Amended in Senate August 28, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 478

Introduced by Assembly begin delete Member Gomez end delete begin insert Members Gomez and Rendon end insert

begin insert

(Coauthor: Assembly Member Bonta)

end insert begin insert

(Coauthor: Senator Galgiani)

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February 19, 2013

An act begin insert to amend Section 22871.8 of, and to add Sections 12440.3, 12440.4, and 12440.5 to, the Government Code, end insert relating to state begin delete employees. end delete begin insert employees, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 478, as amended, Gomez. State employees: memorandum of understanding.

Existing law provides that a provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees that requires the expenditure of funds does not become effective unless approved by the Legislature in the annual Budget Act.

This bill would approve provisions of begin delete a memorandum end delete begin insert memoranda end insert of understanding entered into between the state employer and begin delete State Bargaining Unit 19, Health and Social Services/Professional, end delete begin insert California Correctional Peace Officer Association, State Bargaining Unit 6; California State Law Enforcement Association, State Bargaining Unit 7; International Union of Operating Engineers, State Bargaining Unit 12; Union of American Physicians and Dentists, State Bargaining Unit 16; California Association of Psychiatric Technicians, State Bargaining Unit 18; and American Federation of State, County, and Municipal Employees (AFSCME), and State Bargaining Unit 19, end insert that require the expenditure of funds, and would provide that these provisions will become effective even if these provisions are approved by the Legislature in legislation other than the annual Budget Act.

The bill would provide that provisions of the memorandum of understanding approved by this bill that require the expenditure of funds will not take effect unless funds for those provisions are specifically appropriated by the Legislature, and would require the state employer and the affected employee organization to meet and confer to renegotiate the affected provisions if funds for those provisions are not specifically appropriated by the Legislature.

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The bill would appropriate funds for expenditure in the 2013-14 fiscal year in augmentation of, and for the purpose of, state employee compensation, as provided in the Budget Act of 2013, in accordance with a specified schedule, from the General Fund, unallocated special funds, and other unallocated nongovernmental cost funds. The bill would also appropriate to the Controller from the General Fund, unallocated special funds, including, but not limited to, federal funds and unallocated nongovernmental cost funds, and any other fund from which state employees are compensated, in the amount necessary for the payment of compensation and employee benefits to state employees for work performed between July 1 and the enactment of the Budget Act in the 2014-15, 2015-16, and 2016-17 fiscal years if the Budget Act is not enacted on or before July 1 in those fiscal years.

end insert begin insert

Existing law provides that the employer contribution for each employee in State Bargaining Units 16 and 19 shall be an amount equal to 85% of the weighted average of the basic health benefit plan premium for an active state civil service employee, as specified.

end insert begin insert

This bill would instead provide that, beginning January 1, 2007, the employer contribution for each employee shall be an amount equal to 80% of the weighted average of the basic health benefit plan premium for an active state civil service employee enrolled for self alone, as specified.

end insert begin insert

This bill would declare that it is to take effect immediately as an urgency statute.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares that the
purpose of this act is to approve an agreement pursuant to Section
3517.5 of the Government Code entered into by the state employer
and State Bargaining begin delete Unit end delete begin insert Units 6, 7, 12, 16, 18, and end insert 19.

SEC. 2.  

The provisions of the memorandum of understanding
prepared pursuant to Section 3517.5 of the Government Code and
entered into by the state employer and begin delete State Bargaining Unit 19 end delete
begin insert California Correctional Peace Officer Association, State
Bargaining Unit 6, on August 20, 2013; California State Law
Enforcement Association, State Bargaining Unit 7, on August 25,
2013; International Union of Operating Engineers, State
Bargaining Unit 12, on August 9, 2013; Union of American
Physicians and Dentists, State Bargaining Unit 16, on July 18,
2013; California Association of Psychiatric Technicians, State
Bargaining Unit 18, on July 9, 2013; and American Federation
of State, County, and Municipal Employees (AFSCME), State
Bargaining Unit 19, on August 7, 2013, end insert that require the expenditure
of funds are hereby approved for the purposes of subdivision (b)
of Section 3517.6 of the Government Code.

SEC. 3.  

The provisions of the begin delete memorandum end delete begin insert memoranda end insert of
understanding approved begin delete by end delete begin insert in end insert Section 2 of this act begin insert that are
scheduled to take effect on or after July 1, 2013, and end insert that require
the expenditure of begin delete funds end delete begin insert funds, end insert shall not take effect unless funds
for begin delete these end delete begin insert those end insert provisions are specifically appropriated by the
Legislature. If begin delete funds for these provisions are not specifically
appropriated by the Legislature, the state employer and the affected
employee organization shall meet and confer to renegotiate the
affected provisions. end delete begin insert the Legislature does not approve or fully fund
any provision of a memorandum of understanding approved in
Section 2 of this act that requires the expenditure of funds, either
party to the memorandum may reopen negotiations on all or part
of the memorandum of understanding. end insert

SEC. 4.  

Notwithstanding Section 3517.6 of the Government
Code, the provisions of the memorandum of understanding
begin delete included end delete begin insert approved end insert in Section 2 that require the expenditure of
funds shall become effective even if the provisions of the
memorandum of understanding are approved by the Legislature
in legislation other than the annual Budget Act.

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begin insert SEC. 5. end insert   

end insert

begin insert (a) end insert begin insert   end insert begin insert The sum of fourteen million eight hundred
forty-nine thousand dollars ($14,849,000) is hereby appropriated
for State Bargaining Unit 6 for expenditure in the 2013-14 fiscal
year in augmentation of, and for the purpose of, state employee
compensation, as provided in items 9800-001-0001,
9800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget
Act of 2013 (Chapter 20 of the Statutes of 2013) in accordance
with the following schedule: end insert

begin insert

(1) Fourteen million seven hundred forty-six thousand dollars
($14,746,000) from the General Fund in augmentation of Item
9800-001-0001.

end insert begin insert

(2) Sixty-nine thousand dollars ($69,000) from unallocated
special funds in augmentation of Item 9800-001-0494.

end insert begin insert

(3) Thirty-four thousand dollars ($34,000) from other
unallocated nongovernmental cost funds in augmentation of Item
9800-001-0988.

end insert begin insert

(b) The sum of one million eighty-four thousand dollars
($1,084,000) is hereby appropriated for State Bargaining Unit 7
for expenditure in the 2013-14 fiscal year in augmentation of, and
for the purpose of, state employee compensation, as provided in
items 9800-001-0001, 9800-001-0494, and 9800-001-0988 of
Section 2.0 of the Budget Act of 2013 (Chapter 20 of the Statutes
of 2013) in accordance with the following schedule:

end insert begin insert

(1) Three hundred twenty thousand dollars ($320,000) from the
General Fund in augmentation of Item 9800-001-0001.

end insert begin insert

(2) Five hundred twelve thousand dollars ($512,000) from
unallocated special funds in augmentation of Item 9800-001-0494.

end insert begin insert

(3) Two hundred fifty-two thousand dollars ($252,000) from
other unallocated nongovernmental cost funds in augmentation
of item 9800-001-0988.

end insert begin insert

(c) The sum of one million five hundred ninety-seven thousand
dollars ($1,597,000) is hereby appropriated for State Bargaining
Unit 12 for expenditure in the 2013-14 fiscal year in augmentation
of, and for the purpose of, state employee compensation as
provided in items 9800-001-0001, 9800-001-0494, and
9800-001-0988 of Section 2.0 of the Budget Act of 2013 (Chapter
20 of the Statutes of 2013) in accordance with the following
schedule:

end insert begin insert

(1) Five hundred sixteen thousand dollars ($516,000) from the
General Fund in augmentation of Item 9800-001-0001.

end insert begin insert

(2) Seven hundred twenty-four thousand dollars ($724,000)
from unallocated special funds in augmentation of Item
9800-001-0494.

end insert begin insert

(3) Three hundred fifty-seven thousand dollars ($357,000) from
other unallocated nongovernmental cost funds in augmentation
of Item 9800-001-0988.

end insert begin insert

(d) The sum of one million five thousand dollars ($1,005,000)
is hereby appropriated for State Bargaining Unit 18 for
expenditure in the 2013-14 fiscal year in augmentation of, and
for the purpose of, state employee compensation as provided in
items 9800-001-0001, 9800-001-0494, and 9800-001-0988 of
Section 2.0 of the Budget Act of 2013 (Chapter 20 of the Statutes
of 2013) in accordance with the following schedule:

end insert begin insert

(1) Nine hundred twenty-four thousand dollars ($924,000) from
the General Fund in augmentation of Item 9800-001-0001.

end insert begin insert

(2) Fifty-four thousand ($54,000) from unallocated special funds
in augmentation of Item 9800-001-0494.

end insert begin insert

(3) Twenty-seven thousand dollars ($27,000) from other
unallocated nongovernmental cost funds in augmentation of Item
9800-001-0988.

end insert begin insert

(e) The sum of three thousand dollars ($3,000) is hereby
appropriated for State Bargaining Unit 19 for expenditure in the
2013-14 fiscal year in augmentation of, and for the purpose of,
state employee compensation as provided in items 9800-001-0001,
9800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget
Act of 2013, (Chapter 20 of the Statutes of 2013) in accordance
with the following schedule:

end insert begin insert

(1) Three thousand dollars ($3,000) from the General Fund in
augmentation of Item 9800-001-0001.

end insert begin insert

(2) Zero dollars ($0) from unallocated special funds in
argumentation of Item 9800-001-0494.

end insert begin insert

(3) Zero dollars ($0) from other unallocated nongovernmental
cost funds in augmentation of Item 9800-001-0988.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 12440.3 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 12440.3. end insert   

(a) Notwithstanding Section 13340, for the 2014-15
fiscal year, if the Budget Act of 2014 is not enacted on or before
July 1, 2014, for the memoranda of understanding entered into
between the state employer and State Bargaining Units 7, 16, 18,
and 19 (effective July 1, 2013, to July 1, 2016, inclusive) and State
Bargaining Units 6 and 12 (effective July 1, 2013, to July 1, 2015,
inclusive), there is hereby continuously appropriated to the
Controller from the General Fund, unallocated special funds,
including, but not limited to, federal funds and unallocated
nongovernmental cost funds, and any other fund from which state
employees are compensated, the amount necessary for the payment
of compensation and employee benefits to state employees covered
by the above memoranda of understanding until the Budget Act of
2014 is enacted. The Controller may expend an amount no greater
than necessary to enable the Controller to compensate state
employees covered by the above memoranda of understanding for
work performed between July 1, 2014, of the 2014-15 fiscal year,
and the enactment of the Budget Act of 2014.

(b) If the memoranda of understanding entered into between
the state employer and State Bargaining Units 7, 16, 18, and 19
(effective July 1, 2013, to July 1, 2016, inclusive) and State
Bargaining Units 6 and 12 (effective July 1, 2013, to July 1, 2015,
inclusive) are in effect and approved by the Legislature, the
compensation and contribution for employee benefits for state
employees represented by these bargaining units shall be at a rate
consistent with the applicable memorandum of understanding
referenced above.

(c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority
of a department. Upon the enactment of the Budget Act of 2014,
these expenditures shall be subsumed by the expenditure authority
approved in the Budget Act of 2014 for each affected department.

(d) This section shall only apply to an employee covered by the
terms of State Bargaining Units 7, 16, 18, and 19 (effective July
1, 2013, to July 1, 2016, inclusive) and State Bargaining Units 6
and 12 (effective July 1, 2013, to July 1, 2015, inclusive)
memoranda of understanding. Notwithstanding Section 3517.8,
this section shall not apply after the term of the memoranda of
understanding have expired. For purposes of this section, the
memoranda of understanding for State Bargaining Units 7, 16,
18, and 19 expire on July 1, 2016, and the memoranda of
understanding for State Bargaining Units 6 and 12 expire on July
1, 2015.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 12440.4 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 12440.4. end insert   

(a) Notwithstanding Section 13340, for the 2015-16
fiscal year, if the Budget Act of 2015 is not enacted on or before
July 1, 2015, for the memoranda of understanding entered into
between the state employer and State Bargaining Units 7, 16, 18,
and 19 (effective July 1, 2013, to July 1, 2016, inclusive) and State
Bargaining Units 6 and 12 (effective July 1, 2013, to July 1, 2015,
inclusive), there is hereby continuously appropriated to the
Controller from the General Fund, unallocated special funds,
including, but not limited to, federal funds and unallocated
nongovernmental cost funds, and any other fund from which state
employees are compensated, the amount necessary for the payment
of compensation and employee benefits to state employees covered
by the above memoranda of understanding until the Budget Act of
2015 is enacted. The Controller may expend an amount no greater
than necessary to enable the Controller to compensate state
employees covered by the above memoranda of understanding for
work performed between July 1, 2015, of the 2015-16 fiscal year,
and the enactment of the Budget Act of 2015.

(b) If the memoranda of understanding entered into between
the state employer and State Bargaining Units 7, 16, 18, and 19
(effective July 1, 2013, to July 1, 2016, inclusive) and State
Bargaining Units 6 and 12 (effective July 1, 2013, to July 1, 2015,
inclusive) are in effect and approved by the Legislature, the
compensation and contribution for employee benefits for state
employees represented by these bargaining units shall be at a rate
consistent with the applicable memorandum of understanding
referenced above.

(c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority
of a department. Upon the enactment of the Budget Act of 2015,
these expenditures shall be subsumed by the expenditure authority
approved in the Budget Act of 2015 for each affected department.

(d) This section shall only apply to an employee covered by the
terms of State Bargaining Units 7, 16, 18, and 19 (effective July
1, 2013, to July 1, 2016, inclusive) and State Bargaining Units 6
and 12 (effective July 1, 2013, to July 1, 2016, inclusive)
memoranda of understanding. Notwithstanding Section 3517.8,
this section shall not apply after the term of the memoranda of
understanding have applied. For purposes of this section, the
memoranda of understanding have expired. For purposes of this
section, the memoranda of understanding for State Bargaining
Units 7, 16, 18, and 19 expire on July 1, 2016, and the memoranda
of understanding for State Bargaining Units 6 and 12 expire on
July 1, 2015.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 12440.5 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 12440.5. end insert   

(a) Notwithstanding Section 13340, for the 2016-17
fiscal year, if the Budget Act of 2016 is not enacted on or before
July 1, 2016, for the memoranda of understanding entered into
between the state employer and State Bargaining Units 7, 16, 18,
and 19 (effective July 1, 2013, to July 1, 2016, inclusive), there is
hereby continuously appropriated to the Controller from the
General Fund, unallocated special funds, including, but not limited
to, federal funds and unallocated nongovernmental cost funds,
and any other fund from which state employees are compensated,
the amount necessary for the payment of compensation and
employee benefits to state employees covered by the above
memoranda of understanding until the Budget Act of 2016 is
enacted. The Controller may expend an amount no greater than
necessary to enable the Controller to compensate state employees
covered by the above memoranda of understanding for work
performed between July 1, 2016, of the 2016-17 fiscal year and
the enactment of the Budget Act of 2016.

(b) If the memoranda of understanding entered into between
the state employer and State Bargaining Units 7, 16, 18, and 19
(effective July 1, 2013, to July 1, 2016, inclusive) are in effect and
approved by the Legislature, the compensation and contribution
for employee benefits for state employees represented by these
bargaining units shall be at a rate consistent with the applicable
memorandum of understanding referenced above.

(c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority
of a department. Upon the enactment of the Budget Act of 2016,
these expenditures shall be subsumed by the expenditure authority
approved in the Budget Act of 2016 for each affected department.

(d) This section shall only apply to an employee covered by the
terms of the State Bargaining Units 7, 16, 18, and 19 (effective
July 1, 2013, to July 1, 2016, inclusive) memoranda of
understanding. Notwithstanding Section 3517.8, this section shall
not apply after the term of the memoranda of understanding have
expired. For purposes of this section, the memoranda of
understanding for State Bargaining Units 7, 16, 18, and 19 expire
on July 1, 2016.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 22871.8 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

22871.8.  

(a) Notwithstanding Section 22871, subdivision (b)
of Section 22871.5, or any other provision of this article, the
employer contribution with respect to employees in State
Bargaining Units 16 and 19 shall be as described in subdivision
(b).

(b) (1) From January 1, 2004, to December 31, 2005, inclusive,
the employer contribution for each employee shall be an amount
equal to 80 percent of the weighted average of the basic health
benefit plan premiums for an active state civil service employee
enrolled for self alone, during the benefit year to which the formula
is applied, for the four basic health benefit plans that had the largest
active state civil service enrollment, excluding family members,
during the previous benefit year. For each employee with enrolled
family members, the employer shall contribute an additional 80
percent of the weighted average of the additional premiums
required for enrollment of those family members, during the benefit
year to which the formula is applied, in the four basic health benefit
plans that had the largest active state civil service enrollment,
excluding family members, during the previous benefit year.

(2) Beginning January 1, 2006, the employer contribution for
each employee shall be an amount equal to 85 percent of the
weighted average of the basic health benefit plan premium for an
active state civil service employee enrolled for self alone, during
the benefit year to which the formula is applied, for the four basic
health benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the
employer shall contribute an additional 80 percent of the weighted
average of the additional premiums required for enrollment of
those family members, during the benefit year to which the formula
is applied, in the four basic health benefit plans that had the largest
active state civil service enrollment, excluding family members,
during the previous benefit year.

begin insert

(3) Beginning January 1, 2007, the employer contribution for
each employee shall be an amount equal to 80 percent of the
weighted average of the basic health benefit plan premium for an
active state civil service employee enrolled for self alone, during
the benefit year to which the formula is applied, for the four basic
health benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year. For each employee with enrolled family members, the
employer shall contribute an additional 80 percent of the weighted
average of the additional premiums required for enrollment of
those family members, during the benefit year to which the formula
is applied, in the four basic health benefit plans that had the largest
active state civil service enrollment, excluding family members,
during the previous benefit year.

end insert

(c) The employer contribution provided under this section is
not applicable unless and until the effective date of the employee’s
enrollment in an approved health benefit plan.

(d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant
to Section 3517.5 or Chapter 12 (commencing with Section 3560)
of Division 4 of Title 1, the memorandum of understanding shall
be controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may
not become effective unless approved by the Legislature.

begin insert

begin insert SEC. 10. end insert   

end insert begin insert

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

end insert begin insert

In order for the provisions of this act to be applicable as soon
as possible in the 2013-14 fiscal year and thereby facilitate the
orderly administration of state government at the earliest possible
time, it is necessary for this act to take effect immediately.

end insert