BILL NUMBER: SB 357	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 29, 2006
	PASSED THE ASSEMBLY  AUGUST 22, 2006
	AMENDED IN ASSEMBLY  AUGUST 14, 2006
	AMENDED IN ASSEMBLY  JUNE 22, 2005
	AMENDED IN SENATE  MAY 18, 2005
	AMENDED IN SENATE  MAY 4, 2005
	AMENDED IN SENATE  APRIL 18, 2005

INTRODUCED BY   Senator Perata
   (Principal coauthor: Assembly Member Nunez)

                        FEBRUARY 16, 2005

   An act to amend Section 21537.5 of, and to add Section 20037.8 to,
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 357, Perata  State employees: memoranda of understanding: State
Bargaining Units 12 and 13.
   (1) Under existing law, a provision of a memorandum of
understanding reached between the state employer and a recognized
employee organization representing state civil service employees that
requires the expenditure of funds does 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 12 and 13, and would provide that
these provisions will become effective even if these provisions are
approved by the Legislature in legislation other than the annual
Budget Act.
   This bill would further provide that provisions of the memoranda
of understanding approved by this bill that require the expenditure
of funds will not take effect unless funds for these provisions are
specifically appropriated by the Legislature, and would authorize the
state employer and the affected employee organization to reopen
negotiations on all or part of the memoranda if funds for those
provisions are not specifically appropriated by the Legislature.
   (2) The Public Employees' Retirement Law provides a comprehensive
set of rights and benefits based upon age, service credit, and final
compensation. Existing law defines final compensation variously for
different member classifications and bargaining units and, in this
regard, defines final compensation for a state member for the purpose
of calculating retirement benefits as the highest annual average
compensation earnable by the member during a designated 12-month
period.
   This bill would provide that final compensation for a person who
becomes a state member, as specified, on or after January 1, 2007,
and who is represented by State Bargaining Units 12 or 13 means the
highest annual average compensation earnable by the member during a
designated 36-month period.
   (3) Existing law entitles the survivor of a state miscellaneous
member in State Bargaining Unit 12 employed by the Department of
Transportation who is killed as a result of injury arising out of,
and in the course of, his or her duties, to a special death benefit.

   This bill would instead allow for that special death benefit only
if the member's death occurred as a direct result of injury arising
out of, and in the course of, those duties while working on the
California highway system performing highway maintenance.
   (4) This bill would also appropriate $47,756,000 from the General
Fund and other unallocated funds for expenditure for the 2006-07
fiscal year for state employee compensation in augmentation of the
Budget Act of 2006, as specified.
   (5) 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 approve the provisions of agreements pursuant to
Section 3517 of the Government Code entered into by the state
employer and State Bargaining Units 12 and 13, International Union of
Operating Engineers, on June 29, 2006, (State Bargaining Unit 12),
and July 10, 2006, (State Bargaining Unit 13), that require the
expenditure of funds.
  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 State Bargaining Units 12 and 13,
International Union of Operating Engineers, and that require the
expenditure of funds, are hereby approved for the purposes of
subdivision (b) 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, 2006, and that require the expenditure of funds, shall
not take effect unless funds for these provisions are specifically
appropriated by the Legislature. If the Legislature does not approve
or fully fund any provision of the memoranda of understanding that
requires the expenditure of funds, either party may reopen
negotiations on all or part of the memoranda of understanding.
  SEC. 4.  Notwithstanding Section 3517.6 of the Government Code, the
provisions of any memorandum of understanding included in Section 2
that require the expenditure of funds shall become effective even if
the provisions of the memoranda of understanding are approved by the
Legislature in legislation other than the annual Budget Act.
  SEC. 5.  Section 20037.8 is added to the Government Code, to read:

   20037.8.  (a) Notwithstanding Sections 20035 and 20037, final
compensation for a person who becomes a state member of the system on
or after January 1, 2007, and is represented by State Bargaining
Unit 12 or 13, means the highest average annual compensation earnable
by the member during the consecutive 36-month period immediately
preceding the effective date of his or her retirement, or the date of
his or her last separation from state service if earlier, or during
any other period of 36 consecutive months during his or her state
membership that the member designates on the application for
retirement.
   (b) This section applies to service credit accrued while a member
of State Bargaining Unit 12 or 13.
   (c) This section does not apply to:
   (1) Former state employees previously employed before January 1,
2007, who return to state employment on or after January 1, 2007.
   (2) State employees hired prior to January 1, 2007, who were
subject to Section 20281.5 during the first 24 months of state
employment.
   (3) State employees hired prior to January 1, 2007, who become
subject to representation by State Bargaining Unit 12 or 13 on or
after January 1, 2007.
   (4) State employees on an approved leave of absence employed
before January 1, 2007, who return to active employment on or after
January 1, 2007.
  SEC. 6.  Section 21537.5 of the Government Code is amended to read:

   21537.5.  (a) The special death benefit is payable if the deceased
was a state miscellaneous member in State Bargaining Unit 12
employed by the Department of Transportation, if his or her death
occurred as a direct result of injury arising out of and in the
course of his or her official duties with the department working on
the California highway system performing highway maintenance, and if
there is a survivor who qualifies under subdivision (b) of Section
21541. The Workers' Compensation Appeals Board, using the same
procedures as in workers' compensation hearings, shall in disputed
cases determine whether the death of the member occurred as a result
of that injury.
   (b) The jurisdiction of the Workers' Compensation Appeals Board
shall be limited solely to the issue of industrial causation, and
this section may not be construed to authorize the Workers'
Compensation Appeals Board to award costs against this system
pursuant to Section 4600, 5811, or any other provision of the Labor
Code.
   (c) This section shall not become operative unless and until a
memorandum of understanding has been agreed to by the state employer
and the recognized employee organization making this section
applicable to those members described in subdivision (a).
  SEC. 7.  The sum of forty-seven million seven hundred fifty-six
thousand dollars ($47,756,000) is hereby appropriated for expenditure
in the 2006-07 fiscal year 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
2006 in accordance to the following schedule:
   (a) Seventeen million five hundred sixty-three thousand dollars
($17,563,000) from the General Fund in augmentation of Item
9800-001-0001.
   (b) Nineteen million three hundred twenty-three thousand dollars
($19,323,000) from unallocated special funds in augmentation of Item
9800-001-0494.
   (c) Ten million eight hundred seventy thousand dollars
($10,870,000) from other unallocated nongovernmental cost funds in
augmentation of Item 9800-001-0988.
  SEC. 8.  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 2006-07 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.