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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