BILL ANALYSIS �
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Mark Leno, Chair
Bill No: AB 108
Author: Committee on Budget
As Amended: September 5, 2013
Consultant: Peggy Collins
Fiscal: Yes
Hearing Date: September 9, 2013
Subject: State Employees: Memoranda of Understanding
Summary: Approves addenda to existing memoranda of
understanding (MOUs) entered into by the Administration and
specified bargaining units that require the expenditure of
funds, and would allocate funds for those purposes.
Background: Under the Ralph C. Dills Act, the Legislature
must approve collective bargaining agreements between the
State and employee groups, formalized in MOUs.
Additionally, existing law requires the Legislature to
approve any addenda or side letters to existing MOUs that
require the expenditure of funds not already approved by
the Legislature through an MOU, the budget act or other
legislative vehicle.
Proposed Law: AB 108 would approve the following addenda
to existing MOUs:
1. Bargaining Unit 5, California Association of
Highway Patrol (CHP), effective July 1, 2013 .
Authorizes a reimbursement increase for specified
expenses incurred while traveling on state business.
No appropriation is needed.
2. Bargaining Unit 12, International Union of
Operating Engineers, at the Department of Water
Resources (DWR), effective July 1, 2013 . Authorizes
salary increases, ranging from 17.9 percent to 37.4
percent, for certain rank and file and supervisor
classifications to assist with short-term critical
retention needs. The existing classifications of
electrical Mechanical Testing Technician and Control
System Technician will be consolidated into one new
classification, Hydroelectric Plant Technician,
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pending approval by the State Personnel Board.
Increases will be staged for retirement purposes based
on the following schedule: after July 1, 2013 and
before July 1, 2014, any pay increase will not be used
to determine final compensation; after July 1, 2014
and prior to July 1, 2015, 50 percent of the pay
increase will be used to determine final compensation;
starting July 1, 2015, and continuing thereafter, the
entire salary increase shall be used to determine
final compensation. The total funding for the
addendum is $18.3 million.
3. Bargaining Units 1, 3, 4, 11, 15, 17 and 20,
Service Employees International Union Local 1000;
Bargaining Unit 12, International Union of Operating
Engineers; Bargaining Unit 18, California Association
of Psychiatric Technicians; and Bargaining Unit 19,
American Federation of State, County, and Municipal
Employees, at the Department of Developmental Services
(DDS), effective upon approval of this act . Addresses
the layoff and relocation of employees at Lanterman
Developmental Center. No appropriation is needed.
4. Bargaining Unit 7, California Statewide Law
Enforcement Association; and Bargaining Units 1 and 4,
Service Employees International Union Local 1000, at
the Department of Motor Vehicles (DMV), effective July
2, 2013 . Authorizes salary increases for certain rank
and file and supervisor classifications based on a
review that recommended classification and salary
restructuring. Increases range from 1.5 percent to
7.5 percent. The total funding for these addenda is
$26.8 million.
5. Bargaining Unit 8, California Department of
Forestry and Fire Protection Firefighters, Department
of Forestry and Fire Protection (CALFIRE), effective
September 1, 2013 . Authorizes increases to the amount
provided to employees for business and travel
expenses, and codifies an agreement in existence since
1992 that provides a pre-retirement death benefit for
employee dependents. No appropriation is needed.
Fiscal Effect: Up to $45.1 million in General Fund and
other non-General Fund sources.
Support: None
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Opposed: None
Comments: The bill would approve addenda to existing MOUs
for employees at five state departments. The costs
associated with three of these agreements have been
included in the 2013 budget act.
The CHP agreement includes a 5.9 percent salary increase
previously authorized in the 2013 budget act. This
increase is the result of a statutorily-required salary
survey.
The DWR agreement seeks to address recruitment and
retention challenges at hydroplant facilities that are
impacting the operation of the State Water Project.
The DDS agreement is necessary due to the anticipated
closure of Lanterman Developmental Center by the end of
2014.
The DMV agreement salary increases are the result of a
review of current classifications' workloads in DMV
offices, required by a 2007 MOU.
The CALFIRE agreement to increase the amount provided for
business and travel expenses reflects agreements approved
for other bargaining units this year.
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