BILL NUMBER: SB 879	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 26, 2014
	AMENDED IN ASSEMBLY  AUGUST 22, 2014

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 9, 2014

   An act 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.   to take effect immediately, bill related
to the budget. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 879, as amended, Committee on Budget and Fiscal Review. 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,  and State 
 Bargaining Unit 13, the International Union of Operating
Engineers, Stationary Engineers, on August 21, 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 declare that it is to take effect immediately as a
bill providing for appropriations related to the Budget Bill. 

   Vote:  2/3   majority  . Appropriation:
yes. 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  two   three 
agreements pursuant to Section 3517.5 of the Government Code entered
into by the state employer and State Bargaining Units  2 and
10.   2, 10, and 13. 
  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 State Bargaining
Unit 13 dated August 21, 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 understanding 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. 
   (c) The sum of two million three hundred fifty-six thousand
dollars ($2,356,000) is hereby appropriated for State Bargaining Unit
13 for the 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) One million six hundred thirty-four thousand dollars
($1,634,000) from the General Fund in augmentation of Item
9800-001-0001.  
   (2) Four hundred eighty-four thousand dollars ($484,000) from
unallocated special funds in augmentation of Item 9800-001-0494.
 
   (3) Two hundred thirty-eight thousand dollars ($238,000) from
other unallocated, nongovernmental cost funds in augmentation of Item
9800-001-0988. 
  SEC. 6.  Section 12440.6 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,   2,  2013, to July 1, 2016, 
inclusive) and   inclusive),  State Bargaining Unit
10 (effective July 2, 2013, to July 1, 2015, inclusive),  and
State Bargaining Unit 13 (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 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,   2,  2013, to July 1, 2016,  inclusive)
and   inclusive),  State Bargaining Unit 10
(effective July 2, 2013, to July 1, 2015,  inclusive)
  inclusive), and State Bargaining Unit 13 (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 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,
  2,  2013, to July 1, 2016,  inclusive)
and   inclusive),  State Bargaining Unit 10
(effective July 2, 2013, to July 1, 2015,  inclusive)
  inclusive), and State Bargaining Unit 13 (effective
July 2, 2013, to July 1, 2016, 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.  
2015, and the memorandum of understanding for State Bargaining Unit
13 expires on July 1, 2016. 
  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   memoranda
 of understanding entered into between the state employer and
State Bargaining Unit 2 (effective July  1,   2,
 2013, to July 1, 2016,  inclusive),  
inclusive) and State Bargaining Unit 13 (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  memorandum   memoranda
 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   memoranda  of understanding
for work performed before July 1, 2016, of the 2016-17 fiscal year.
   (b) If the  memorandum   memoranda  of
understanding entered into between the state employer and State
Bargaining Unit 2 (effective July  1,   2, 
2013, to July 1, 2016, inclusive)  is   and
State Bargaining Unit 13 (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  this bargaining unit
  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 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   terms  of the State Bargaining Unit
2 (effective July  1,   2,  2013, to July
1, 2016, inclusive)  memorandum   and State
Bargaining Unit 13 (effective July 2, 2013, to July 1, 2016,
inclusive) memoranda  of understanding. Notwithstanding Section
3517.8, this section shall not apply after the  term
  terms  of the  memorandum  
memoranda  of understanding  has   have
 expired. For purposes of this section, the memorandum of
understanding for State Bargaining Unit 2 expires on July 1, 
2016.   2016, and the memorandum of understanding for
State Bargaining Unit 13 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.

   SEC. 8.    This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.