BILL NUMBER: AB 736 CHAPTERED 09/11/02 CHAPTER 456 FILED WITH SECRETARY OF STATE SEPTEMBER 11, 2002 APPROVED BY GOVERNOR SEPTEMBER 11, 2002 PASSED THE ASSEMBLY AUGUST 23, 2002 PASSED THE SENATE AUGUST 19, 2002 AMENDED IN SENATE AUGUST 5, 2002 INTRODUCED BY Assembly Member Oropeza FEBRUARY 22, 2001 An act to add and repeal Sections 20677.9 and 20683.6 to the Government Code, relating to state employees, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 736, Oropeza. State employees: memorandum of understanding. 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 shall not become effective unless approved by the Legislature in the annual Budget Act. This bill would approve provisions, that require the expenditure of funds or legislative action, of a memorandum of understanding entered into between the state employer and State Bargaining Unit 13, International Union of Operating Engineers, Stationary Engineers, and would provide that 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. This bill would provide that provisions of the memorandum 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. Existing law prescribes contribution rates for state employees who are state miscellaneous, state industrial, or state safety members of the Public Employees' Retirement System. This bill would reduce the contribution rates, as specified, for those members in State Bargaining Unit 13 until June 30, 2003. The bill would also declare that it is to take effect immediately as an urgency statute. 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 of the Government Code entered into by the state employer and State Bargaining Unit 13, International Union of Operating Engineers, Stationary Engineers. 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 13, 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 memorandum 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. 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, any provisions of the 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 20677.9 is added to the Government Code, to read: 20677.9. (a) Notwithstanding any provisions of this part to the contrary, the normal rate of contribution for state miscellaneous and state industrial members in State Bargaining Unit 13 shall be the following: (1) 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. (2) 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 per month paid that member for service rendered. (b) Notwithstanding any provisions of Section 21073.3 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 the 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 becomes operative on or before January 1, 2004, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 6. Section 20683.6 is added to the Government Code, to read: 20683.6. (a) Notwithstanding any provisions of Section 20683 to the contrary, effective July 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 13 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. 7. 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 2002-03 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.