BILL ANALYSIS                                                                                                                                                                                                    



          SENATE COMMITTEE ON
          PUBLIC EMPLOYMENT AND RETIREMENT
                               Dr. Richard Pan, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 466          Hearing Date:     7/13/15
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          |Author:    |McCarty                                              |
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          |Version:   |7/06/15    As amended                                |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Pamela Schneider                                     |
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          Subject:  State civil service:  employment procedures

            SOURCE:   Service Employees International Union, Local 1000

            ASSEMBLY VOTES:
          
          
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          |Assembly Floor:                 |47 - 27                         |
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          |Assembly Appropriations         |12 - 5                          |
          |Committee:                      |                                |
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          |Assembly Public Employees,      |5 - 2                           |
          |Retirement/Soc Sec Committee:   |                                |
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           DIGEST:    This bill specifies that the requirement that state  
          employment forms require an applicant to disclose whether he or  
          she has ever entered into an agreement with the state employer  
          prohibiting that person from seeking or accepting any subsequent  
          employment with the state do not apply if the agreement  
          prohibits him or her from seeking employment with a particular  
          state agency (vs. all state employment).
          
          ANALYSIS:
          
          Existing law:
          







          AB 466 (McCarty)                                   Page 2 of ?
          
          
          1)Provides, pursuant to Section 1 of Article VII of the  
            Constitution of California, that the civil service includes  
            every officer and employee of the state except as otherwise  
            provided, and that in the civil service, permanent appointment  
            and promotion be made under a general system based on merit  
            ascertained by competitive examination.

          2)Requires, pursuant to the Civil Service Act, state employment  
            to be based on the merit principle; that appointments are  
            based upon merit and fitness ascertained through practical and  
            competitive examination; and that tenure of civil service  
            employment is subject to good behavior.

          3)Establishes the State Personnel Board (SPB), which oversees  
            the state disciplinary process, hears appeals of the  
            disciplinary process, and assists state employers and  
            employees in settling such appeals, which may include reaching  
            agreements to not seek subsequent state employment with a  
            particular state employer or all state employers.

          4)Requires the California Department of Human Resources and the  
            Department of Fair Employment and Housing to work  
            cooperatively to develop uniform employment forms where  
            possible pursuant to the provisions of the Civil Service Act  
            and to coordinate their enforcement of the Civil Service Act.

          5)Requires each state agency to use the standard employment  
            forms.

          6)Requires state employment forms to require an applicant for  
            employment to disclose whether the person has ever entered  
            into an agreement with the state, regarding previous  
            employment with the state, which prohibits the applicant from  
            seeking or accepting any subsequent employment with the state.

          This bill modifies the disclosure requirement by specifying that  
          employment forms used by a state agency shall not be required to  
          require a state employment applicant to disclose if he or she  
          has entered into an agreement that prohibits that person from  
          seeking employment with a particular state agency.

          Background

          Currently, when a state employer terminates a civil service  
          employee, the employee is entitled to appeal the dismissal to  








          AB 466 (McCarty)                                   Page 3 of ?
          
          
          the independent State Personnel Board (SPB).  The SPB has the  
          discretion to sustain, revoke, or modify the termination.   
          Generally, a prehearing and settlement conference is set to  
          offer both parties a chance to meet and negotiate a settlement  
          of their case prior to a full hearing before the SPB.

          According to the author:

               Settlement conferences offer an opportunity for both the  
               employee and employer to address the issue without having  
               to go through the expense and uncertainty of a formal  
               evidentiary hearing.  At these settlement conferences, a  
               wide range of proposals can be made, including proposals  
               that prohibit the employee from seeking or accepting  
               subsequent employment with their particular department or  
               with the state as a whole.  The ability to negotiate such  
               separation agreements is a key tool for both the State and  
               the employee to effectively and efficiently resolve their  
               differences in the settlement negotiation process."

          Prior/Related Legislation
          
          SB 1240 (Anderson, Chapter 254, Statutes of 2014) required state  
          employment forms to require an applicant for employment to  
          disclose whether the person has ever entered into an agreement  
          with the state, regarding previous employment with the state,  
          that prohibits the applicant from seeking or accepting any  
          subsequent employment with the state.

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             Yes          Local:          No


          The Assembly Appropriations Committee cites minor and absorbable  
          costs to CalHR and state agencies to update employment forms.


          SUPPORT:  

          Service Employees International Union, Local 1000 (source)
          California Association of Professional Scientists
          California Association of Psychiatric Technicians
          Professional Engineers in California Government

          OPPOSITION:








          AB 466 (McCarty)                                   Page 4 of ?
          
          

          None received

          ARGUMENTS IN SUPPORT:    


          As stated by the sponsor, SEIU, Local 1000:


               While the intent of SB 1240 is clear, the language has  
               created confusion as to whether all applicants, including  
               those that have agreed to never seek or accept subsequent  
               employment with a particular department, would be required  
               to disclose such an agreement.  The unintended consequence  
               of a broad disclosure requirement is that it will  
               discourage both the employee and the State from engaging in  
               the settlement negotiation process, and result in higher  
               numbers of cases in the more costly and time consuming  
               hearing process before the SPB at taxpayers' expense.