BILL ANALYSIS
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 1369
Nell Soto, Chair Hearing date: August 7, 2006
AB 1369 (Nunez) as amended 8/07/06 FISCAL: YES
STATE BARGAINING UNITS 1, 3, 4, 11, 14, 15, 17, 20 and 21:
RATIFY MEMORANDA OF UNDERSTANDING
HISTORY :
Sponsor: Service Employees International Union (SEIU),
Local 1000
Department of Personnel Administration (DPA)
Prior legislation: none
ASSEMBLY VOTES (as an MOU spot bill) :
PER & SS 4-1 4/06/05
Appropriations 13-5 5/25/05
Assembly Floor 48-31 6/01/05
SUMMARY :
Would approve the recent agreement between the State and nine
State Bargaining Units represented by the Service Employees
International Union (SEIU), Local 1000. URGENCY BILL.
BACKGROUND :
1) Existing state law , the State Employee-Employer Relations
Act (the Dills Act), requires that collective bargaining
agreements (Memoranda of Understanding or MOUs) that are
negotiated between the state and exclusive representatives of
each of the 21 state bargaining units be ratified by the
Legislature in a piece of legislation.
2) This bill provides the appropriate boilerplate language
for the Legislature to ratify the MOU between the state and
the following state bargaining units represented by Service
Employees International Union (SEIU), Local 1000:
Unit 1 (Administrative, Financial, and Staff Services)
David Felderstein
Date: 8/3/06 Page 1
Unit 3 (Education and Library)
Unit 4 (Office and Allied)
Unit 11 (Engineering and Scientific Technicians)
Unit 14 (Printing Trades)
Unit 15 (Custodial and Allied Services)
Unit 17 (Registered Nurses)
Unit 20 (Medical and Social Services)
Unit 21 (Educational Consultant, Library and Maritime)
David Felderstein
Date: 8/3/06 Page 2
ANALYSIS :
1) Number of state employees affected
90,347 full-time equivalents
2) Compensation
a) One-Time Bonus
Upon ratification, all employees in Bargaining Units 1, 3,
4, 11, 14, 15, 17, 20, and 21 will receive a one-time bonus
of $1,000.
b) Cost-of-Living Adjustments
Effective July 1, 2006, all employees in Bargaining Units
1, 3, 4, 11, 14, 15, 17, 20, and 21 will receive a 3.5%
general salary increase.
Effective July 1, 2007, all employees in Bargaining Units
1, 3, 4, 11, 14, 15, 17, 20, and 21 will receive a COLA of
2-4 % (actual amount to be based on the Consumer Price
Index for the 12-month period from April 2006 through March
2007).
c) Equity Adjustments
Effective July 1, 2006, employees in classifications at the
State Special Schools in Riverside will receive a
recruitment and retention differential of $200 per month.
Effective January 1, 2007, the top salary for Auditor
classifications will be raised 5%.
Effective January 1, 2007, the top salary for Information
Technology classifications will be raised 5%.
Effective January 1, 2007, the top salary for Respiratory
Care classifications will be raised 10%.
Effective January 1, 2007, the top salary for Licensed
Vocational Nurse and Clinical Lab classifications will be
David Felderstein
Date: 8/3/06 Page 3
raised 5%.
Effective January 1, 2007, the top salary for all
classifications in Unit 17 (Registered Nurses) will be
raised 7.5%.
Effective January 1, 2008, the top salary for Dental
classifications will be raised 5%.
Effective January 1, 2008, the top salary for all Unit 3
classifications will be raised 5%.
David Felderstein
Date: 8/3/06 Page 4
3) Retirement Benefit Calculation
For employees hired on or after January 1, 2007, retirement
benefits will be based on the highest consecutive
three-year average salary.
4) Health Benefits Employer Contribution
a) "80-80" Formula continued
Employees in Bargaining Units 1, 4, 11, 14, 15, 17, 20, and
21 will continue to receive health benefits under the
State's "80-80" formula.
Under this formula, the employer contribution for
single-party coverage is 80% of that year's weighted
average premium of the four plans with the highest employee
enrollment; 80% for dependent coverage.
b) Bargaining Unit 3
Effective July 1, 2006, the State's monthly contribution to
employee health premiums will be set at a dollar amount
that equals the "80-80" formula:
$302 for 1-party, $606 for 2-party, and $788 for family
coverage.
When premiums increase January 1, 2007, and January 1,
2008, the State will raise its contribution so the dollar
amount continues to equal the "80-80" formula.
c) Dependent Coverage
Employees hired on or after January 1, 2007, will become
eligible for the full employer contribution for dependent
health coverage after completing their first two years of
State employment.
The State will contribute 50% of the normal amount for
dependents during the first year, and 75% during the second
year.
David Felderstein
Date: 8/3/06 Page 5
5) Miscellaneous Provisions
a) State Disability Insurance (SDI)
Effective April 1, 2006, employees in all nine bargaining
units represented by SEIU Local 1000 are covered by SDI in
lieu of Non-Industrial Disability Insurance or Enhanced
Non-Industrial Disability Insurance.
The State will continue to pay the employer contribution
for employee health premiums (and any applicable dependent
coverage) for the length of an employee's disability, up to
a maximum of 26 weeks.
The parties agree to meet within 90 days following
ratification to explore alternatives to supplement SDI
benefit with accrued leave.
b) Mileage Reimbursement
Employees authorized to use a privately owned vehicle on
State business will be entitled to claim mileage
reimbursement at the federal standard mileage rate
(currently 44.5 cents per mile).
c) Safety Footwear - Bargaining Unit 11 (Engineering and
Scientific Technicians)
Employees in Unit 11 classifications in the Department of
Transportation and the Department of Water Resources
assigned to work in the field will be reimbursed the actual
cost of safety footwear, not to exceed $100 every 18
months.
d) Uniform Replacement Allowance - Bargaining Unit 15
(Custodial and Allied Services)
The State will pay Unit 15 employees a $450 uniform
replacement allowance, rather than require employees to
submit receipts for reimbursement of these expenses.
6) Duration of MOU
David Felderstein
Date: 8/3/06 Page 6
July 1, 2005, through June 30, 2008; the provisions of this
agreement are effective July 1, 2006.
FISCAL IMPACT :
This bill appropriates $343,635,000 for expenditure in the
2006-07 fiscal year for the purpose of state employee
compensation.
COMMENTS :
1) OPPOSITION :
None to date #####
David Felderstein
Date: 8/3/06 Page 7