BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 102
          Author:   Senate Budget and Fiscal Review Committee
          Amended:  9/3/13
          Vote:     21

           
          PRIOR VOTES NOT RELEVANT

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    State employees:  memoranda of understanding

           SOURCE  :     Author


           DIGEST  :    This bill approves side agreements recently entered  
          into by the administration and state bargaining units 1, 3, 4,  
          5, 7, 8, 11, 12, 15, 17, 18, 19, and 20.  These agreements amend  
          existing Memoranda of Understandings (MOUs) but do not  
          constitute new MOUs.

           Assembly Amendments  delete the Senate version of the bill  
          relating to the Budget Act of 2013, and instead add the current  
          language.

           ANALYSIS  :    Existing law requires, under the Ralph C. Dills  
          Act, the Legislature to approve any agreement that results in  
          the expenditure of funds not already approved by the Legislature  
          through an MOU, the budget act or some other legislative  
          vehicle. 

          This bill:
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          1.Authorizes an addendum for Bargaining Unit 12, employees of  
            the Department of Water Resources (DWR).  This addendum  
            authorizes salary increases, effective July 1, 2013, for  
            certain rank and file and supervisor classifications at DWR to  
            assist with short term critical retention needs.  The salary  
            increases range from 17.9% to 37.4% depending upon  
            classification.  Two classifications, Electrical Mechanical  
            Testing Technician and the Control System Technician, will be  
            consolidated into one, the Hydroelectric Plant Technician I,  
            II, III, pending approval by the State Personnel Board. The  
            total amount of funding needed for ratification is $18.3  
            million.  This agreement affects approximately 534 positions.   
            Increases will be staged for retirement purposes as follows:   
            after July 1, 2013, and before July 1, 2014, any pay increase  
            will not be used to determine final compensation; after July  
            1, 2014, and prior to July 1, 2015, 50% of the salary increase  
            shall be used to determine final compensation. Effective July  
            1, 2015, and continuing thereafter, the entire salary increase  
            shall be used to determine final compensation. 

          2.Authorizes addenda for Bargaining Units 1, 4 and 7, employees  
            of the Department of Motor Vehicles.  These addenda authorize  
            salary increases, effective July 2, 2013, for certain rank and  
            file and supervisor classifications based on a review that  
            recommended classification and salary restructuring.  The  
            majority of these employees will receive a 7.5% increase and  
            approximately 200 will receive a 1.5% increase.  The total  
            amount of funding needed for ratification is $26.8 million.   
            This agreement affects approximately 5,375 rank and file  
            positions and 1,167 related excluded employees. 

          3.Authorizes an addendum for Bargaining Unit 5, employees of the  
            California Highway Patrol (CHP).  This addendum is a result of  
            a statutory salary survey for CHP rank and file highway patrol  
            officers.  However, the 5.9% salary increases have been  
            previously codified in provisional language in the 2013 Budget  
            Act. This ratification is specifically for reimbursement  
            increases for specified expenses incurred while traveling on  
            state business, per the Joint Legislative Budget Committee  
            (JLBC) letter dated August 5, 2013. While these expenses have  
            been included in the CHP's budget, they have not been  
            expressly authorized by the Legislature, according to the  
            JLBC, and therefore require approval. No new appropriation is  

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            needed. 

          4.Authorizes addenda for Bargaining Units 1, 3, 4, 11, 12, 15,  
            17, 18, 19, and 20, employees of the Lanterman Developmental  
            Center.  These agreements address the layoff and relocation of  
            staff.  This will provide $3,500 per qualified employee for  
            those who relocate to another position within the Department  
            of Developmental Services (DDS), which has already been  
            included in DDS's budget.  While these expenses have been  
            included in DDS's budget, they have not been expressly  
            authorized by the Legislature, according to the JLBC, and  
            therefore require approval. No new appropriation is needed. 

          5.Authorizes an addendum for Bargaining Unit 8, employees of the  
            California Department of Forestry and Fire Protection  
            (CALFIRE).  The addendum provides increases to the amount  
            provided to employees for business and travel expenses such as  
            meals and lodging.  Costs associated with this increase are  
            minor and absorbable by CALFIRE's approved budget.  In  
            addition, the addendum codifies an agreement in existence  
            since 1992 that provides a pre-retirement death benefit for  
            employee dependents.  This benefit is already in place and  
            therefore does not add any new cost. 

          6.Contains an appropriation allowing this bill to take effect  
            immediately upon enactment. 

           Comments
           
          This bill authorizes five side agreements involving 13  
          bargaining units. Three of the agreements are authorizing  
          agreements with costs that have already been included in  
          departmental budgets. 

          With regard to the salary increases and classification change at  
          DWR, the administration is seeking to resolve a longstanding  
          recruitment and retention issue at hydroplant facilities.  High  
          vacancy rates have led to difficulties in fully operating the  
          State Water Project. 

          Salary increases at the Department of Motor Vehicles (DMV) are  
          the result of a review of current classifications' workload at  
          DMV offices that was required by a 2007 MOU.  These  
          classifications, on average, were paid eight to 22% less than  

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          similar employees in other areas of state government.  These  
          increases also reflect the increasing complexity of work  
          assignments in modernized DMV offices. 

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          These agreements could result in an expenditure of $45.1 million  
          in the Budget Act of 2013. 


          PQ:nl  9/6/13   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  NONE RECEIVED

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