BILL NUMBER: SB 524 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 22, 2011
INTRODUCED BY Senator Walters
( Coauthors: Senators Dutton
and Runner )
( Coauthors: Assembly Members
Garrick, Grove, Harkey, Jeffries,
Mansoor, and Silva )
FEBRUARY 17, 2011
An act to add Section 21220.2 to the Government Code,
relating to public employees' retirement. An act to
amend Sections 3504, 3516, 3543.2, 3562, 3581.3, 71634, and 71816 of,
to add Section 7507.9 to, and to repeal Section 3562.2 of, the
Government Code, and to amend Section 99563.5 of the Public Utilities
Code, relating to public employment benefits.
LEGISLATIVE COUNSEL'S DIGEST
SB 524, as amended, Walters. Public employees' retirement:
reinstatement. retroactive benefits.
The Meyers-Milias-Brown Act, the Ralph C. Dills Act, provisions
commonly referred to as the Educational Employment Relations Act, the
Higher Education Employer-Employee Relations Act, the Trial Court
Employment Protection and Governance Act, the Trial Court Interpreter
Employment and Labor Relations Act, and the Los Angeles County
Metropolitan Transportation Authority Transit Employer-Employee
Relations Act each provide for the representation of state or local
public employees by recognized employee organizations, and provide
that the scope of this representation includes negotiations
concerning wages, hours, and other terms and conditions of employment
between the state or local public employer and representatives of
those employee organizations.
This bill would exclude matters relating to the retroactive effect
of pension benefit increases from the scope of representation of
public employees by recognized employee organizations, and would
thereby prohibit these employee organizations from negotiating for a
retroactive effect of pension benefit increases with public
employers.
The Public Employees' Retirement Law creates the Public Employees'
Retirement System, which provides a defined benefit to its members
based on age at retirement, service credit, and final compensation.
The State Teachers' Retirement Law, the Judges' Retirement System II
Law, and the County Employees Retirement Law of 1937 also provide for
a defined benefit based on age at retirement, service credit, and
final compensation.
This bill would require that any adjustment to the formula used to
calculate the retirement benefits of a member of a public retirement
system that would yield an increase in the member's retirement
benefits apply only to service performed after the operative date of
the adjustment, and would prohibit the retroactive application of
that adjustment, except as provided.
The Public Employees' Retirement Law (PERL) provides a
comprehensive set of rights and benefits based upon age, service
credit, and final compensation to members of the Public Employees'
Retirement System. Any person who has been retired under the system
is generally prohibited from being employed in any capacity unless he
or she is first reinstated from retirement, except as authorized.
PERL authorizes a person who has been reinstated to thereafter be
employed by the state or by a contracting agency in accordance with
the laws governing that service, in the same manner as a person who
has not been so retired.
This bill would prohibit a state member who retires on or after
January 1, 2012, from serving without reinstatement or being hired as
a contracted employee for the state until the person has been
retired for at least 12 months.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 3504 of the
Government Code is amended to read:
3504. The scope of representation shall include all matters
relating to employment conditions and employer-employee relations,
including, but not limited to, wages, hours, and other terms and
conditions of employment, except, however, that the scope of
representation shall not include either of the following:
(a) A consideration of the
merits, necessity, or organization of any service or activity
provided by law or executive order.
(b) Matters relating to the retroactive effect of pension benefit
increases, as prohibited in Section 7507.9.
SEC. 2. Section 3516 of the Government
Code is amended to read:
3516. The scope of representation shall be limited to wages,
hours, and other terms and conditions of employment, except, however,
that the scope of representation shall not include either of
the following:
(a) A consideration of the
merits, necessity, or organization of any service or activity
provided by law or executive order.
(b) Matters relating to the retroactive effect of pension benefit
increases, as prohibited in Section 7507.9.
SEC. 3. Section 3543.2 of the
Government Code is amended to read:
3543.2. (a) The scope of representation shall be limited to
matters relating to wages, hours of employment, and other terms and
conditions of employment. "Terms and conditions of employment" mean
health and welfare benefits as defined by Section 53200, leave,
transfer and reassignment policies, safety conditions of employment,
class size, procedures to be used for the evaluation of employees,
organizational security pursuant to Section 3546, procedures for
processing grievances pursuant to Sections 3548.5, 3548.6, 3548.7,
and 3548.8, and the layoff of probationary certificated
school district employees, pursuant to Section 44959.5 of the
Education Code , and alternative compensation or benefits
for employees adversely affected by pension limitations pursuant to
Section 22316 of the Education Code, to the extent deemed reasonable
and without violating the intent and purposes of Section 415 of the
Internal Revenue Code . In addition, the exclusive
representative of certificated personnel has the right to consult on
the definition of educational objectives, the determination of the
content of courses and curriculum, and the selection of textbooks to
the extent such matters are within the discretion of the public
school employer under the law. All matters not specifically
enumerated are reserved to the public school employer and may not be
a subject of meeting and negotiating, provided that nothing herein
may be construed to limit the right of the public school employer to
consult with any employees or employee organization on any matter
outside the scope of representation.
(b) Notwithstanding Section 44944 of the Education Code, the
public school employer and the exclusive representative shall, upon
request of either party, meet and negotiate regarding causes and
procedures for disciplinary action, other than dismissal, including a
suspension of pay for up to 15 days, affecting certificated
employees. If the public school employer and the exclusive
representative do not reach mutual agreement, then the provisions of
Section 44944 of the Education Code shall apply.
(c) Notwithstanding Section 44955 of the Education Code, the
public school employer and the exclusive representative shall, upon
request of either party, meet and negotiate regarding procedures and
criteria for the layoff of certificated employees for lack of funds.
If the public school employer and the exclusive representative do not
reach mutual agreement, then the provisions of Section 44955 of the
Education Code shall apply.
(d) Notwithstanding Section 45028 of the Education Code, the
public school employer and the exclusive representative shall, upon
request of either party, meet and negotiate regarding the payment of
additional compensation based upon criteria other than years of
training and years of experience. If the public school employer and
the exclusive representative do not reach mutual agreement, then the
provisions of Section 45028 of the Education Code shall apply.
(e) Pursuant to Section 45028 of the Education Code, the public
school employer and the exclusive representative shall, upon the
request of either party, meet and negotiate a salary schedule based
on criteria other than a uniform allowance for years of training and
years of experience. If the public school employer and the exclusive
representative do not reach mutual agreement, then the provisions of
Section 45028 of the Education Code requiring a salary schedule based
upon a uniform allowance for years of training and years of
experience shall apply. A salary schedule established pursuant to
this subdivision shall not result in the reduction of the salary of
any teacher.
(f) The public school employer and the exclusive representative
shall not meet and negotiate regarding the retroactive effect of
pension benefit increases, as prohibited in Section 7507.9.
SEC. 4. Section 3562 of the Government
Code is amended to read:
3562. As used in this chapter:
(a) "Arbitration" means a method of resolving a rights dispute
under which the parties to a controversy must accept the award of a
third party.
(b) "Board" means the Public Employment Relations Board
established pursuant to Section 3513.
(c) "Certified organization" means an employee organization that
has been certified by the board as the exclusive representative of
the employees in an appropriate unit after a proceeding under Article
5 (commencing with Section 3573).
(d) "Confidential employee" means any employee who is required to
develop or present management positions with respect to meeting and
conferring or whose duties normally require access to confidential
information which contributes significantly to the development of
those management positions.
(e) "Employee" or "higher education employee" means any employee
of the Regents of the University of California, the Directors of the
Hastings College of the Law, or the Trustees of the California State
University. However, managerial and confidential employees and
employees whose principal place of employment is outside the State of
California at a worksite with 100 or fewer employees shall be
excluded from coverage under this chapter. The board may find student
employees whose employment is contingent on their status as students
are employees only if the services they provide are unrelated to
their educational objectives, or that those educational objectives
are subordinate to the services they perform and that coverage under
this chapter would further the purposes of this chapter.
(f) (1) "Employee organization" means any organization of any kind
in which higher education employees participate and that exists for
the purpose, in whole or in part, of dealing with higher education
employers concerning grievances, labor disputes, wages, hours, and
other terms and conditions of employment of employees. An
organization that represents one or more employees whose principal
worksite is located outside the State of California is an employee
organization only if it has filed with the board and with the
employer a statement agreeing, in consideration of obtaining the
benefits of status as an employee organization pursuant to this
chapter, to submit to the jurisdiction of the board. The board shall
promulgate the form of the statement.
(2) "Employee organization" shall also include any person that an
employee organization authorizes to act on its behalf. An academic
senate, or other similar academic bodies, or divisions thereof, shall
not be considered employee organizations for the purposes of this
chapter.
(g) "Employer" or "higher education employer" means the regents in
the case of the University of California, the directors in the case
of the Hastings College of the Law, and the trustees in the case of
the California State University, including any person acting as an
agent of an employer.
(h) "Employer representative" means any person or persons
authorized to act on behalf of the employer.
(i) "Exclusive representative" means any recognized or certified
employee organization or person it authorizes to act on its behalf.
(j) "Impasse" means that the parties have reached a point in
meeting and conferring at which their differences in positions are
such that further meetings would be futile.
(k) "Managerial employee" means any employee having significant
responsibilities for formulating or administering policies and
programs. No employee or group of employees shall be deemed to be
managerial employees solely because the employee or group of
employees participates in decisions with respect to courses,
curriculum, personnel, and other matters of educational policy. A
department chair or head of a similar academic unit or program who
performs the foregoing duties primarily on behalf of the members of
the academic unit or program shall not be deemed a managerial
employee solely because of those duties.
(l) "Mediation" means the efforts of a third person, or persons,
functioning as intermediaries, to assist the parties in reaching a
voluntary resolution to an impasse.
(m) "Meet and confer" means the performance of the mutual
obligation of the higher education employer and the exclusive
representative of its employees to meet at reasonable times and to
confer in good faith with respect to matters within the scope of
representation and to endeavor to reach agreement on matters within
the scope of representation. The process shall include adequate time
for the resolution of impasses. If agreement is reached between
representatives of the higher education employer and the exclusive
representative, they shall jointly prepare a written memorandum of
the understanding, which shall be presented to the higher education
employer for concurrence. However, these obligations shall not compel
either party to agree to any proposal or require the making of a
concession.
(n) "Person" means one or more individuals, organizations,
associations, corporations, boards, committees, commissions,
agencies, or their representatives.
(o) "Professional employee" means:
(1) Any employee engaged in work: (A) predominantly intellectual
and varied in character as opposed to routine mental, manual,
mechanical, or physical work; (B) involving the consistent exercise
of discretion and judgment in its performance; (C) of a character so
that the output produced or the result accomplished cannot be
standardized in relation to a given period of time; and (D) requiring
knowledge of an advanced type in a field of science or learning
customarily acquired by a prolonged course of specialized
intellectual instruction and study in an institution of higher
learning or a hospital, as distinguished from a general academic
education or from an apprenticeship or from training in the
performance of routine mental, manual, or physical processes.
(2) Any employee who: (A) has completed the courses of specialized
intellectual instruction and study described in subparagraph (D) of
paragraph (1), and (B) is performing related work under the
supervision of a professional person to qualify himself or herself to
become a professional employee as defined in paragraph (1).
(p) "Recognized organization" means an employee organization that
has been recognized by an employer as the exclusive representative of
the employees in an appropriate unit pursuant to Article 5
(commencing with Section 3573).
(q) (1) For purposes of the University of California only, "scope
of representation" means, and is limited to, wages, hours of
employment, and other terms and conditions of employment. The scope
of representation shall not include any of the following:
(A) Consideration of the merits, necessity, or organization of any
service, activity, or program established by law or resolution of
the regents or the directors, except for the terms and conditions of
employment of employees who may be affected thereby.
(B) The amount of any fees that are not a term or condition of
employment.
(C) Admission requirements for students, conditions for the award
of certificates and degrees to students, and the content and
supervision of courses, curricula, and research programs, as those
terms are intended by the standing orders of the regents or the
directors.
(D) Procedures and policies to be used for the appointment,
promotion, and tenure of members of the academic senate, the
procedures to be used for the evaluation of the members of the
academic senate, and the procedures for processing grievances of
members of the academic senate. The exclusive representative of
members of the academic senate shall have the right to consult and be
consulted on matters excluded from the scope of representation
pursuant to this subparagraph. If the academic senate determines that
any matter in this subparagraph should be within the scope of
representation, or if any matter in this subparagraph is withdrawn
from the responsibility of the academic senate, the matter shall be
within the scope of representation.
(E) Matters relating to the retroactive effect of pension benefit
increases, as prohibited in Section 7507.9.
(2) All matters not within the scope of representation are
reserved to the employer and may not be subject to meeting and
conferring, provided that nothing herein may be construed to limit
the right of the employer to consult with any employees or employee
organization on any matter outside the scope of representation.
(r) (1) For purposes of the California State University only,
"scope of representation" means, and is limited to, wages, hours of
employment, and other terms and conditions of employment. The scope
of representation shall not include:
(A) Consideration of the merits, necessity, or organization of any
service, activity, or program established by statute or regulations
adopted by the trustees, except for the terms and conditions of
employment of employees who may be affected thereby.
(B) The amount of any student fees that are not a term or
condition of employment.
(C) Admission requirements for students, conditions for the award
of certificates and degrees to students, and the content and conduct
of courses, curricula, and research programs.
(D) Criteria and standards to be used for the appointment,
promotion, evaluation, and tenure of academic employees, which shall
be the joint responsibility of the academic senate and the trustees.
The exclusive representative shall have the right to consult and be
consulted on matters excluded from the scope of representation
pursuant to this subparagraph. If the trustees withdraw any matter in
this subparagraph from the responsibility of the academic senate,
the matter shall be within the scope of representation.
(E) The amount of rental rates for housing charged to California
State University employees.
(F) Matters relating to the retroactive effect of pension benefit
increases, as prohibited in Section 7507.9.
(2) All matters not within the scope of representation are
reserved to the employer, and may not be subject to meeting and
conferring, provided that nothing herein may be construed to limit
the right of the employer to consult with any employees or employee
organization on any matter outside the scope of representation.
SEC. 5. Section 3562.2 of the
Government Code is repealed.
3562.2. Notwithstanding subdivision (r) of Section 3562, for
purposes of the California State University only, "scope of
representation" also means any retirement benefits available to a
state member under Part 3 (commencing with Section 20000) of Title 2.
SEC. 6. Section 3581.3 of the
Government Code is amended to read:
3581.3. The scope of representation for supervisory employees
shall include all matters relating to employment conditions and
supervisory employee-employer relations including wages, hours, and
other terms and conditions of employment. The scope of
representation shall not include matters relating to the retroactive
effect of pension benefit increases, as prohibited in Section 7507.9.
SEC. 7. Section 7507.9 is added to the
Government Code , to read:
7507.9. (a) Any adjustment to the formula used to calculate the
retirement benefits of a member of a public retirement system that
would yield an increase in the member's retirement benefits shall
apply only to service performed after the operative date of the
adjustment, and shall not be applied retroactively to any service
performed prior to the operative date of the adjustment.
(b) This section shall not be construed to prohibit cost-of-living
adjustments, including those described in Article 3 (commencing with
Section 21310) of Chapter 13 of Part 3 of Division 5 of Title 2, or
purchase power adjustments, including those described in Sections
21337 and 21337.1, to the extent that those adjustments provide an
ongoing adjustment to benefits but not to the extent that they
operate to provide lump-sum payments.
SEC. 8. Section 71634 of the Government
Code is amended to read:
71634. (a) The scope of representation shall include all matters
relating to employment conditions and employer-employee relations,
including, but not limited to, wages, hours, and other terms and
conditions of employment. However, the scope of representation shall
not include consideration of the merits, necessity , or
organization of any service or activity provided by law or
executive order , or matters relating to the retroactive effect
of pension benefit increases, as prohibited in Section 7507.9 .
(b) In view of the unique and special responsibilities of the
trial courts in the administration of justice, decisions regarding
the following matters shall not be included within the scope of
representation:
(1) The merits and administration of the trial court system.
(2) Coordination, consolidation, and merger of trial courts and
support staff.
(3) Automation, including, but not limited to, fax filing,
electronic recording, and implementation of information systems.
(4) Design, construction, and location of court facilities.
(5) Delivery of court services.
(6) Hours of operation of the trial courts and trial court system.
(c) The impact from matters in subdivision (b) shall be included
within the scope of representation as those matters affect wages,
hours, and terms and conditions of employment of trial court
employees. The court shall be required to meet and confer in good
faith with respect to that impact.
(d) The trial court shall continue to have the right to determine
assignments and transfers of trial court employees; provided that the
process, procedures, and criteria for assignments and transfers
shall be included within the scope of representation.
SEC. 9. Section 71816 of the Government
Code is amended to read:
71816. (a) The scope of representation shall include all matters
relating to employment conditions and employer-employee relations,
including, but not limited to, wages, hours, and other terms and
conditions of employment. However, the scope of representation
may shall not include consideration of
the merits, necessity, or organization of any
service or activity provided by law or executive order , or
matters relating to the retroactive effect of pension benefit
increases, as prohibited in Section 7507.9 .
(b) In view of the unique and special responsibilities of the
trial courts in the administration of justice, decisions regarding
any of the following matters may not be included within the scope of
representation:
(1) The merits and administration of the trial court system.
(2) Coordination, consolidation, and merger of trial courts and
support staff.
(3) Automation, including, but not limited to, fax filing,
electronic recording, and implementation of information systems.
(4) Design, construction, and location of court facilities.
(5) Delivery of court services.
(6) Hours of operation of the trial courts and trial court system.
(c) The impact from matters in subdivision (b) shall be included
within the scope of representation as those matters affect wages,
hours, and terms and conditions of employment of court interpreters.
The regional court interpreter employment relations committee shall
be required to meet and confer in good faith with respect to that
impact.
(d) The trial courts have the right to determine assignments and
transfers of court interpreters, provided that the process,
procedures, and criteria for assignments and transfers are included
within the scope of representation.
SEC. 10. Section 99563.5 of the Public
Utilities Code is amended to read:
99563.5. (a) The scope of representation shall include all
matters relating to employment conditions and employer-employee
relations, including, but not limited to, wages, hours, and other
terms and conditions of employment. The scope of representation
shall not include matters relating to the retroactive effect of
pension benefit increases, as prohibited in Section 7507.9.
(b) Notwithstanding subdivision (a), the scope of representation
shall not include consideration of the merits, necessity, or
organization of any service or activity provided by law or executive
order.
SECTION 1. Section 21220.2 is added to the
Government Code, to read:
21220.2. A state member who retires on or after January 1, 2012,
shall not serve without reinstatement or be hired as a contracted
employee for the state until the person has been retired for at least
12 months.