BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 99|
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UNFINISHED BUSINESS
Bill No: SB 99
Author: Committee on Budget and Fiscal Review
Amended: 9/10/15
Vote: 21
SENATE FLOOR: Not relevant
ASSEMBLY FLOOR: Not available
SUBJECT: State civil service
SOURCE: Author
DIGEST: This bill provides legislative ratification for
memoranda of understanding (MOU) agreements between the state
and various state bargaining units (BU), and provides for
statutory changes to the state civil service system.
Assembly Amendments delete the prior version of the bill and
insert the current language.
ANALYSIS: This bill provides legislative approval of the MOUs
between the state and BU 9 (Professional Engineers) on August
31, 2015; and, the state and BU 10 (Professional Scientists) on
September 4, 2015. The BU 9 MOU will be effective from July 2,
2015, through June 30, 2018. The BU 10 MOU will be effective
from July 2, 2015 through July 1, 2018.
Retiree Health Benefit Reforms
1) Requires the state and employees to prefund other
post-employment benefits. This requirement applies to all BU
9 and BU 10 employees.
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2) Provides the following structure for the state and all BU 9
members to prefund retiree healthcare with the goal of each
reaching 50 percent cost-sharing of actuarially-determined
total normal cost for employer and employees by July 1, 2019:
a) Effective July 1, 2017, 0.5 percent of pensionable
compensation.
b) Effective July 1, 2018, an additional 0.5 percent for
a total of 1.0 percent of pensionable compensation.
c) Effective July 1, 2019, an additional 1.0 percent for
a total of 2.0 percent of pensionable compensation.
3) Provides the following structure for the state and all BU 10
members with the goal of each reaching 50 percent
cost-sharing of actuarially-determined total normal cost for
employer and employees by July 1, 2019:
a) Effective July 1, 2017, 0.7 percent of pensionable
compensation.
b) Effective July 1, 2018, an additional 0.7 percent for
a total of 1.4 percent of pensionable compensation.
c) Effective July 1, 2019, an additional 1.4 percent for
a total of 2.8 percent of pensionable compensation.
4) Requires all employees who are eligible for health care
benefits to contribute in proportion to their working
time-base. Specifically, if an employee makes any
contributions, it shall not be recoverable under any
circumstances by the employee or the employee's beneficiary
or survivor (e.g., if the employee should retire, die, or
separate from service before becoming eligible for a health
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care benefit).
Employer Contribution for Future Retirees' Health Care
5) Specifies an 80/80 formula that applies to all new BU 9 and
BU 10 employees hired on or after January 1, 2016. Specifies
the following employer contribution amounts for retiree
health benefits:
a) For non-Medicare-eligible retirees, the employer
contribution shall be an amount equal to 80 percent of the
weighted average premiums of the four health benefit plans
most highly utilized by active state employees.
b) For a dependent of a non-Medicare-eligible retiree,
the employer contribution shall be an amount equal to 80
percent of the weighted average of the additional premiums
required for enrollment of those family members during the
benefit year in which the formula is applied.
c) For Medicare-eligible retirees, the employer
contribution shall be an amount equal to 80 percent of the
weighted average premiums of the four Medicare-coordinated
plans most highly utilized by Medicare eligible retirees.
d) For a dependent of a Medicare -eligible retiree, the
employer contribution shall be an amount equal to 80
percent of the weighted average of the additional premiums
required for enrollment of those family members during the
benefit year in which the formula is applied.
e) The contribution for a Medicare-eligible retiree must
not exceed the formula whether or not the individual is
enrolled in Medicare.
f) A retiree shall not use any portion of the employer's
retiree health care contribution toward the payment of
Medicare Part B premiums.
Post-Employment Health Benefit Vesting Schedule
6) Specifies BU 9 and BU 10 employees first hired into state
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employment on or after January 1, 2016, will be subject to an
extended vesting schedule for retiree health benefits.
Specifically:
a) Retirees first hired into state employment on or after
January 1, 2016, will receive 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 vested for 100 percent of
the employee contribution after 25 years of state service.
Civil Service Reform
7) Makes the following statutory changes to laws governing the
civil service system: (a) the competitive ranking of state
civil service employees and applicants, and (b) eligibility
and hiring of state employees in "Career Executive
Assignments (CEA).
8) Eliminates the "Rule of Three Names," which requires hiring
managers to consider only the top three individuals on
promotional hiring eligibility lists whose examination scores
result in them being in the top three names.
9) Eliminates the "Rule of Six Ranks," which requires all
managerial hiring eligibility lists to be organized into six
ranks, depending on the scores applicants receive on the
classification's exam, and limits a department's hiring
manager to only consider applicants whose examination scores
result in them being in the top three ranks.
10)Eliminates the "Rule of One Rank," which requires
departmental hiring managers to only consider individuals
whose examination scores result in them being in the first
rank for supervisory positions.
11)Consolidates various hiring eligibility list requirements
into a single process, the "Rule of Three Ranks", which would
apply to all promotional or open state jobs. This change will
allow hiring managers to consider eligible persons whose
examination scores result in them being in the top three
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ranks for rank and file and managerial lists, as specified.
12)Eliminates the requirement that a former legislative or
non-elected exempt employee be separated from employment for
no more than 12 months prior to applying for the CEA
position.
13)Expands the pool of eligible candidates that can be
appointed to a CEA position to include individuals from the
private sector who meet the requirements of the applicable
position.
14)Provides terminated CEAs hired from outside state civil
service the right to appeal to the State Personnel Board for
restoration of their assignment.
15)Clarifies that terminated CEAs who were previously employed
by the state and had permanent civil service status, have
return rights to a (non-CEA) civil service position, with at
least the same salary level as the last position they held.
If the employee had a minimum of five years of state service,
he or she may return to a position that has the same salary
level as the last position or at least the same salary level
that is at least two steps lower than the CEA position from
which the employee is being terminated. These provisions are
consistent with existing law.
16)Authorizes terminated CEAs, hired from outside civil
service, to be eligible for deferred examination for any open
position at the department they were previously employed and
meet the minimum qualifications.
17)Eliminates rules prohibiting a CEA applicant from competing
in multiple civil service promotional exams at more than one
department in the same class.
18)Provide one-time $300,000 General Fund for the Department of
Finance (DOF) to post all budget requests included as a part
of the Governor's Budget on DOF's website. The funds will be
used to purchase high-speed industrial scanners and
additional software programming.
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FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
SUPPORT: (Verified9/10/15)
None received
OPPOSITION: (Verified9/10/15)
None received
Prepared by:Anita Lee / B. & F.R. / (916) 651-4103
9/11/15 17:29:36
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