BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 108
          Author:   Assembly Budget Committee
          Amended:  9/5/13 in Senate
          Vote:     21

           
           SENATE BUDGET & FISCAL REVIEW COMMITTEE  :  13-1, 9/9/13
          AYES:  Leno, Emmerson, Beall, Block, DeSaulnier, Hancock, Hill,  
            Jackson, Monning, Nielsen, Roth, Torres, Wright
          NOES:  Anderson
          NO VOTE RECORDED:  Berryhill, Wyland

           ASSEMBLY FLOOR  :  Not relevant


           SUBJECT  :    State employees:  memoranda of understanding

           SOURCE  :     Author


           DIGEST  :    This bill approves addenda to existing memoranda of  
          understanding (MOUs) entered into by the Administration and  
          specified bargaining units that require the expenditure of  
          funds, and allocates funds for those purposes.

           ANALYSIS  :     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.

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          This bill approves 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% to 37.4%, 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, 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% 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% to 7.5%.  The total funding for these addenda is $26.8  

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            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.

           Comments
           
          The bill approves 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% 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.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Budget and Fiscal Review Committee, up  
          to $45.1 million in General Fund and other non-General Fund  
          sources.

          JA:nl  9/10/13   Senate Floor Analyses 


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                         SUPPORT/OPPOSITION:  NONE RECEIVED

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