BILL NUMBER: AB 1330 CHAPTERED 07/17/02 CHAPTER 190 FILED WITH SECRETARY OF STATE JULY 17, 2002 APPROVED BY GOVERNOR JULY 16, 2002 PASSED THE ASSEMBLY JULY 8, 2002 PASSED THE SENATE JUNE 29, 2002 AMENDED IN SENATE MAY 22, 2002 AMENDED IN SENATE MAY 8, 2002 AMENDED IN ASSEMBLY JUNE 4, 2001 AMENDED IN ASSEMBLY MAY 1, 2001 AMENDED IN ASSEMBLY APRIL 16, 2001 INTRODUCED BY Assembly Member Steinberg FEBRUARY 23, 2001 An act to add and repeal Sections 20677.7, 20677.8, and 20683.4 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 AB 1330, Steinberg. State employees. (1) Existing law provides that if any provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees requires the expenditure of funds, those provisions of the memorandum of understanding may not become effective unless approved by the Legislature in the annual Budget Act. This bill would approve provisions that require the expenditure of funds of memoranda of understanding entered into between the state employer and State Bargaining Units 14, 17, and 20, the California State Employees Association, and would provide that the provisions of any memorandum of understanding that require the expenditure of funds become effective even if the provisions of the memorandum of understanding are approved by the Legislature in legislation other than the annual Budget Act. This bill would provide that provisions of the memoranda of understanding approved by this bill that require the expenditure of funds shall not take effect unless funds for these provisions are specifically appropriated by the Legislature, and would provide that 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. (2) The Public Employees' Retirement Law provides for the normal rate of contribution to the retirement fund for a state miscellaneous or industrial member, subject to certain criteria. This bill, operative until July 1, 2003, would establish various normal rates of contribution for state miscellaneous or industrial members in State Bargaining Units 14, 17, and 20, as specified, for members who are and are not included in the federal system and to be effective as of a date to be determined by the Director of the Department of Personnel Administration, but no later than May 1, 2002, to June 30, 2002, inclusive, and effective from July 1, 2002, to June 30, 2003, inclusive. (3) Existing law establishes the normal rate of contribution to the Public Employees' Retirement System for specified state safety members. This bill would provide that the normal rate of contribution for specified state safety members in State Bargaining Unit 20 from a date to be determined by the Director of the Department of Personnel Administration, but no earlier than May 1, 2002, to June 30, 2003, is 1% of compensation in excess of $317 per month paid to that member for service rendered. (4) Existing provisions of the Budget Act of 2001 appropriate specified amounts from the General Fund, unallocated special funds, and unallocated nongovernmental cost funds for the augmentation of state employee compensation. This bill would appropriate an additional $4,837,000, as scheduled, from those funds in augmentation of specified items of the Budget Act of 2001 for state employee compensation. (5) The bill would declare that it is to take effect immediately as an urgency statute. Appropriation: yes. 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 agreements pursuant to Section 3517 of the Government Code entered into by the state employer and Bargaining Unit 14, California State Employees Association, Printing Trades; Bargaining Unit 17, California State Employees Association, Registered Nurses; and Bargaining Unit 20, California State Employees Association, Medical and Social Services. SEC. 2. 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 the bargaining units described in Section 1, and that require the expenditure of funds or legislative action to permit their implementation, are hereby approved for the purposes of Section 3517.6 of the Government Code. SEC. 3. The provisions of the memoranda of understanding approved by Section 2 of this act that are scheduled to take effect on or after July 1, 2002, and that require the expenditure of funds, shall not take effect unless funds for these provisions are specifically appropriated by the Legislature. In the event that 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 any memorandum of understanding 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 20677.7 is added to the Government Code, to read: 20677.7. (a) Notwithstanding any provision of this part to the contrary, the normal rate of contribution for state miscellaneous or industrial members in State Bargaining Unit 17 shall be the following: (1) Effective as of a date to be determined by the Director of the Department of Personnel Administration, but no earlier than May 1, 2002, to June 30, 2002, inclusive, the normal rate of contribution for a member whose service is not included in the federal system shall be 3.5 percent of the compensation in excess of three hundred seventeen dollars ($317) per month paid that member for service rendered. (2) Effective July 1, 2002, to June 30, 2003, inclusive, the normal rate of contribution for a member whose service is not included in the federal system shall be 1 percent of the compensation in excess of three hundred seventeen dollars ($317) per month paid that member for service rendered. (3) Effective as of a date to be determined by the Director of the Department of Personnel Administration, but no earlier than May 1, 2002, to June 30, 2002, inclusive, the normal rate of contribution for a member whose service has been included in the federal system shall be 2.5 percent of the compensation in excess of five hundred thirteen dollars ($513) per month paid that member for service rendered. (4) Effective July 1, 2002, to June 30, 2003, inclusive, the normal rate of contribution for a member whose service has been included in the federal system shall be zero percent of the compensation for service rendered. (b) Notwithstanding any provision of Section 21073.7 to the contrary, a member who elects to become subject to the benefits prescribed in Section 21354.1 and who is subject to this section shall be subject to the normal rate of contribution set forth in this section. (c) This section does not apply to state miscellaneous or state industrial members who are subject to Section 21076. (d) 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 may not become effective unless approved by the Legislature in the annual Budget Act. (e) This section shall become inoperative on July 1, 2003, and, as of January 1, 2004, is repealed, unless a later enacted statute that is enacted before January 1, 2004, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 6. Section 20677.8 is added to the Government Code, to read: 20677.8. (a) Notwithstanding any provision of this part to the contrary, the normal rate of contribution for state miscellaneous or industrial members in State Bargaining Unit 14 or 20 shall be the following: (1) Effective as of a date to be determined by the Director of the Department of Personnel Administration, but no earlier than May 1, 2002, to June 30, 2003, inclusive, the normal rate of contribution for a member whose service is not included in the federal system shall be 1 percent of the compensation in excess of three hundred seventeen dollars ($317) per month paid that member for service rendered. (2) Effective as of a date to be determined by the Director of the Department of Personnel Administration, but no earlier than May 1, 2002, to June 30, 2003, inclusive, the normal rate of contribution for a member whose service has been included in the federal system shall be zero percent of the compensation for service rendered. (b) Notwithstanding any provision of Section 21073.7 to the contrary, a member who elects to become subject to the benefits prescribed in Section 21354.1 and who is subject to this section shall be subject to the normal rate of contribution set forth in this section. (c) This section does not apply to state miscellaneous members who are subject to Section 21076. (d) 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 may not become effective unless approved by the Legislature in the annual Budget Act. (e) This section shall become inoperative on July 1, 2003, and, as of January 1, 2004, is repealed, unless a later enacted statute that is enacted before January 1, 2004, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 7. Section 20683.4 is added to the Government Code, to read: 20683.4. (a) Notwithstanding any provision of Section 20683 to the contrary, effective as of a date to be determined by the Director of the Department of Personnel Administration, but no earlier than May 1, 2002, to June 30, 2003, inclusive, the normal rate of contribution for state safety members subject to Section 21369.1 in State Bargaining Unit 20 shall be 1 percent of the compensation in excess of three hundred seventeen dollars ($317) per month paid to that member for service rendered. (b) This section does not apply to members employed by the California State University or the University of California. (c) 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 may not become effective unless approved by the Legislature in the annual Budget Act. (d) This section shall become inoperative on July 1, 2003, and, as of January 1, 2004, is repealed, unless a later enacted statute, that is enacted before January 1, 2004, deletes or extends the date on which it becomes inoperative and is repealed. SEC. 8. The sum of four million eight hundred thirty-seven thousand dollars ($4,837,000) is hereby appropriated for expenditure in the 2001-02 fiscal year in augmentation of, and for the purpose of state employee compensations as provided in, Items 9800-001-0001, 9800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget Act of 2001 (Chapter 106 of the Statutes of 2001) in accordance with the following schedule: (a) Four million one hundred seventy thousand dollars ($4,170,000) from the General Fund in augmentation of Item 9800-001-0001. (b) Four hundred twenty-seven thousand dollars ($427,000) from unallocated special funds in augmentation of Item 9800-001-0494. (c) Two hundred forty thousand dollars ($240,000) from other unallocated nongovernmental cost funds in augmentation of Item 9800-001-0988. SEC. 9. 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 2001-02 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.