Amended in Senate March 18, 2013

Senate Bill No. 216

Introduced by Senator Beall

February 11, 2013

An act to begin delete amend Section 31451 of end delete begin insert add Section 18006 to end insert the Government Code, relating to begin delete county employees’ retirement end delete begin insert public employment end insert .

LEGISLATIVE COUNSEL’S DIGEST

SB 216, as amended, Beall. begin delete County employees’ retirement. end delete begin insert Public employment: salary ranges. end insert

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Existing law prescribes the duties of the Department of Human Resources, which include the administration of salaries, hours, and other aspects of the state’s personnel system. Existing law requires the Department of Human Resources to establish and adjust salary ranges for each class of position in the state civil service, subject to merit limits and except as specified. Existing law requires the salary range to be based on the principle that like salaries be paid for comparable duties and responsibilities.

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This bill would require the Department of Human Resources to address salary compaction and parity in determining salaries for supervisory and managerial employees. The bill would also require the department, if it determines that revenues do not allow the department to implement a salary determination to increase any excluded and exempt employee salaries in a given year, to provide to the Legislature certain data on the salary determination.

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The County Employees Retirement Act of 1937 prescribes the rights, benefits, and duties of members of the retirement systems established pursuant to its provisions.

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This bill would make technical, nonsubstantive changes to a provision of the County Employees’ Retirement law.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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The Legislature finds and declares the following:

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(a) The Department of Human Resources is established in statute
for purposes of managing the nonmerit aspects of the state’s
personnel system.

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(b) The Department of Human Resources, except as specified,
establishes and adjusts salary ranges for each class of position in
state civil service, subject to specified merit limits.

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(c) Salary ranges are based on the principle that like salaries
should be paid for comparable duties and responsibilities.

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(d) Salary compaction and parity are significant issues facing
the state in compensating its management team. Salary compaction
occurs when the salaries of subordinate employees approach, and
in some cases exceed, the salary of their supervisors. State policy
is that supervisory and managerial employees receive salaries 10
percent above the pay of the classes supervised.

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(e) In performing the salary setting function for excluded and
exempt employees, the Department of Human Resources is
reluctant or unable to recommend appropriate salary increases
for exempt and excluded employees when there is not a legislative
appropriation to pay the increased salaries as the Department of
Human Resources defers to the Department of Finance on these
issues, even though the Department of Finance has no direct role
in establishing or recommending the salaries of excluded
employees.

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(f) The intent of this bill is to address salary compaction and
parity concerns for supervisory and managerial employees, and,
if the Department of Human Resources determines that revenues
do not allow it to implement a salary determination to increase
any excluded and exempt employee salaries in a given year, require
the Department of Human Resources to provide certain data on
the salary determination to the Legislature.

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begin insert SEC. 2. end insert   

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begin insert Section 18006 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

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begin insert 18006. end insert   

(a) In determining salaries for supervisory and
managerial employees, the Department of Human Resources shall
address salary compaction and parity concerns, consistent with
the principle that a minimum 10 percent supervisory salary
differential is appropriate for supervisory and managerial
employees above the highest paid subordinate employees over
whom the supervisor or manager has authority.

(b) If the Department of Human Resources determines that
revenues do not allow it to implement a salary determination to
increase any excluded and exempt employee salaries in a given
year, the department shall provide to the Legislature existing data
on the salary determination, including all salary compaction and
parity determinations for supervisory and managerial employees.

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SECTION 1.  

Section 31451 of the Government Code is
amended to read:

31451.  

The purpose of this chapter is to recognize a public
obligation to county and district employees who become
incapacitated by age or long service in public employment and its
accompanying physical disabilities, by providing for retirement
compensation and death benefit as additional elements of
compensation for future services, and to provide a means by which
public employees who become incapacitated may be replaced by
more capable employees to the betterment of the public service,
without prejudice and without inflicting hardship upon the
employees removed.

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