Amended in Assembly June 20, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1377

Introduced by Committee on Public Employees, Retirement and Social Security (Bonta (Chair), Jones-Sawyer, Mullin, Rendon, and Wieckowski)

February 26, 2013

An act begin insert to add Sections 19829.981, 19829.982, and 19829.983 to the Government Code, end insert relating to state employees, begin insert making an appropriation therefor, end insert and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 1377, as amended, Committee on Public Employees, Retirement and Social Security. begin delete Committee on Public Employees, Retirement and Social Security: state end delete begin insert State end insert 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 a memorandum of understanding entered into between the state employer and begin delete an unspecified end delete begin insert specified end insert bargaining begin delete unit end delete begin insert units for the 2013-14, 2014-15, and 2015-16 fiscal years end insert that require the expenditure of begin delete funds, and end delete begin insert funds. The bill end insert 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 begin delete require end delete begin insert authorize end insert the state employer and the affected employee organization to begin delete meet and confer to renegotiate the affected provisions end delete begin insert reopen negotiations on all or part of the memorandum of understanding end insert if funds for those provisions are not specifically appropriated by the Legislature.

begin insert

The bill also would appropriate $1,351,000 for expenditure in the 2013-14 fiscal year for state employee compensation, as prescribed.

end insert begin insert

If a Budget Act is not enacted July 1 of each year covered by the memorandum of understanding for specified bargaining units, the bill would continuously appropriate to the Controller unspecified amounts as necessary for the payment of compensation and employee benefits until the Budget Act is enacted for the 2013-14, 2014-15, and 2015-16 fiscal years and would require these expenditures to be subsumed by the eventual expenditure authority approved for each fiscal year.

end insert

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

Vote: ²⁄₃. 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 begin delete an agreement end delete begin insert the provisions of
agreements end insert 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 1, 3, 4, 11, 14, 15, 17, 20, and 21 that require the expenditure
of funds end insert .

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 insert Service Employees
International Union, end insert State Bargaining begin delete Unit ____, dated ____, and end delete
begin insert Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, on June 11, 2013, and end insert
that require the expenditure of funds, are hereby approved for the
purposes of begin delete subdivision (b) of end delete Section 3517.6 of the Government
Code.

SEC. 3.  

The provisions of the memorandum of understanding
approved by Section 2 of this act that begin insert are scheduled to take effect
on or after July 1, 2013, and that end insert require the expenditure of begin delete funds end delete
begin insert funds, end insert shall not take effect unless funds for these 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 the memorandum
of understanding that requires the expenditure of funds, either
party 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 begin delete the end delete begin insert any end insert memorandum of understanding
begin delete included in Section 2 end delete 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.

begin insert

begin insert SEC. end insert begin insert 5. end insert   

end insert

begin insert Section 19829.981 is added to the end insert begin insert Government Code end insert begin insert , end insert immediately following Section 19829.98 begin insert , to read: end insert

begin insert

begin insert 19829.981. end insert   

(a) Notwithstanding Section 13340, for the
2013-14 fiscal year, if the 2013-14 Budget Act is not enacted by
July 1, 2013, for the memoranda of understanding entered into
between the state employer and State Bargaining Unit 1 (effective
July 2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 3
(effective July 2, 2013, to July 1, 2016, inclusive), State Bargaining
Unit 4 (effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 11 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 14 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 15 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 17
(effective July 2, 2013, to July 1, 2016, inclusive), State Bargaining
Unit 20 (effective July 2, 2013, to July 1, 2016, inclusive), and
State Bargaining Unit 21 (effective July 2, 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 2013-14
Budget Act 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, 2013, of the 2013-14 fiscal
year and the enactment of the 2013-14 Budget Act.

(b) If the memoranda of understanding entered into between
the state employer and State Bargaining Unit 1 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 3 (effective
July 2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 4
(effective July 2, 2013, to July 1, 2016, inclusive), State Bargaining
Unit 11 (effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 14 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 15 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 17 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 20
(effective July 2, 2013, to July 1, 2016, inclusive), and State
Bargaining Unit 21 (effective July 2, 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 2013-14 Budget Act,
these expenditures shall be subsumed by the expenditure authority
approved in the 2013-14 Budget Act for each affected department.

(d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 1 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 3 (effective July 2, 2013,
to July 1, 2016, inclusive), State Bargaining Unit 4 (effective July
2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 11
(effective July 2, 2013, to July 1, 2016, inclusive), State Bargaining
Unit 14 (effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 15 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 17 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 20 (effective July 2,
2013, to July 1, 2016, inclusive), and State Bargaining Unit 21
(effective July 2, 2013, to July 1, 2016, inclusive), memoranda of
understanding. Notwithstanding Section 3517.8, this section shall
not apply after the term of the memorandum of understanding has
expired. For purposes of this section, the memorandum of
understanding for State Bargaining Unit 1 expires on July 1, 2016,
the memorandum of understanding for State Bargaining Unit 3
expires on July 1, 2016, the memorandum of understanding for
State Bargaining Unit 4 expires on July 1, 2016, the memorandum
of understanding for State Bargaining Unit 11 expires on July 1,
2016, the memorandum of understanding for State Bargaining
Unit 14 expires on July 1, 2016, the memorandum of understanding
for State Bargaining Unit 15 expires on July 1, 2016, the
memorandum of understanding for State Bargaining Unit 17
expires on July 1, 2016, the memorandum of understanding for
State Bargaining Unit 20 expires on July 1, 2016, and the
memorandum of understanding for State Bargaining Unit 21
expires on July 1, 2016.

end insert

begin insert

begin insert SEC. end insert begin insert 6. end insert   

end insert

begin insert Section 19829.982 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 19829.982. end insert   

(a) Notwithstanding Section 13340, for the
2014-15 fiscal year, if the 2014-15 Budget Act is not enacted by
July 1, 2014, for the memoranda of understanding entered into
between the state employer and State Bargaining Unit 1 (effective
July 2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 3
(effective July 2, 2013, to July 1, 2016, inclusive), State Bargaining
Unit 4 (effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 11 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 14 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 15 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 17
(effective July 2, 2013, to July 1, 2016, inclusive), State Bargaining
Unit 20 (effective July 2, 2013, to July 1, 2016, inclusive), and
State Bargaining Unit 21 (effective July 2, 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 2014-15
Budget Act 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 2014-15 Budget Act.

(b) If the memoranda of understanding entered into between
the state employer and State Bargaining Unit 1 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 3 (effective
July 2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 4
(effective July 2, 2013, to July 1, 2016, inclusive), State Bargaining
Unit 11 (effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 14 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 15 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 17 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 20
(effective July 2, 2013, to July 1, 2016, inclusive), and State
Bargaining Unit 21 (effective July 2, 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 2014-15 Budget Act,
these expenditures shall be subsumed by the expenditure authority
approved in the 2014-15 Budget Act for each affected department.

(d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 1 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 3 (effective July 2, 2013,
to July 1, 2016, inclusive), State Bargaining Unit 4 (effective July
2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 11
(effective July 2, 2013, to July 1, 2016, inclusive), State Bargaining
Unit 14 (effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 15 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 17 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 20 (effective July 2,
2013, to July 1, 2016, inclusive), and State Bargaining Unit 21
(effective July 2, 2013, to July 1, 2016, inclusive), memoranda of
understanding. Notwithstanding Section 3517.8, this section shall
not apply after the term of the memorandum of understanding has
expired. For purposes of this section, the memorandum of
understanding for State Bargaining Unit 1 expires on July 1, 2016,
the memorandum of understanding for State Bargaining Unit 3
expires on July 1, 2016, the memorandum of understanding for
State Bargaining Unit 4 expires on July 1, 2016, the memorandum
of understanding for State Bargaining Unit 11 expires on July 1,
2016, the memorandum of understanding for State Bargaining
Unit 14 expires on July 1, 2016, the memorandum of understanding
for State Bargaining Unit 15 expires on July 1, 2016, the
memorandum of understanding for State Bargaining Unit 17
expires on July 1, 2016, the memorandum of understanding for
State Bargaining Unit 20 expires on July 1, 2016, and the
memorandum of understanding for State Bargaining Unit 21
expires on July 1, 2016.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 19829.983 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 19829.983. end insert   

(a) Notwithstanding Section 13340, for the
2015-16 fiscal year, if the 2015-16 Budget Act is not enacted by
July 1, 2015, for the memoranda of understanding entered into
between the state employer and State Bargaining Unit 1 (effective
July 2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 3
(effective July 2, 2013, to July 1, 2016, inclusive), State Bargaining
Unit 4 (effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 11 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 14 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 15 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 17
(effective July 2, 2013, to July 1, 2016, inclusive), State Bargaining
Unit 20 (effective July 2, 2013, to July 1, 2016, inclusive), and
State Bargaining Unit 21 (effective July 2, 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 2015-16
Budget Act 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 2015-16 Budget Act.

(b) If the memoranda of understanding entered into between
the state employer and State Bargaining Unit 1 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 3 (effective
July 2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 4
(effective July 2, 2013, to July 1, 2016, inclusive), State Bargaining
Unit 11 (effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 14 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 15 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 17 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 20
(effective July 2, 2013, to July 1, 2016, inclusive), and State
Bargaining Unit 21 (effective July 2, 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 2015-16 Budget Act,
these expenditures shall be subsumed by the expenditure authority
approved in the 2015-16 Budget Act for each affected department.

(d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 1 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 3 (effective July 2, 2013,
to July 1, 2016, inclusive), State Bargaining Unit 4 (effective July
2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 11
(effective July 2, 2013, to July 1, 2016, inclusive), State Bargaining
Unit 14 (effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 15 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 17 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 20 (effective July 2,
2013, to July 1, 2016, inclusive), and State Bargaining Unit 21
(effective July 2, 2013, to July 1, 2016, inclusive), memoranda of
understanding. Notwithstanding Section 3517.8, this section shall
not apply after the term of the memorandum of understanding has
expired. For purposes of this section, the memorandum of
understanding for State Bargaining Unit 1 expires on July 1, 2016,
the memorandum of understanding for State Bargaining Unit 3
expires on July 1, 2016, the memorandum of understanding for
State Bargaining Unit 4 expires on July 1, 2016, the memorandum
of understanding for State Bargaining Unit 11 expires on July 1,
2016, the memorandum of understanding for State Bargaining
Unit 14 expires on July 1, 2016, the memorandum of understanding
for State Bargaining Unit 15 expires on July 1, 2016, the
memorandum of understanding for State Bargaining Unit 17
expires on July 1, 2016, the memorandum of understanding for
State Bargaining Unit 20 expires on July 1, 2016, and the
memorandum of understanding for State Bargaining Unit 21
expires on July 1, 2016.

end insert

begin insert

begin insert SEC. end insert begin insert 8. end insert   

end insert begin insert

The sum of one million, three hundred fifty-one
thousand dollars ($1,351,000) is hereby appropriated 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 (Ch. ____, Statutes of 2013)
in accordance with the following schedule:

end insert begin insert

(a) Three hundred seventy-three thousand dollars ($373,000)
from the General Fund in augmentation of Item 9800-001-0001.

end insert begin insert

(b) Six hundred fifty-five thousand dollars ($655,000) from
unallocated special funds in augmentation of Item 9800-001-0494.

end insert begin insert

(c) Three hundred twenty-three thousand dollars ($323,000)
from other unallocated nongovernmental cost funds in
augmentation of Item 9800-001-0988.

end insert

begin delete SEC. 5. end delete
begin insert SEC. 9. end 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:

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 that this act take effect immediately.