BILL NUMBER: AB 1625	ENROLLED
	BILL TEXT

	PASSED THE SENATE  OCTOBER 7, 2010
	PASSED THE ASSEMBLY  OCTOBER 7, 2010
	AMENDED IN SENATE  OCTOBER 7, 2010
	AMENDED IN ASSEMBLY  APRIL 19, 2010

INTRODUCED BY   Assembly Member John A. Perez
   (Principal coauthor: Senator Steinberg)

                        JANUARY 11, 2010

   An act to add Sections 19829.96, 19829.97, 19829.98, 20677.71,
20677.91, and 20682 to the Government Code, relating to public
employment, making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1625, John A. Perez. Public employment: collective bargaining.
   (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 a memorandum of understanding entered into between the
state employer and State Bargaining Units 1, 3, 4, 11, 14, 15, 17,
20, and 21, 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 provide that provisions of the memorandum 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 organizations to reopen
negotiations on all or part of the memorandum of understanding if the
Legislature does not approve or fully fund any provision of the
memorandum of understanding that requires the expenditure of funds.
   (2) The Public Employees' Retirement Law (PERL) provides a
comprehensive set of rights and benefits based upon age, service
credit, and final compensation. PERL prescribes contribution rates
for state employees who are state miscellaneous, state industrial,
state safety members, patrol members, or state peace
officer/firefighter members, among others, in amounts based on
percentages of monthly compensation. PERL reduces those contributions
by excepting from the definition of monthly compensation specified
amounts ranging between $238 and $863, based on member
classification, among other things. Member contributions are
deposited into the Public Employees' Retirement Fund, which is a
continuously appropriated trust fund.
   This bill would increase the contribution rates by 3% for those
state miscellaneous or state industrial members, and state safety
members of State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and
21.
   The bill would also increase the rate of contribution for a state
employee who is excepted from the definition of "state employee," and
for an officer or employee of the executive branch who is not a
member of civil service as follows: the rate for state miscellaneous
or state industrial members would increase to 9% for those employees
not included in the federal system, and to 8% for those included in
the federal system, except that for those persons related to
Bargaining Unit 2, the increase would be to 10% or 9%, respectively;
the rate for state safety members would increase to 9%; the rate for
peace officer/firefighter members who are related to Bargaining Unit
6 or 7 would increase to 11%. By increasing member contributions into
a continuously appropriated fund, this bill would make an
appropriation.
   (3) The annual Budget Act appropriates specified amounts from the
General Fund, unallocated special funds, and unallocated
nongovernmental cost funds, for state employee compensation.
   This bill would, in the event that the annual Budget Act is not
enacted prior to July 1 of each year covered by the memoranda of
understanding for State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20,
and 21, provide for a continuous appropriation for the amount
necessary for the payment of compensation and benefits to members of
those bargaining units.
   (4) Existing law requires the Department of Personnel
Administration to provide a memorandum of understanding to the
Legislative Analyst who shall have 10 calendar days from the date the
tentative agreement is received to issue a fiscal analysis to the
Legislature. Existing law prohibits the memorandum of understanding
from being subject to legislative determination until either the
Legislative Analyst has presented a fiscal analysis of the memorandum
of understanding or until 10 calendar days has elapsed since the
memorandum was received by the Legislative Analyst.
   This bill would state that any failure to comply with those
provisions shall not affect the validity of this act.
   (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 an agreement pursuant to Section 3517.5 of the
Government Code entered into by the state employer and State
Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21 that require the
expenditure of funds.
  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 Units 1, 3, 4, 11, 14, 15,
17, 20, and 21, dated October 7, 2010, and that require the
expenditure of funds, 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, 2010, 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 memorandum of understanding that
requires the expenditure of funds, either party may reopen
negotiations on all or part of the memorandum of understanding.
  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 18929.96 is added to the Government Code, to read:

   18929.96.  (a) Notwithstanding Section 13340, for the 2011-12
fiscal year, if the 2011-12 Budget Act is not enacted by July 1,
2011, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20,
or 21 (each effective July 1, 2010, to July 1, 2013, inclusive),
there is hereby continuously appropriated to the Controller from the
General Fund, unallocated special funds, including, but not limited
to, federal funds and unallocated nongovernmental cost funds, and any
other fund from which state employees are compensated, the amount
necessary for the payment of compensation and employee benefits to
state employees covered by the above memoranda of understanding until
the 2011-12 Budget Act is enacted. The Controller may expend an
amount no greater than necessary to enable the Controller to
compensate state employees covered by the above memoranda of
understanding for work performed between July 1, 2011, of the 2011-12
fiscal year and the enactment of the 2011-12 Budget Act.
   (b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20,
or 21 (each effective July 1, 2010, to July 1, 2013, inclusive), are
in effect and approved by the Legislature, the compensation and
contribution for employee benefits for state employees represented by
these bargaining units shall be at a rate consistent with the
applicable memorandum of understanding referenced above.
   (c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the 2011-12 Budget Act, these
expenditures shall be subsumed by the expenditure authority approved
in the 2011-12 Budget Act for each affected department.
   (d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21
memoranda of understanding (each effective July 1, 2010, to July 1,
2013, inclusive). Notwithstanding Section 3517.8, this section shall
not apply after the term of the memorandum of understanding has
expired. For purposes of this section, the memorandum of
understanding for each unit expires on July 1, 2013.
  SEC. 6.  Section 19829.97 is added to the Government Code, to read:

   19829.97.  (a) Notwithstanding Section 13340, for the 2012-13
fiscal year, if the 2012-13 Budget Act is not enacted by July 1,
2012, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20,
or 21 (each effective July 1, 2010, to July 1, 2013, inclusive),
there is hereby continuously appropriated to the Controller from the
General Fund, unallocated special funds, including, but not limited
to, federal funds and unallocated nongovernmental cost funds, and any
other fund from which state employees are compensated, the amount
necessary for the payment of compensation and employee benefits to
state employees covered by the above memoranda of understanding until
the 2012-13 Budget Act is enacted. The Controller may expend an
amount no greater than necessary to enable the Controller to
compensate state employees covered by the above memoranda of
understanding for work performed between July 1, 2012, of the 2012-13
fiscal year and the enactment of the 2012-13 Budget Act.
   (b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20,
or 21 (each effective July 1, 2010, to July 1, 2013, inclusive), are
in effect and approved by the Legislature, the compensation and
contribution for employee benefits for state employees represented by
these bargaining units shall be at a rate consistent with the
applicable memorandum of understanding referenced above.
   (c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the 2012-13 Budget Act, these
expenditures shall be subsumed by the expenditure authority approved
in the 2012-13 Budget Act for each affected department.
   (d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21
memoranda of understanding (each effective July 1, 2010, to July 1,
2013, inclusive). Notwithstanding Section 3517.8, this section shall
not apply after the term of the memorandum of understanding has
expired. For purposes of this section, the memorandum of
understanding for each unit expires on July 1, 2013.
  SEC. 7.  Section 19829.98 is added to the Government Code, to read:

   19829.98.  (a) Notwithstanding Section 13340, for the 2013-14
fiscal year, if the 2013-14 Budget Act is not enacted by July 1,
2013, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20,
or 21 (each effective July 1, 2010, to July 1, 2013, inclusive),
there is hereby continuously appropriated to the Controller from the
General Fund, unallocated special funds, including, but not limited
to, federal funds and unallocated nongovernmental cost funds, and any
other fund from which state employees are compensated, the amount
necessary for the payment of compensation and employee benefits to
state employees covered by the above memoranda of understanding until
the 2013-14 Budget Act is enacted. The Controller may expend an
amount no greater than necessary to enable the Controller to
compensate state employees covered by the above memoranda of
understanding for work performed between July 1, 2013, of the 2013-14
fiscal year and the enactment of the 2013-14 Budget Act.
   (b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20,
or 21 (each effective July 1, 2010, to July 1, 2013, inclusive), are
in effect and approved by the Legislature, the compensation and
contribution for employee benefits for state employees represented by
these bargaining units shall be at a rate consistent with the
applicable memorandum of understanding referenced above.
   (c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the 2013-14 Budget Act, these
expenditures shall be subsumed by the expenditure authority approved
in the 2013-14 Budget Act for each affected department.
   (d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21
memoranda of understanding (each effective July 1, 2010, to July 1,
2013, inclusive). Notwithstanding Section 3517.8, this section shall
not apply after the term of the memorandum of understanding has
expired. For purposes of this section, the memorandum of
understanding for each unit expires on July 1, 2013.
  SEC. 8.  Section 20677.71 is added to the Government Code, to read:

   20677.71.  (a) Notwithstanding Section 20677.4, effective with the
beginning of the pay period following ratification by the affected
union membership and enactment of this section, the normal rate of
contribution for state miscellaneous or state industrial members who
are represented by State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20,
or 21 shall be:
   (1) Nine percent of the compensation in excess of three hundred
seventeen dollars ($317) per month paid to a member whose service is
not included in the federal system.
   (2) Eight percent of compensation in excess of five hundred
thirteen dollars ($513) per month paid to that member whose service
has been included in the federal system.
   (b) 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 shall not become effective unless and until approved by
the Legislature in the annual Budget Act.
   (c) Consistent with the normal rate of contribution for all
members identified in this subdivision, the Director of the
Department of Personnel Administration may exercise his or her
discretion to establish the normal rate of contribution for a related
state employee who is excepted from the definition of "state
employee" in subdivision (c) of Section 3513, and an officer or
employee of the executive branch of state government who is not a
member of the civil service.
  SEC. 9.  Section 20677.91 is added to the Government Code, to read:

   20677.91.  (a) Notwithstanding Section 20683, effective with the
beginning of the pay period following ratification by the affected
union membership and enactment of this section, the normal rate of
contribution for state safety members who are represented by State
Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 shall be 9 percent
of compensation in excess of three hundred seventeen dollars ($317)
per month paid to a member whose service is not included in the
federal system or in excess of five hundred thirteen dollars ($513)
for one whose service is included in the federal system.
   (b) 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 those provisions
of the memorandum of understanding require the expenditure of funds,
those provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
   (c) Consistent with the normal rate of contribution for all
members identified in this subdivision, the Director of the
Department of Personnel Administration may exercise his or her
discretion to establish the normal rate of contribution for a related
state employee who is excepted from the definition of "state
employee" in subdivision (c) of Section 3513, and an officer or
employee of the executive branch of state government who is not a
member of the civil service.
  SEC. 10.  Section 20682 is added to the Government Code, to read:
   20682.  Notwithstanding Sections 20677.4, 20677.5, 20677.6,
20677.9, 20683, 20683.1, 20686, and 20687, effective with the
beginning of the pay period following enactment of this section, the
normal rate of contribution for a state employee who is excepted from
the definition of "state employee" in subdivision (c) of Section
3513, and an officer or employee of the executive branch of state
government who is not a member of the civil service shall be the
following:
   (a) For state miscellaneous or state industrial members:
   (1) Nine percent of the compensation in excess of three hundred
seventeen dollars ($317) per month paid to a member whose service is
not included in the federal system.
   (2) Eight percent of compensation in excess of five hundred
thirteen dollars ($513) per month paid to that member whose service
has been included in the federal system.
   (b) For state miscellaneous or state industrial members who are
excepted from the definition of "state employee" in subdivision (c)
of Section 3513 and related to State Bargaining Unit 2:
   (1) Ten percent of the compensation in excess of three hundred
seventeen dollars ($317) per month paid to a member whose service is
not included in the federal system.
   (2) Nine percent of compensation in excess of five hundred
thirteen dollars ($513) per month paid to that member whose service
has been included in the federal system.
   (c) State safety members shall be 9 percent of compensation in
excess of three hundred seventeen dollars ($317) per month paid to a
member whose service is not included in the federal system or in
excess of five hundred thirteen dollars ($513) for one whose service
is included in the federal system.
   (d) Peace officer/firefighter members shall be 11 percent of
compensation in excess of eight hundred sixty-three dollars ($863)
for state employees who are excepted from the definition of "state
employee" in subdivision (c) of Section 3513 and related to State
Bargaining Unit 6.
   (e) Peace officer/firefighter members shall be 11 percent of
compensation in excess of five hundred thirteen dollars ($513) for
state employees who are excepted from the definition of "state
employee" in subdivision (c) of Section 3513 and related to State
Bargaining Unit 7.
  SEC. 11.  Any failure to comply with Section 19829.5 of the
Government Code shall not affect the validity of this act.
  SEC. 12.  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 for the 2010-11 fiscal year, and thereby facilitate the
orderly administration of state government at the earliest time
possible, it is necessary that this act take effect immediately.