BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1627|
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THIRD READING
Bill No: AB 1627
Author: Committee on Budget
Amended: 8/11/16 in Senate
Vote: 21
SENATE BUDGET & FISCAL REVIEW COMMITTEE: 13-2, 8/17/16
AYES: Leno, Nielsen, Allen, Beall, Block, Hancock, Mitchell,
Monning, Nguyen, Pan, Pavley, Roth, Wolk
NOES: Anderson, Moorlach
NO VOTE RECORDED: Glazer, Stone
ASSEMBLY FLOOR: 51-26, 4/28/16 - See last page for vote
SUBJECT: State employment: memorandum of understanding:
Bargaining Unit 7
SOURCE: Author
DIGEST: This bill provides legislative ratification for the
memoranda of understanding (MOU) agreed to by the state and
Bargaining Unit (BU) 7, which includes protective service and
public safety employees represented by the California Statewide
Law Enforcement Association.
ANALYSIS: This bill ratifies the proposed BU 7 MOU provisions,
effective July 2, 2016 through July 1, 2019, and affecting
approximately 7,204 full-time equivalent positions, as
summarized by the California Department of Human Resources
(CalHR) below:
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Health Benefits
1) Employer Contribution for Active State Employees. The
state's monthly consolidated benefit contribution for each
employee shall continue to be a flat dollar amount equal to
80 percent of the weighted average of the basic health
benefit plan premiums of the four largest enrolled basic
health plans. For each employee with enrolled family members,
the employer shall continue to contribute an additional flat
dollar amount equal to 80 percent of the weighted average of
the additional premiums. The flat dollar amounts shall be
increased as appropriate pursuant to the formulas on January
1, 2017, January 1, 2018, and January 1, 2019.
2) Employer Contribution for Future Retirees. Employees first
hired on or after January 1, 2017, will receive an employer
contribution for retiree health benefits based on an "80/80"
formula. Retirees and their dependents enrolled in a basic
health benefit plan will receive an employer contribution
equal to 80 percent of the weighted average premium of the
four largest basic health benefit plans based on state active
employee enrollment. Retirees and their dependents enrolled
in a Medicare health benefit plan will receive an employer
contribution equal to 80 percent of the weighted average
premium of the four largest Medicare health benefit plans
based on state retiree enrollment.
3) Prefunding of Other Post-Employment Benefits. The state and
BU 7 members will prefund retiree healthcare with the goal of
reaching 50 percent cost sharing of actuarially-determined
total normal cost for employer and employees by July 1, 2019.
The state and employees will each make the following
contributions:
a) Effective July 1, 2017, 1.3 percent of pensionable
compensation.
b) Effective July 1, 2018, an additional 1.4 percent for
a total of 2.7 percent of pensionable compensation.
c) Effective July 1, 2019, an additional 1.3 percent for
a total of 4.0 percent of pensionable compensation.
4) Post-Employment Health and Dental Benefit Vesting Schedule.
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All employees first employed by the state on or after January
1, 2017, will be subject to an extended vesting schedule
providing 50 percent of the employer contribution upon
completion of 15 years of state service, increasing five
percent for each additional year of service, until the
employee is 100 percent vested at 25 years of state service.
5) Medicare Part B Supplemental Benefit. All employees first
hired on or after January 1, 2017, will no longer be eligible
to use the employer contribution for a retiree health benefit
plan for Medicare Part B premiums.
Compensation
1) General Salary Increase (GSI)
a) Effective July 1, 2016, BU 7 employees shall receive a
three percent GSI.
b) Effective July 1, 2017, BU 7 employees shall receive a
three percent GSI.
c) Effective July 1, 2018, BU 7 employees shall receive a
two percent GSI.
2) Special Salary Adjustments
a) Effective July 1, 2016, BU 7 employees in the public
safety dispatcher, public safety operator, and
communications operator classifications shall receive a
special salary adjustment of five percent.
b) Effective July 1, 2016, BU 7 employees in the motor
carrier specialist I classification shall receive a
special salary adjustment of three percent.
c) Effective July 1, 2016, BU 7 employees in the state
park peace officer (ranger and lifeguard) classifications
shall receive a special salary adjustment of five percent.
d) Effective July 1, 2016, BU 7 employees in specified
investigator classifications shall receive a special
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salary adjustment of five percent.
e) Effective July 1, 2016, BU 7 employees in the agent,
alcoholic beverage control classification shall receive a
special salary adjustment, which will increase the bottom
and top steps of pay ranges. After this special salary
adjustment and the GSI, these employees will receive up to
a 22 percent pay increase over the course of the MOU.
f) Effective July 1, 2016, BU 7 employees in the
coordinator (fire and rescue services, and law
enforcement) classifications shall receive a special
salary adjustment, which will increase the bottom and top
steps of pay ranges for these classifications. After this
special salary adjustment and GSI, these employees will
receive up to a 36 percent pay increase over the course of
the MOU.
3) Longevity Peace Officer Pay Differential
a) Effective the first day of the pay period following
ratification, each step of the longevity pay differential
for peace officers shall be increased by one percent.
4) Education Incentive Pay
a) Effective the first day of the pay period following
ratification, the monthly education incentive pay shall
increase from $50 to $75 for an Associate of Arts or
Associate of Science degree and from $100 to $125 for a
Bachelor of Arts or Bachelor of Science degree.
5) Uniform Allowance
a) Effective the first day of the pay period following
ratification, the uniform replacement allowance shall be
increased as follows:
From $640 to $950 for full-time employees in
specified classifications;
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From $540 to $640 for less than full-time employees
in specified classifications;
From $20 to $55 for specified Lifeguards;
From $385 to $950 for oil spill prevention
specialist; and
From $450 to $950 for communications operators
employed at Department of Forestry and Fire Protection.
a) Effective the first day of the pay period following
ratification, specified employees shall receive a uniform
maintenance and cleaning allowance of $25 per month.
b) Effective the first day of the pay period following
ratification, employees in the motor carrier specialist I
and school pupil transportation safety coordinator
classifications shall receive an annual boot reimbursement
of $150.
Miscellaneous
1) The maximum amount of leave that can be deducted from each
employee for the Union Release Time Bank shall increase from
1.5 hours to two hours.
2) Effective May 1, 2017, and depending on the availability of
departmental funds, the amount of leave that can be cashed
out each year shall increase from 20 hours to 80 hours.
3) Incorporates the Wounded Warriors Transitional Leave Act
(Chapter 794, Statutes of 2015) which provides up to 96 hours
of additional sick leave for an employee hired on or after
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January 1, 2016, who is a military veteran with a
service-connected disability rated 30 percent.
4) Allows an employee to transfer up to three months of leave
credits to a family member under certain conditions.
5) Removes the requirement that a new employee must work two
years before receiving the full employer health contribution
for dependents.
6) Effective the first day of the pay period following
ratification, the lodging reimbursement rates shall increase
from $125 to $140 for Alameda, San Mateo, and Santa Clara
counties and from $150 to $250 for San Francisco.
7) Effective the first day of the pay period following
ratification, the Overtime Meal Allowance shall increase from
$7.50 to $8.00.
8) Requires the state to provide specified items of protective
equipment based on an employee's classification and place of
employment.
9) Effective the first day of the pay period following
ratification, physical fitness pay shall be included in
regular base pay, and will no longer be contingent on an
employee's physical condition.
10)Extends the amount of time between voluntary transfers from
12 months to 24 months for special agents and special agent
supervisors at the Department of Justice.
11)Requires special agents and special agent supervisors at
Department of Justice who reinstate or are hired from a
reemployment list to work 24 months before requesting a
voluntary transfer.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
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According to the Senate Budget and Fiscal Review Committee,
CalHR states that BU 7's MOU results in the following costs:
Fiscal Year 2016-17: $38.6 million ($9.7 million General Fund)
Total Incremental Cost: $91.5 million ($24.8 million General
Fund)
Total Budgetary Cost: $267.9 million ($71.3 million General
Fund)
In addition, according to CalHR roughly $4 million General Fund
a year will be absorbed within departmental resources for costs
associated with leave cash out.
SUPPORT: (Verified8/18/16)
None received
OPPOSITION: (Verified8/18/16)
None received
ASSEMBLY FLOOR: 51-26, 4/28/16
AYES: Alejo, Arambula, Atkins, Bloom, Bonilla, Bonta, Brown,
Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper,
Dababneh, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo
Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Roger
Hernández, Holden, Irwin, Jones-Sawyer, Levine, Lopez, Low,
McCarty, Medina, Mullin, Nazarian, O'Donnell, Quirk,
Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone,
Thurmond, Ting, Weber, Williams, Wood, Rendon
NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang,
Chávez, Dahle, Beth Gaines, Gallagher, Grove, Harper, Jones,
Kim, Lackey, Linder, Maienschein, Mayes, Melendez, Obernolte,
Olsen, Patterson, Steinorth, Wagner, Waldron, Wilk
NO VOTE RECORDED: Daly, Hadley, Mathis
Prepared by:Anita Lee / B. & F.R. / (916) 651-4103
8/19/16 18:49:18
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