BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 95| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 SB 95 Page 2 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 SB 95 Page 3 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 SB 95 Page 4 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). SB 95 Page 5 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). SB 95 Page 6 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 SB 95 Page 7 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 **** END ****