BILL NUMBER: SB 879	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 22, 2014

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 9, 2014

   An act  relating to the Budget Act of 2014.  
to add Sections 12440.6 and 12440.7 to the Government Code, relating
  to state employees, making an appropriation therefor, and
declaring the urgency thereof, to take effect immediately. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 879, as amended, Committee on Budget and Fiscal Review.
 Budget Act of 2014.   State employees:
memoranda 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 memoranda of understanding
entered into between the state employer and State Bargaining Unit 2,
the California Attorneys, Administrative Law Judges, and Hearing
Officers in State Employment, on August 14, 2014, and State
Bargaining Unit 10, the California Association of Professional
Scientists, on August 12, 2014, that require the expenditure of
funds, and 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 prohibit provisions of the memorandum of
understanding approved by this bill that authorize the expenditure of
funds from taking effect unless funds for those provisions are
specifically appropriated by the Legislature, and would authorize the
state employer and the affected employee organization to reopen
negotiations on all or part of the memorandum of understanding if
those provisions are not approved or fully funded by the Legislature.
 
   The bill would appropriate funds for expenditure in the 2014-15
fiscal year in augmentation of, and for the purpose of, state
employee compensation, as provided in the Budget Act of 2014, in
accordance with a specified schedule, from the General Fund,
unallocated special funds, and other unallocated nongovernmental cost
funds. The bill would also appropriate 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, in the amount
necessary for the payment of compensation and employee benefits to
state employees for work performed between July 1 and the enactment
of the Budget Act in the 2015-16 and 2016-17 fiscal years if the
Budget Act is not enacted on or before July 1 in those fiscal years.
 
   This bill would declare that it is to take effect immediately as
an urgency statute.  
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2014. 
   Vote:  majority   2/3  . Appropriation:
 no   yes  . Fiscal committee:  no
  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 two agreements pursuant to
Section 3517.5 of the Government Code entered into by the state
employer and State Bargaining Units 2 and 10. 
   SEC. 2.    Notwithstanding the Budget Act of 2014
(Chapter 25 of the Statutes of 2014), Provision 7 of Item
9800-001-0001 and Provision 8 of Items 9800-001-0494 and
9800-001-0988, the provisions of the memoranda of understanding
prepared pursuant to Section 3517.5 of the Government Code and
entered into by the state employer and State Bargaining Unit 2 dated
August 14, 2014, and State Bargaining Unit 10 dated August 12, 2014,
and that require the expenditure of funds are hereby approved for the
purposes of subdivision (b) of Section 3517.6 of the Government
Code. 
   SEC. 3.    The provisions of the memoranda of und
  erstanding approved in Section 2 of this act that are
scheduled to take effect on or after July 1, 2014, and that require
the expenditure of funds, shall not take effect unless funds for
those provisions are specifically appropriated by the Legislature. If
the Legislature does not approve or fully fund any provision of a
memorandum of understanding approved in Section 2 of this act that
requires the expenditure of funds, either party to the memorandum may
reopen negotiations on all or part of the memorandum of
understanding. 
   SEC. 4.    Notwithstanding Section 3517.6 of the
Government Code, the provisions of the memoranda of understanding
approved in Section 2 that require the expenditure of funds shall
become effective even if the provisions of the memoranda of
understanding are approved by the Legislature in legislation other
than the annual Budget Act. 
   SEC. 5.    (a) The sum of twelve million six hundred
twenty-nine thousand dollars ($12,629,000) is hereby appropriated for
State Bargaining Unit 2 for expenditure in the 2014-15 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 2014 (Chapter 25
of the Statutes of 2014), in accordance with the following schedule:
 
   (1) Three million three hundred forty thousand dollars
($3,340,000) from the General Fund in augmentation of Item
9800-001-0001.  
   (2) Six million two hundred twenty-four thousand dollars
($6,224,000) from unallocated special funds in augmentation of Item
9800-001-0494.  
   (3) Three million sixty-five thousand dollars ($3,065,000) from
other unallocated nongovernmental cost funds in augmentation of Item
9800-001-0988.  
   (b) The sum of three million one hundred twenty-four thousand
dollars ($3,124,000) is hereby appropriated for State Bargaining Unit
10 for expenditure in the 2014-15 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 2.0
of the Budget Act of 2014 (Chapter 25 of the Statutes of 2014), in
accordance with the following schedule:  
   (1) Five hundred sixty-one thousand dollars ($561,000) from the
General Fund in augmentation of Item 9800-001-0001. 
   (2) One million seven hundred seventeen thousand dollars
($1,717,000) from unallocated special funds in augmentation of Item
9800-001-0494.  
   (3) Eight hundred forty-six thousand dollars ($846,000) from other
unallocated nongovernmental cost funds in augmentation of Item
9800-001-0988. 
   SEC. 6.    Section 12   440.6 is added to
the   Government Code   , to read:  
   12440.6.  (a) Notwithstanding Section 13340, for the 2015-16
fiscal year, if the Budget Act of 2015 is not enacted on or before
July 1, 2015, for the memoranda of understanding entered into between
the state employer and State Bargaining Unit 2 (effective July 1,
2013, to July 1, 2016, inclusive) and State Bargaining Unit 10
(effective July 2, 2013, to July 1, 2015, 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 Budget Act
of 2015 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 Budget Act of 2015.
   (b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 2 (effective July 1, 2013,
to July 1, 2016, inclusive) and State Bargaining Unit 10 (effective
July 2, 2013, to July 1, 2015, 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 Budget Act of 2015, these
expenditures shall be subsumed by the expenditure authority approved
in the Budget Act of 2015 for each affected department.
   (d) This section shall only apply to an employee covered by the
terms of State Bargaining Unit 2 (effective July 1, 2013, to July 1,
2016, inclusive) and State Bargaining Unit 10 (effective July 2,
2013, to July 1, 2015, inclusive) memoranda of understanding.
Notwithstanding Section 3517.8, this section shall not apply after
the terms of the memoranda of understanding have expired. For
purposes of this section, the memorandum of understanding for State
Bargaining Unit 2 expires on July 1, 2016, and the memorandum of
understanding for State Bargaining Unit 10 expires on July 1, 2015.

   SEC. 7.    Section 12440.7 is added to the  
Government Code   , to read: 
   12440.7.  (a) Notwithstanding Section 13340, for the 2016-17
fiscal year, if the Budget Act of 2016 is not enacted on or before
July 1, 2016, for the memorandum of understanding entered into
between the state employer and State Bargaining Unit 2 (effective
July 1, 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 memorandum of understanding until the Budget Act
of 2016 is enacted. The Controller may expend an amount no greater
than necessary to enable the Controller to compensate state employees
covered by the above memorandum of understanding for work performed
before July 1, 2016, of the 2016-17 fiscal year.
   (b) If the memorandum of understanding entered into between the
state employer and State Bargaining Unit 2 (effective July 1, 2013,
to July 1, 2016, inclusive) is in effect and approved by the
Legislature, the compensation and contribution for employee benefits
for state employees represented by this bargaining unit 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 Budget Act of 2016, these
expenditures shall be subsumed by the expenditure authority approved
in the Budget Act of 2016 for each affected department.
   (d) This section shall only apply to an employee covered by the
term of the State Bargaining Unit 2 (effective July 1, 2013, to July
1, 2016, inclusive) memorandum 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 2
expires on July 1, 2016. 
   SEC. 8.    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 2014-15 fiscal year, and thereby facilitate the
orderly administration of state government at the earliest possible
time, it is necessary for this act to take effect immediately. 

  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2014.