BILL ANALYSIS Ó
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 478
Jim Beall, Chair HEARING DATE: September 6, 2013
AB 478 (Gomez) as amended 9/03/13 FISCAL: YES
MEMORANDA OF UNDERSTANDING BETWEEN THE STATE AND STATE
BARGAINING UNITS 06, 07, 09, 12, 16, 18, and 19
HISTORY :
Sponsor: American Federation of State, County and
Municipal Employees-Health and Social Service
Professionals (AFSCME), Co-Sponsor
California Association of Psychiatric Technicians
(CAPT), Co-Sponsor
California Correctional Peace Officers Association
(CCPOA), Co-Sponsor
California Department of Human Resources (CalHR),
Co-Sponsor
California Statewide Law Enforcement Association
(CSLEA), Co-Sponsor
International Union of Operating Engineers (IUOE),
Co-Sponsor
Professional Engineers in California Government
(PECG), Co-Sponsor
Union of American Physicians and Dentists (UAPD),
Co-Sponsor
Other legislation: AB 1377 (Assembly PER&SS Committee)
Chapter 63, Statutes of 2013
SUMMARY :
AB 478 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);
BU 09 (Professional Engineers) represented by:
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Date: September 3, 2013 Page
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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).
This is an URGENCY BILL .
BACKGROUND AND ANALYSIS :
1) Existing law :
a) 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.
b) 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.
2) This bill would approve 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
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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 (Professional Engineers): 10,8242 years
(7/2/13 - 7/1/15)
BU 12 (Craft and Maintenance): 10,8192 years
(7/1/13 - 7/1/15)
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)
FISCAL :
According to CalHR fiscal costs are:
(in millions)
--------------------------------------------------------------
|MOU |Fiscal Year |Total |Total Budgetary |
| |2013-14 Cost |Incremental Cost |Cost |
--------------------------------------------------------------
|---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
|Bargainin| |General |Other | |General |Other | |General |Other |
|g |Total |Fund |Funds |Total |Fund |Funds |Total |Fund |Fund |
|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 |
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|---------+---------+---------+---------+---------+---------+---------+---------+---------+---------|
|19 |$0.003 |$0.003 |$0.0 |$23.1 |$13.6 |$6.5 |$33.4 |$24.0 |$9.4 |
---------------------------------------------------------------------------------------------------
AGREEMENT :
The complete tentative agreements between the State and the
employee representatives of BUs 06, 07, 09, 12, 16, 18, and
19 can be viewed at:
http://www.calhr.ca.gov/state-hr-professionals/Pages/bargainin
g-contracts.aspx#bu12
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 by and large provide for modest general salary
increases (GSIs) ranging from 1.5 - 4 percent 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) Compensation - General Salary Increases (GSIs) and Employee
Pension Contributions :
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-------------------------------------------------------------------
|BU|Compensation Increases |Employee Pension |
| |(See Note Below) |Contribution Increases |
| | |(If not noted, then no |
| | |change from prior MOU) |
| | | |
-------------------------------------------------------------------
|--+---------+------------------------+-------+-------------+-------|
| |7/1/14 |7/1/15 |Misc |PO/FF |State |
| | | |2nd | |Safety |
| | | |Tier | | |
|--+---------+------------------------+-------+-------------+-------|
|06| |4% (effective 1/1/15) | |1% increase | |
| | | |Employe|to 12% | |
| | | |e |(7/1/13) | |
| | | |pension| | |
| | | | |1% increase | |
| | | |contrib|to 13% | |
| | | |ution |(7/1/14) | |
| | | |increas| | |
| | | |es | | |
| | | |annuall| | |
| | | |y 1.5% | | |
| | | |until | | |
| | | |reaches| | |
| | | | 50% | | |
| | | |of | | |
| | | |Normal | | |
| | | |Cost | | |
|--+---------+------------------------+-------+-------------+-------|
|07| |3% | |1.5% |1% |
| | | | |increase to |increas|
| | |4.67% (Special Salary | |11.5% |e to |
| | |adjustments for | |(7/1/13) |10% |
| | |specified Hospital | | |(7/1/13|
| | |Police Officers and | |1.5% |) |
| | |Peace Officers) | |increase to | |
| | | | |13% (7/1/14) |1% |
| | | | | |increas|
| | | | | |e to |
| | | | | |11% |
| | | | | |(7/1/14|
| | | | | |) |
|--+---------+------------------------+-------+-------------+-------|
|09| |3.3% | | | |
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| | | | | | |
|--+---------+------------------------+-------+-------------+-------|
|12|$1200 |3% all (3.25%) | | | |
| |one-time | | | | |
| |bonus | | | | |
| | | | | | |
|--+---------+------------------------+-------+-------------+-------|
|16|2% |6% (8%) for specified | | | |
| | |Physicians and Surgeons | | | |
| | | | | | |
| | |3% (5%) for specified | | | |
| | |Medical Consultants and | | | |
| | |Public Health Medical | | | |
| | |Officers | | | |
| | | | | | |
| | |2% (4%) all others | | | |
|--+---------+------------------------+-------+-------------+-------|
|18|2% |2.25% (4.25%) | | | |
| | | | | | |
|--+---------+------------------------+-------+-------------+-------|
|19|4% for |4% (8%) for specified | | | |
| |specified|classes | | | |
| | classes | | | | |
| | |<0.6% payroll for | | | |
| | |specified classes per | | | |
| | |Inequity Study | | | |
| |1.5% all | | | | |
| |others |1.5% (3%) all others | | | |
-------------------------------------------------------------------
NOTE: All 2014 Compensation increases are subject to
achieving State Budgeted Revenues per DOF. Figures in
parentheses reflect 2015 compensation increases if 2014
increases are not made.
3) Provisions common to all contracts :
a) 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
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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)
members
Pensionable compensation caps apply to new CalPERS
members subject to PEPRA.
b) 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) except for BU
9 which shall be equal to eighty-five percent (the 85/80
forumula).
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.
c) Furloughs and Personnel Leave Program - the State
agrees not to impose any furloughs or personnel leave
programs during the terms of the MOUs.
d) 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, |$120 |
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|Ventura, Edwards AFB, less | |
|the City of Santa Monica | |
|-----------------------------+----------------------------|
|Sacramento, Napa, Riverside |$95 |
|-----------------------------+----------------------------|
|San Diego, Monterey, |$125 |
|Alameda, San Mateo, Santa | |
|Clara | |
|-----------------------------+----------------------------|
|San Francisco, City of Santa |$150 |
|Monica | |
----------------------------------------------------------
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).
4) Provisions applicable to specific Bargaining Units :
a) 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.
b) Bargaining Unit 06 (Correctional Peace Officers)
1959 Survivor's Benefit language shall be changed to be
consistent with CalPERS law (employee pays 50% of the
premium).
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Joint Labor Management Committee continues to develop an
Apprenticeship Program.
Furlough hours can be used to contribute to Release Time
Bank.
Compensable leave credits can be donated for
Catastrophic Time Bank.
Casework Specialist and MTA-Psychiatric classifications
will be included in the Night Shift Differential.
CDCR Transportation Officers may be allowed to utilize
leave credits when work is completed prior to the end of
the eight-hour day.
A field training officer program will be established and
include a 5% differential for the time the officer works
as a trainer and a 12 week academy will be implemented.
The parties will explore negotiating a Workers'
Compensation Carve Out pilot to reduce costs associated
with Workers' Compensation.
c) Bargaining Unit 07 (Protective Services and Public
Safety)
Personal Leave Program 2010 and 2012 must be used before
any other leave, excluding Sick Leave.
d) Bargaining Unit 09 (Professional Engineers)
Night shift differentials increase $0.40/hour and
$0.50/hour respectively for the 6:00 p.m. - 12:00 a.m.
shift and the 12:00 a.m. - 6:00 a.m. shift.
Effective July 1, 2015, BU 9 covered employees at the
Department of Water Resources (DWR) will be eligible for
up to 80 hours of CTO through the Operational
Availability Incentive Program.
The parties agree to seek State Personnel Board (SPB)
approval to implement deep classes within specified
classifications.
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e) Bargaining Unit 12 (Craft and Maintenance)
Footwear Allowance Increase of $32
Uniform Reimbursement - California Department of
Forestry increase of $20
Uniform Reimbursement - Department of Parks & Recreation
increase of $20
CalTrans employees not currently on a monthly pay cycle
will be changed to the monthly pay cycle on July 1,
2014.
The Department of Water Resources Dispatcher
Differential is removed from this Contract.
Subject to departmental approval and fiscal viability,
employees may cash out up to 20 hours of Vacation/Annual
leave per fiscal year. Each department head (Director,
Executive Officer, etc.) or designee will advise
department employees whether the department has funds
available for the purpose of cashing out accumulated
Vacation/Annual Leave.
Employees shall be allowed to Post and Bid into
permanent positions that are being temporarily filled
with temporary staff.
f) Bargaining Unit 16 (Physicians, Dentists and
Podiatrists)
The CDCR Longevity Incentive pay has been deleted.
Overpayments/Payroll Errors that are identified shall be
given to the employee before commencing with a
recoupment action. BU 16 employees can use accrued
leave credits to pay for overpayments.
The CalHR, UAPD, Department of Finance, and the
Department of General Services agree to maintain a
Contracting Out Committee.
Medical Consultants are eligible for bonus pay, as
specified, for up to a maximum of 55 (change from 65)
cases per week beyond the required 110 cases (change
from 90) reviewed per week. Bonus pay is not considered
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compensation towards retirement.
The State shall provide up to 56 hours (change from 7
days) per fiscal year of Continuing Medical Education
(CME). CME carry over may not exceed 112 hours (change
from 14 days). The State shall approve $1000 per fiscal
year for tuition, registration; cost of course related
books, training, etc. The State and the union will meet
within 90 calendar days after ratification in order to
streamline the payment of CME by establishing a process
in which $1000 would be provided at the beginning of
each fiscal year.
g) Bargaining Unit 16 (Physicians, Dentists and
Podiatrists)
Effective July 1, 2015, the Evening (6:00 p.m. -
midnight) shift differential increases to $1.00 and is
not considered compensation towards retirement.
Effective July 1, 2015, the NOC (midnight - 6:00 a.m.)
shift differential increases to $1.25 and is not
considered compensation towards retirement.
h) Bargaining Unit 19 (Health and Social
Services/Professionals)
The State and AFSCME agree to study several
classifications as specified to mutually decide on
appropriate salary adjustments not to exceed 0.6% of
payroll for AFSCME members of BU 19 using the following
criteria: severity of the inequity; recruitment and
retention issues; and number of existing employees.
Increases for various shift differentials as specified
and contingent on state budget revenue. Differentials
are not included in compensation for calculating
retirement.
Reimbursements for specified classifications who obtain
credentialing from the California Sex Offender
Management Board, for actual costs not to exceed $180.
Provides reimbursements up to $200 for Continuing
Education Units.
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Establishes a Contracting Out and Professional Retention
Committee to develop recruitment and retention plans and
promotional pathways, as well as explore the creation of
an "in-House" registry of Unit 19 employees who would
enjoy priority over outside contractors.
5) SUPPORT :
American Federation of State, County and Municipal
Employees-Health and Social Service Professionals
(AFSCME), Co-Sponsor
California Association of Psychiatric Technicians (CAPT),
Co-Sponsor
California Correctional Peace Officers Association (CCPOA),
Co-Sponsor
California Department of Human Resources (CalHR),
Co-Sponsor
California Statewide Law Enforcement Association (CSLEA),
Co-Sponsor
International Union of Operating Engineers (IUOE),
Co-Sponsor
Professional Engineers in California Government (PECG),
Co-Sponsor
Union of American Physicians and Dentists (UAPD),
Co-Sponsor
6) OPPOSITION :
None to date
#####
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