BILL NUMBER: SB 879 CHAPTERED
BILL TEXT
CHAPTER 690
FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2014
APPROVED BY GOVERNOR SEPTEMBER 27, 2014
PASSED THE SENATE AUGUST 29, 2014
PASSED THE ASSEMBLY AUGUST 29, 2014
AMENDED IN ASSEMBLY AUGUST 27, 2014
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, to
take effect immediately, bill related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 879, 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, 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.
Existing law requires the Department of Human Resources to provide
to the Joint Legislative Budget Committee any side letter, appendix,
or other addendum to a properly ratified memorandum of understanding
that requires the expenditure of $250,000 or more related to salary
and benefits and that is not already contained in the original
memorandum of understanding or the Budget Act. Existing law requires
the Joint Legislative Budget Committee, within 30 days after
receiving the side letter, appendix, or other addendum, to determine
if the addendum presents substantial additions that are not
reasonably within the parameters of the original memorandum of
understanding and thereby requires legislative action to ratify the
addendum.
This bill would approve the addenda to memoranda of understanding
entered into by the state employer and State Bargaining Unit 8, the
California Department of Forestry Firefighters on August 26, 2014.
The bill would also appropriate $10,236,000 from the General Fund and
other unallocated special and nongovernmental cost funds for those
purposes. The bill would prohibit provisions of the addenda to the
memorandum of understanding approved by this bill that authorize the
expenditure of funds from taking effect unless funds for those
provisions already exist within other available appropriations or are
specifically appropriated by the Legislature, and would require the
state employer and the affected employee organization to meet and
confer to renegotiate the affected provisions if funds for these
purposes are not specifically appropriated by the Legislature.
This bill would declare that it is to take effect immediately as a
bill providing for appropriations related to the Budget Bill.
Appropriation: yes.
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 three agreements pursuant to Section 3517.5 of
the Government Code entered into by the state employer and State
Bargaining Units 2, 10, and 13, and to approve addenda to a
memorandum of understanding entered into by the state employer and
State Bargaining Unit 8.
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, 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 2,
2013, to July 1, 2016, 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 2, 2013,
to July 1, 2016, 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) 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 2, 2013, to July 1,
2016, 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) 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, the memorandum of
understanding for State Bargaining Unit 10 expires on July 1, 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 memoranda of understanding entered into between
the state employer and State Bargaining Unit 2 (effective July 2,
2013, to July 1, 2016, 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 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 memoranda of understanding for work performed
before July 1, 2016, of the 2016-17 fiscal year.
(b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 2 (effective July 2, 2013,
to July 1, 2016, 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 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
terms of the State Bargaining Unit 2 (effective July 2, 2013, to July
1, 2016, 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 13 expires on July 1, 2016.
SEC. 8. (a) The provisions of the following addenda to the
memorandum of understanding entered into by the state employer and
State Bargaining Unit 8 that require the expenditure of funds, are
hereby approved for the purposes of Section 3517.63 of the Government
Code:
(1) The addendum dated August 26, 2014, effective July 1, 2014,
related to minimum wage increase compaction issues.
(2) The addendum dated August 26, 2014, effective January 1, 2015,
related to a general salary increase requiring an appropriation.
(b) The sum of ten million two hundred thirty-six thousand dollars
($10,236,000) is appropriated, relative to the addendum described in
paragraph (2) of subdivision (a), for State Bargaining Unit 8 for
expenditures 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) Six million four hundred thirty-eight thousand dollars
($6,438,000) from the General Fund in augmentation of Item
9800-001-0001.
(2) Two million five hundred forty-five thousand dollars
($2,545,000) from unallocated special funds in augmentation of Item
9800-001-0494.
(3) One million two hundred fifty-three thousand dollars
($1,253,000) from other unallocated nongovernmental cost funds in
augmentation of Item 9800-001-0988.
SEC. 9. The provisions of the addenda to the memorandum of
understanding approved by Section 8 of this act that require the
expenditure of funds shall not take effect unless funds for these
provisions already exist within available appropriations or are
specifically appropriated by the Legislature. If funds for these
provisions are not specifically appropriated by the Legislature, the
state employer and the affected employee organization shall meet and
confer to renegotiate the affected provisions.
SEC. 10. 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.