Amended in Assembly September 10, 2015

Amended in Assembly September 4, 2015

Amended in Assembly August 24, 2015

Senate BillNo. 99


Introduced by Committee on Budget and Fiscal Review

January 9, 2015


An act to amend Sections 18546, 18990, 18991, 18992, 18993, 19057.1, 19057.3, 19889, 19889.2,begin delete and 19889.3end deletebegin insert 19889.3, and 22879end insert of, to addbegin delete Section 19889.4end deletebegin insert Sections 19829.9840, 19829.9841, 19889.4, 22871.3, 22874.2, and 22944.5end insert to, and to repeal Sections 19057, 19057.2, and 19057.4 of, the Government Code, relating to statebegin delete civil service,end deletebegin insert public employment,end insert and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL’S DIGEST

SB 99, as amended, Committee on Budget and Fiscal Review. Statebegin delete civil service.end deletebegin insert public 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 memoranda of understanding entered into between the state employer and Professional Engineers in California Government, State Bargaining Unit 9, and the California Association of Professional Scientists, State Bargaining Unit 10, 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. The bill would prohibit provisions of the memoranda of understanding approved by the bill that require the expenditure of funds from taking effect unless funds for those provisions are specifically appropriated by the Legislature. The bill would require 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 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 memoranda of understanding described above if the Budget Act is not enacted on or before July 1 in the 2016-17 or 2017-18 fiscal years, as specified.

end insert
begin delete

(1)

end delete

begin insert(2)end insert The California Constitution provides that the civil service includes every officer and employee in the state except as otherwise provided in the Constitution, and existing statutory law, the State Civil Service Act, prescribes a comprehensive civil service personnel system for the state. The act grants eligibility for promotional civil service examinations and career executive assignment examinations to persons who meet certain requirements and minimum qualifications and who are employed by the Legislature, persons who are retired from the United States armed forces, honorably discharged from active military duty with a service-connected disability, or honorably discharged from active duty, or persons who were employees of the executive branch in exempt positions.

This bill would revise eligibility standards applicable to people who were employed by the Legislature, people who retired or were discharged from the armed forces, and people who were formerly employed in exempt, executive branch positions, as described above, to permit them, upon request, to obtain civil service appointment list eligibility by taking promotional exams or career executive exams for which they meet minimum qualifications, as specified. The bill would eliminate the requirement that an employee or veteran, in this context, select only one promotional examination in which to compete when multiple examinations are given. Among other things, the bill would also remove a time limit on this eligibility granted to specified former employees of the Legislature and employees of the executive branch in exempt positions.

begin delete

(2)

end delete

begin insert(3)end insert Existing law generally requires that appointments to vacant positions be made by lists. Existing law requires, with specified exceptions, that an appointing power receive the names and addresses of the three persons highest on a promotional employment list for the class in which a position belongs, and if there are fewer than three names, as specified, additional names are provided from the various lists next lower in order of preference. Existing law prescribes requirements for providing names to an appointing power for positions designated as management and specifies a method of ranking eligible candidates in this context. Existing law prescribes requirements for providing names to an appointing power for positions designated as supervisory and not professional, scientific, or administrative, and that are not examined for on an open basis, and specifies a method of ranking eligible candidates in this context. Existing law requires an appointing power to fill a position from the names of the persons provided.

This bill would repeal these provisions and make conforming changes.

begin delete

(3)

end delete

begin insert(4)end insert Existing law provides for career executive assignments to encourage the development for well-qualified executives and requires the State Personnel Board to establish, by a rule, a system of merit personnel administration specifically suited to the selection and placement of executive personnel. The State Civil Service Act defines career executive. Existing law requires the State Personnel Board, by rule, to provide that employees whose appointments to career executive assignments are terminated to be reinstated to civil service positions, as specified, at their option.

This bill would revise the definition of career executive to eliminate the requirement that the person have permanent status in the civil service. This bill would provide that various provisions relating to personnel examinations don’t apply to career executive assignments unless provided for by rule, as specified. The bill would grant reinstatement rights to employees who at the time of appointment to a career executive assignment were not employed by the state but who had previously worked for it and had gained permanent civil service status. The bill would grant an employeebegin delete whoend deletebegin insert who,end insert at the time of his or her appointment to a career executivebegin delete assignmentend deletebegin insert assignment,end insert was from outside civil service the right to defer examination for any open eligible list, as specified, in existence at the time of the termination of the career executive assignment for which he or she meets the minimum qualifications of the class to which appointment is sought. The bill would require, in this regard, that related experience gained in a career executive assignment be considered state civil service experience in a comparable class, as specified.

begin insert

(5) 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 state employees who are first employed and become members of the retirement system on or after January 1, 2016, and are represented by State Bargaining Unit 9 or 10, as specified, 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. The bill would similarly limit employer contributions for annuitants enrolled in Medicare health benefit plans.

end insert
begin insert

(6) 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 state employees who are first employed and become members of the retirement system on or after January 1, 2016, and are represented by State Bargaining Unit 9 or 10, as specified, 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 an employee 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.

end insert
begin insert

(7) PEMHCA 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.

end insert
begin insert

This bill would prohibit application of this requirement to state employees who are first employed and become members of the retirement system on or after January 1, 2016, and are represented by State Bargaining Unit 9 or 10, as specified.

end insert
begin insert

(8) 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 of health care coverage for annuitants, including administrative costs. PEMHCA defines “prefunding” for these purposes.

end insert
begin insert

This bill would require the state and employees of State Bargaining Unit 9 or 10 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019. The bill would prescribe schedules of contribution percentages in this regard for the state and these employees, based upon bargaining unit, with the moneys to be deposited in the Annuitants’ Health Care Coverage Fund. By depositing new revenue in a continuously appropriated fund, this bill makes an appropriation.

end insert

begin insert(9)end insertbegin insertend insertThe bill would make an appropriation from the General Fund of $300,000 to the Department of Finance for the purpose of funding the posting on the department’s Internet Web site of all budget requests included as part of the Governor’s Budget.

begin insert(10)end insertbegin insertend insertThis bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

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

P6    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 two agreements entered into
3by the state employer and State Bargaining Unit 9 and 10 pursuant
4to Section 3517.5 of the Government Code.

end insert
5begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

The provisions of the memoranda of understanding
6prepared pursuant to Section 3517.5 of the Government Code and
7entered into by the state employer and State Bargaining Unit 9,
8dated August 31, 2015, and State Bargaining Unit 10, dated
9September 4, 2015, and that require the expenditure of funds, are
10hereby approved for the purposes of subdivision (b) of Section
113517.6 of the Government Code.

end insert
12begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

The provisions of the memoranda of understanding
13approved in Section 2 of this act that require the expenditure of
14funds shall not take effect unless funds for these provisions are
15specifically appropriated by the Legislature. If funds for these
16provisions are not specifically appropriated by the Legislature,
17either the state employer or the affected employee organization
18may reopen negotiations on all or part of the memorandum of
19understanding.

end insert
20begin insert

begin insertSEC. 4.end insert  

end insert
begin insert

Notwithstanding Section 3517.6 of the Government
21Code, the provisions of the memoranda of understanding included
22in Section 2 that require the expenditure of funds shall become
23effective even if the provisions of the memoranda of understanding
24are approved by the Legislature in legislation other than the annual
25Budget Act.

end insert
26

begin deleteSECTION 1.end delete
27begin insertSEC. 5.end insert  

Section 18546 of the Government Code is amended
28to read:

29

18546.  

“Career executive” means an employee appointed from
30an employment list established for the express purpose of providing
31a list of persons who are eligible for career executive assignments,
32 as specified in Article 5 (commencing with Section 18990) of
33Chapter 4 and Article 9 (commencing with Section 19889) of
34Chapter 2.5 of Part 2.6, in which examination, selection,
35classification, salary, tenure, and other conditions of employment
36may be varied from those prevailing under Chapter 3 (commencing
37with Section 18800) to Chapter 7 (commencing with Section
3819570), inclusive, for other employees in the state civil service.

P7    1

begin deleteSEC. 2.end delete
2begin insertSEC. 6.end insert  

Section 18990 of the Government Code is amended
3to read:

4

18990.  

(a) Notwithstanding any other provision of law or rule,
5persons employed by the Legislature for two or more consecutive
6years shall be given an opportunity, upon request, to obtain civil
7service appointment list eligibility by taking any promotional civil
8service examination or career executive assignment examinations
9for which they meet the minimum qualifications of the class for
10which they seek appointment. Persons receiving passing scores
11shall gain list eligibility for appointment. In evaluating minimum
12qualifications, a person’s legislative experience shall be considered
13state civil service experience in a comparable class that has the
14same or substantially similar duties and responsibilities as the
15person’s legislative position.

16(b) Persons who meet the requirements of this section, but who
17resigned or were released from service with the Legislature, shall
18be eligible to take promotional civil service examinations and
19career executive assignment examinations in accordance with
20subdivision (a).

21

begin deleteSEC. 3.end delete
22begin insertSEC. 7.end insert  

Section 18991 of the Government Code is amended
23to read:

24

18991.  

Notwithstanding any other provision of law, persons
25retired from the United States military, honorably discharged from
26active military duty with a service-connected disability, or
27honorably discharged from active duty, shall be eligible to apply
28for promotional civil service examinations and career executive
29assignment examinations for which they meet the minimum
30qualifications of the class to which they seek appointment. Persons
31receiving passing scores shall gain list eligibility for appointment.
32In evaluating minimum qualifications, the person’s military
33experience shall be considered state civil service experience in a
34comparable class that has the same or substantially similar duties
35and responsibilities as the person’s position in the military.

36

begin deleteSEC. 4.end delete
37begin insertSEC. 8.end insert  

Section 18992 of the Government Code is amended
38to read:

39

18992.  

(a) Notwithstanding any other provision of law or rule,
40persons holding, for two or more consecutive years, nonelected
P8    1exempt positions in the executive branch of government as defined
2in subdivisions (c), (e), (f), (g), (i), and (m) of Section 4 of Article
3VII of the Constitution and excluding those positions for which
4the salaries are set by statute, shall be given the opportunity, upon
5request, to obtain civil service appointment list eligibility by taking
6any promotional civil service examination or career executive
7assignment examination for which they meet the minimum
8qualifications of the class to which they seek appointment. Persons
9receiving passing scores shall gain list eligibility for appointment.
10In evaluating minimum qualifications, the person’s experience in
11the exempt position shall be considered state civil service
12experience in a comparable class that has the same or substantially
13similar duties and responsibilities as the person’s exempt position.

14 (b) Persons who meet the requirements of this section, but who
15resigned or were released from exempt employment of the
16executive branch of government, shall be eligible to take
17promotional civil service examinations and career executive
18assignment examinations in accordance with subdivision (a).

19

begin deleteSEC. 5.end delete
20begin insertSEC. 9.end insert  

Section 18993 of the Government Code is amended
21to read:

22

18993.  

(a) Notwithstanding any other provision of law, a
23legislative or nonelected exempt executive branch employee who
24is appointed to a career executive assignment pursuant to Section
2518990 or 18992, shall be eligible to compete in his or her
26appointing power’s promotional examinations for which he or she
27meets the minimum qualifications of the class to which he or she
28seeks appointment. When such an employee’s career executive
29assignment is terminated by the appointing power, he or she shall
30have the right to request a deferred examination for any
31promotional eligible list that his or her appointing power has in
32existence at the time of the termination of the career executive
33assignment and for which he or she meets the minimum
34 qualifications of the class to which he or she seeks appointment.

35(b) A request for a deferred examination pursuant to subdivision
36(a) shall be made no later than 10 days after the effective date of
37the termination of the career executive assignment. The department
38shall administer the deferred examination within 30 days of the
39date of the request.

P9    1

begin deleteSEC. 6.end delete
2begin insertSEC. 10.end insert  

Section 19057 of the Government Code is repealed.

3

begin deleteSEC. 7.end delete
4begin insertSEC. 11.end insert  

Section 19057.1 of the Government Code is amended
5to read:

6

19057.1.  

Except for reemployment lists, State Restriction of
7Appointment lists, and Limited Examination and Appointment
8Program referral lists, there shall be certified to the appointing
9power the names and addresses of all those eligibles whose scores,
10at the time of certification, represent the three highest ranks on the
11employment list for the class, and who have indicated their
12willingness to accept appointment under the conditions of
13employment specified.

14For purposes of ranking, scores of eligibles on employment lists
15covered by this section shall be rounded to the nearest whole
16percent. A rank shall consist of one or more eligibles with the same
17whole percentage score.

18If the names on the list from which certification is being made
19represent fewer than three ranks, then, consistent with board rules,
20additional eligibles may be certified from the various lists next
21lower in order of preference until names from three ranks appear.
22If there are fewer than three names available for certification, and
23the appointing authority does not choose to appoint from among
24these, the appointing authority may demand certification of three
25names. In that case, examinations shall be conducted until at least
26three names may be certified by the procedure described in this
27section, and the appointing authority shall fill the position by
28appointment of one of the persons certified.

29Fractional examination scores shall be provided to, and used by,
30the Department of the California Highway Patrol for its peace
31officer classes.

32The department may, consistent with board rules, provide for
33certifying less than three ranks where the size of the certified group
34is disproportionate to the number of vacancies.

35

begin deleteSEC. 8.end delete
36begin insertSEC. 12.end insert  

Section 19057.2 of the Government Code is repealed.

37

begin deleteSEC. 9.end delete
38begin insertSEC. 13.end insert  

Section 19057.3 of the Government Code is amended
39to read:

P10   1

19057.3.  

(a) For a position in the Department of Corrections
2and Rehabilitation, there shall be certified to the appointing power
3the names and addresses of all those eligibles for peace officer and
4closely allied classes whose scores, at the time of certification,
5represent the three highest ranks on the employment list for the
6class in which the position belongs and who have indicated their
7willingness to accept appointment under the conditions of
8employment specified.

9(b) For purposes of ranking, scores of eligibles on employment
10lists for the classes shall be rounded to the nearest whole percent.
11A rank consists of one or more eligibles with the same whole
12percentage score.

13(c) If fewer than three ranks of persons willing to accept
14appointment are on the list from which certification is to be made,
15then additional eligibles shall be certified from the various lists
16next lower in order of preference until names from three ranks are
17certified. If there are fewer than three names on those lists, and
18the appointing power does not choose to appoint from among these,
19the appointing power may demand certification of three names
20and examinations shall be conducted until at least three names
21may be certified. The appointing power shall fill the position by
22the appointment of one of the persons certified.

23(d) The department may, consistent with board rules, provide
24for certifying less than three ranks where the size of the certified
25group is disproportionate to the number of vacancies.

26(e) The department may, consistent with board rules, allow for
27the names of eligibles to be transferred from lists for the same
28class or comparable classes where names from one list were
29certified under the rule of three ranks, and names from the other
30list were certified under the rule of three names.

31

begin deleteSEC. 10.end delete
32begin insertSEC. 14.end insert  

Section 19057.4 of the Government Code is repealed.

33begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 19829.9840 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
34to read:end insert

begin insert
35

begin insert19829.9840.end insert  

(a) Notwithstanding Section 13340, for the
362016-17 fiscal year, if the Budget Act of 2016 is not enacted by
37July 1, 2016, for the memoranda of understanding entered into
38between the state employer and State Bargaining Unit 9 (effective
39July 2, 2015, to June 30, 2018, inclusive) and State Bargaining
40Unit 10 (effective July 2, 2015, to July 1, 2018, inclusive), there
P11   1is hereby continuously appropriated to the Controller from the
2General Fund, unallocated special funds, including, but not limited
3to, federal funds and unallocated nongovernmental cost funds,
4and any other fund from which state employees are compensated,
5the amount necessary for the payment of compensation and
6employee benefits to state employees covered by the above
7memoranda of understanding until the Budget Act of 2016 is
8enacted. The Controller may expend an amount no greater than
9necessary to enable the Controller to compensate state employees
10covered by the above memoranda of understanding for work
11performed between July 1, 2016, of the 2016-17 fiscal year, and
12the enactment of the Budget Act of 2016.

13(b) If the memoranda of understanding entered into between
14the state employer and State Bargaining Unit 9 (effective July 2,
152015, to June 30, 2018, inclusive) and State Bargaining Unit 10
16(effective July 2, 2015, to July 1, 2018, inclusive) are in effect and
17approved by the Legislature, the compensation and contribution
18for employee benefits for state employees represented by these
19bargaining units shall be at a rate consistent with the applicable
20memorandum of understanding referenced above.

21(c) Expenditures related to any warrant drawn pursuant to
22subdivision (a) are not augmentations to the expenditure authority
23of a department. Upon the enactment of the Budget Act of 2016,
24these expenditures shall be subsumed by the expenditure authority
25approved in the Budget Act of 2016 for each affected department.

26(d) This section shall only apply to an employee covered by the
27terms of the State Bargaining Unit 9 (effective July 2, 2015, to
28June 30, 2018, inclusive) and State Bargaining Unit 10 (effective
29July 2, 2015, to July 1, 2018, inclusive) memoranda of
30understanding. Notwithstanding Section 3517.8, this section shall
31not apply after the term of the memorandum of understanding has
32expired. For purposes of this section, the memorandum of
33understanding for State Bargaining Unit 9 expires on June 30,
342018, and the memorandum of understanding for State Bargaining
35Unit 10 expires on July 1, 2018.

end insert
36begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 19829.9841 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
37to read:end insert

begin insert
38

begin insert19829.9841.end insert  

(a) Notwithstanding Section 13340, for the
392017-18 fiscal year, if the Budget Act of 2017 is not enacted by
40July 1, 2017, for the memoranda of understanding entered into
P12   1between the state employer and State Bargaining Unit 9 (effective
2July 2, 2015, to June 30, 2018, inclusive) and State Bargaining
3Unit 10 (effective July 2, 2015, to July 1, 2018, inclusive), there
4is hereby continuously appropriated to the Controller from the
5General Fund, unallocated special funds, including, but not limited
6to, federal funds and unallocated nongovernmental cost funds,
7and any other fund from which state employees are compensated,
8the amount necessary for the payment of compensation and
9employee benefits to state employees covered by the above
10memoranda of understanding until the Budget Act of 2017 is
11enacted. The Controller may expend an amount no greater than
12necessary to enable the Controller to compensate state employees
13covered by the above memoranda of understanding for work
14performed between July 1, 2017, of the 2017-18 fiscal year, and
15the enactment of the Budget Act of 2017.

16(b) If the memoranda of understanding entered into between
17the state employer and State Bargaining Unit 9 (effective July 2,
182015, to June 30, 2018, inclusive) and State Bargaining Unit 10
19(effective July 2, 2015, to July 1, 2018, inclusive) is in effect and
20approved by the Legislature, the compensation and contribution
21for employee benefits for state employees represented by these
22bargaining units shall be at a rate consistent with the applicable
23memorandum of understanding referenced above.

24(c) Expenditures related to any warrant drawn pursuant to
25subdivision (a) are not augmentations to the expenditure authority
26of a department. Upon the enactment of the Budget Act of 2017,
27these expenditures shall be subsumed by the expenditure authority
28approved in the Budget Act of 2017 for each affected department.

29(d) This section shall only apply to an employee covered by the
30terms of the State Bargaining Unit 9 (effective July 2, 2015, to
31June 30, 2018, inclusive) and State Bargaining Unit 10 (effective
32July 2, 2015, to July 1, 2018, inclusive) memoranda of
33understanding. Notwithstanding Section 3517.8, this section shall
34not apply after the terms of the memoranda of understanding have
35expired. For purposes of this section, the memorandum of
36understanding for State Bargaining Unit 9 expires on June 30,
372018, and the memorandum of understanding for State Bargaining
38Unit 10 expires on July 1, 2018.

end insert
P13   1

begin deleteSEC. 11.end delete
2begin insertSEC. 17.end insert  

Section 19889 of the Government Code is amended
3to read:

4

19889.  

It is the purpose of this article to encourage the
5development and effective use of well-qualified and carefully
6selected executives. In order to carry out this purpose, the State
7Personnel Board shall establish by rule a merit system specifically
8suited to the selection and placement of executive personnel. The
9department shall be responsible for salary administration, position
10classification, and for the motivation and training of executive
11personnel. For the purpose of administering this system there is
12established herewith a category of civil service appointment called
13“career executive assignments.” The department shall designate
14positions of a high administrative and policy influencing character
15for inclusion in or removal from this category subject to review
16by the State Personnel Board, except that the department shall not
17so designate a position in which there is an incumbent already
18appointed under the provisions of this part governing employees
19other than career executives.

20

begin deleteSEC. 12.end delete
21begin insertSEC. 18.end insert  

Section 19889.2 of the Government Code is amended
22to read:

23

19889.2.  

The provisions of this part governing the examination,
24selection, classification, and tenure of employees in the regular
25civil service shall not apply to “career executive assignments”
26unless provided for by State Personnel Board rule. The provisions
27of this part relating to punitive actions shall apply to all employees
28serving in career executive assignments, except that termination
29of a career executive assignment as provided for in Section 19889.3
30is not a punitive action. State Personnel Board rules shall, at a
31minimum, afford all employees whose career executive
32assignments are terminated by the appointing power a right of
33appeal to the State Personnel Board for restoration of his or her
34assignment when he or she alleges that the termination was for
35reasons prohibited in Chapter 10 (commencing with Section 19680)
36of Part 2.

37

begin deleteSEC. 13.end delete
38begin insertSEC. 19.end insert  

Section 19889.3 of the Government Code is amended
39to read:

P14   1

19889.3.  

(a) Eligibility for appointment to positions in the
2career executive assignment category shall be established as a
3result of competitive examinations. All candidates shall meet such
4minimum qualifications as the State Personnel Board may
5determine are requisite to the performance of high administrative
6and policy influencing functions.

7(b) No person employed in a career executive assignment shall
8be deemed to acquire as a result of such service any rights to or
9 status in positions governed by the provisions of this part relating
10to the civil service other than the category of career executive
11assignment, except as provided by State Personnel Board rule.

12

begin deleteSEC. 14.end delete
13begin insertSEC. 20.end insert  

Section 19889.4 is added to the Government Code,
14to read:

15

19889.4.  

In accordance with State Personnel Board rules, the
16following shall apply when an appointing power terminates a career
17executive assignment:

18(a) An employee who at the time of his or her appointment to
19a career executive assignment was employed by the state and had
20permanent civil service status shall, if he or she so desires, be
21reinstated to a civil service position that is (1) not a career executive
22assignment and (2) that is at least at the same salary level as the
23last position that he or she held as a permanent or probationary
24employee. If the employee had completed a minimum of five years
25of state service, he or she may return to a position that is (1) at
26substantially the same salary level as the last position in which he
27or she had permanent or probationary status or (2) at a salary level
28that is at least two steps lower than that of the career executive
29position from which the employee is being terminated.

30(b) Article 5 (commencing with Section 19140) of Chapter 5
31of Part 2 shall apply to an employee who at the time of his or her
32appointment to a career executive assignment was not employed
33by the state but who had previously worked for the state and gained
34permanent civil service status.

35(c) (1) An employee who at the time of his or her appointment
36to a career executive assignment was from outside civil service
37shall have the right to request a deferred examination for any open
38eligible list that his or her appointing power or the department has
39in existence at the time of the termination of the career executive
40assignment and for which he or she meets the minimum
P15   1qualifications of the class to which he or she seeks appointment.
2Whether the employee takes a deferred examination or other open
3civil service examination, for purposes of evaluating whether he
4or she meets the minimum qualifications of the class to which he
5or she seeks appointment, related experience gained in a career
6executive assignment shall be considered as state civil service
7experience in a comparable class.

8(2) A request for a deferred examination pursuant to paragraph
9(1) shall not be made later than 10 days after the effective date of
10the termination of the career executive assignment. The department
11or its designee shall administer the deferred examination within
1230 days of the date of the request.

13begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 22871.3 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
14to read:end insert

begin insert
15

begin insert22871.3.end insert  

(a) The employer contribution for each annuitant
16enrolled in a basic plan shall be an amount equal to 80 percent
17of the weighted average of the health benefit plan premiums for
18an employee or annuitant enrolled for self-alone, during the benefit
19year to which the formula is applied, for the four health benefit
20plans that had the largest active state civil service enrollment,
21excluding family members, during the previous benefit year. For
22each annuitant with enrolled family members, the employer
23contribution shall be an amount equal to 80 percent of the weighted
24average of the additional premiums required for enrollment of
25those family members, during the benefit year to which the formula
26is applied, in the four health benefit plans that had the largest
27active state civil service enrollment, excluding family members,
28during the previous benefit year.

29(b) The employer contribution for each annuitant enrolled in a
30Medicare health benefit plan in accordance with Section 22844
31shall be an amount equal to 80 percent of the weighted average
32of the health benefit plan premiums for an annuitant enrolled in
33a Medicare health benefit plan for self-alone, during the benefit
34year to which the formula is applied, for the four Medicare health
35benefit plans that had the largest state annuitant enrollment,
36excluding family members, during the previous benefit year. For
37each annuitant with enrolled family members, the employer
38contribution shall be an amount equal to 80 percent of the weighted
39average of the additional premiums required for enrollment of
40those family members, during the benefit year to which the formula
P16   1is applied, in the four Medicare health benefit plans that had the
2largest state annuitant enrollment, excluding family members,
3during the previous benefit year. If the annuitant is eligible for
4Medicare Part A, with or without cost, and Medicare Part B,
5regardless of whether the annuitant is actually enrolled in
6Medicare Part A or Part B, the employer contribution shall not
7exceed the amount calculated under this subdivision.

8(c) This section applies to a state employee who is first employed
9by the state and becomes a state member of the system on or after
10January 1, 2016, and who is represented by State Bargaining Unit
119 or 10.

12(d) This section shall also apply to a state employee related to
13State Bargaining Unit 9 or 10 who is excepted from the definition
14of “state employee” in subdivision (c) of Section 3513 and first
15employed by the state and becomes a state member of the system
16on or after January 1, 2016.

17(e) If the provisions of this section are in conflict with the
18provisions of a memorandum of understanding reached pursuant
19to Section 3517.5 or Chapter 12 (commencing with Section 3560)
20of Division 4 of Title 1, the memorandum of understanding shall
21be controlling without further legislative action, except that if
22those provisions require the expenditure of funds, the provisions
23may not become effective unless approved by the Legislature.

end insert
24begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 22874.2 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
25to read:end insert

begin insert
26

begin insert22874.2.end insert  

(a) Notwithstanding Sections 22870, 22871, 22873,
27and 22874, a state employee, as defined by subdivision (c) of
28Section 3513, who is first employed by the state and becomes a
29state member of the system on or after January 1, 2016, and is
30represented by State Bargaining Unit 9 or 10 shall not receive any
31portion of the employer contribution payable for annuitants unless
32the person is credited with 15 years of state service at the time of
33retirement.

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

Years of Service Contribution

end insert
begin insert

Credited Years 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
P17  12

 

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

17(d) This section does not apply to:

18(1) Former state employees previously employed before January
191, 2016, who return to state employment on or after January 1,
202016.

21(2) State employees hired prior to January 1, 2016, who become
22subject to representation by State Bargaining Unit 9 or 10 on or
23after January 1, 2016.

24(3) State employees on an approved leave of absence employed
25before January 1, 2016, who return to active employment on or
26after January 1, 2016.

27(4) State employees hired after January 1, 2016, who are first
28represented by a state bargaining unit other than Bargaining Unit
299 or 10, who later become represented by State Bargaining Unit
309 or 10.

31(e) Notwithstanding Section 22875, this section shall also apply
32to a related state employee who is excepted from the definition of
33“state employee” in subdivision (c) of Section 3513, and is first
34employed by the state and becomes a state member of the system
35on or after January 1, 2016.

end insert
36begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 22879 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
37to read:end insert

38

22879.  

(a) The board shall pay monthly to an employee or
39annuitant who is enrolled in, or whose family member is enrolled
40in, a Medicare health benefit plan under this part the amount of
P18   1the Medicare Part B premiums, exclusive of penalties, except as
2provided in Section 22831. This payment may not exceed the
3difference between the maximum employer contribution and the
4amount contributed by the employer toward the cost of premiums
5for the health benefit plan in which the employee or annuitant and
6his or her family members are enrolled. No payment may be made
7in any month if the difference is less than one dollar ($1).

8(b) This section shall be applicable only to state employees,
9annuitants who retired while state employees, and the family
10members of those persons.

11(c) With respect to an annuitant, the board shall pay to the
12annuitant the amount required by this section from the same source
13from which his or her allowance is paid. Those amounts are hereby
14appropriated monthly from the General Fund to reimburse the
15board for those payments.

16(d) There is hereby appropriated from the appropriate funds the
17amounts required by this section to be paid to active state
18employees.

begin insert

19(e) This section does not apply to:

end insert
begin insert

20(1) A state employee who is first employed by the state and
21becomes a state member of the system on or after January 1, 2016,
22and who is represented by State Bargaining Unit 9 or 10.

end insert
begin insert

23(2) A state employee related to State Bargaining Unit 9 or 10
24who is excepted from the definition of “state employee” in
25subdivision (c) of Section 3513 and is first employed by the state
26and becomes a state member of the system on or after January 1,
272016.

end insert
28begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 22944.5 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
29to read:end insert

begin insert
30

begin insert22944.5.end insert  

(a) The state and employees in State Bargaining Unit
319 or 10 shall prefund retiree health care, with the goal of reaching
32a 50-percent cost sharing of actuarially determined normal costs
33for both employer and employees by July 1, 2019.

34(b) (1) The employees in State Bargaining Unit 9 shall make
35contributions to prefund retiree health care based on the following
36schedule, and the state shall make a matching contribution:

37(A) Effective July 1, 2017, 0.5 percent of pensionable
38compensation.

39(B) Effective July 1, 2018, an additional 0.5 percent for a total
40employee contribution of 1.0 percent of pensionable compensation.

P19   1(C) Effective July 1, 2019, an additional 1.0 percent for a total
2employee contribution of 2.0 percent of pensionable compensation.

3(2) The employees in State Bargaining Unit 10 shall make
4contributions to prefund retiree health care based on the following
5schedule, and the state shall make a matching contribution:

6(A) Effective July 1, 2017, 0.7 percent of pensionable
7compensation.

8(B) Effective July 1, 2018, an additional 0.7 percent for a total
9employee contribution of 1.4 percent of pensionable compensation.

10(C) Effective July 1, 2019, an additional 1.4 percent for a total
11employee contribution of 2.8 percent of pensionable compensation.

12(c) This section only applies to employees in State Bargaining
13Unit 9 or 10 who are eligible for health benefits, including
14permanent intermittent employees.

15(d) Contributions paid pursuant to this section shall be deposited
16in the Annuitants’ Health Care Coverage Fund and shall not be
17refundable under any circumstances to an employee in State
18Bargaining Unit 9 or 10 or his or her beneficiary or survivor.

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

26(f) This section shall also apply to a state employee related to
27State Bargaining Unit 9 or 10 who is excepted from the definition
28of “state employee” in subdivision (c) of Section 3513.

end insert
29

begin deleteSEC. 15.end delete
30begin insertSEC. 25.end insert  

The sum of three hundred thousand dollars ($300,000)
31is hereby appropriated from the General Fund to the Department
32of Finance for the purpose of funding the posting on the
33department’s Internet Web site of all budget requests included as
34part of the Governor’s Budget.

35

begin deleteSEC. 16.end delete
36begin insertSEC. 26.end insert  

This act is a bill providing for appropriations related
37to the Budget Bill within the meaning of subdivision (e) of Section
3812 of Article IV of the California Constitution, has been identified
P20   1as related to the budget in the Budget Bill, and shall take effect
2immediately.



O

    96