BILL ANALYSIS Ó
AB 478
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 478 (Gomez and Rendon)
As Amended September 3, 2013
2/3 vote. Urgency
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|ASSEMBLY: |53-21|(May 30, 2013) |SENATE: |32-5 |(September 6, 2013) |
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|COMMITTEE VOTE: |4-2 |(September 10, |RECOMMENDATION: |concur |
|(P.E., R. & | |2013) | | |
|S.S.) | | | | |
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Original Committee Reference: P.E., R. & S.S.
SUMMARY : Provides legislative ratification for the memoranda of
understanding (MOU) agreed to by the state and the following state
bargaining units (BUs):
1)BU 6 (Corrections), represented exclusively by the California
Correctional Peace Officers Association (CCPOA);
2)BU 7 (Protective Services and Public Safety), represented
exclusively by the California Statewide Law Enforcement
Association (CSLEA);
3)BU 9 (Professional Engineers), represented exclusively by the
Professional Engineers in California Government (PECG);
4)BU 12 (Craft and Maintenance), represented exclusively by the
International Union of Operating Engineers (IUOE);
5)BU 16 (Physicians, Dentists and Podiatrists), represented
exclusively by the Union of American Physicians and Dentists
(UAPD);
6)BU 18 (Psychiatric Technician), represented exclusively by the
California Association of Psychiatric Technicians (CAPT); and,
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7)BU 19 (Health and Social Services/Professional), represented
exclusively by the American Federation of State, County and
Municipal Employees (AFSCME).
The Senate amendments delete the Assembly version of the bill, and
instead provide legislative ratification for MOUs agreed to between
the state and state BUs 6, 7, 9, 12, 16, 18, and 19.
EXISTING LAW :
1)Establishes the Ralph C. Dills Act, which requires the state to
collectively bargain with official representatives of employee
groups (i.e., bargaining units) regarding wages and working
conditions, and to define negotiated agreements in MOUs.
2)Establishes the California Department of Human Resources (CalHR)
as the official representative of the Governor in all matters
related to collective bargaining.
3)Requires that any MOU between the state and an official
representative must be ratified by the Legislature.
4)Requires that an addendum to a ratified MOU must be submitted to
the Joint Legislative Budget Committee (JLBC) for analysis, and,
if so required by the JLBC, must also be approved by the
Legislature.
5)Establishes the California Public Employees' Retirement System
(CalPERS), which provides health and retirement benefits for
state employees.
6)Requires the Legislative Analyst's Office (LAO) to analyze all
state MOUs and to provide analyses of the MOUs and their fiscal
impact to the Legislature within 10 days of receipt of the MOUs
from CalHR.
7)Establishes comprehensive public employee pension reform through
enactment of the Public Employees' Pension Reform Act of 2013
(PEPRA) that apply to all public employers and public pension
plans on and after January 1, 2013, excluding the University of
California and charter cities and counties that do not
participate in a retirement system governed by state statute.
FISCAL EFFECT : According to the Senate Appropriations Committee,
this bill appropriates $18,538,000 for expenditure in the 2013-14
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fiscal year as follows: $16,509,000 from the General Fund,
$1,359,000 from unallocated special funds, and $670,000 from other
unallocated nongovernmental cost funds, for the purpose of state
employee compensation for the current fiscal year for BUs 6, 7, 12,
18, and 19. The costs of several provisions such as depending
health vesting, dental benefits and travel reimbursements will be
absorbed within each department's existing resources and will,
therefore, not require an appropriation for fiscal year (FY)
2013-14.
Additionally, this bill provides for a continuous appropriation for
the payment of employee compensation and benefits for members of
BUs 7, 16, 18, and 19 for the 2013-14, 2014-15, and 2015-16 FYs;
and for Units 6, 9 and 12 for FYs 2013-14 and 2014-15.
COMMENTS : Beginning in 2008, state employees saw significant
erosion in their earnings. Most employees saw salary reductions of
15% pursuant to Governor Schwarzenegger's furlough program.
According to the LAO, the average state worker saw his or her
salary reduced by approximately $21,000 over the course of the
furlough period.
In 2011, with the furlough program ended, most state contracts
required a 5% pay reduction in exchange for one personal leave day
per month and increases of 3% to 5% in member contributions to
CalPERS-an overall reduction of 8% to 10%. With the end of the
personal leave program and a salary adjustment on July 1st
equivalent to the increase in member contributions, state employees
were finally be made whole after approximately five years of
reduced compensation.
Prior to the reductions detailed above, the last general salary
increase for state employees (3.4%) occurred in 2007.
The following information summarizing the general provisions of the
MOUs was provided by CalHR:
Number of Employees :
The BU 6 agreement affects approximately 28,357 full-time
equivalents.
The BU 7 agreement affects approximately 6,780 full-time
equivalents.
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The BU 9 agreement affects approximately 10,824 full-time
equivalents.
The BU 12 agreement affects approximately 10,819 full-time
equivalents.
The BU 16 agreement affects approximately 1,517 full-time
equivalents.
The BU 18 agreement affects approximately 5,413 full-time
equivalents.
The BU 19 agreement affects approximately 4,859 full-time
equivalents.
Retirement Benefit Formula Calculation :
BUs 6 and 7 employees who first become CalPERS members on or after
January 1, 2013, who are subject to the Peace Officer/Firefighter
(PO/FF) retirement category, under PEPRA, will be subject to the
2.5% at age 57 formula.
BUs 7, 9, 12, 16, 18, and 19 employees who first become CalPERS
members on or after January 1, 2013, who are subject to the State
Safety retirement category, under PEPRA, will be subject to the 2%
at age 57 formula.
BUs 6, 7, 9, 12, 16, 18, and 19 employees, who first become CalPERS
members on or after January 1, 2013, who are subject to the
Miscellaneous/Industrial (First Tier) retirement category under
PEPRA, will be subject to the 2% at age 62 formula.
BUs 6, 7, 9, 12, 16, 18, and 19 employees who first become CalPERS
members on or after January 1, 2013, who are subject to the Second
Tier retirement category, under PEPRA will be subject to the 1.25%
at age 67 formula.
Pensionable compensation caps will apply to new CalPERS members
subject to PEPRA as defined under PEPRA.
Employee Pension Contribution - Peace Officer/Firefighter :
Effective July 1, 2013, BU 6 PO/FF members will contribute an
additional 1% towards
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retirement. BU 6 PO/FF members will contribute 12% effective July
1, 2013.
Effective July 1, 2014, BU 6 PO/FF members will contribute an
additional 1% towards retirement.
BU 6 PO/FF members will contribute 13% effective July 1, 2014.
Effective July 1, 2013, BU 7 PO/FF members will contribute an
additional 1.5% towards retirement. BU 7 PO/FF members shall
contribute 11.5% effective July 1, 2013.
Effective July 1, 2014, BU 7 PO/FF members will contribute an
additional 1.5% towards retirement. BU 7 PO/FF members will
contribute 13% effective July 1, 2014.
Employee Pension Contribution - State Safety :
Effective July 1, 2013, BU 7 State Safety members will contribute
an additional 1% towards retirement. BU 7 State Safety members
will contribute 10% effective July 1, 2013.
Effective July 1, 2014, BU 7 State Safety members will contribute
an additional 1% towards retirement. BU 7 State Safety members
will contribute 11% effective July 1, 2014.
Effective July 1, 2013, all BU 9 members in State Safety Retirement
will have their contribution increased from 9% to 10% of monthly
compensation over $317. Effective July 1, 2014, all BU 9 members
in State Safety Retirement will have their contribution increased
from 10% to 11% of monthly compensation over $317.
Employee Pension Contribution - Miscellaneous/Industrial :
BU 6 First Tier members, under the Miscellaneous retirement
category subject to
Social Security will continue to contribute 8% towards retirement.
BU 6 Miscellaneous members not subject to Social Security will
continue to contribute 9%.
Effective July 1, 2013, BU 6 First Tier members, under the
Industrial retirement category, will contribute an additional 1%
towards retirement. BU 6 Industrial members subject to Social
Security will contribute 9% effective July 1, 2013. Industrial
members not subject to Social Security will contribute 10%
effective July 1, 2013.
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BU 7 First Tier members under Miscellaneous/Industrial shall
continue to pay 8% towards retirement.
All BU 9 members if First Tier Miscellaneous Retirement will
contribute 8% of monthly compensation over $513.
Effective July 1, 2013, all BU 9 members in First Tier Industrial
Retirement will have their contribution increased from 8% to 9% of
monthly compensation over $513.
Effective July 1, 2013, all BU 9 members in First Tier Industrial
Retirement who do not participate in Social Security shall have
their contribution increased from 9% to 10% of monthly compensation
over $317.
Employee Pension Contribution - Second Tier :
Effective July 1, 2013, all BUs 6, 7, 9, 12, 16, 18, and 19
employees subject to the Second Tier retirement plan will
contribute 1.5% of monthly pensionable compensation and the
contribution will increase by 1.5% points annually. The final
annual increase in the contribution rate shall be adjusted as
appropriate to reach 50% of normal cost.
Compensation - BU 6 :
Effective January 1, 2015, all BU 6 represented classifications
will receive a 4% General Salary Increase (GSI).
1959 Survivor's Benefit language changed to be consistent with
CalPERS law (employee pays 50% of the premium).
Compensation - BU 7 :
All BU 7 represented classifications will receive a 3% GSI
effective July 1, 2015.
Hospital Police Officers and Peace Officers working in the
following classifications will receive a 4.67% Special Salary
Adjustment effective July 1, 2015 - Hospital Police Officer and
Peace Officer I, Developmental Center.
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Compensation - BU 9 :
Effective July 1, 2015, all BU 9 represented classifications will
receive a 3.3% GSI.
Effective July 1, 2015, BU 9 employees who regularly work shifts
will receive a night shift differential increase from 40 cents per
hour to 80 cents per hour (for employees whose shift is 6 p.m. to
midnight) from 50 cents per hour to one dollar per hour (for
employees whose shift is between 12 midnight and
6 a.m.)
Effective July 1, 2015, BU 9 employees working at the Department of
Water Resources are eligible to participate in the Operational
Availability Incentive Program, which provides up to 80 hours of
compensatory time off (CTO) if operational goals are met within the
calendar year.
Effective July 1, 2015, the state and PECG agree to seek State
Personnel Board (SPB) approval to implement deep classes within the
classifications of Junior Civil Engineer, Assistant Civil Engineer,
and Associate Civil Engineer into the Engineer, Civil
classification.
Effective July 1, 2015, the state and PECG agree to seek SPB
approval to implement deep classes within these classifications of
Sanitary Engineer range (A and B) and Associate Sanitary Engineer
into the Sanitary Engineer classification.
Compensation - BU 12 :
Effective July 1, 2014, BU 12 employees will receive a one-time
bonus of $1,200 (pro-rated for seasonal employees and employees
with a time-base of less than full-time) and a 3% GSI effective
July 1, 2015.
The 2014 one-time bonus and GSI increase is contingent on the
projected state revenues in the 2014-15 Budget. If the funding is
determined to be insufficient to fund the one-time bonus and GSI
then all employees will receive a 3.25% GSI effective July 1, 2015.
The following increases are also contingent upon the projected
state revenues in the 2014-15 Budget:
Dependent Vesting of 75% (initial enrollment) and 100% (after
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12 months)
Footwear Allowance increase of $32
Uniform Reimbursement- California Department of Forestry and
Fire Protection increase of $20
Uniform Reimbursement- Department of Parks and Recreation
increase of $20
If these sections are not implemented on July 1, 2014, based on the
conditions described above, they will be effective July 1, 2015.
Compensation - BU 16 :
Effective July 1, 2014, contingent on the projected state revenues
of the 2014-15 Budget, all
BU 16 represented classifications will receive a 2 % GSI.
If the GSI on July 1, 2014 is provided, effective July 1, 2015, all
BU 16 represented classifications, will receive a 2% GSI, with the
following exceptions as listed below:
The Department of State Hospitals', Developmental Services'
and Veterans Affairs'
Physicians and Surgeons will receive a 6% GSI effective July
1, 2015.
Medical Consultants and Public Health Medical Officers in
specified classifications will receive a 3% GSI effective July
1, 2015. This only applies to the rank and file
classifications covered by this MOU that have a U designation,
and are represented.
If the projected state revenues are not achieved all employees
represented by UAPD will receive a GSI of 4% effective July 1,
2015, with the following exceptions as listed below:
Department of State Hospitals', Developmental Services', and
Veterans Affairs' Physicians and Surgeons will receive an 8%
GSI effective July 1, 2015.
Medical Consultants and Public Health Medical Officers in
specified classifications will receive a 5% GSI effective July
1, 2015. This only applies to the rank and file
classifications covered by this MOU that have a U designation,
and are represented.
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Compensation - BU 18 :
Effective July 1, 2014, contingent on the projected state revenues
of the 2014-15 Budget, all BU 18 represented classifications will
receive a 2% GSI. Effective July 1, 2015, all BU 18 represented
classifications will receive a 2.25% GSI.
If the projected state revenues are not achieved, all BU 18
represented classifications will receive a 4.25% GSI effective July
1, 2015.
Compensation - BU 19 :
Effective July 1, 2014, contingent on the projected state revenues
of the 2014-15 Budget, all BU 19 represented classifications,
except those classifications listed below, will receive a 1.5% GSI.
The following classifications, Senior Vocational
Rehabilitation Counselor, Qualified Rehabilitation
Professional and Adoptions Specialist will receive a 4% GSI on
July 1, 2014, contingent on the projected state revenues of
the 2014-15 Budget.
If the GSI on July 1, 2014, is provided, effective July 1, 2015,
all BU 19 represented classifications, except those classifications
listed below, will receive a 1 .5% GSI.
The following classifications, Senior Vocational
Rehabilitation Counselor, Qualified Rehabilitation
Professional and Adoptions Specialist will receive a 4% GSI on
July 1, 2015, if the GSI on July 1, 2014 is provided.
If the projected state revenues are not achieved all employees
represented by AFSCME will receive a GSI of 3% effective July 1,
2015, except those classifications listed below:
Senior Vocational Rehabilitation Counselor, Qualified
Rehabilitation Professional and Adoptions Specialist
classifications will receive an 8% GSI effective July 1, 2015,
if the state revenues are not achieved.
In addition, following the ratification of the agreement, but no
later than July 1, 2015, the state and AFSCME will study inequities
in specified classification and will mutually decide on appropriate
salary adjustments. Salary adjustments and related benefits shall
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not exceed .6% of payroll for AFSCME as of April 2013. The
following criteria will be utilized: severity of the inequity;
recruitment and retention issues; and, number of existing
employees.
Health Benefits - Employer Contribution :
BU 6 - The state's monthly contribution to the health insurance
portion of the BU 6 employee's allowance will be an amount equal to
80% of the weighted average of the premiums for the four Basic
health benefit plans with the largest enrollment (the 80/80
formula) to determine the state's contribution to health care on
January 2014 and January 2015.
BU 7 - The pay period following ratification, the state's monthly
contribution to the health insurance portion of the BU 7 employee
allowance will be set at a dollar amount that equals the 80/80
formula. The amounts will be increased on January 1, 2014, January
1, 2015, and January 1, 2016.
BU 9 - The state's monthly contribution to the health insurance
portion of the BU 9 employee's allowance will be an amount equal to
85% of the weighted average of the premiums for the four Basic
health benefit plans with the largest enrollment (the 85/80
formula).
BU 12 - Upon ratification, the state's monthly contribution to the
health insurance portion of each employee's allowance will be set
at a dollar amount that equals the 80/80 formula. The amounts
shall be increased on January 1, 2014, and January 1, 2015.
BU 16 - Upon ratification, the employer health benefits
contribution for each employee will be an amount equal to 80% of
the weighted average of the Basic health benefit plan premiums (the
80/80 formula).
BU 18 - The state's monthly contribution to the health insurance
portion of the BU 18 employee allowance will be set at a dollar
amount that equals the 80/80 formula. The amounts shall be
increased on January 1, 2014, January 1, 2015, and January 1, 2016.
BU 19 - Upon ratification, the employer health benefits
contribution for each employee will
be an amount equal to 80% of the weighted average of the Basic
health benefit plan premiums (the 80/80 formula).
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Health Benefits - Dependent Coverage :
BU 18 - Effective July 1, 2015, employees will become eligible for
the full employer contribution for dependent health coverage after
one year of state employment. The state will contribute 75% of the
normal amount for dependents during the vesting period.
BU 19 - Effective July 1, 2014, employees will become eligible for
the full employer contribution for dependent health coverage after
one year of state employment. The state will contribute 75% of the
normal amount for dependents during the vesting period. The
implementation of this is based on the state achieving the
projected revenues of the 2014-15 Budget. If the savings are not
achieved the dependent vesting benefit will be effective July 1,
2015.
Miscellaneous :
The agreements contain various miscellaneous provisions including
the following:
The state will not mandate a reduction in work hours
(furlough/Personal Leave Program) program for BUs 6, 7, 9, 12, 16,
18, and 19 employees during the term of this agreement.
The state and the exclusive representatives agree to present to the
Legislature, as part of the legislation implementing the MOUs, a
provision to appropriate funds to cover the economic terms of the
agreements, as specified.
BU 7 - Personal Leave Program 2010 and 2012 must be used before any
other leave, excluding Sick Leave.
BUs 6, 7, 9, 12, 16, 18, and 19 - Business and Travel, the state
increased the meal/incidental reimbursement rates and lodging rates
as specified in the agreements.
BU 9 - Time off for Blood Donation was incorporated into the MOU
agreement.
BU 9 - Employees will be allowed to cash out up to 20 hours of
vacation or annual leave once per fiscal year if their department
head determines funds are available.
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BU 12 - California Department of Transportation (CalTrans)
employees not currently on a monthly pay cycle will be changed to
the monthly pay cycle on July 1, 2014.
BU 12 - 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.
BU 16 - Medical Consultants are eligible for bonus pay, if the plan
is invoked, 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 compensation towards
retirement.
BU 16 - The state will provide up to 56 hours (change from seven
days) per fiscal year of Continuing Medical Education (CME). CME
carry over may not exceed 112 hours (change from 14 days). The
state will approve $1,000 per fiscal year for tuition,
registration; cost of course related books, training, etc. The
state and 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.
BU 18 - 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.
BU 19 - Night/Weekend Shift Differentials will be adjusted, as
specified in the agreement, based on the state achieving the
projected revenues of the 2014-15 Budget.
BU 19 - The state agrees to reimburse Psychologists and Social
Workers employed by California Department of Corrections and
Rehabilitation and assigned to the Division of Adult Parole
Operations who obtain provider credentialing from the California
Sex Offender Management Board. The reimbursement will be for
actual costs, not to exceed $180, of the initial credentialing as
well as the biannual renewal fees. The implementation of this is
based on the state achieving the projected revenues of the 2014-15
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Budget.
BU 19 - The state agrees to reimburse up to $200 of the total
amount spent annually on Continuing Education Units. The
implementation of this is based on the state achieving the
projected revenues of the 2014-15 Budget.
BU 19 - A Contracting Out and Professional Retention Committee will
be established to develop recruitment and retention plans and
promotional pathway. The committee will also explore the creation
of an "In-House" registry of BU 19 employees who would enjoy
priority over outside contractors.
Duration :
BU 6 - Two years - July 3, 2013, through July 2, 2015.
BU 7 - Three years - July 2, 2013, through July 1, 2016.
BU 9 - Two years - July 2, 2013, through July 1, 2015.
BU 12 - Two years - July 1, 2013, through July 1, 2015.
BUs 16, 18, and 19 - Three years - July 1, 2013, through July 1,
2016
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957 FN: 0002743