BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 478|
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THIRD READING
Bill No: AB 478
Author: Gomez (D)
Amended: 9/3/13 in Senate
Vote: 27 - Urgency
SENATE PUBLIC EMPLOYMENT & RETIREMENT COMM : 3-2, 9/6/13
AYES: Beall, Block, Yee
NOES: Walters, Gaines
SENATE APPROPRIATIONS COMMITTEE : Not available
ASSEMBLY FLOOR : 53-21, 05/30/13 - See last page for vote
SUBJECT : State employees: memorandum of understanding
SOURCE : AFSCME - Health and Social Service Professionals
California Association of Psychiatric Technicians
California Correctional Peace Officers Association
California Department of Human Resources
California Statewide Law Enforcement Association
International Union of Operating Engineers
Union of American Physicians and Dentists
DIGEST : This bill provides the implementing language and
necessary appropriations to ratify the recent memoranda of
understanding (MOUs) agreed to by the State with, respectively:
BU 06 (Correctional Peace Officers) represented by: California
Correctional Peace Officers Association (CCPOA); BU 07
(Protective Services and Public Safety) represented by:
California Statewide Law Enforcement Association (CSLEA); BU09
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(Professional Engineers) represented by: Professional Engineers
in California Government (PECG); BU 12 (Craft and Maintenance)
represented by: International Union of Operating Engineers
(IUOE); BU 16 (Physicians, Dentists and Podiatrists) represented
by: Union of American Physicians and Dentists (UAPD); BU 18
(Psychiatric Technician) represented by: California Association
of Psychiatric Technicians (CAPT); and BU 19 (Health and Social
Services/Professional) represented by: American Federation of
State, County and Municipal Employees-Health and Social Service
Professionals (AFSCME).
ANALYSIS :
Existing law:
1.Requires, under the State Employee-Employer Relations Act (the
Ralph C. Dills Act), that the state, represented by the
California Department of Human Resources (CalHR), collectively
bargain with exclusive employee representatives over all
aspects related to wages and working conditions, and that
agreements be formalized in MOUs that are subsequently
approved by the Legislature.
2.Requires the Office of the Legislative Analyst (LAO) to
analyze state MOUs and to report on its findings to the
Legislature within 10 days of receiving the MOU from CalHR.
This bill approves the agreements between the state and the
employee representatives for the following state bargaining
units and would cover the Full Time Equivalent positions
(approximately) for the term duration of the MOUs as cited
below:
Bargaining Unit FTE
Covered Term
BU 06 (Correctional Peace Officers): 28,3572 years
(7/1/13 - 7/1/15)
BU 07 (Protective Services and Public Safety): 6,7803 years
(7/1/13 - 7/1/16)
BU 09 (Profession Engineers in California) 10,8242 years
(7/2/13 - 7/1/15)
BU 12 (Craft and Maintenance): 10,8192 years
(7/1/13 - 7/1/15)
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BU 16 (Physicians, Dentists and Podiatrists): 1,5143 years
(7/1/13 - 7/1/16)
BU 18 (Psychiatric Technician): 5,4133 years
(7/1/13 - 7/1/16)
BU 19 (Health and Social Services/Professional): 4,8593 years
(7/1/13 - 7/1/16)
Comments
1.General observations:
The state employees in bargaining units covered in this bill
(BU 6, 7, 9, 12, 16, 18, and 19) are currently working under
MOUs that were ratified in 2010-2011 and that expired in July
2013. The terms of the covered bargaining units' respective
MOUs are similar to those reached with the nine bargaining
units represented by Service Employees International Union -
Local 1000 (SEIU) earlier this year. The MOUs provide for
modest general salary increases (GSIs) ranging from 1 -
4%effective July 1, 2014, and again in July 1, 2015, if state
budget revenue projections are achieved. The Department of
Finance is tasked with determining whether the state achieves
budget revenue projections and thus, whether GSIs will be
awarded in 2014. In the event the state does not award salary
increases in 2014, covered bargaining unit classifications
will receive an amount equivalent to the combined 2-year
salary increase effective July 2015. Thus, a shortfall in
projected state budget revenues will delay for one year but
not prevent implementation of the respective GSIs for the
affected bargaining units.
2.Provisions common to all contracts :
Retirement Benefit Formula Calculation . All contracts reflect
the requirements of the Public Employment Pension Reform Act
(PEPRA). Under PEPRA employees who become CalPERS members on
or after January 1, 2013, are subject to the following
retirement benefit formulas:
2% at age 62 for Miscellaneous/Industrial (First Tier)
members
1.5% at age 67 for Second Tier members
2% at age 57 for State Safety members
2.5% at age 57 for Peace Officer/Fire Fighter (PO/FF)
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members
Pensionable compensation caps apply to new CalPERS members
subject to PEPRA.
Health Benefits Premium - Employer Contribution . The state's
monthly contribution for healthcare coverage for employees and
eligible dependents shall be an amount equal to eighty percent
of the weighted average of the premiums for the four Basic
health benefit plans with the largest enrollment (the 80/80
formula).
Dependents Health Premium . 80/75 during first year of
employment. BU 12, 18 and BU 19 have agreed to provisions
providing the 80% employer contribution for employees'
dependents after one year of state employment. During the
one-year vesting period, the state will contribute 75% of the
weighted average of the premiums for the four Basic health
benefit plans with the largest enrollment for employee's
dependents.
Furloughs and Personnel Leave Program . The state agrees not
to impose any furloughs or personnel leave programs during the
terms of the MOUs.
Miscellaneous . Business and Travel Reimbursements - the state
increased the Business and Travel Reimbursements: the State
increased the breakfast rate to $7.00, lunch to $11.00, dinner
to $23.00 and incidentals to $5.00. The State increased
lodging rates as follows:
-------------------------------------------------------------
| County | Lodging Rate |
|------------------------------+------------------------------|
|All counties except those | $90 |
|listed below. | |
|------------------------------+------------------------------|
|Los Angeles, Orange, Ventura, | $120 |
|Edwards AFB, less the City of | |
|Santa Monica | |
|------------------------------+------------------------------|
|Sacramento, Napa, Riverside | $95 |
|------------------------------+------------------------------|
|San Diego, Monterey, Alameda, | $125 |
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|San Mateo, Santa Clara | |
|------------------------------+------------------------------|
|San Francisco, City of Santa |$150 |
|Monica | |
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Implementing Legislation . The parties agree to present to the
Legislature, as part of the legislation implementing these
MOUs, a provision to appropriate funds to cover the economic
terms of these agreements through the final year of the
contract term (i.e. 2015 or 2016 depending on the BU).
1.Provisions applicable to specific Bargaining Units :
Legislation . BU 16's and BU 19's MOUs would require that
Government Code Section 22871.8 be amended to provide that the
employer contribution toward employees' health plan premiums
be 80 % of the weighted average of the four basic health
benefit plans premium for an active state civil service
employee enrolled for self alone and 80% for dependents (the
80/80 formula). Current statute provides that the state's
contribution toward BU 16 and BU 19 employees shall be 85% and
80%. The proposed amendment would make the lower employer
contribution effective retroactively for employees beginning
January 1, 2007. This statutory change will codify an
agreement to reduce the 85/80 formula that was first agreed to
in an earlier MOU.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to CalHR fiscal costs are:
(in millions)
----------------------------------------------------------------
| MOU | Fiscal Year | Total | Total Budgetary |
| | 2013-14 Cost |Incremental Cost | Cost |
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|---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
|Bargainin| Total | General | Other | Total | General | Other | Total | General | Other |
| g | | Fund | Funds | | Fund | Funds | | Fund | Fund |
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| Unit | | | | | | | | | |
|---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
| 06 | $14.8| $14.7| $0.1| $177.5| $176.3| $1.2| $297.2| $295.2| $2.0|
|---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
| 07 | $1.1| $0.3| $0.8| $26.4| $9.1| $17.3| $32.1| $10.8| $21.3|
|---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
| 09 | $0.0| $0.0| $0.0| $48.7| $1.5| $47.2| $48.7| $1.5| $47.2|
|---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
| 12 | $1.6| $0.5| $1.1| $44.8| $14.3| $30.5| $53.4| $17.1| $36.3|
|---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
| 16 | $0.0 | $0.0| $0.0| $20.1| $17.8| $2.3| $28.9| $25.8| $3.1|
|---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
| 18 | $1.0| $0.9| $0.1| $25.6| $23.5| $2.1| $38.6| $35.5| $3.1|
|---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
| 19 | $0.003| $0.003| $0.0| $23.1| $13.6| $6.5| $33.4| $24.0|$9.4 |
| | | | | | | | | | |
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SUPPORT : (Verified 9/6/13)
AFSCME - Health and Social Service Professionals
California Association of Psychiatric Technicians
California Correctional Peace Officers Association
California Department of Human Resources
California Statewide Law Enforcement Association
International Union of Operating Engineers
Union of American Physicians and Dentists
ASSEMBLY FLOOR : 53-21, 5/30/13
AYES: Alejo, Ammiano, Atkins, Bloom, Blumenfield, Bocanegra,
Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon,
Campos, Chau, Chesbro, Cooley, Daly, Dickinson, Eggman, Fong,
Fox, Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray,
Hall, Roger Hernández, Jones-Sawyer, Levine, Lowenthal,
Medina, Mitchell, Mullin, Muratsuchi, Nazarian, Pan, Perea, V.
Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,
Stone, Ting, Weber, Wieckowski, Williams, Yamada, John A.
Pérez
NOES: Allen, Bigelow, Chávez, Dahle, Donnelly, Beth Gaines,
Gorell, Grove, Harkey, Jones, Logue, Maienschein, Mansoor,
Melendez, Morrell, Nestande, Olsen, Patterson, Wagner,
Waldron, Wilk
NO VOTE RECORDED: Achadjian, Conway, Hagman, Holden, Linder,
Vacancy
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JL:nl 9/6/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
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