BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1625
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1625 (Perez)
          As Amended October 7, 2010
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |     |(April 22,      |SENATE: |32-0 |(October 7,    |
          |           |     |2010)           |        |     |2010)          |
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                            (vote not relevant)

          Original Committee Reference:    BUDGET  

           SUMMARY  :   Approves the recent memoranda of understanding (MOU)  
          agreed to by the state and the state bargaining units (BUs)  
          represented exclusively by the Service Employees International  
          Union (SEIU), Local 1000, including BU 1 (Professional,  
          Administrative, Financial, and Staff Services), BU 3  
          (Professional Educators and Librarians), BU 4 (Office and  
          Allied), BU 11 (Engineering and Scientific Technicians), BU 14  
          (Printing and Allied Trades), BU 15 (Allied Services), BU 17  
          (Registered Nurses), BU 20 (Medical and Social Services), and,  
          BU 21 (Educational Consultant and Library).

           The Senate amendments  delete the Assembly version of the bill,  
          and instead provide legislative ratification for MOUs agreed to  
          between the State and state BUs 1, 3, 4, 11, 14, 15, 17, 20, and  
          21.

           EXISTING LAW  :

          1)Requires, under the State Employee-Employer Relations Act  
            (Dills Act), collective bargaining agreements (MOUs) that are  
            negotiated between the state and exclusive representatives of  
            each of the 21 state BUs be ratified by the Legislature.

          2)Establishes five separate retirement classes for state  
            employees:  State Miscellaneous and Industrial (which receive  
            substantially the same benefits), State Safety, State Peace  
            Officer/Firefighter, and State Patrol.

          3)Specifies that if the provisions of certain statutes are in  
            conflict with a MOU, the terms of the MOU are prevailing.

           AS PASSED BY THE ASSEMBLY,  expresses the intent of the  








                                                                  AB 1625
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          Legislature to enact statutory changes relating to the Budget  
          Act of 2010.

           FISCAL EFFECT  :   According to the Department of Personnel  
          Administration (DPA), these agreements will result in Fiscal  
          Year 2010-2011 savings of $382.6 million (General Fund - $164.1  
          million and Other Funds - $218.4 million).

          The total savings over the duration of the contract of $632.3  
          million (General Fund - $262.0 million and Other Funds - $370.3  
          million).

           COMMENTS  :   The following information regarding the MOUs was  
          provided by DPA:

           


          Number of Employees
           
          This agreement affects approximately 95,000 full-time  
          equivalents. 

           Retirement Benefit Formula Calculation

           Effective the pay period following ratification by both parties,  
          Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, and 21  
          Miscellaneous and Industrial First Tier retirement members,  
          first employed by the state, will be subject to the "New 2010  
          First Tier Retirement Formula" of 2% at age 60 (from current 2%  
          at 55).

          Effective the pay period following ratification by both parties,  
          BU 1, 3, 4, 11, 14, 15, 17, 20, and 21 State Safety retirement  
          members, first employed by the state, will be subject to the  
          "New 2010 First Tier Retirement Formula" of 2% at age 55 (from  
          current 2.5% at 55). 

           Employee Pension Contribution

           Effective the pay period following ratification by both parties,  
          current BU 1, 3, 4, 11, 14, 15, 17, 20, and 21 Miscellaneous and  
          Industrial members in the First Tier retirement category shall  
          have their contribution increased from 5% to 8% of monthly  
          compensation over $513.








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          Effective the pay period following ratification by both parties,  
          current BU 1, 3, 4, 11, 14, 15, 17, 20, and 21 State Safety  
          retirement members shall have their contribution increased from  
          6% to 9% of monthly compensation over $317.

           Compensation -Adjusted Pay Ranges  

          Effective July 1, 2013 all BU 1, 3, 4, 11, 14, 15, 17, 20, and  
          21 represented classifications (excluding Seasonal Clerks and BU  
          3 classifications in CDCR who work an academic calendar) shall  
          be adjusted by increasing the maximum step of the pay range by  
          3%. This only applies to BU 1, 3, 4, 11, 14, 15, 17, 20, and 21  
          employees who reach the top step of the pay range.

          Effective July 1, 2013 all BU 3 represented classifications in  
          CDCR who work an academic calendar shall receive a 3% salary  
          differential. This only applies to BU 3 employees in CDCR who  
          work an academic calendar who reach step 6 or higher of the pay  
          range.

          Effective July 1, 2013 the Seasonal Clerk classification shall  
          have 50 cents added to each salary rate.

           Personal Leave Program (PLP 2010)
           
          Effective the pay period following ratification by both parties,  
          the Personal Leave Program (PLP 2010) will apply to BU 1, 3, 4,  
          11, 14, 15, 17, 20, and 21 employees. This program shall remain  
          in effect for twelve months.

           Health Benefits - Employer Contribution  

          Effective the pay period following ratification by both parties,  
          the State's monthly contribution to the health insurance portion  
          of the BU 1, 4, 11, 14, 15, 17, 20, and 21 employee's allowance  
          shall be an amount equal to eighty percent of the weighted  
          average of the premiums for the four Basic health benefit plans  
          with the largest enrollment (the 80/80 formula).

          Effective the pay period following ratification by both parties,  
          the State's monthly contribution to the health insurance portion  
          of the BU 3 employee's allowance will be set at a dollar amount  
          that equals the 80/80 formula. The amounts shall be increased  
          pursuant to the formulas above on January 1, 2011, January 1,  








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          2012, and January 1, 2013.

           Miscellaneous
           
          The State will not implement a new furlough program for BU 1, 3,  
          4, 11, 14, 15, 17, 20, and 21 employees during the twelve full  
          months following ratification by both parties. 
           
          The State and SEIU Local 1000 agree to present to the  
          Legislature, as part of the legislation implementing this  
          Memorandum of Understanding (MOU), a provision to appropriate  
          funds to cover the economic terms of this agreement through July  
          1, 2013.

          The State and SEIU Local 1000 agreed to delete Lincoln's  
          Birthday and Columbus Day as recognized holidays.

          Employees that work on January 1st, the last Monday in May, July  
          4th, the first Monday in September, Thanksgiving Day or  
          Christmas shall receive one and one-half times the employee's  
          regular rate of pay and up to eight hours of holiday credit for  
          all hours worked on the holiday.

           Duration
           
          Three years - July 1, 2010, through July 1, 2013.

          This bill also increases the retirement contributions for state  
          excluded and exempt employees, as specified.


           Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957 



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