members identified in this
subdivision.
SEC. 12. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order for the provisions of this act to be applicable as soon
as possible in the 2010-11 fiscal year and thereby facilitate the
orderly administration of state government at the earliest possible
time, it is necessary that this act take effect immediately.
SECTION 1. Section 21570 of the Government Code
is amended to read:
21570. A person shall not receive more than one allowance under
this article and that allowance shall be the largest of the monthly
allowances to which he or she would otherwise be entitled.
