BILL NUMBER: SB 222 CHAPTERED 08/26/02 CHAPTER 278 FILED WITH SECRETARY OF STATE AUGUST 26, 2002 APPROVED BY GOVERNOR AUGUST 26, 2002 PASSED THE SENATE AUGUST 19, 2002 PASSED THE ASSEMBLY AUGUST 12, 2002 AMENDED IN ASSEMBLY JULY 29, 2002 AMENDED IN ASSEMBLY JULY 16, 2002 AMENDED IN ASSEMBLY JUNE 26, 2002 AMENDED IN ASSEMBLY JULY 5, 2001 AMENDED IN ASSEMBLY JUNE 26, 2001 AMENDED IN SENATE APRIL 24, 2001 AMENDED IN SENATE MARCH 27, 2001 INTRODUCED BY Senator Torlakson (Coauthor: Senator Alpert) (Coauthor: Assembly Member Steinberg) FEBRUARY 14, 2001 An act to add and repeal Sections 20677.6 and 20683.5 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 222, Torlakson. 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. Existing law also provides that if a memorandum of understanding has expired, a new memorandum has not been agreed to, and the parties have not reached an impasse, the expired memorandum of understanding shall continue in effect. This bill would approve provisions that require the expenditure of funds of specified tentative agreements entered into between the state employer and State Bargaining Unit 9. (2) Existing law prescribes contribution rates for state employees who are state miscellaneous and state safety members of the Public Employees' Retirement System. This bill would reduce the contribution rates, as specified, for state miscellaneous and state safety members in State Bargaining Unit 9 until June 30, 2003. (3) 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 $4,643,000, as scheduled, from those funds in augmentation of specified items of the Budget Act of 2001, for state employee compensation. (4) This 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 implement the tentative agreements reached on June 18, 2002, between the state employer and State Bargaining Unit 9. SEC. 2. Notwithstanding Section 3517.8, the provisions of the tentative agreements entered into by the state employer and the State Bargaining Unit 9 described in Section 1 that require the expenditure of funds to permit their implementation are hereby approved. Except as expressly modified by those tentative agreements, the provisions of the memorandum of understanding between the state employer and State Bargaining Unit 9 dated July 1, 1999, to June 30, 2001, continue in effect as provided in Section 3517.8. SEC. 3. Section 20677.6 is added to the Government Code, to read: 20677.6. (a) Notwithstanding any provisions of this part to the contrary, the normal rate of contribution for state miscellaneous members in State Bargaining Unit 9 shall be the following: (1) Effective as of a date determined by the Director of the Department of Personnel Administration, but no earlier than April 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 to that member for service rendered. (2) Effective as of a date determined by the Director of the Department of Personnel Administration, but no earlier than April 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 compensation for service rendered. (b) Notwithstanding any provisions 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 of the Government Code, 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. 4. Section 20683.5 is added to the Government Code, to read: 20683.5. (a) Notwithstanding any provisions of Section 20683 to the contrary, the normal rate of contribution for state safety members subject to Section 21369.1 in State Bargaining Unit 9 shall be, effective as of a date determined by the Director of the Department of Personnel Administration, but no earlier than April 1, 2002, to June 30, 2003, inclusive, 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) This section shall apply to state employees in state Bargaining Unit 9. 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. 5. The sum of four million six hundred forty-three thousand dollars ($4,643,000) is hereby appropriated 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 2001 (Chapter 106 of the Statutes of 2001) in accordance to the following schedule: (a) Six hundred forty-nine thousand dollars ($649,000) from the General Fund in augmentation of Item 9800-001-0001. (b) Two million five hundred fifty-six thousand dollars ($2,556,000) from unallocated special funds in augmentation of Item 9800-001-0494. (c) One million four hundred thirty-eight thousand dollars ($1,438,000) from other unallocated nongovernmental cost funds in augmentation of Item 9800-001-0988. SEC. 6. 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, and thereby facilitate the orderly administration of state government at the earliest possible time, it is necessary that this act take effect immediately.