Amended in Senate September 8, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 131

Introduced by Committee on Budget (Weber (Chair), Bloom, Bonta, Campos, Chiu, Cooper, Gordon, Jones-Sawyer, McCarty, Mullin, Nazarian, O’Donnell, Rodriguez, Thurmond, Ting, and Williams)

January 9, 2015

An act begin delete relating to the Budget Act of 2015. end delete begin insert to amend Sections 18546, 18990, 18991, 18992, 18993, 19057.1, 19057.3, 19889, 19889.2, 19889.3, and 22879 of, to add Sections 19829.9840, 19829.9841, 19889.4, 22871.3, 22874.2, and 22944.5 to, and to repeal Sections 19057, 19057.2, and 19057.4 of, the Government Code, relating to state public employment, and making an appropriation therefor, to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 131, as amended, Committee on Budget. begin delete Budget Act of 2015. end delete begin insert State public employment. end insert

begin insert

(1) 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.

end insert begin insert

This bill would approve provisions of memoranda of understanding entered into between the state employer and Professional Engineers in California Government, State Bargaining Unit 9, and the California Association of Professional Scientists, State Bargaining Unit 10, 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 memoranda of understanding approved by the bill that require the expenditure of funds from taking effect unless funds for those provisions are specifically appropriated by the Legislature. The bill would require the state employer and the affected employee organization to meet and confer to renegotiate the affected provisions if funds for those provisions are not specifically appropriated by the Legislature. The bill would appropriate to the Controller from the General Fund, unallocated special funds, including 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 memoranda of understanding described above if the Budget Act is not enacted on or before July 1 in the 2016-17 or 2017-18 fiscal years, as specified.

end insert begin insert

(2) The California Constitution provides that the civil service includes every officer and employee in the state except as otherwise provided in the Constitution, and existing statutory law, the State Civil Service Act, prescribes a comprehensive civil service personnel system for the state. The act grants eligibility for promotional civil service examinations and career executive assignment examinations to persons who meet certain requirements and minimum qualifications and who are employed by the Legislature, persons who are retired from the United States armed forces, honorably discharged from active military duty with a service-connected disability, or honorably discharged from active duty, or persons who were employees of the executive branch in exempt positions.

end insert begin insert

This bill would revise eligibility standards applicable to people who were employed by the Legislature, people who retired or were discharged from the armed forces, and people who were formerly employed in exempt, executive branch positions, as described above, to permit them, upon request, to obtain civil service appointment list eligibility by taking promotional exams or career executive exams for which they meet minimum qualifications, as specified. The bill would eliminate the requirement that an employee or veteran, in this context, select only one promotional examination in which to compete when multiple examinations are given. Among other things, the bill would also remove a time limit on this eligibility granted to specified former employees of the Legislature and employees of the executive branch in exempt positions.

end insert begin insert

(3) Existing law generally requires that appointments to vacant positions be made by lists. Existing law requires, with specified exceptions, that an appointing power receive the names and addresses of the three persons highest on a promotional employment list for the class in which a position belongs, and if there are fewer than three names, as specified, additional names are provided from the various lists next lower in order of preference. Existing law prescribes requirements for providing names to an appointing power for positions designated as management and specifies a method of ranking eligible candidates in this context. Existing law prescribes requirements for providing names to an appointing power for positions designated as supervisory and not professional, scientific, or administrative, and that are not examined for on an open basis, and specifies a method of ranking eligible candidates in this context. Existing law requires an appointing power to fill a position from the names of the persons provided.

end insert begin insert

This bill would repeal these provisions and make conforming changes.

end insert begin insert

(4) Existing law provides for career executive assignments to encourage the development for well-qualified executives and requires the State Personnel Board to establish, by a rule, a system of merit personnel administration specifically suited to the selection and placement of executive personnel. The State Civil Service Act defines career executive. Existing law requires the State Personnel Board, by rule, to provide that employees whose appointments to career executive assignments are terminated to be reinstated to civil service positions, as specified, at their option.

end insert begin insert

This bill would revise the definition of career executive to eliminate the requirement that the person have permanent status in the civil service. This bill would provide that various provisions relating to personnel examinations don’t apply to career executive assignments unless provided for by rule, as specified. The bill would grant reinstatement rights to employees who at the time of appointment to a career executive assignment were not employed by the state but who had previously worked for it and had gained permanent civil service status. The bill would grant an employee who, at the time of his or her appointment to a career executive assignment, was from outside civil service the right to defer examination for any open eligible list, as specified, in existence at the time of the termination of the career executive assignment for which he or she meets the minimum qualifications of the class to which appointment is sought. The bill would require, in this regard, that related experience gained in a career executive assignment be considered state civil service experience in a comparable class, as specified.

end insert begin insert

(5) The Public Employees’ Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees’ Retirement System, prescribes methods for calculating the state employer contribution for postemployment health care benefits for eligible retired public employees and their families and for the vesting of these benefits. PEMHCA requires the employer contribution for an employee or annuitant who is in employment or retired from state service, to be adjusted by the Legislature in the annual Budget Act, as specified. PEMHCA prescribes different ways of calculating the employer contributions for employees and annuitants depending on date of hire, years of service, and bargaining unit.

end insert begin insert

This bill, for state employees who are first employed and become members of the retirement system on or after January 1, 2016, and are represented by State Bargaining Unit 9 or 10, as specified, would limit the employer contribution for annuitants to 80% of the weighted average of the health benefit plan premiums for an active employee enrolled for self-alone, during the benefit year to which the formula is applied, for the 4 health benefit plans with the largest state civil service enrollment, as specified. The bill would similarly limit the employer contribution for an enrolled family member of an annuitant to 80% of the weighted average of the additional premiums required for enrollment of those family members during the benefit year to which the formula is applied. The bill would similarly limit employer contributions for annuitants enrolled in Medicare health benefit plans.

end insert begin insert

(6) PEMHCA requires state employees to have a specified number of years of state service, depending on hiring date and other factors, before they may receive any portion of the employer contribution payable for annuitants for postretirement health benefits and increases the percentage they may receive based upon additional years of service.

end insert begin insert

This bill would prohibit state employees who are first employed and become members of the retirement system on or after January 1, 2016, and are represented by State Bargaining Unit 9 or 10, as specified, from receiving any portion of the employer contribution payable for annuitants unless the person is credited with at least 15 years of state service at the time of retirement. The bill would prescribe the percentage of the employer contribution payable for postretirement health benefits for an employee based on the number of completed years of credited state service at retirement, with 50% after 15 credited years of service, and 100% after 25 or more years of service.

end insert begin insert

(7) PEMHCA requires that an employee or annuitant who is enrolled in, or whose family member is enrolled in, a Medicare health benefit plan be paid the amount of the Medicare Part B premiums, as specified, and prohibits this payment from exceeding the difference between the maximum employer contribution and the amount contributed by the employer toward the cost of premiums for the health benefit plan in which the employee or annuitant and his or her family members are enrolled.

end insert begin insert

This bill would prohibit application of this requirement to state employees who are first employed and become members of the retirement system on or after January 1, 2016, and are represented by State Bargaining Unit 9 or 10, as specified.

end insert begin insert

(8) PEMHCA establishes the Public Employees’ Contingency Reserve Fund for the purpose of funding health benefits and funding administrative expenses. PEMHCA establishes the Annuitants’ Health Care Coverage Fund, which is continuously appropriated, for the purpose of prefunding of health care coverage for annuitants, including administrative costs. PEMHCA defines “prefunding” for these purposes.

end insert begin insert

This bill would require the state and employees of State Bargaining Unit 9 or 10 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019. The bill would prescribed schedules of contribution percentages in this regard for state and these employees, based upon bargaining unit, with the moneys to be deposited in the Annuitants’ Health Care Coverage Fund. By depositing new revenue in a continuously appropriated fund, this bill would make an appropriation.

end insert begin insert

This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

end insert begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.

end delete

Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . 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:

begin insert

begin insert SECTION 1. end insert   

end insert begin insert

The Legislature finds and declares that one of
the purposes of this act is to approve two agreements entered into
by the state employer and State Bargaining Unit 9 and 10 pursuant
to Section 3517.5 of the Government Code.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert begin insert

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 9,
dated August 31, 2015, and State Bargaining Unit 10, dated
September 4, 2015, and that require the expenditure of funds, are
hereby approved for the purposes of subdivision (b) of Section
3517.6 of the Government Code.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert begin insert

The provisions of the memoranda of understanding
approved in Section 2 of this act that require the expenditure of
funds shall not take effect unless funds for these provisions are
specifically appropriated by the Legislature. If funds for these
provisions are not specifically appropriated by the Legislature,
either the state employer or the affected employee organization
may reopen negotiations on all or part of the memorandum of
understanding.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert begin insert

Notwithstanding Section 3517.6 of the Government
Code, the provisions of the memoranda of understanding included
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.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 18546 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

18546.  

begin delete (a) end delete begin delete   end delete “Career executive” means an employee appointed
from an employment list established for the express purpose of
providing a list of persons begin delete with permanent status in the civil service
who are available end delete begin insert who are eligible for career executive
assignments, as specified in Article 5 (commencing with Section
18990) of Chapter 4 and Article 9 (commencing with Section
19889) of Chapter 2.5 of Part 2.6, in which examination, end insert for career
executive assignments, in which selection, classification, salary,
tenure, and other conditions of employment may be varied from
those prevailing under Chapter 3 (commencing with Section 18800)
to Chapter 7 (commencing with Section 19570), inclusive, for
other employees in the state civil service.

begin delete

(b) This section shall become operative on January 1, 2013.

end delete

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 18990 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

18990.  

(a) Notwithstanding any other provision of law or rule,
persons employed by the Legislature for two or more consecutive
years shall be begin delete eligible to apply for end delete begin insert given an opportunity, upon
request, to obtain civil service appointment list eligibility by taking
any end insert promotional civil service begin delete examinations, including examinations
for end delete begin insert examination or end insert career executive begin delete assignments, end delete begin insert assignment
examinations end insert for which they meet the minimum qualifications begin delete as
prescribed by end delete begin insert of end insert the class begin delete specification. end delete begin insert for which they seek
appointment. end insert Persons receiving passing scores shall begin delete have their
names placed on promotional lists resulting from these
examinations or otherwise gain eligibility for appointment. end delete begin insert gain
list eligibility for appointment. end insert In evaluating minimum
qualifications, begin delete related end delete begin insert a person’s end insert legislative experience shall be
considered state civil service experience in a comparable begin delete class,
based on the end delete begin insert class that has the same or substantially similar end insert duties
and responsibilities begin delete assigned. end delete begin insert as the person’s legislative position. end insert

begin delete

(b) In cases where promotional examinations are given by more
than one department for the same classification, the employee shall
select one department in which to compete. Once this selection is
made, it cannot be changed for the duration of the promotional list
established from the examination in which the employee
participated. Employees may transfer list eligibility between
departments in the same manner as provided for civil service
employees.

end delete begin delete end delete begin delete

(c) Employees who meet the requirements of this section, are
employed by the Legislature, and who resign or are released from
service, shall be eligible to take promotional civil service
examinations, including examinations for career executive
assignments, for one year following their resignation or release in
accordance with subdivisions (a) and (b).

end delete begin delete end delete begin delete

(d) Employees

end delete

begin insert (b) end insert begin insert   end insert begin insert Persons end insert who meet the requirements of this section, begin delete are
employed by the office of the Auditor General or the office of the
Legislative Analyst as of January 1, 1992, and who resign or are end delete
begin insert but who resigned or were end insert released from service begin delete due to a force
reduction of the Legislature before January 1, 1994, end delete begin insert with the
Legislature, end insert shall be eligible to take promotional civil service
begin delete examinations, including end delete begin insert examinations and end insert career executive
begin delete assignments, for three years following their resignation or release end delete
begin insert assignment examinations end insert in accordance with begin delete subdivisions (a) and
(b). end delete begin insert subdivision (a). end insert

begin delete end delete begin delete

(e) An employee who establishes eligibility on a promotional
civil service list, either pursuant to subdivision (c) or (d) or prior
to having resigned or having been released in a manner to which
subdivision (c) or (d) would apply, shall maintain that eligibility
for the duration of that particular list.

end delete begin delete end delete begin delete end delete begin delete

(f) This section shall become operative on January 1, 2013.

end delete begin delete end delete

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 18991 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

18991.  

begin delete (a) end delete begin delete   end delete Notwithstanding any other provision of law, persons
retired from the United States military, honorably discharged from
active military duty with a service-connected disability, or
honorably discharged from active duty, shall be eligible to apply
for promotional civil service begin delete examinations, including end delete examinations
begin delete for end delete begin insert and end insert career executive begin delete assignments, end delete begin insert assignment examinations end insert
for which they meet the minimum qualifications begin delete as prescribed by end delete
begin insert of end insert the class begin delete specification. end delete begin insert to which they seek appointment. end insert Persons
receiving passing scores shall begin delete have their names placed on
promotional lists resulting from these examinations or otherwise end delete
gain begin insert list end insert eligibility for appointment. In evaluating minimum
qualifications, begin delete related end delete begin insert the person’s end insert military experience shall be
considered state civil service experience in a comparable begin delete class,
based on the end delete begin insert class that has the same or substantially similar end insert duties
and responsibilities begin delete assigned. end delete begin insert as the person’s position in the
military. end insert

begin delete

(b) In cases where promotional examinations are given by more
than one department for the same classification, the employee shall
select one department in which to compete. Once this selection is
made, it cannot be changed for the duration of the promotional list
established from the examination in which the employee
participated. Employees may transfer list eligibility between
departments in the same manner as provided for civil service
employees.

end delete

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 18992 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

18992.  

(a) Notwithstanding any other provision of law or rule,
persons holding, for two or more consecutive years, nonelected
exempt positions in the executive branch of government as defined
in subdivisions (c), (e), (f), (g), (i), and (m) of Section 4 of Article
VII of the Constitution and excluding those positions for which
the salaries are set by statute, shall be begin delete eligible to apply for end delete begin insert given
the opportunity, upon request, to obtain civil service appointment
list eligibility by taking any end insert promotional civil service begin delete examinations,
including, but not limited to, examinations for end delete begin insert examination or end insert
career executive begin delete assignments end delete begin insert assignment examination end insert for which
they meet the minimum qualifications begin delete as prescribed by end delete begin insert of end insert the class
begin delete specification. end delete begin insert to which they seek appointment. end insert Persons receiving
passing scores shall begin delete have their names placed on promotional lists
resulting from these examinations or otherwise end delete gain begin insert list end insert eligibility
for appointment. In evaluating minimum qualifications, begin delete related
exempt experience end delete begin insert the person’s experience in the exempt position end insert
shall be considered state civil service experience in a comparable
begin delete class. end delete begin insert class that has the same or substantially similar duties and
responsibilities as the person’s exempt position. end insert

begin delete

(b) In cases where promotional examinations are given by more
than one appointing authority for the same classification, the
employee shall select one appointing authority in which to compete.
Once this selection is made, it cannot be changed for the duration
of the promotional list established from the examination in which
the employee participated. Employees may transfer list eligibility
between appointing authorities in the same manner as provided
for civil service employees.

end delete begin delete end delete begin delete

(c) Employees

end delete

begin insert (b) end insert begin insert   end insert begin insert Persons end insert who meet the requirements of this begin delete section and who
resign or are end delete begin insert section, but who resigned or were end insert released from
exempt employment of the executive branch of begin delete government end delete
begin insert government, end insert shall be eligible to take promotional civil service
begin delete examinations, including end delete examinations begin delete for end delete begin insert and end insert career executive
begin delete assignments, for one year following their resignation or release end delete
begin insert assignment examinations end insert in accordance with begin delete subdivisions (a) and
(b). end delete begin insert subdivision (a). end insert

begin delete end delete begin delete

(d) An employee who establishes eligibility on a promotional
civil service list, either pursuant to subdivision (c) or prior to
having resigned or having been released in a manner to which
subdivision (c) would apply, shall maintain that eligibility for the
duration of that particular list.

end delete begin delete end delete begin delete end delete begin delete

(e) This section shall become operative on January 1, 2013.

end delete begin delete end delete

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 18993 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

18993.  

(a) Notwithstanding any other provision of law, a
legislative or nonelected exempt executive branch employee who
is appointed to a career executive assignment pursuant to Section
18990 or 18992, shall be eligible to compete in his or her
begin delete department’s end delete begin insert appointing power’s end insert promotional examinations for
which he or she meets the minimum begin delete qualifications. end delete begin insert qualifications
of the class to which he or she seeks appointment. end insert When such an
employee’s career executive assignment is terminated by the
appointing power, he or she shall have the right to request a
deferred examination for any promotional eligible list begin delete for end delete begin insert that end insert his
or her begin delete department end delete begin insert appointing power has end insert in existence at the time
of the begin delete appointment end delete termination begin delete if end delete begin insert of the career executive
assignment and for which end insert he or she meets the minimum
qualifications begin delete specified for the promotional examination. end delete begin insert of the
class to which he or she seeks appointment. end insert

(b) A request for a deferred examination pursuant to subdivision
(a) shall be made no later than 10 days after the effective date of
the termination of the career executive assignment. The department
shall administer the deferred examination within 30 days of the
date of the request.

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 19057 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

19057.  

Except as provided in Section 19056, there shall be
certified to the appointing power the names and addresses of the
three persons standing highest on the promotional employment
list for the class in which the position belongs and who have
indicated their willingness to accept appointment under the
conditions of employment specified. If fewer than three names of
persons willing to accept appointment are on the list from which
certification is to be made, then additional eligibles shall be
certified from the various lists next lower in order of preference
until three names are certified. If there are fewer than three names
on such lists, there shall be certified the number thereon. In such
case the appointing power may demand certification of three names
and examinations shall be conducted until three names may be
certified. The appointing power shall fill the position by the
appointment of one of the persons certified.

end delete

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 19057.1 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

19057.1.  

begin delete Notwithstanding Section 19057, for positions in
classes designated as professional, scientific, or administrative, or
for any open employment list, end delete begin insert Except for reemployment lists, State
Restriction of Appointment lists, and Limited Examination and
Appointment Program referral lists, end insert there shall be certified to the
appointing power the names and addresses of all those eligibles
whose scores, at begin insert the end insert time of certification, represent the three highest
ranks on the employment list for the class, and who have indicated
their willingness to accept appointment under the conditions of
employment specified.

For purposes of ranking, scores of eligibles on employment lists
begin delete for these classes end delete begin insert covered by this section end insert shall be rounded to the
nearest whole percent. A rank shall consist of one or more eligibles
with the same whole percentage score.

If the names on the list from which certification is being made
represent fewer than three ranks, begin delete then end delete begin insert then, consistent with board
rules, end insert additional eligibles begin delete shall end delete begin insert may end insert be certified from the various
lists next lower in order of preference until names from three ranks
appear. If there are fewer than three names available for
certification, and the appointing authority does not choose to
appoint from among these, the appointing authority may demand
certification of three names. In that case, examinations shall be
conducted until at least three names may be certified by the
procedure described in this section, and the appointing authority
shall fill the position by appointment of one of the persons certified.

Fractional examination scores shall be provided to, and used by,
the Department of the California Highway Patrol for its peace
officer classes.

The department begin delete may end delete begin insert may, consistent with board rules, end insert provide
for certifying less than three ranks where the size of the certified
group is disproportionate to the number of vacancies.

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 19057.2 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

19057.2.  

Notwithstanding the provisions of Section 19057, for
positions in classes designated as management, there shall be
certified to the appointing power the names and addresses of all
those applicants whose scores, at the time of certification, represent
the three highest ranks on the employment list for the class, and
who have indicated their willingness to accept appointment under
the conditions of employment specified.

For purposes of ranking, scores of eligibles on employment lists
for such classes shall be divided into six ranks. The first rank shall
consist of eligibles who receive a score of 95 percent or higher.
The second rank shall consist of eligibles who receive a score of
90 to 94 percent, inclusive. The third rank shall consist of eligibles
who receive a score of 85 to 89 percent, inclusive. The fourth rank
shall consist of eligibles who receive a score of 80 to 84 percent,
inclusive. The fifth rank shall consist of eligibles who receive a
score of 75 to 79 percent, inclusive. The sixth rank shall consist
of eligibles who receive a score of 70 to 74 percent, inclusive. All
examination scores for positions in these classes shall be rounded
to the nearest whole percent.

If the names on the list from which certification is being made
represent fewer than three ranks, then additional eligibles shall be
certified from the various lists next lower in order of preference
until names from three ranks appear. If there are fewer than three
names available for certification, and the appointing authority does
not choose to appoint from among these, the appointing authority
may demand certification of three names. In such case,
examinations shall be conducted until at least three names may be
certified by the procedure described in this section, and the
appointing authority shall fill the position by appointment of one
of the persons certified.

The department may certify less than three ranks where the size
of the certified group is disproportionate to the number of
vacancies.

end delete

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 19057.3 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

19057.3.  

(a)  begin delete Notwithstanding Section 19057, for end delete begin insert For end insert a position
in the Department of Corrections and Rehabilitation, there shall
be certified to the appointing power the names and addresses of
all those eligibles for peace officer and closely allied classes whose
scores, at the time of certification, represent the three highest ranks
on the employment list for the class in which the position belongs
and who have indicated their willingness to accept appointment
under the conditions of employment specified.

(b) For purposes of ranking, scores of eligibles on employment
lists for the classes shall be rounded to the nearest whole percent.
A rank consists of one or more eligibles with the same whole
percentage score.

(c) If fewer than three ranks of persons willing to accept
appointment are on the list from which certification is to be made,
then additional eligibles shall be certified from the various lists
next lower in order of preference until names from three ranks are
certified. If there are fewer than three names on those lists, and
the appointing power does not choose to appoint from among these,
the appointing power may demand certification of three names
and examinations shall be conducted until at least three names
may be certified. The appointing power shall fill the position by
the appointment of one of the persons certified.

(d) The department may, consistent with board rules, provide
for certifying less than three ranks where the size of the certified
group is disproportionate to the number of vacancies.

(e) The department may, consistent with board rules, allow for
the names of eligibles to be transferred from lists for the same
class or comparable classes where names from one list were
certified under the rule of three ranks, and names from the other
list were certified under the rule of three names.

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 19057.4 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

19057.4.  

Notwithstanding Section 19057, for positions in
classes which are designated by the board as supervisory and not
professional, scientific, or administrative, and are not examined
for on an open basis, there shall be certified to the appointing power
the names and addresses of all those eligible whose scores, at the
time of certification, represent the highest rank on the employment
list for the class, and who have indicated their willingness to accept
appointment under the conditions of employment specified.

For purposes of ranking, scores of eligible on employment lists
for these classes shall be rounded to the nearest whole percent. A
rank shall consist of one or more eligibles with the same whole
percentage score.

If the highest rank contains fewer than three eligibles, then the
next highest rank shall be certified until a minimum of three
eligibles willing to accept appointment under the conditions
specified are certified. If fewer than three names of persons willing
to accept appointment are on the list from which certification is
to be made, then additional eligibles shall be certified from the
various lists next lower in order of preference until three names
are certified. If there are fewer than three names available for
certification, and the appointing authority does not choose to
appoint from among these, the appointing authority may demand
certification of three names. In that case, examinations shall be
conducted until at least three names may be certified by the
procedure described in this section, and the appointing authority
shall fill the position by appointment of one of the persons certified.

Fractional examination scores shall be provided to, and utilized
by, the California Highway Patrol for its peace officer classes.

end delete

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 19829.9840 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 19829.9840. end insert   

(a) Notwithstanding Section 13340, for the
2016-17 fiscal year, if the Budget Act of 2016 is not enacted by
July 1, 2016, for the memoranda of understanding entered into
between the state employer and State Bargaining Unit 9 (effective
July 2, 2015, to June 30, 2018 inclusive) and State Bargaining
Unit 10 (effective July 2, 2015, to July 1, 2018 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 between July 1, 2016, of the 2016-17 fiscal year, and
the enactment of the Budget Act of 2016.

(b) If the memoranda of understanding entered into between
the state employer and State Bargaining Unit 9 (effective July 2,
2015, to June 30, 2018, inclusive) and State Bargaining Unit 10
(effective July 2, 2015, to July 1, 2018 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 9 (effective July 2, 2015, to
June 30, 2018, inclusive) and State Bargaining Unit 10 (effective
July 2, 2015, to July 1, 2018 inclusive) memoranda 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 9 expires on June 30,
2018, and the memoranda of understanding for State Bargaining
Unit 10 expires on July 1, 2018.

end insert

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 19829.9841 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 19829.9841. end insert   

(a) Notwithstanding Section 13340, for the
2017-18 fiscal year, if the Budget Act of 2017 is not enacted by
July 1, 2017, for the memoranda of understanding entered into
between the state employer and State Bargaining Unit 9 (effective
July 2, 2015, to June 30, 2018 inclusive) and State Bargaining
Unit 10 (effective July 2, 2015, to July 1, 2018 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 2017 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, 2017, of the 2017-18 fiscal year, and
the enactment of the Budget Act of 2017.

(b) If the memoranda of understanding entered into between
the state employer and State Bargaining Unit 9 (effective July 2,
2015, to June 30, 2018, inclusive) and State Bargaining Unit 10
(effective July 2, 2015, to July 1, 2018 inclusive) is 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 2017,
these expenditures shall be subsumed by the expenditure authority
approved in the Budget Act of 2017 for each affected department.

(d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 9 (effective July 2, 2015, to
June 30, 2018, inclusive) and State Bargaining Unit 10 (effective
July 2, 2015, to July 1, 2018 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 9 expires on June 30,
2018, and the memorandum of understanding for State Bargaining
Unit 10 expires on July 1, 2018.

end insert

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 19889 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

19889.  

It is the purpose of this article to encourage the
development and effective use begin delete in the civil service end delete of well-qualified
and carefully selected executives. In order to carry out this begin delete purpose end delete
begin insert purpose, end insert the State Personnel Board shall establish by rule a begin delete system
of end delete merit begin delete personnel administration end delete begin insert system end insert specifically suited to the
selection and placement of executive personnel. The department
shall be responsible for salary administration, position
classification, and for the motivation and training of executive
personnel. For the purpose of administering this system there is
established herewith a category of civil service appointment called
“career executive assignments.” The department shall designate
positions of a high administrative and policy influencing character
for inclusion in or removal from this category subject to review
by the State Personnel Board, except that the department shall not
so designate a position in which there is an incumbent already
appointed under the provisions of this part governing employees
other than career executives.

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 19889.2 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

19889.2.  

The provisions of this part governing the begin insert examination, end insert
selection, classification, and tenure of employees in the regular
civil service shall not apply begin delete in administering executive personnel
through a merit system utilizing end delete begin insert to end insert “career executive assignments”
unless begin delete the application is end delete provided begin insert for end insert by State Personnel Board
rule. The provisions of this part relating to punitive actions shall
apply to begin insert all end insert employees serving in career executive assignments,
except that termination of a career executive assignment as
provided for in Section 19889.3 is not a punitive action. begin delete With
reference to termination of career executive assignments, the end delete State
Personnel Board rules shall, begin delete as end delete begin insert at end insert a minimum, afford begin delete an employee end delete
begin insert all employees whose career executive assignments are terminated
by the appointing power end insert a right of appeal to the State Personnel
Board for restoration of his or her assignment when he or she
alleges that begin delete his or her end delete begin insert the end insert termination was for reasons prohibited
in Chapter 10 (commencing with Section 19680) of Part 2.

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 19889.3 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

19889.3.  

(a) Eligibility for appointment to positions in the
career executive assignment category shall be established as a
result of competitive begin delete examination of persons with permanent status
in the civil service who end delete begin insert examinations. All candidates shall end insert meet
such minimum qualifications as the State Personnel Board may
determine are requisite to the performance of high administrative
and policy influencing functions.

(b) No person employed in a career executive assignment shall
be deemed to acquire as a result of such service any rights to or
status in positions governed by the provisions of this part relating
to the civil service other than the category of career executive
assignment, except as provided by State Personnel Board rule.

begin delete end delete begin delete

(c) The State Personnel Board shall provide by rule that an
employee shall, if he or she so desires, at the termination of his or
her appointment to a career executive assignment, be reinstated to
a civil service position that is (1) not a career executive assignment
and (2) that is at least at the same salary level as the last position
that he or she held as a permanent or probationary employee. If
the employee has completed a minimum of five years of state
service, he or she may return to a position that is (1) at substantially
the same salary level as the last position in which he or she had
permanent or probationary status or (2) at a salary level that is at
least two steps lower than that of the career executive position
from which the employee is being terminated.

end delete begin delete end delete begin delete end delete begin delete

(d) For the purpose of this section “employee” means a
permanent employee, or an employee serving under another
appointment who previously had permanent status and who, since
such permanent status, has had no break in the continuity of his
or her state service.

end delete begin delete end delete begin delete end delete begin delete

(e) This section shall become operative on January 1, 2013.

end delete begin delete end delete

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 19889.4 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 19889.4. end insert   

In accordance with State Personnel Board rules, the
following shall apply when an appointing power terminates a
career executive assignment:

(a) An employee who at the time of his or her appointment to a
career executive assignment was employed by the state and had
permanent civil service status shall, if he or she so desires, be
reinstated to a civil service position that is (1) not a career
executive assignment and (2) that is at least at the same salary
level as the last position that he or she held as a permanent or
probationary employee. If the employee had completed a minimum
of five years of state service, he or she may return to a position
that is (1) at substantially the same salary level as the last position
in which he or she had permanent or probationary status or (2)
at a salary level that is at least two steps lower than that of the
career executive position from which the employee is being
terminated.

(b) Article 5 (commencing with Section 19140) of Chapter 5 of
Part 2 shall apply to an employee who at the time of his or her
appointment to a career executive assignment was not employed
by the state but who had previously worked for the state and gained
permanent civil service status.

(c) (1) An employee who at the time of his or her appointment
to a career executive assignment was from outside civil service
shall have the right to request a deferred examination for any open
eligible list that his or her appointing power or the department
has in existence at the time of the termination of the career
executive assignment and for which he or she meets the minimum
qualifications of the class to which he or she seeks appointment.
Whether the employee takes a deferred examination or other open
civil service examination, for purposes of evaluating whether he
or she meets the minimum qualifications of the class to which he
or she seeks appointment, related experience gained in a career
executive assignment shall be considered as state civil service
experience in a comparable class.

(2) A request for a deferred examination pursuant to paragraph
(1) shall not be made later than 10 days after the effective date of
the termination of the career executive assignment. The department
or its designee shall administer the deferred examination within
30 days of the date of the request.

end insert

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 22871.3 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 22871.3. end insert   

(a) The employer contribution for each annuitant
enrolled in a basic plan shall be an amount equal to 80 percent
of the weighted average of the health benefit plan premiums for
an employee or annuitant enrolled for self-alone, during the benefit
year to which the formula is applied, for the four health benefit
plans that had the largest active state civil service enrollment,
excluding family members, during the previous benefit year. For
each annuitant with enrolled family members, the employer
contribution shall be an amount equal to 80 percent of the weighted
average of the additional premiums required for enrollment of
those family members, during the benefit year to which the formula
is applied, in the four health benefit plans that had the largest
active state civil service enrollment, excluding family members,
during the previous benefit year.

(b) The employer contribution for each annuitant enrolled in a
Medicare health benefit plan in accordance with Section 22844
shall be an amount equal to 80 percent of the weighted average
of the health benefit plan premiums for an annuitant enrolled in
a Medicare health benefit plan for self-alone, during the benefit
year to which the formula is applied, for the four Medicare health
benefit plans that had the largest state annuitant enrollment,
excluding family members, during the previous benefit year. For
each annuitant with enrolled family members, the employer
contribution shall be an amount equal to 80 percent of the weighted
average of the additional premiums required for enrollment of
those family members, during the benefit year to which the formula
is applied, in the four Medicare health benefit plans that had the
largest state annuitant enrollment, excluding family members,
during the previous benefit year. If the annuitant is eligible for
Medicare Part A, with or without cost, and Medicare Part B,
regardless of whether the annuitant is actually enrolled in
Medicare Part A or Part B, the employer contribution shall not
exceed the amount calculated under this subdivision.

(c) This section applies to a state employee who is first employed
by the state and becomes a state member of the system on or after
January 1, 2016, and who is represented by State Bargaining Unit
9 or 10.

(d) This section shall also apply to a state employee related to
State Bargaining Unit 9 or 10 who is excepted from the definition
of “state employee” in subdivision (c) of Section 3513 and first
employed by the state and becomes a state member of the system
on or after January 1, 2016.

(e) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant
to Section 3517.5 or Chapter 12 (commencing with Section 3560)
of Division 4 of Title 1, the memorandum of understanding shall
be controlling without further legislative action, except that if
those provisions require the expenditure of funds, the provisions
may not become effective unless approved by the Legislature.

end insert

begin insert

begin insert SEC. 22. end insert   

end insert

begin insert Section 22874.2 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 22874.2. end insert   

(a) Notwithstanding Sections 22870, 22871, 22873,
and 22874, a state employee, as defined by subdivision (c) of
Section 3513, who is first employed by the state and becomes a
state member of the system on or after January 1, 2016, and is
represented by State Bargaining Unit 9 or 10 shall not receive any
portion of the employer contribution payable for annuitants unless
the person is credited with 15 years of state service at the time of
retirement.

(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the completed years of credited state
service at retirement as shown in the following table:

 

begin insert Years of Service Contribution end insert	begin insert Credited Years Percentage of Employer Contribution end insert
begin insert 15    end insert	begin insert 50 end insert
begin insert 16    end insert	begin insert 55 end insert
begin insert 17    end insert	begin insert 60 end insert
begin insert 18    end insert	begin insert 65 end insert
begin insert 19    end insert	begin insert 70 end insert
begin insert 20    end insert	begin insert 75 end insert
begin insert 21    end insert	begin insert 80 end insert
begin insert 22    end insert	begin insert 85 end insert
begin insert 23    end insert	begin insert 90 end insert
begin insert 24    end insert	begin insert 95 end insert
begin insert 25 or more    end insert	begin insert 100 end insert

 

(c) This section shall apply only to state employees that retire
for service. For purposes of this section, “state service” means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation.

(d) This section does not apply to:

(1) Former state employees previously employed before January
1, 2016, who return to state employment on or after January 1,
2016.

(2) State employees hired prior to January 1, 2016, who become
subject to representation by State Bargaining Unit 9 or 10 on or
after January 1, 2016.

(3) State employees on an approved leave of absence employed
before January 1, 2016, who return to active employment on or
after January 1, 2016.

(4) State employees hired after January 1, 2016, who are first
represented by a state bargaining unit other than Bargaining Unit
9 or 10, who later become represented by state bargaining unit 9
or 10.

(e) Notwithstanding Section 22875, this section shall also apply
to a related state employee who is excepted from the definition of
“state employee” in subdivision (c) of Section 3513, and is first
employed by the state and becomes a state member of the system
on or after January 1, 2016.

end insert

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Section 22879 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

22879.  

(a) The board shall pay monthly to an employee or
annuitant who is enrolled in, or whose family member is enrolled
in, a Medicare health benefit plan under this part the amount of
the Medicare Part B premiums, exclusive of penalties, except as
provided in Section 22831. This payment may not exceed the
difference between the maximum employer contribution and the
amount contributed by the employer toward the cost of premiums
for the health benefit plan in which the employee or annuitant and
his or her family members are enrolled. No payment may be made
in any month if the difference is less than one dollar ($1).

(b) This section shall be applicable only to state employees,
annuitants who retired while state employees, and the family
members of those persons.

(c) With respect to an annuitant, the board shall pay to the
annuitant the amount required by this section from the same source
from which his or her allowance is paid. Those amounts are hereby
appropriated monthly from the General Fund to reimburse the
board for those payments.

(d) There is hereby appropriated from the appropriate funds the
amounts required by this section to be paid to active state
employees.

begin insert

(e) This section does not apply to:

end insert begin insert

(1) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2016,
and who is represented by State Bargaining Unit 9 or 10.

end insert begin insert

(2) A state employee related to State Bargaining Unit 9 or 10
who is excepted from the definition of “state employee” in
subdivision (c) of Section 3513 and is first employed by the state
and becomes a state member of the system on or after January 1,
2016.

end insert

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Section 22944.5 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 22944.5. end insert   

(a) The state and employees in State Bargaining Unit
9 or 10 shall prefund retiree health care, with the goal of reaching
a 50-percent cost sharing of actuarially determined normal costs
for both employer and employees by July 1, 2019.

(b) (1) The employees in State Bargaining Unit 9 shall make
contributions to prefund retiree health care based on the following
schedule and the state shall make a matching contribution:

(A) Effective July 1, 2017, 0.5 percent of pensionable
compensation.

(B) Effective July 1, 2018, an additional 0.5 percent for a total
employee contribution of 1.0 percent of pensionable compensation.

(C) Effective July 1, 2019, an additional 1.0 percent for a total
employee contribution of 2.0 percent of pensionable compensation.

(2) The employees in State Bargaining Unit 10 shall make
contributions to prefund retiree health care based on the following
schedule and the state shall make a matching contribution:

(A) Effective July 1, 2017, 0.7 percent of pensionable
compensation.

(B) Effective July 1, 2018, an additional 0.7 percent for a total
employee contribution of 1.4 percent of pensionable compensation.

(C) Effective July 1, 2019, an additional 1.4 percent for a total
employee contribution of 2.8 percent of pensionable compensation.

(c) This section only applies to employees in State Bargaining
Unit 9 or 10 who are eligible for health benefits, including
permanent intermittent employees.

(d) Contributions paid pursuant to this section shall be deposited
in the Annuitants’ Health Care Coverage Fund and shall not be
refundable under any circumstances to an employee in State
Bargaining Unit 9 or 10 or his or her beneficiary or survivor.

(e) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant
to Section 3517.5, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions of a memorandum of understanding require the
expenditure of funds, the provisions shall not become effective
unless approved by the Legislature in the annual Budget Act.

(f) This section shall also apply to a state employee related to
State Bargaining Unit 9 or 10 who is excepted from the definition
of “state employee” in subdivision (c) of Section 3513.

end insert

begin insert

begin insert SEC. 25. end insert   

end insert begin insert

The sum of three hundred thousand dollars ($300,000)
is hereby appropriated from the General Fund to the Department
of Finance for the purpose of funding the posting on the
department’s Internet Web site of all budget requests included as
part of the Governor’s Budget.

end insert

begin insert

begin insert SEC. 26. end insert   

end insert begin insert

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.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2015.

end delete