Amended in Senate June 13, 2016

Amended in Assembly April 14, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1620


Introduced bybegin delete Committee on Budget (Assembly Members Ting (Chair), Travis Allen, Bigelow, Bloom, Bonta, Campos, Chávez, Chiu, Cooper, Gordon, Grove, Harper, Holden, Irwin, Kim, Lackey, McCarty, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Patterson, Rodriguez, Thurmond, Wilk, and Williams)end deletebegin insert Committee on Budget (Assembly Members Ting (Chair), Bloom, Bonta, Campos, Chiu, Cooper, Gordon, Holden, Irwin, McCarty, Mullin, Nazarian, O’Donnell, Rodriguez, Thurmond, and Williams)end insert

January 7, 2016


begin deleteAn act relating to the Budget Act of 2016. end deletebegin insertAn act to amend Sections 19141, 19141.1, 19243, 19838, 19995.1, 19995.4, 22871.3, 22879, 22944.5, 22958.1, and 68203 of, and to add Sections 19829.9844, 19829.9845, 19829.9846, 20683.3, 22874.4, and 22958.2 to, the Government Code, relating to state employment, and making an appropriation therefor, to take effect immediately, bill related to the budget.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1620, as amended, Committee on Budget. begin deleteBudget Act of 2016. end deletebegin insertState 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 a memorandum of understanding entered into between the state employer and State Bargaining Unit 12, the International Union of Operating Engineers, 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.

end insert
begin insert

This bill would provide that provisions of the memorandum of understanding approved by this bill that require the expenditure of funds will not take effect unless funds for those provisions are specifically appropriated by the Legislature and would authorize 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 $45,419,000 in augmentation of certain items of the Budget Act of 2016, according to a specified schedule, for State Bargaining Unit 12 employee compensation for expenditure in the 2016-17 fiscal year. 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 memorandum of understanding described above if the Budget Act is not enacted on or before July 1 in the 2016-17, 2017-18, or 2018-19 fiscal years, as specified.

end insert
begin insert

(2) Existing law grants to an employee with permanent civil service status, or who previously had permanent status, and who, without a break in service, accepts an appointment to an exempt position, the right to reinstatement in his or her former position at the termination of the appointment, either by the employee or the appointing power, subject to certain conditions. Existing law prescribes different periods within which an employee is permitted to make a request for reinstatement in connection with different exempt appointments.

end insert
begin insert

This bill would eliminate the various periods within which an employee is required to make a request for reinstatement, as described above, and eliminate language specifying that the termination be either by the employee or the appointing power. The bill would also make clarifying, conforming, and technical changes.

end insert
begin insert

(3) Existing law grants certain civil service testing rights to an employee with reinstatement rights, as described above, within 4 years of termination in an exempt position, either by the employee or the appointing power, who has at least one year, but less than 3 years, of exempt service. In this regard, existing law requires that these employees be given the opportunity to obtain civil service list appointment eligibility, through examination, for any position offered by the appointing power that has a current eligible list and that has a salary range up to 2 salary steps higher than his or her former position. Existing law further requires that similarly situated employees who have more than 3 years of exempt service be given the opportunity to obtain appointment list eligibility in classes at least 2 salary steps below the employees’ exempt salary levels. Existing law also grants a right of reinstatement to an employee whose exempt appointment terminates, on or after January 1, 1987, and who has at least 10 years of state service, among other characteristics, to specified positions of the appointing power for which he or she has list eligibility. In the absence of list eligibility, existing law grants the employee the right to a deferred examination, as specified, or to his or her former position.

end insert
begin insert

This bill would revise and recast these provisions to grant employees in exempt positions with reinstatement rights, as described above, who have at least 5 years of state service, a right to obtain civil service appointment list eligibility by taking a deferred examination for any class that has a current eligible list and for which the employee meets the minimum qualifications of the class.

end insert
begin insert

(4) Existing law requires the Department of Human Resources to administer the Limited Examination and Appointment Program (LEAP) to provide an alternative to the traditional civil service examination and appointment process to facilitate the hiring of persons with disabilities in the state civil service. Existing law authorizes the department to conduct competitive examinations to determine eligibility for appointment under LEAP, which may include on-the-job-performance evaluation. A LEAP candidate who successfully completes a job examination period is qualified in the examination and may be appointed without further examination.

end insert
begin insert

This bill would provide that a LEAP candidate who is appointed after successfully completing a job examination period, as described above, is not required to serve a probationary period.

end insert
begin insert

(5) Existing law prescribes a process for recovering payments from employees when the state determines an overpayment has been made. Existing law prohibits a state administrative action to recover an overpayment unless the action is initiated within 3 years from the date of overpayment.

end insert
begin insert

This bill, for purposes of an action to recover an overpayment involving leave credits, would establish the date that the overpayment occurs as the date that the employee receives compensation in exchange for the erroneously credited leave. The bill would state when leave hours are considered exchanged for compensation for these purposes.

end insert
begin insert

(6) Existing law requires the Department of Human Resources to devise plans for, and cooperate with appointing powers and other supervising officials in the conduct of, employee training programs so that the quality of service rendered by persons in the state civil service may be continually improved. Existing law also requires the department to devise plans for, and cooperate with appointing powers in the conduct of, supervisorial employee training programs and prescribes training requirements in this regard.

end insert
begin insert

This bill would require the department to analyze, design, develop, implement, and evaluate an integrated development strategy to continually advance employee skills and improve performance productivity and service. The bill would instead require the department to devise plans for, and cooperate with appointing powers in the conduct of, supervisor, manager, and career executive assignment employee training programs so that the quality of leadership services rendered by persons in those positions may be continually improved and succession planning supported. The bill would prescribe requirements for supervisor, manager, and career executive assignment employees in connection with this training.

end insert
begin insert

(7) The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System for the purpose of providing pension and other benefits to public employees, which are funded by employee and employer contributions and investment returns. PERL prescribes different normal rates for employee contributions depending on bargaining unit, employer, and inclusion of service in the federal Social Security system, among other factors.

end insert
begin insert

This bill, on and after July 1, 2017, would raise the normal rates of contribution for specified judicial branch employees to 9% of compensation over $317 per month for state miscellaneous members whose service is not included in the federal system, 8% of compensation over $513 per month for state miscellaneous members whose service has been included in the federal system, and 11% of compensation over $238 for peace officer/firefighter members.

end insert
begin insert

(8) 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 judicial branch employees and state employees represented by State Bargaining Unit 12 who are first employed and become state members of the retirement system on or after January 1, 2017, 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 and would provide the same limit on employer contributions for annuitants enrolled in Medicare health benefit plans.

end insert
begin insert

(9) 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 judicial branch employees who are first employed and become state members of the retirement system on or after January 1, 2017, 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 these employees 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. The bill would except specified employees from this prohibition.

end insert
begin insert

(10) PEMHCA generally 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. Existing law excepts specified state employees from this requirement.

end insert
begin insert

This bill would also except from the requirement described above judicial branch employees and state employees represented by State Bargaining Unit 12 who are first employed and become state members of the retirement system on or after January 1, 2017.

end insert
begin insert

(11) 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 health care coverage for annuitants, including administrative costs. PEMHCA defines prefunding for these purposes. Existing law requires the state and employees of State Bargaining Unit 6, 9, or 10 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs, and prescribes schedules of contribution percentages in this regard.

end insert
begin insert

This bill would require the state and state employees in the judicial branch to make contributions to prefund retiree health care pursuant to a prescribed schedule of contribution percentages and would also require the state and employees in State Bargaining Unit 12 to prefund retiree health care pursuant to a separate prescribed schedule of contribution percentages, with the contributions 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

(12) Existing law, the State Employees’ Dental Care Act, authorizes the state to enter into contracts, upon negotiations with employee organizations, with carriers for dental care plans for employees, annuitants, and eligible family members. Existing law permits these plans to include premiums to be paid by employees and annuitants and also authorizes the plans to be self-funded if an employer determines it to be cost effective. Existing law prohibits specified employees from receiving an employer contribution for these benefits for annuitants unless the person is credited with 10 or more years of state service, and inhibits other specified employees from receiving that contribution unless the person is credited with 15 or more years of state service, and prohibits other specified employees from receiving that contribution unless the person is credited with 15 or more years of state service.

end insert
begin insert

This bill would prohibit judicial branch employees and state employees in State Bargaining Unit 12 who are first employed and become state members of the retirement system on or after January 1, 2017, from receiving an employer contribution for dental benefits, as described above, for annuitants unless the person is credited with 15 or more years of state service. The bill would prescribe the percentage of the employer contribution payable for these dental benefits for these employees 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. The bill would except specified employees from these provisions.

end insert
begin insert

(13) Existing law authorizes the Legislature to prescribe compensation for judges of courts of record. Existing law specifies the salaries of justices and judges of the Supreme Court, the courts of appeal, and trial courts and provides for the annual increase of those salaries by the amount that is produced by multiplying the judge’s or justice’s current salary by the average percentage salary increase for the current fiscal year for California state employees, as provided.

end insert
begin insert

This bill would state that, for purpose of calculating a judge’s or justice’s salary, the average percentage salary increases for California state employees shall be reduced by the average percentage salary decrease resulting from the furlough or enrollment in a personal leave program of California state employees in that current fiscal year and would exempt employees of the California State University system, judicial branch, and Legislature from the definition of California state employee for this purpose. The bill would prohibit a salary increase for justices and judges if the resulting percentage, including the reduction, is equal to or less than zero. The bill would also limit the award of interest on an order to pay unpaid salary or judicial retiree benefits based on these provisions to the rate of interest on the Pooled Money Investment Account.

end insert
begin insert

(14) 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 2016.

end delete

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P8    1begin insert

begin insertSECTION 1.end insert  

end insert
begin insert

The Legislature finds and declares that one of
2the purposes of this act is to approve the agreement entered into
3by the state employer and State Bargaining Unit 12 pursuant to
4Section 3517.5 of the Government Code.

end insert
5begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

The provisions of the memorandum of understanding
6prepared pursuant to Section 3517.5 of the Government Code and
7entered into by the state employer and State Bargaining Unit 12,
8dated May 26, 2016, and that require the expenditure of funds,
9are hereby approved for the purposes of subdivision (b) of Section
103517.6 of the Government Code.

end insert
11begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

The provisions of the memorandum of understanding
12approved in Section 2 of this act that require the expenditure of
13funds shall not take effect unless funds for these provisions are
14specifically appropriated by the Legislature. If funds for these
15provisions are not specifically appropriated by the Legislature,
16either the state employer or the affected employee organization
17may reopen negotiations on all or part of the memorandum of
18understanding.

end insert
19begin insert

begin insertSEC. 4.end insert  

end insert
begin insert

Notwithstanding Section 3517.6 of the Government
20Code, the provisions of the memorandum of understanding included
21in Section 2 of this act that require the expenditure of funds shall
22become effective even if the provisions of the memorandum of
23understanding are approved by the Legislature in legislation other
24than the annual Budget Act.

end insert
25begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

The sum of forty-five million four hundred nineteen
26thousand dollars ($45,419,000) is hereby appropriated for State
27Bargaining Unit 12 for expenditure in the 2016-17 fiscal year in
28augmentation of, and for the purpose of, state employee
29compensation, as provided in Items 9800-001-0001,
309800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget
31Act of 2016, in accordance with the following schedule:

end insert
begin insert

P9    1
(a) Fourteen million five hundred ninety-six thousand dollars
2($14,596,000) from the General Fund in augmentation of Item
39800-001-0001.

end insert
begin insert

4
(b) Twenty million six hundred fifty-one thousand dollars
5($20,651,000) from unallocated special funds in augmentation of
6Item 9800-001-0494.

end insert
begin insert

7
(c) Ten million one hundred seventy-two thousand dollars
8($10,172,000) from other unallocated nongovernmental cost funds
9in augmentation of Item 9800-001-0988.

end insert
10begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 19141 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
11read:end insert

12

19141.  

(a) This section applies only tobegin delete a permanent employee,
13orend delete
an employeebegin insert in an exempt positionend insert who previously had
14permanent statusbegin delete and who, since that permanent status, has had no
15break in the continuity of his or her state service due to a permanent
16separation.end delete
begin insert in the civil service.end insert As used in this section, “former
17position” is defined as in Section 18522, or, if the appointing power
18to which reinstatement is to be made and the employee agree, a
19vacant position in any department, commission, or state agency
20for which he or she is qualifiedbegin insert and which isend insert at substantially the
21samebegin delete level.end deletebegin insert level as the employee’s former position.end insert

22(b) begin deleteWithin the periods of time specified below, an end deletebegin insertAn end insertemployee
23who vacates a civil service position to accept an appointment to
24an exempt position shall be reinstated to his or her former position
25at the terminationbegin delete either by the employee or appointing powerend delete of
26the exempt appointment, providedbegin delete he or she (1) acceptedend deletebegin insert both of
27the following conditions are met:end insert

28begin insert(1)end insertbegin insertend insertbegin insertHe or she acceptedend insert the appointment without a break in the
29continuity of statebegin delete service, and (2) requests in writing reinstatement
30of the appointing power of his or her former position within 10
31working days after the effective date of the termination.end delete
begin insert service.end insert

begin delete

32(c) The reinstatement may be requested by the employee only
33within the following periods of time:

end delete
begin delete

34(1) At any time after the effective date of the exempt
35appointment if the employee was appointed under one of the
36following:

end delete
begin delete

37(A) Subdivision (a), (b), (c), (d), (e), (f), (g), or (m) of Section
384 of Article VII of the California Constitution.

end delete
begin delete

39(B) Section 2.1 of Article IX of the California Constitution.

end delete
begin delete

40(C) Section 22 of Article XX of the California Constitution.

end delete
begin delete

P10   1(D) To an exempt position under the same appointing power as
2the former position even though a shorter period of time may be
3otherwise specified for that appointment.

end delete
begin delete

4(2) Within six months after the effective date of the exempt
5appointment if appointed under subdivision (h), (i), (k), or (l) of
6Section 4 of Article VII of the California Constitution.

end delete
begin delete

7(3) Within four years after the effective date of an exempt
8appointment if appointed under any other authority.

end delete
begin insert

9
(2) Within 10 working days after the effective date of the
10termination, he or she makes a written request to the appointing
11power to be reinstated to his or her former position. If an employee
12accepts an appointment to an exempt position and seeks
13reinstatement to his or her former position more than 10 working
14days after the effective date of the termination of the exempt
15appointment, Section 19140 shall apply.

end insert
begin delete

16(d)

end delete

17begin insert(c)end insert An employee who vacates his or her civil service position
18to accept an assignment as a member, inmate, or patient helper
19under subdivision (j) of Section 4 of Article VII of the California
20Constitution shall not have a right tobegin insert mandatoryend insert reinstatement.

begin delete

21(e) An employee who is serving under an exempt appointment
22retains a right of reinstatement when he or she accepts an extension
23of that exempt appointment or accepts a new exempt appointment,
24provided the extension or new appointment is made within the
25specified reinstatement time limit and there is no break in the
26continuity of state service. The period for which that right is
27retained is for the period applicable to the extended or new exempt
28appointment as if that appointment had been made on the date of
29the initial exempt appointment.

end delete
begin insert

30
(d) If an employee in an exempt appointment accepts an
31 extension of the exempt appointment or accepts a new exempt
32appointment with no break in the continuity of state service in an
33exempt appointment, subdivision (b) shall apply when the extension
34or new exempt appointment is terminated.

end insert
begin delete

35(f) When

end delete

36begin insert(e)end insertbegin insertend insertbegin insertIfend insert an employee exercises his or her right of reinstatement
37and returns to his or her former position, the service while under
38an exempt appointment shall be deemed to be time served in the
39former position for the purpose of determining his or her seniority
40and eligibility for merit salary increases.

begin delete

P11   1(g)

end delete

2begin insert(f)end insert If the termination of an exempt appointment is for a reason
3contained in Section 19997 and the employee does not have a right
4tobegin insert mandatoryend insert reinstatement, he or she shall have his or her name
5placed on the departmental and general reemployment lists for the
6class of his or her former position.

7begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 19141.1 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
8to read:end insert

9

19141.1.  

(a) This sectionbegin insert onlyend insert appliesbegin delete only to a permanent
10employee, or an employee who previously had permanent status,
11and who has a reinstatement right pursuant toend delete
begin insert to employees in an
12exempt position who have reinstatement rights to their former
13positions underend insert
Section 19141.

14(b) Within four years of the termination of an appointment in
15an exempt position,begin delete either by the employee or the appointing
16power,end delete
an employee who has completed a minimum of five years
17of state service experiencebegin delete and at least one year but less than three
18years of exempt serviceend delete
shall be given an opportunity upon request
19to obtain civil service appointmentbegin delete eligibility, throughend deletebegin insert list eligibility
20by takingend insert
a deferred begin delete examination, for any position offered by any
21appointing power in any class for which a current eligible list exists
22and which has a salary range up to two steps higher than the
23employee’s former position. If the employee has three or more
24years of exempt service, the opportunity shall be provided for any
25class at least two salary steps below the employee’s exempt salary
26level.end delete
begin insert examination for any class that has a current eligible list and
27for which the employee meets the minimum qualifications of the
28class.end insert

begin delete

29(c) At the termination of an exempt appointment, either by the
30employee or the appointing power, on or after January 1, 1987, an
31employee who has at least 10 years of state service including five
32years of civil service experience and at least three consecutive
33years of exempt service under a single appointing power and who
34requests reinstatement in writing within 10 days of the termination,
35shall be reinstated upon request to (1) his or her former position
36or (2) any vacant position for which the employee has civil service
37eligibility under the appointing power where the three years of
38service were completed and which is at least two salary steps below
39the employee’s exempt salary level. In the absence of current list
40eligibility, an employee shall be entitled to a deferred examination
P12   1for placement on a current eligible list for classes meeting the
2mandatory reinstatement criteria. If the employee obtains civil
3service appointment eligibility at any time within two years of the
4termination of the exempt appointment, and a vacant position in
5the appropriate class is not available, the employee’s name shall
6be placed on the appointing power’s departmental or subdivisional
7reemployment for any classes and locations which would satisfy
8the employee’s reinstatement request. Departmental or
9subdivisional reemployment list eligibility granted under this
10section shall not result in placement on any general reemployment
11list.

12If an employee cannot be placed in a vacant position pursuant
13to this section, the employee shall be reinstated to his or her former
14position.

end delete
15begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 19243 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
16read:end insert

17

19243.  

Upon successful completion of the job examination
18period, the candidate shall have qualified in the examination. With
19the approval of the department, the appointing power may appoint
20the candidate, without further examination, to an appropriate
21position where civil service status may accumulate.begin insert A candidate
22appointed in this way is not required to serve a probationary
23period.end insert

24begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 19829.9844 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
25to read:end insert

begin insert
26

begin insert19829.9844.end insert  

(a) Notwithstanding Section 13340, for the
272016-17 fiscal year, if the Budget Act of 2016 is not enacted by
28July 1, 2016, for the memorandum of understanding entered into
29between the state employer and State Bargaining Unit 12 (effective
30July 1, 2015, to July 1, 2019, inclusive) there is hereby
31continuously appropriated to the Controller from the General
32Fund, unallocated special funds, including, but not limited to,
33federal funds and unallocated nongovernmental cost funds, and
34any other fund from which state employees are compensated, the
35amount necessary for the payment of compensation and employee
36benefits to state employees covered by the above memorandum of
37understanding until the Budget Act of 2016 is enacted. The
38Controller may expend an amount no greater than necessary to
39enable the Controller to compensate state employees covered by
40the above memorandum of understanding for work performed
P13   1between July 1, 2016, of the 2016-17 fiscal year and the enactment
2of the Budget Act of 2016.

3
(b) If the memorandum of understanding entered into between
4the state employer and State Bargaining Unit 12 (effective July 1,
52015, to July 1, 2019, inclusive) is in effect and approved by the
6Legislature, the compensation and contribution for employee
7benefits for state employees represented by this bargaining unit
8shall be at a rate consistent with the applicable memorandum of
9understanding referenced above.

10
(c) Expenditures related to any warrant drawn pursuant to
11subdivision (a) are not augmentations to the expenditure authority
12of a department. Upon the enactment of the Budget Act of 2016,
13these expenditures shall be subsumed by the expenditure authority
14approved in the Budget Act of 2016 for each affected department.

15
(d) This section shall only apply to an employee covered by the
16term of the State Bargaining Unit 12 (effective July 1, 2015, to
17July 1, 2019, inclusive) memorandum of understanding.
18Notwithstanding Section 3517.8, this section shall not apply after
19the term of the memorandum of understanding has expired. For
20purposes of this section, the memorandum of understanding for
21State Bargaining Unit 12 expires on July 1, 2019.

end insert
22begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 19829.9845 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
23to read:end insert

begin insert
24

begin insert19829.9845.end insert  

(a) Notwithstanding Section 13340, for the
252017-18 fiscal year, if the Budget Act of 2017 is not enacted by
26July 1, 2017, for the memorandum of understanding entered into
27between the state employer and State Bargaining Unit 12 (effective
28July 1, 2015, to July 1, 2019, inclusive) there is hereby
29continuously appropriated to the Controller from the General
30Fund, unallocated special funds, including, but not limited to,
31federal funds and unallocated nongovernmental cost funds, and
32any other fund from which state employees are compensated, the
33amount necessary for the payment of compensation and employee
34benefits to state employees covered by the above memorandum of
35understanding until the Budget Act of 2017 is enacted. The
36Controller may expend an amount no greater than necessary to
37enable the Controller to compensate state employees covered by
38the above memorandum of understanding for work performed
39between July 1, 2017, of the 2017-18 fiscal year and the enactment
40of the Budget Act of 2017.

P14   1
(b) If the memorandum of understanding entered into between
2the state employer and State Bargaining Unit 12 (effective July 1,
32015, to July 1, 2019, inclusive) is in effect and approved by the
4Legislature, the compensation and contribution for employee
5benefits for state employees represented by this bargaining unit
6shall be at a rate consistent with the applicable memorandum of
7understanding referenced above.

8
(c) Expenditures related to any warrant drawn pursuant to
9subdivision (a) are not augmentations to the expenditure authority
10of a department. Upon the enactment of the Budget Act of 2017,
11these expenditures shall be subsumed by the expenditure authority
12approved in the Budget Act of 2017 for each affected department.

13
(d) This section shall only apply to an employee covered by the
14term of the State Bargaining Unit 12 (effective July 1, 2015, to
15July 1, 2019, inclusive) memorandum of understanding.
16Notwithstanding Section 3517.8, this section shall not apply after
17the term of the memorandum of understanding has expired. For
18purposes of this section, the memorandum of understanding for
19State Bargaining Unit 12 expires on July 1, 2019.

end insert
20begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 19829.9846 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
21to read:end insert

begin insert
22

begin insert19829.9846.end insert  

(a) Notwithstanding Section 13340, for the
232018-19 fiscal year, if the Budget Act of 2018 is not enacted by
24July 1, 2018, for the memorandum of understanding entered into
25between the state employer and State Bargaining Unit 12 (effective
26July 1, 2015, to July 1, 2019, inclusive) there is hereby
27continuously appropriated to the Controller from the General
28Fund, unallocated special funds, including, but not limited to,
29federal funds and unallocated nongovernmental cost funds, and
30any other fund from which state employees are compensated, the
31amount necessary for the payment of compensation and employee
32benefits to state employees covered by the above memorandum of
33understanding until the Budget Act of 2018 is enacted. The
34Controller may expend an amount no greater than necessary to
35enable the Controller to compensate state employees covered by
36the above memorandum of understanding for work performed
37between July 1, 2018, of the 2018-19 fiscal year and the enactment
38of the Budget Act of 2018.

39
(b) If the memorandum of understanding entered into between
40the state employer and State Bargaining Unit 12 (effective July 1,
P15   12015, to July 1, 2019, inclusive) is in effect and approved by the
2Legislature, the compensation and contribution for employee
3benefits for state employees represented by this bargaining unit
4shall be at a rate consistent with the applicable memorandum of
5understanding referenced above.

6
(c) Expenditures related to any warrant drawn pursuant to
7subdivision (a) are not augmentations to the expenditure authority
8of a department. Upon the enactment of the Budget Act of 2018,
9these expenditures shall be subsumed by the expenditure authority
10approved in the Budget Act of 2018 for each affected department.

11
(d) This section shall only apply to an employee covered by the
12term of the State Bargaining Unit 12 (effective July 1, 2015, to
13July 1, 2019, inclusive) memorandum of understanding.
14Notwithstanding Section 3517.8, this section shall not apply after
15the term of the memorandum of understanding has expired. For
16purposes of this section, the memorandum of understanding for
17State Bargaining Unit 12 expires on July 1, 2019.

end insert
18begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 19838 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
19to read:end insert

20

19838.  

(a) When the state determines an overpayment has
21been made to an employee, it shall notify the employee of the
22overpayment and afford the employee an opportunity to respond
23prior to commencing recoupment actions. Thereafter,
24reimbursement shall be made to the state through one of the
25following methods mutually agreed to by the employee and the
26state:

27(1) Cash payment or payments.

28(2) Installments through payroll deduction to cover at least the
29same number of pay periods in which the error occurred. When
30overpayments have continued for more than one year, full payment
31may be required by the state through payroll deductions over the
32period of one year.

33(3) The adjustment of appropriate leave credits or compensating
34time off, provided that the overpayment involves the accrual or
35crediting of leave credits (e.g., vacation, annual leave, or holiday)
36or compensating time off. Any errors in sick leave balances may
37only be adjusted with sick leave credits.

38Absent mutual agreement on a method of reimbursement, the
39state shall proceed with recoupment in the manner set forth in
40paragraph (2).

P16   1(b) An employee who is separated from employment prior to
2full repayment of the amount owed shall have withheld from any
3money owing the employee upon separation an amount sufficient
4to provide full repayment. If the amount of money owing upon
5separation is insufficient to provide full reimbursement to the state,
6the state shall have the right to exercise any and all other legal
7means to recover the additional amount owed.

8(c) Amounts deducted from payment of salary or wages pursuant
9to the above provisions, except as provided in subdivision (b),
10shall in no event exceed 25 percent of the employee’s net
11disposable earnings.

12(d) begin deleteNo end deletebegin insertAn end insertadministrative action shallbegin insert notend insert be taken by the state
13pursuant to this section to recover an overpayment unless the action
14is initiated within three years from the date of overpayment.begin insert If an
15overpayment involves leave credits, the date of overpayment is the
16date that the employee receives compensation in exchange for
17leave erroneously credited to the employee. For purposes of this
18section, leave hours are considered exchanged for compensation
19in the order they were credited.end insert

20(e) If the provisions of this section are in conflict with the
21provisions of a memorandum of understanding reached pursuant
22to Section 3517.5, the memorandum of understanding shall be
23controlling without further legislative action, except that if the
24provisions of a memorandum of understanding require the
25expenditure of funds, the provisions shall not become effective
26unless approved by the Legislature in the annual Budget Act.

27begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 19995.1 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
28to read:end insert

29

19995.1.  

For the purpose of meeting thebegin insert developmentend insert needs
30of thebegin delete state service for continuing employee educational
31development, the upgrading of employee skills, and improving
32productivity and quality service, theend delete
begin insert state’s workforce, the
33department shall analyze, design, develop, implement, and evaluate
34an integrated development strategy to continually advance
35employee skills and improve performance productivity and service.
36Theend insert
department may prescribe regulations and conditions for the
37administration of this chapter. The conditions prescribed by the
38department may include, but not be limited to, the requirements
39that the training shall bebegin delete cost-effective,end deletebegin insert cost effective,end insert of value to
40the state, and relevant to the employee’s career development in
P17   1state service. The department may further prescribe the conditions
2under which an employee may be required to reimburse the state
3for the costs of out-service training in the event he or she fails to
4remain in state service for a reasonable time after receiving the
5training.

6If the provisions of this section are in conflict with the provisions
7of a memorandum of understanding reached pursuant to Section
83517.5, the memorandum of understanding shall be controlling
9without further legislative action, except that if the provisions of
10a memorandum of understanding require the expenditure of funds,
11the provisions shall not become effective unless approved by the
12Legislature in the annual Budget Act.

13begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 19995.4 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
14to read:end insert

15

19995.4.  

(a) The department shall devise plans for, and
16cooperate with appointing powers in the conduct of,begin delete supervisorialend delete
17begin insert supervisor and career executive assignmentend insert employee training
18programs so that the quality ofbegin delete supervisorialend deletebegin insert leadershipend insert services
19rendered by persons in those positions may be continually
20
begin delete improved.end deletebegin insert improved and succession planning supported.end insert

21(b) begin deleteEach supervisorial employee, upon the employee’s initial
22appointment end delete
begin insertUpon the initial appointment of an employee end insertto a
23designated supervisory position,begin insert the employeeend insert shall be provided
24a minimum of 80 hours of training,begin delete at least 40 hours of which shall
25be structured and be provided by a qualified instructor.end delete
begin insert as
26prescribed by the department.end insert
The training shallbegin delete consist ofend deletebegin insert addressend insert
27 the role of the supervisor, techniques of supervision, planning,
28organizing,begin delete staffing and controlling,end deletebegin insert staffing,end insert performance
29standards, performancebegin delete appraisal, affirmative action,end deletebegin insert appraisals,end insert
30 discipline, labor relations,begin delete employment law relating to persons
31with disabilities, and grievances.end delete
begin insert equal employment opportunity
32principles, and affirmative action for persons with disabilities.end insert

33 Every supervisor shall have access to a copy of each bargaining
34agreement covering the employees he or she supervises.begin delete The
35additional 40 hours of training may be provided on-the-job by a
36qualified higher level supervisor or manager.end delete

37(c) Thebegin delete entire 80end deletebegin insert requiredend insert hours ofbegin delete training shall beend deletebegin insert supervisory
38training shall be successfullyend insert
completed within the term of the
39probationary period or withinbegin delete 12 months of appointment to a
40supervisorial classification. The training shall be completed within
P18   1the term of the probationary period unless it is demonstrated that
2to do so creates additional costs or that the training cannot be
3completed during the probationary period due to the limited
4availability of training courses.end delete
begin insert six months of the employee’s initial
5appointment, unless it is demonstrated that to do so creates
6additional costs or that the training cannot be completed during
7this time period due to limited availability of training courses.
8Upon completion of the initial appointment training, supervisory
9employees shall be provided biannually a minimum of 20 hours
10of leadership training and development, as prescribed by the
11department.end insert

begin insert

12
(d) Upon the initial appointment of an employee to a
13management position, the employee shall be provided a minimum
14of 40 hours of leadership training and development, as prescribed
15by the department, within 12 months of appointment. Thereafter,
16the employee shall be provided biannually a minimum of 20 hours
17of leadership training, as prescribed by the department.

end insert
begin insert

18
(e) Upon the initial appointment of an employee to a career
19executive assignment position, the employee shall be provided a
20minimum of 20 hours of leadership training and development as
21prescribed by the department within 12 months of appointment.
22Thereafter, the employee shall be provided biannually a minimum
23of 20 hours of leadership training and development as prescribed
24by the department.

end insert
25begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 20683.3 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
26to read:end insert

begin insert
27

begin insert20683.3.end insert  

Notwithstanding Sections 20677 and 20687, on and
28after July 1, 2017, the normal rate of contribution for an employee
29of the judicial branch who is not subject to Section 7522.30 shall
30be the following:

31
(a) For a state miscellaneous member:

32
(1) Nine percent of the compensation in excess of three hundred
33seventeen dollars ($317) per month paid to a member whose
34service is not included in the federal system.

35
(2) Eight percent of compensation in excess of five hundred
36thirteen dollars ($513) per month paid to that member whose
37service has been included in the federal system.

38
(b) For a peace officer/firefighter member, 11 percent of
39compensation in excess of two hundred thirty-eight dollars ($238)
40per month paid to that member.

end insert
P19   1begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 22871.3 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
2to read:end insert

3

22871.3.  

(a) The employer contribution for each annuitant
4enrolled in a basic plan shall be an amount equal to 80 percent of
5the weighted average of the health benefit plan premiums for an
6employee or annuitant enrolled for self-alone, during the benefit
7year to which the formula is applied, for the four health benefit
8plans that had the largest active state civil service enrollment,
9excluding family members, during the previous benefit year. For
10each annuitant with enrolled family members, the employer
11contribution shall be an amount equal to 80 percent of the weighted
12average of the additional premiums required for enrollment of
13those family members, during the benefit year to which the formula
14is applied, in the four health benefit plans that had the largest active
15state civil service enrollment, excluding family members, during
16the previous benefit year.

17(b) The employer contribution for each annuitant enrolled in a
18Medicare health benefit plan in accordance with Section 22844
19shall be an amount equal to 80 percent of the weighted average of
20the health benefit plan premiums for an annuitant enrolled in a
21Medicare health benefit plan for self-alone, during the benefit year
22to which the formula is applied, for the four Medicare health benefit
23plans that had the largest state annuitant enrollment, excluding
24family members, during the previous benefit year. For each
25annuitant with enrolled family members, the employer contribution
26shall be an amount equal to 80 percent of the weighted average of
27the additional premiums required for enrollment of those family
28members, during the benefit year to which the formula is applied,
29in the four Medicare health benefit plans that had the largest state
30annuitant enrollment, excluding family members, during the
31previous benefit year. If the annuitant is eligible for Medicare Part
32A, with or without cost, and Medicare Part B, regardless of whether
33the annuitant is actually enrolled in Medicare Part A or Part B, the
34employer contribution shall not exceed the amount calculated
35under this subdivision.

36(c) This section applies to:

37(1) A state employee who is first employed by the state and
38becomes a state member of the system on or after January 1, 2016,
39and who is represented by State Bargaining Unit 9 or 10.

P20   1(2) A state employee related to State Bargaining Unit 9 or 10
2who is excepted from the definition of “state employee” in
3subdivision (c) of Section 3513 and first employed by the state
4and becomes a state member of the system on or after January 1,
52016.

6(3) A state employee represented by State Bargaining Unit 6begin insert or
712end insert
who is first employed by the state and becomes a state member
8of the system on or after January 1, 2017.

9(4) A state employee related to State Bargaining Unit 6begin insert or 12end insert
10 who is excepted from the definition of “state employee” in
11subdivision (c) of Section 3513 and first employed by the state
12and becomes a state member of the system on or after January 1,
132017.

begin insert

14
(5) A judicial branch employee who is first employed by the
15state and becomes a state member of the system on or after January
161, 2017. This paragraph does not apply to a judge who is subject
17to Chapter 11 (commencing with Section 75000) or Chapter 11.5
18(commencing with Section 75500) of Title 8.

end insert

19(d) If the provisions of this section are in conflict with the
20provisions of a memorandum of understanding reached pursuant
21to Section 3517.5 or Chapter 12 (commencing with Section 3560)
22of Division 4 of Title 1, the memorandum of understanding shall
23be controlling without further legislative action, except that if those
24provisions require the expenditure of funds, the provisions may
25not become effective unless approved by the Legislature.

26begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 22874.4 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
27to read:end insert

begin insert
28

begin insert22874.4.end insert  

(a) Notwithstanding Sections 22870, 22871, and
2922873, a judicial branch employee who is first employed by the
30state and becomes a state member of the system on or after January
311, 2017, shall not receive any portion of the employer contribution
32payable for annuitants unless the person is credited with 15 years
33of state service at the time of retirement.

34
(b) The percentage of the employer contribution payable for
35postretirement health benefits for an employee subject to this
36section shall be based on the completed years of credited state
37service at retirement as shown in the following table:


38

 

begin insert

Credited Years
of Service

end insert
begin insert

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
P21  12

 

13
(c) This section shall apply only to judicial branch employees
14who retire for service. For purposes of this section, “state service”
15means service rendered as an employee of the state or an appointed
16or elected officer of the state for compensation.

17
(d) This section does not apply to any of the following:

18
(1) Former state employees previously employed prior to
19January 1, 2017, who return to state employment on or after
20January 1, 2017.

21
(2) State employees on an approved leave of absence employed
22before January 1, 2017, who return to active employment on or
23after January 1, 2017.

24
(3) A judge who retires pursuant to Chapter 11 (commencing
25with Section 75000) or Chapter 11.5 (commencing with Section
2675500) of Title 8.

end insert
27begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 22879 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
28to read:end insert

29

22879.  

(a) The board shall pay monthly to an employee or
30annuitant who is enrolled in, or whose family member is enrolled
31in, a Medicare health benefit plan under this part the amount of
32the Medicare Part B premiums, exclusive of penalties, except as
33provided in Section 22831. This payment may not exceed the
34difference between the maximum employer contribution and the
35amount contributed by the employer toward the cost of premiums
36for the health benefit plan in which the employee or annuitant and
37his or her family members are enrolled. No payment may be made
38in any month if the difference is less than one dollar ($1).

P22   1(b) This section shall be applicable only to state employees,
2annuitants who retired while state employees, and the family
3members of those persons.

4(c) With respect to an annuitant, the board shall pay to the
5annuitant the amount required by this section from the same source
6from which his or her allowance is paid. Those amounts are hereby
7appropriated monthly from the General Fund to reimburse the
8board for those payments.

9(d) There is hereby appropriated from the appropriate funds the
10amounts required by this section to be paid to active state
11employees.

12(e) This section does not apply to:

13(1) A state employee who is first employed by the state and
14becomes a state member of the system on or after January 1, 2016,
15and who is represented by State Bargaining Unit 9 or 10.

16(2) A state employee related to State Bargaining Unit 9 or 10
17who is excepted from the definition of “state employee” in
18subdivision (c) of Section 3513 and is first employed by the state
19and becomes a state member of the system on or after January 1,
202016.

21(3) A state employee who is first employed by the state and
22becomes a state member of the system on or after January 1, 2017,
23and who is represented by State Bargaining Unitbegin delete 6.end deletebegin insert 6 or 12.end insert

24(4) A state employee related to State Bargaining Unit 6begin insert or 12end insert
25 who is excepted from the definition of “state employee” in
26subdivision (c) of Section 3513 and is first employed by the state
27and becomes a state member of the system on or after January 1,
282017.

begin insert

29
(5) A judicial branch employee who is first employed by the
30state and becomes a state member of the system on or after January
311, 2017. This paragraph does not apply to a judge who is subject
32to Chapter 11 (commencing with Section 75000) or Chapter 11.5
33(commencing with Section 75500) of Title 8.

end insert
34begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 22944.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
35to read:end insert

36

22944.5.  

(a)  (1)  The state and employees in State Bargaining
37Unitbegin delete 9 or 10end deletebegin insert 9, 10, or 12end insert shall prefund retiree health care, with the
38goal of reaching a 50-percent cost sharing of actuarially determined
39normal costs for both employer and employees by July 1, 2019.

P23   1(2) The state and employees in State Bargaining Unit 6 shall
2prefund retiree health care, with the goal of reaching a 50-percent
3cost sharing of actuarially determined normal costs for both
4employer and employees by July 1, 2018.

begin insert

5
(3) The state and employees in the judicial branch shall prefund
6retiree health care, with the goal of reaching a 50-percent cost
7sharing of actuarially determined normal costs for both employer
8and employees by July 1, 2017.

end insert

9(b) (1) The employees in State Bargaining Unit 9 shall make
10contributions to prefund retiree health care based on the following
11schedule, and the state shall make a matching contribution:

12(A) Effective July 1, 2017, 0.5 percent of pensionable
13compensation.

14(B) Effective July 1, 2018, an additional 0.5 percent for a total
15employee contribution of 1.0 percent of pensionable compensation.

16(C) Effective July 1, 2019, an additional 1.0 percent for a total
17employee contribution of 2.0 percent of pensionable compensation.

18(2) The employees in State Bargaining Unit 10 shall make
19contributions to prefund retiree health care based on the following
20schedule, and the state shall make a matching contribution:

21(A) Effective July 1, 2017, 0.7 percent of pensionable
22compensation.

23(B) Effective July 1, 2018, an additional 0.7 percent for a total
24employee contribution of 1.4 percent of pensionable compensation.

25(C) Effective July 1, 2019, an additional 1.4 percent for a total
26employee contribution of 2.8 percent of pensionable compensation.

27(3) The employees in State Bargaining Unit 6 shall make
28contributions to prefund retiree health care based on the following
29schedule, and the state shall make a matching contribution:

30(A) Effective July 1, 2016, 1.3 percent of pensionable
31compensation.

32(B) Effective July 1, 2017, an additional 1.3 percent for a total
33employee contribution of 2.6 percent of pensionable compensation.

34(C) Effective July 1, 2018, an additional 1.4 percent for a total
35employee contribution of 4.0 percent of pensionable compensation.

begin insert

36
(4) The state employees in the judicial branch shall make
37contributions to prefund retiree health care based on the following
38schedule, and the state shall make a matching contribution:

end insert
begin insert

39
(A) Effective July 1, 2016, 1.5 percent of pensionable
40compensation.

end insert
begin insert

P24   1
(B) Effective July 1, 2017, up to an additional 1.5 percent for
2a total employee contribution of up to 3.0 percent of pensionable
3compensation. The additional amount shall be determined by the
4Director of Finance no later than April 1, 2017, based on the
5actuarially determined normal costs identified in the state
6valuation.

end insert
begin insert

7
(C) This paragraph does not apply to a judge who is subject to
8Chapter 11 (commencing with Section 75000) or Chapter 11.5
9(commencing with Section 75500) of Title 8.

end insert
begin insert

10
(5) The employees in State Bargaining Unit 12 shall make
11contributions to prefund retiree health care based on the following
12schedule, and the state shall make a matching contribution:

end insert
begin insert

13
(A) Effective July 1, 2017, 1.9 percent of pensionable
14compensation.

end insert
begin insert

15
(B) Effective July 1, 2018, an additional 1.4 percent for a total
16employee contribution of 3.3 percent of pensionable compensation.

end insert
begin insert

17
(C) Effective July 1, 2019, an additional 1.3 percent for a total
18employee contribution of 4.6 percent of pensionable compensation.

end insert

19(c) This section only applies to employeesbegin delete in State Bargaining
20Unit 6, 9, or 10end delete
who are eligible for health benefits, including
21permanent intermittent employees.

22(d) Contributions paid pursuant to this section shall be deposited
23in the Annuitants’ Health Care Coverage Fund and shall not be
24refundable under any circumstances to an employeebegin delete in State
25Bargaining Unit 6, 9, or 10end delete
or his or her beneficiary or survivor.

26(e) If the provisions of this section are in conflict with the
27provisions of a memorandum of understanding reached pursuant
28to Section 3517.5, the memorandum of understanding shall be
29controlling without further legislative action, except that if those
30provisions of a memorandum of understanding require the
31expenditure of funds, the provisions shall not become effective
32unless approved by the Legislature in the annual Budget Act.

33(f) This section shall also apply to a state employee related to
34begin delete State Bargaining Unit 6, 9, or 10end deletebegin insert a bargaining unit described in
35subdivision (a)end insert
who is excepted from the definition of “state
36employee” in subdivision (c) of Section 3513.

37begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 22958.1 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
38to read:end insert

39

22958.1.  

(a) Notwithstanding Sections 22953, 22957, and
4022958, the following employees shall not receive any portion of
P25   1the employer contribution payable for annuitants unless the person
2is credited with 15 or more years of state service, as defined by
3this section, at the time of retirement:

4(1) A state employee, as defined by subdivision (c) of Section
53513, who is first employed by the state and becomes a state
6member of the system on or after January 1, 2017, and is
7represented by State Bargaining Unitbegin delete 6.end deletebegin insert 6 or 12.end insert

8(2) A state employee related to State Bargaining Unit 6begin insert or 12end insert
9 who is excepted from the definition of “state employee” in
10subdivision (c) of Section 3513 and is first employed by the state
11and becomes a state member of the system on or after January 1,
122017.

13(b) The percentage of the employer contribution payable for
14postretirement dental care benefits for an employee subject to this
15section shall be based on the funding provision of the plan and the
16completed years of credited state service at retirement as shown
17in the following table:


18

 

begin delete

Years of Service Contribution

end delete
begin insert

Credited Years
of Service

end insert
begin delete

Credited Years Percentage
of Employer Contribution

end delete
begin insert

Percentage of Employer
Contribution

end insert

15   

50

16   

55

17   

60

18   

65

19   

70

20   

75

21   

80

22   

85

23   

90

24   

95

25 or more   

100

P25  34

 

35(c) This section shall apply only to state employees that retire
36for service. For purposes of this section, “state service” means
37 service rendered as an employee of the state or an appointed or
38elected officer of the state for compensation.

39(d) This section does not apply to:

P26   1(1) Former state employees previously employedbegin delete beforeend deletebegin insert prior
2toend insert
January 1, 2017, who return to state employment on or after
3January 1, 2017.

4(2) State employees hired prior to January 1, 2017, who become
5subject to representation by State Bargaining Unit 6begin insert or 12end insert on or
6after January 1, 2017.

7(3) State employees on an approved leave of absence employed
8before January 1, 2017, who return to active employment on or
9after January 1, 2017.

10(4) State employees hired after January 1, 2017, who are first
11represented by a State Bargaining Unit other than Bargaining Unit
12begin delete 6,end deletebegin insert 6 or 12,end insert who later become represented by State Bargaining Unit
13
begin delete 6.end deletebegin insert 6 or 12.end insert

14(e) In those cases where the state has assumed from a public
15agency a function and the related personnel, service rendered by
16that personnel for compensation as employees or appointed or
17elected officers of that public agency may not be credited as state
18service for the purposes of this section unless the former employer
19has paid or agreed to pay the state the amount actuarially
20determined to equal the cost for any employee dental benefits that
21were vested at the time that the function and the related personnel
22were assumed by the state, and the Department of Finance finds
23that the contract contains a benefit factor sufficient to reimburse
24the state for the amount necessary to fully compensate for the
25postretirement dental benefit costs of those personnel. For
26noncontracting public agencies, the state agency that has assumed
27the function shall certify the completed years of public agency
28service to be credited to the employee as state service credit under
29this section.

30begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 22958.2 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
31to read:end insert

begin insert
32

begin insert22958.2.end insert  

(a) Notwithstanding Sections 22953, 22957, and
3322958, a judicial branch employee who is first employed by the
34state and becomes a state member of the system on or after January
351, 2017, shall not receive any portion of the employer contribution
36payable for annuitants unless the person is credited with 15 years
37of state service at the time of retirement.

38
(b) The percentage of the employer contribution payable for
39postretirement dental care benefits for an employee subject to this
40section shall be based on the funding provision of the plan and
P27   1the completed years of credited state service at retirement as shown
2in the following table:


3

 

begin insert

Credited Years
of Service

end insert
begin insert

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
P27  17

 

18
(c) This section shall apply only to judicial branch employees
19who retire for service. For purposes of this section, “state service”
20means service rendered as an employee of the state or an appointed
21or elected officer of the state for compensation.

22
(d) This section does not apply to any of the following:

23
(1) Former state employees previously employed prior to
24January 1, 2017, who return to state employment on or after
25January 1, 2017.

26
(2) State employees on an approved leave of absence employed
27before January 1, 2017, who return to active employment on or
28after January 1, 2017.

29
(3) A judge who retires pursuant to Chapter 11 (commencing
30with Section 75000) or Chapter 11.5 (commencing with Section
3175500) of Title 8.

end insert
32begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 68203 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
33to read:end insert

34

68203.  

(a) On July 1, 1980, and on July 1 of each year
35thereafter, the salary of each justice and judge named in Sections
3668200 to 68202, inclusive, and 68203.1 shall be increased by the
37amount that is produced by multiplying the then current salary of
38each justice or judge by the average percentage salary increase for
39the current fiscal year for California state employees; provided,
40that in any fiscal year in which the Legislature places a dollar
P28   1limitation on salary increases for state employees the same
2limitation shall apply to judges in the same manner applicable to
3state employees in comparable wage categories.

4(b) begin insert(1)end insertbegin insertend insertFor the purposes of this section,begin insert average percentageend insert
5 salary increases forbegin insert Californiaend insert state employees shall be those
6increases as reported by the Department of Humanbegin delete Resources.end delete
7
begin insert Resources to the State Controller in a pay letter.end insert

begin insert

8
(2) For purposes of this section the average percentage salary
9increase for the current fiscal year for California state employees
10shall be reduced by the average percentage salary decrease
11resulting from the furlough or enrollment in a personal leave
12program of California state employees in that current fiscal year,
13as determined by the Department of Human Resources, in
14consultation with the Department of Finance.

end insert
begin insert

15
(3) If the reduction required pursuant to paragraph (2) results
16in a percentage that is equal to or less than zero, the salary of
17each justice and judge named in Sections 68200 to 68202,
18inclusive, and 68203.1 shall not be increased.

end insert
begin insert

19
(4) Persons working for the California State University system,
20the judicial branch, or the Legislature are not considered
21California state employees for purposes of this subdivision.

end insert

22(c) The salary increase for judges and justices made on July 1,
231980, for the 1980-81 fiscal year, shall in no case exceed 5 percent.

24(d) On January 1, 2001, the salary of the justices and judges
25named in Sections 68200 to 68202, inclusive, shall be increased
26by the amount that is produced by multiplying the salary of each
27justice and judge as of December 31, 2000, by 812 percent.

28(e) On January 1, 2007, the salary of the justices and judges
29identified in Sections 68200 to 68202, inclusive, and 68203.1 shall
30also be increased by the amount that is produced by multiplying
31the salary of each justice and judge as of December 31, 2006, by
328.5 percent.

begin insert

33
(f) Notwithstanding Article 2 (commencing with Section 3287)
34of Chapter 1 of Title 2 of Part 1 of Division 4 of the Civil Code,
35Chapter 5 (commencing with Section 685.010) of Division 1 of
36Title 9 of Part 2 of the Code of Civil Procedure, any other law, or
37any court judgment that has not been finally determined upon
38appeal as of the date this subdivision is enacted, any award of
39interest on an order to pay unpaid salary or judicial retiree benefits
P29   1pursuant to this section shall not exceed the rate of interest accrued
2on moneys in the Pooled Money Investment Account.

end insert
3begin insert

begin insertSEC. 23.end insert  

end insert
begin insert

By amending Section 68203 of the Government Code
4in this act, the Legislature does not intend to create an inference
5about the legal effect of the statute prior to the enactment of this
6act.

end insert
7begin insert

begin insertSEC. 24.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
8to the Budget Bill within the meaning of subdivision (e) of Section
912 of Article IV of the California Constitution, has been identified
10as related to the budget in the Budget Bill, and shall take effect
11immediately.

end insert
begin delete
12

SECTION 1.  

It is the intent of the Legislature to enact statutory
13changes relating to the 2016 Budget Act.
14

end delete

CORRECTIONS:

Heading--Lines 1, 2, 3, 4, and 5.




O

Corrected 6-15-16—See last page.     97