BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                         SB 95|
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                                UNFINISHED BUSINESS 


          Bill No:  SB 95
          Author:   Committee on Budget and Fiscal Review   
          Amended:  4/11/16  
          Vote:     21 

           SENATE FLOOR:  Not relevant

           ASSEMBLY FLOOR:  74-0, 4/25/16 - See last page for vote
           
           SUBJECT:   State employees:  memorandum of understanding


          SOURCE:    Author

          DIGEST:   This bill provides legislative approval of the  
          memorandum of understanding (MOU) entered into between the state  
          and Bargaining Unit (BU) 6 (Corrections), represented  
          exclusively by the California Correctional Peace Officers  
          Association (CCPOA). The BU 6 agreement affects approximately  
          26,835 full-time employees.


          Assembly Amendments delete the Senate version of the bill, which  
          expressed the intent of the Legislature to enact statutory  
          changes relating to Budget Act of 2015, and insert the current  
          language.


          ANALYSIS:  This bill provides the BU 6 MOU shall be effective  
          from July 3, 2015 through July 2, 2018. Specifically, this bill  
          enacts the following:

          Retiree Health Benefits








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          1) Employer Contribution for Active State Employees

                   Effective the pay period following ratification, the  
                state's monthly health 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, and January  
                1, 2018.  

          1) 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.

          1) Prefunding of Other Post-Employment Benefits 

                  Beginning July 1, 2016, the state and BU 6 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, 2018.   
                The state and employees will each make the following  
                contributions:

                a)      Effective July 1, 2016, 1.3 percent of pensionable  
                  compensation.

                b)      Effective July 1, 2017, an additional 1.3 percent  







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                  for a total of 2.6 percent of pensionable compensation.

                c)      Effective July 1, 2018, an additional 1.4 percent  
                  for a total of 4.0 percent of pensionable compensation.

          1) Post-Employment Health and Dental Benefit Vesting Schedule

                  All employees first hired 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.

          1) 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 retiree health benefits for Medicare Part  
                B premiums.
          
          Compensation

          1) General Salary Increase (GSI)

                  Effective the first day of the pay period following  
                ratification by the Legislature and the membership, all BU  
                6 represented classifications shall receive a three  
                percent GSI.

                  Effective July 1, 2017, all BU 6 represented  
                classifications shall receive a three percent GSI.

                  Effective July 1, 2018, all BU 6 represented  
                classifications shall receive a three percent GSI.
             
          1) Retention and Recruitment Incentives

                   Effective the first day of the pay period following  
                ratification by the Legislature and the membership,  
                increases the annual incentive, payable semi-annually, for  
                Avenal, Ironwood, Chuckawalla Valley, Calipatria and  
                Centinela state prisons from $2,400 to $2,600.  This  
                provision also establishes the same incentive for Pelican  







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                Bay, California Correctional Center and High Desert state  
                prisons.

          1) Senior Peace Officer Pay Differential 

                   Effective July 1, 2016, increases each step of the  
                senior peace officer pay differential by one percent.  
                Employees with 17 years of experience would receive a two  
                percent pay differential and employees with 25 or more  
                years of service would receive a nine percent pay  
                differential.

          1) Uniform Allowance

                   Increases the annual uniform allowance from $530 to  
                $950 for full-time employees, excluding medical technical  
                assistants (MTA).

                   Increases the annual uniform allowance from $305 to  
                $546 for MTAs.

          Miscellaneous Sections of the MOU

          1) New Sections

                  Establishes a health and safety grievance process  
                (Article 6.16).

                  Effective May 1, 2016, and depending on available  
                departmental funds, permits the cash out of up to 80 hours  
                of leave per year (Article 10.22).

                  Incorporates Side Letter 10 regarding retired  
                annuitants, which states that retired annuitants are  
                members of BU 6 for purposes of dues deduction, agency fee  
                and representation, and establishes a hiring process for  
                retired annuitants (Article 18.01).

                  Establishes a process and criteria for correctional  
                counselor I to request a transfer between institutions  
                (Article 20.06).

                  Establishes a voluntary overtime process for  
                correctional counselor I (Article 20.07).







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                  Provides correctional counselor desktop computers with  
                internet access. (Article 20.08).

                  Prohibits a furlough program or a mandatory personal  
                leave program during the term of the agreement (Article  
                27.05).

          1) Amends Existing Sections

                  Increases the Benefit Trust Fund contributions by an  
                additional $14 million, phased-in $7 million per year for  
                two years beginning July 1, 2016, for a total of $19  
                million upon full implementation. The Benefit Trust Fund  
                provides a number of benefits to members, including legal  
                services and vision, life, and dental insurance. This  
                proposal includes language clarifying that these funds can  
                only be used to subsidize the cost of benefit programs for  
                BU 6 members (Article 13.10). 

                  Effective the first day of the pay period following  
                ratification by the Legislature and the union, includes  
                physical fitness pay in regular base pay (Article 15.07).  
                This proposal will provide all BU 6 members $130 monthly  
                bonus and incorporate the bonus as a part of employee's  
                base pay.

                  Clarifies that employees who have insufficient sick  
                leave can use up to twenty four hours annually of other  
                leave for illness and additional leave upon hiring  
                authority approval.  The employer can now require a  
                doctor's note from an employee with a demonstrable pattern  
                of sick leave and when an employee is unable to work  
                overtime due to illness. Adds language regarding what sick  
                leave absences will not count as part of corrective or  
                disciplinary actions (Article 10.02).

                  Adds language that allows employees to change watch  
                and/or regular day off to accommodate military service and  
                avoid using leave credits (Article 10.17).

                  Extends the pay for "dead time" from one hour to two  
                hours (Article 11.03).








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                  Allows time off for jury duty, subpoenaed witness, and  
                military leave to be counted as time worked for the  
                purposes of overtime calculations (Article 11.08 and  
                Article 11.11).

                  Effective the first day of the pay period following  
                ratification by the Legislature and the membership,  
                increases the Overtime Meal Allowance from $6.00 to $8.00  
                (Article 14.02).

                  Effective the first day of the pay period following  
                ratification by the Legislature and the membership,  
                increases the monthly housing stipend for the Correctional  
                Training Facility, San Quentin, and Salinas Valley state  
                prisons from $175 to $200 (Article 15.02).

                  Amends various operational provisions of the existing  
                contract such as requiring the Division of Juvenile  
                Justice to annually provide CCPOA a copy of on-the-job  
                training materials and establishes when on-the-job  
                training will be completed. (Article 8.05).

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

          According to the Department of Human Resources (CalHR), this  
          bill results in the following costs:

             Fiscal Year 2015-16: $26.1 million ($26.0 million General  
             Fund)
             Fiscal Year 2016-17: $207.6 million  ($206.5 million General  
             Fund)
             Total Budgetary Cost from 2015-16 to2018-19: $1,094.5  
             million ($1,088.4 million General Fund)

          In addition, according to CalHR roughly $80 million General Fund  
          a year, will be absorbed within departmental resources for costs  
          associated with leave cash out.


          SUPPORT:   (Verified4/25/16)


          California Correctional Peace Officers Association







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          OPPOSITION:   (Verified4/25/16)


          None received

           ASSEMBLY FLOOR:  74-0, 4/25/16
           AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brown, Burke, Calderon,  
            Campos, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh,  
            Dahle, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Roger Hernández, Holden, Irwin,  
            Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Patterson, Quirk,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark  
            Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Wood,  
            Rendon
           NO VOTE RECORDED: Brough, Chang, Beth Gaines, Harper, Olsen,  
            Williams

          Prepared by:Anita Lee / B. & F.R. / (916) 651-4103
          4/27/16 15:57:14


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