BILL ANALYSIS                                                                                                                                                                                                    



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          CONCURRENCE IN SENATE AMENDMENTS
          AB 649 (Negrete McLeod)
          As Amended September 14, 2001
          2/3 vote
           
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          |ASSEMBLY:  |     |(May 17, 2001)  |SENATE: |33-2 |(September 14, |
          |           |     |                |        |     |2001)          |
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           Original Committee Reference:    P.E.,R. & S.S.  
           
          SUMMARY  :   Ratifies the memoranda of understanding (MOU) between  
          the state and State Bargaining Units (Units) 5 (represented  
          exclusively by the California Association of Highway Patrolmen)  
          and 8 (represented exclusively by the California Department of  
          Forestry Firefighters).  

           The Senate amendments  delete the Assembly version of the bill,  
          and instead:

          1)Provides the following for Unit 5 employees:

             a)   Effective July 1, 2003, Unit 5 members shall receive a  
               general salary increase of forty-five percent (45%) of the  
               agreed upon difference between the weighted average of the  
               total compensation for the five jurisdictions referenced in  
               Government Code Section 19827 and the weighted average for  
               the CHP Officer.

             b)   Effective July 1, 2004, Unit 5 members shall receive a  
               general salary increase of sixty-five percent (65%) of the  
               agreed upon difference between the weighted average of the  
               total compensation for the five jurisdictions referenced in  
               Government Code Section 19827 and the weighted average for  
               the CHP Officer.

             c)   Effective July 1, 2005, Unit 5 members shall receive a  
               general salary increase of ninety-five percent (95%) of the  
               agreed upon difference between the weighted average of the  
               total compensation for the five jurisdictions referenced in  
               Government Code Section 19827 and the weighted average for  
               the CHP Officer.

             d)   Effective July 1, 2006, Unit 5 members shall receive a  








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               general salary increase of one hundred percent (100%) of  
               the agreed upon difference between the weighted average of  
               the total compensation for the five jurisdictions  
               referenced in Government Code Section 19827 and the  
               weighted average for the CHP Officer.

             e)   The State will continue to pick up 100 percent of the  
               employee's retirement contribution.

             f)   For a member who retires on or after July 1, 2001 and  
               prior to July 1, 2004, the member's        payrate shall  
               include one-half of the normal contributions specified in  
               subdivision (a) of Section 20681 for the portion of the  
               member's final compensation period that occurs during the  
               period July 1, 2001 through June 30, 2004.

             g)   For a member who retires on or after July 1, 2004 and  
               prior to July 1, 2006, the member's payrate shall include:

               i)     The normal contributions specified in subdivision  
                 (a) of Section 20681 for the portion of the member's  
                 final compensation period that occurs during the period  
                 July 1, 2004 through June 30, 2006; and

               ii)       One-half of the normal contributions specified in  
                 subdivision (a) of Section 20681 for the portion of the  
                 member's final compensation period that occurs during the  
                 period July 1, 2001 through June 30, 2004.

               iii)      These items remain in effect only until July 1,  
                 2006 and as of that date is repealed. 

             h)   Effective July 1, 2001 to December 31, 2001, for  
               employees in Bargaining Unit 5, the State will contribute  
               the following per month toward the costs of health  
               benefits: 1 Party - $187; 2 Party - $371; and, 3 Party -  
               $485.

             i)   Effective January 1, 2002 to December 31, 2002, for  
               employees in Bargaining Unit 5,  the State will contribute  
               the following per month toward the costs of health  
               benefits: 1 Party - $195; 2 Party - $387; and, 3 Party -  
               $506.

             j)   Effective January 1, 2003, for employees in Bargaining  








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               Unit 5, the State will contribute the following per month  
               toward the costs of health benefits: 1 Party - $195 plus  
               two thirds of the January 1, 2003 CalPERS HMO increase, as  
               specified; $387 plus two thirds of the January 1, 2003  
               CalPERS HMO increase, as specified; and, $506 plus two  
               thirds of the January 1, 2003 CalPERS HMO increase, as  
               specified.

             aa)  Makes other changes specific to Unit 5 as specified in  
               the MOU. 

             bb)  This agreement is effective July 1, 2001 to July 2,  
               2006.  The Uniform Allowance, Medical Benefits, and  
               Deferred Retirement Option Plan will be automatically  
               reopened July 1, 2003 and each year thereafter during the  
               term of the agreement.

          2)Provides the following for Unit 8 employees:

             a)   Effective July 1, 2003, all employees will receive a 5%  
               salary increase.

             b)   Effective August 31, 2001, all employees will receive a  
               2.5% reduction in the employee's contribution for  
               retirement.

             c)   Effective July 1, 2002, all employees will receive an  
               additional 2.5% reduction in the employee's contribution  
               for retirement.

             d)   Effective July 1, 2003, the employees' contribution rate  
               for retirement will be restored to levels effective on  
               August 30, 2001.

             e)   The parties agree that either party may declare this  
               section of the MOU null and void if the California Public  
               Employees' Retirement (CalPERS) Board of Administration  
               alters the amortization schedule that accelerates the  
               employer payment obligation.  If this should occur, the  
               employees' retirement contribution rate will be restored to  
               levels in effect on August 30, 2001 and the parties will  
               immediately meet and confer in good faith to discuss  
               alternative provisions.

             f)   Effective July 1, 2001 to December 31, 2001, the state  








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               contribution per month toward the costs of consolidated  
               benefits will be: 1 Party - $222; 2 Party - $427; and, 3  
               Party - $563.

             g)   Effective January 1, 2002 to December 31, 2002, the  
               state contribution per month toward the cost of  
               consolidated benefits will be: 1 Party - $230; 2 Party -  
               $443; and , 3 Party - $584.

             h)   Effective January 1, 2003, the state contribution per  
               month toward the cost of consolidated benefits will be: 1  
               Party - $230 plus two thirds of the January 1 2003 CalPERS  
               HMO premium increase, as specified; 2 Party - $443 plus two  
               thirds of the January 1 2003 CalPERS HMO premium increase,  
               as specified; and, 3 Party - $584 plus two thirds of the  
               January 1 2003 CalPERS HMO premium increase, as specified.

             i)   Makes other changes specific to Unit 8 as specified in  
               the MOU. 

             j)   This agreement is effective July 1, 2001 to July 2,  
               2006.  
           
          AS PASSED BY THE ASSEMBLY  , the bill required all community  
          college districts (CCDs) to offer, by July 1, 2003, the  
          California State Teachers' Retirement System (CalSTRS) Cash  
          Balance (CB) Benefit Program to their part-time employees and  
          also allows those employees the right to elect coverage under  
          the CB Benefit Program, Social Security, or an alternative  
          retirement plan offered by the employer.

           FISCAL EFFECT  :   Funding needed to implement the provisions of  
          the collective bargaining agreements will be carried in AB 933  
          (Migden).

           COMMENTS  :   Under existing law, the Ralph C. Dills Act requires  
          the Legislature to ratify each MOU prior to implementation when  
          the agreement contains provisions requiring the expenditure of  
          state funds.  This bill represents the negotiated agreement  
          between the state and state bargaining units 5 and 8.


           Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957 









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