BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 151|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: SB 151
Author: Correa (D)
Amended: 4/14/11
Vote: 27 - Urgency
SEN. PUBLIC EMPLOYMENT & RETIREMENT COMM. : 3-2, 4/11/11
AYES: Negrete McLeod, Padilla, Vargas
NOES: Walters, Gaines
SENATE APPROPRIATIONS COMMITTEE : 6-3, 4/25/11
AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
NOES: Walters, Emmerson, Runner
SUBJECT : State employees: memoranda of understanding
SOURCE : California Attorneys, Administrative Law
Judges, and
Hearing Officers in State Employment
California Correctional Peace Officers
Association
California Statewide Law Enforcement
Association
Professional Engineers in California Government
California Association of Professional
Scientists
International Union of Operating Engineers
Union of American Physicians and Dentists
California Association of Psychiatric
Technicians
American Federation of State, County and
Municipal
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Employees, AFL-CIO
Department of Personnel Administration
DIGEST : This bill (1) provides legislative ratification
for the memoranda of understanding (MOU) between the State
and Bargaining Units (BUs) 2, 6, 7, 9, 10, and 13, (2)
approves addenda to MOUs entered into by the State and BUs
12, 16, 18 and 19 which provides members with two
Professional Development Days, and (3) approves addenda to
BUs 1, 3, 4, 11, 14, 15, 17, 20 and 21 which will exempt
employees in these bargaining units who work at the State
Compensation Insurance Fund from the Personal Leave
Program.
ANALYSIS :
Existing Law
1.Establishes the Ralph C. Dills Act, which requires the
State to collectively bargain with official
representatives of employee groups (i.e., bargaining
units) regarding wages and working conditions, and to
define negotiated agreements in MOUs.
2.Establishes the Department of Personnel Administration
(DPA) as the official representative of the Governor in
all matters related to collective bargaining.
3.Requires that any MOU between the State and an official
representative must be ratified by the Legislature.
4.Requires that an addendum to a ratified MOU must be
submitted to the Joint Legislative Budget Committee
(JLBC) before analysis, and, if so required by the JLBC,
must also be approved by the Legislature.
5.Establishes the Public Employees' Retirement Law, which
provides health and retirement benefits for state
employees.
6.Specifies that if the provisions of certain statutes are
in conflict with a MOU, the terms of the MOU shall be
prevailing in those cases..
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7.Specifies that if a state MOU expires, the provisions of
the MOU continue in effect until a new MOU is ratified,
as long as the parties continue to bargain in good
faith..
8.Requires the Legislative Analyst's Office to analyze all
state MOUs and to provide analyses of the MOUs and their
fiscal impact to the Legislature within 10 days of
receipt of the MOUs from the DPA.
9.Creates the State Peace Officers' and Firefighters'
Defined Contribution Plan (PO/FF II), a defined
contribution plan exclusively for correctional peace
officers. Since 1998, the State has contributed two
percent of correctional officer pay to this plan for all
other officers in the plan.
This bill:
1.Provides legislative ratification for the MOUs agreed to
between the State and BUs 2 (California Attorneys,
Administrative Law Judges, and Hearing Officers in State
Employment), 6 (California Correctional Peace Officers
Association), 7 (California State Law Enforcement
Association), 9 (Professional Engineers in California
Government), 10 (California Association of Professional
Scientists), and 13 (International Union of Operating
Engineers).
2.Increases the normal employee contribution rate to fund
retirement benefits, effective on the first day of the
pay period following the legislative ratification, as
follows:
--------------------------------------------------------
| | Current | New |
| |Contribution|Contributi|
| Retirement Classification | | on Rate |
| | Rate | |
|--------------------------------+------------+----------|
|BU 2: Miscellaneous & | 6% | 9% |
|Industrial w/Social Security | | |
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|--------------------------------+------------+----------|
|BU 2: Miscellaneous & | 7% | 10% |
|Industrial w/Social Security | | |
|--------------------------------+------------+----------|
|BU 2: Safety | 7% | 10% |
|--------------------------------+------------+----------|
|BUs 6, 7, 9, 10: Miscellaneous | 5% | |
|& Industrial w/Social Security | |8% |
|--------------------------------+------------+----------|
|BUs 6, 7, 9, 10: Miscellaneous | 6% | 9% |
|& Industrial w/o Social | | |
|Security | | |
|--------------------------------+------------+----------|
|BUs 7, 9, 10: Safety | 6% | 9% |
|--------------------------------+------------+----------|
|BU 6: Peace Officers | 8% | 11% |
|--------------------------------+------------+----------|
|BU 7: Peace Officers | 8% | 10% |
|--------------------------------+------------+----------|
|BU 13: Miscellaneous & | 5% | 10% |
|Industrial w/Social Security | | |
|--------------------------------+------------+----------|
|BU 13 Miscellaneous & | 6% | 11% |
|Industrial w/o Social Security | | |
|--------------------------------+------------+----------|
|BU 13: Safety | 6% |11% |
| | | |
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3.Requires that compensation for employees covered by these
agreements shall be continuously appropriated in the
event of a late budget for fiscal years 2012/2013 and
2013/2014.
4.Makes three technical clarifications to previous
legislation enacted in 2010 as follows:
A. AB 1625 (Perez), Chapter 728, Statutes of 2010:
Reduces by one percent the contribution rate for
excluded and exempt employees connected to BU 2. The
Senate Public Employment and Retirement Committee was
informed by DPA that the current rates in statute are
incorrect with regard to these employees, who have
always paid the lower amount, as corrected by this
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bill.
B. SB 846 (Correa), Chapter 162, Statutes of 2010:
This bill ratified the 2010 MOU agreement between the
State and BU 5 (California Association of Highway
Patrol), which allows the member contribution, for a
limited time as specified, to be redirected to the
members' retirement contribution. The amendment
included in this bill will allow DPA to apply that
provision to excluded and exempt patrol members of
the California Public Employees' Retirement System as
well.
C. Changes a section number for a continuous
appropriation section added in 2010 so that it is
consistent with other such sections.
5.Ratifies other terms and conditions of the MOUs,
including changes to the previous contracts, which are
summarized as follows:
---------------------------------------------------------
| | | Amount/Time Frame/Other |
| Provision | BU | Information |
| | | |
|-------------------------+----+--------------------------|
|Increase to Maximum |All |BU 2: Misc/Sfty: 4% |
|Salary Step (linked to | |BU 6: Misc/Ind: 3% |
|amount of increased | | PO: 4% |
|member contributions and | |BU 7: Misc/Ind/Sfty: 3% |
|other concessions): | | PO: 2% |
|Effective 7/1/13 | |BU 9, 10: 3% |
| | |BU 13: Misc/Sfty: 5% |
|-------------------------+----+--------------------------|
|Personal Leave Program: |All |Effective for 12 months: |
|Approximately 5% pay | |Days have to cash value. |
|reduction in exchange | |BUs 2, 10, 13: Employees |
|for one day of leave per | |at State Compensation |
|month | |Insurance fund exempt |
| | |from PLP |
| | |BU 10: Employees may |
| | |choose to have |
| | |proportional pay |
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| | |reduction in exchange for |
| | |2 to 3 PLP days per month |
| | |over successive months |
| | |until 12 PLP days are |
| | |taken |
|-------------------------+----+--------------------------|
|Personal/Professional |All |BU 2: 2 days |
|Days: To be used for | |BUs 7, 9, 10, 13: 2 days |
|personal or professional | |BU 6: 4 days in 2012 and |
|development. No cash | |2 days in 2013 |
|value and must be used | | |
|in fiscal year. | | |
|-------------------------+----+--------------------------|
|Other Leave |BU |1.73 hours/month through |
| |2 |6/2013 (may be saved and |
| | |cashed out) |
|-------------------------+----+--------------------------|
|Health Benefits: |All |BUs 2, 7, 10, 13: 80/80 |
|80/80 Formula | |Formula 1/1/12 and 1/1/13 |
|$482 /'EE only | | |
|$946/'EE and 1 dependent | |BU 9: 85/80 Formula |
|$1,241/'EE and 2 or more | |1/1/12 and 1/1/13 |
|dependents | | |
| | |BU 6: Partial increase |
|85/80 Formula (with | |upon ratification with |
|COBEN) | |full 80/80 Formula paid |
|$509+/'EE only | |1/1/12 and 1/1/13 |
|$981/'EE and 1 dependent | | |
|$1,285/'EE and 2 or more | |(NOTE: BUs 9 and 10 have |
|dependents | |the 80/80 formula |
| | |provided n statute, which |
| | |can be modified via MOU.) |
|-------------------------+----+--------------------------|
|Length of Contract |All |BUs 2, 7, 9, 10, 13: |
| | |4/1/2011 to 7/1/2013 |
| | |BU 6: 4/1/2011 |
| | |to7/2/2013 |
|-------------------------+----+--------------------------|
|Furlough Protection |All |No furloughs during the |
| | |12 months that the |
| | |Personal Leave Program is |
| | |in effect. |
|-------------------------+----+--------------------------|
|Number of Employees | |BU 2: 3,300 |
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|Covered | |BU 6: 28,124 |
|(in full-time | |BU 7: 6,185 |
|equivalent) | |BU 9: 10,112 |
| | |BU 10: 2,2440 |
| | |BU 13: 912 |
|-------------------------+----+--------------------------|
|Other Provisions |All |Acknowledge legislation |
| | |reducing retirement |
| | |formulas for employees |
| | |hired after 1/15/2011, |
| | |3-year final comp if |
| | |applicable, and |
| | |elimination of 2 state |
| | |holidays. (SBX# 8, |
| | |Ducheny, Chapter 4, |
| | |Statutes of 2009-10, |
| | |Third Extraordinary |
| | |Session; SBX6 22, |
| | |Hollingsworth, Chapter |
| | |3, Statutes of 2009-10, |
| | |Sixth Extraordinary |
| | |Session) |
|-------------------------+----+--------------------------|
|Other Provisions |BU |Terminates employer |
| |6 |contribution of 2% of pay |
| | |to PO/FF II. |
| | |Employees will fund union |
| | |release time bank by |
| | |contributing 1 hour per |
| | |year. |
| | |Acknowledges legislation |
| | |prohibiting leave from |
| | |being counted as time |
| | |worked for the purpose of |
| | |calculating overtime. |
| | |Employees who work on |
| | |holidays earn 2 times |
| | |normal hourly rate. |
| | |$200 month differential |
| | |for working at Pelican |
| | |Bay State Prison, High |
| | |Desert State Prison, or |
| | |California Correctional |
| | |Center. |
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|-------------------------+----+--------------------------|
|Other Provisions |BU |Employees will fund union |
| |7 |release time bank by |
| | |contributing 1.5 hours |
| | |per year. |
| | |Time and a half plus |
| | |holiday credit for |
| | |working on specified |
| | |holidays. |
| | |Employees in state-owned |
| | |housing will pay fair |
| | |market value. |
|-------------------------+----+--------------------------|
|Other Provisions |BUs |Time and a half for |
| |9, |working on specified |
| |10 |holidays. |
| | |Salary Survey for |
| | |informational purposes. |
| | |Joint Labor/Management |
| | |Committee to assist with |
| | |HR Modernization. |
| | | |
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6.Provides legislative ratification for addenda to MOUs
ratified in 2010 between the State and BUs 12
(International Union of Operating Engineers), 16 (Union
of American Physicians and Dentists), 18 (California
Association of Psychiatric Technicians), 19 (American
Federation of State, County and Municipal Employees).
Specifically, these addenda provide two
personal/professional days for employees in these units,
consistent with the two days provided to Service
Employees International Union in its 2010 contract and
the contracts covered by this legislation.
7.Provides legislative ratification for addenda to MOUs
ratified in 2010 between the State and BUs 1, 3, 4, 11,
14, 16, 17, 20 and 21 (Service Employees International
Union) which will exempt employees in these bargaining
units who work at the State Compensation Insurance Fund
from the Personal Leave Program.
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FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12
2012-13 Fund
Summary of MOU ($67,400) ($215,900)
$18,495 Gen/Spec
Costs
Salary increases --Approximately $151.2 million
annually-- Gen/Spec
7-1-13
(NOTE: For detailed fiscal information regarding each
bargaining unit, please see the Senate Appropriations
Committee analysis.)
In addition to the fiscal impact noted above, there will be
millions of dollars in savings to the state in future years
as new state employees are hired on or after January 15,
2011, and will be subject to a significantly lesser
retirement benefit formula. Those savings, however, have
not been actuarially identified at this time, and will not
be realized to the state until those affected new employees
retire from state service. The increase in the employee's
retirement contribution will result in an immediate
corresponding reduction in the state rate.
SUPPORT : (Verified 4/26/11)
California Attorneys, Administrative Law Judges, and
Hearing Officers in State Employment (co-source)
California Correctional Peace Officers Association
(co-source)
California Statewide Law Enforcement Association
(co-source)
Professional Engineers in California Government (co-source)
California Association of Professional Scientists
International Union of Operating Engineers
Union of American Physicians and Dentists
California Association of Psychiatric Technicians
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American Federation of State, County and Municipal
Employees, AFL-CIO (co-source)
Department of Personnel Administration (co-source)
ARGUMENTS IN SUPPORT : Citing concessions in the MOU and
the fact that many California Attorneys, Administrative Law
Judges, and Hearing Officers in State Employment (CASE)
members will not have had a salary increase in over seven
years, while seeing salary cuts during that time, CASE
states, "While these concessions were difficult for our
members, CASE recognizes the fiscal realities facing the
State of California, and understands the need to contribute
to solving the current deficit."
In support, the California Correctional Peace Officers
Association states, "A collective bargaining agreement is
the foundation of a harmonious relationship between the
state employer and its workforce. Mindful of the fiscal
challenges facing the state, we are pleased to have reached
an agreement with the current Administration that helps
resolve the current budget shortfall while re-establishing
a solid framework for the relationship between our members
and the state."
According to the California Statewide Law Enforcement
Association, "In recent years, state employees have
experienced significant reductions in compensation in order
to help the state deal with budget challenges. This
agreement continues to help the state cope with the current
budget problem while providing needed stability to our
members."
Also in support, the Professional Engineers in California
Government states, "This bill generates hundreds of
millions of dollars in budget savings for the State at the
same time it provides state engineers and other state
employees' definitive terms of employment."
The California Association of Psychiatric Technicians
states, "SB 151 provides significant savings to the state
during difficult times while ensuring stable working
conditions for state scientists and other state employees."
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CPM:cm 4/26/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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