BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 102| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: CONTINUED SB 102 Page 2 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 CONTINUED SB 102 Page 3 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 CONTINUED SB 102 Page 4 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 **** END **** CONTINUED