Amended in Assembly June 12, 2016

Amended in Assembly May 25, 2016

Senate BillNo. 848


Introduced by Committee on Budget and Fiscal Review

January 7, 2016


begin deleteAn act relating to the Budget Act of 2016. end deletebegin insertAn act to amend Sections 19141, 19141.1, 19243, 19838, 19995.1, 19995.4, 22871.3, 22879, 22944.5, 22958.1, and 68203 of, and to add Sections 19829.9844, 19829.9845, 19829.9846, 20683.3, 22874.4, and 22958.2 to, the Government Code, relating to state employment, and making an appropriation therefor, to take effect immediately, bill related to the budget.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 848, as amended, Committee on Budget and Fiscal Review. begin deleteBudget Act of 2016. end deletebegin insertState 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 a memorandum of understanding entered into between the state employer and State Bargaining Unit 12, the International Union of Operating Engineers, 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.

end insert
begin insert

This bill would provide that provisions of the memorandum of understanding approved by this bill that require the expenditure of funds will not take effect unless funds for those provisions are specifically appropriated by the Legislature and would authorize 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 $45,419,000 in augmentation of certain items of the Budget Act of 2016, according to a specified schedule, for State Bargaining Unit 12 employee compensation for expenditure in the 2016-17 fiscal year. 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 memorandum of understanding described above if the Budget Act is not enacted on or before July 1 in the 2016-17, 2017-18, or 2018-19 fiscal years, as specified.

end insert
begin insert

(2) Existing law grants to an employee with permanent civil service status, or who previously had permanent status, and who, without a break in service, accepts an appointment to an exempt position, the right to reinstatement in his or her former position at the termination of the appointment, either by the employee or the appointing power, subject to certain conditions. Existing law prescribes different periods within which an employee is permitted to make a request for reinstatement in connection with different exempt appointments.

end insert
begin insert

This bill would eliminate the various periods within which an employee is required to make a request for reinstatement, as described above, and eliminate language specifying that the termination be either by the employee or the appointing power. The bill would also make clarifying, conforming, and technical changes.

end insert
begin insert

(3) Existing law grants certain civil service testing rights to an employee with reinstatement rights, as described above, within 4 years of termination in an exempt position, either by the employee or the appointing power, who has at least one year, but less than 3 years, of exempt service. In this regard, existing law requires that these employees be given the opportunity to obtain civil service list appointment eligibility, through examination, for any position offered by the appointing power that has a current eligible list and that has a salary range up to 2 salary steps higher than his or her former position. Existing law further requires that similarly situated employees who have more than 3 years of exempt service be given the opportunity to obtain appointment list eligibility in classes at least 2 salary steps below the employees’ exempt salary levels. Existing law also grants a right of reinstatement to an employee whose exempt appointment terminates, on or after January 1, 1987, and who has at least 10 years of state service, among other characteristics, to specified positions of the appointing power for which he or she has list eligibility. In the absence of list eligibility, existing law grants the employee the right to a deferred examination, as specified, or to his or her former position.

end insert
begin insert

This bill would revise and recast these provisions to grant employees in exempt positions with reinstatement rights, as described above, who have at least 5 years of state service, a right to obtain civil service appointment list eligibility by taking a deferred examination for any class that has a current eligible list and for which the employee meets the minimum qualifications of the class.

end insert
begin insert

(4) Existing law requires the Department of Human Resources to administer the Limited Examination and Appointment Program (LEAP) to provide an alternative to the traditional civil service examination and appointment process to facilitate the hiring of persons with disabilities in the state civil service. Existing law authorizes the department to conduct competitive examinations to determine eligibility for appointment under LEAP, which may include on-the-job-performance evaluation. A LEAP candidate who successfully completes a job examination period is qualified in the examination and may be appointed without further examination.

end insert
begin insert

This bill would provide that a LEAP candidate who is appointed after successfully completing a job examination period, as described above, is not required to serve a probationary period.

end insert
begin insert

(5) Existing law prescribes a process for recovering payments from employees when the state determines an overpayment has been made. Existing law prohibits a state administrative action to recover an overpayment unless the action is initiated within 3 years from the date of overpayment.

end insert
begin insert

This bill, for purposes of an action to recover an overpayment involving leave credits, would establish the date that the overpayment occurs as the date that the employee receives compensation in exchange for the erroneously credited leave. The bill would state when leave hours are considered exchanged for compensation for these purposes.

end insert
begin insert

(6) Existing law requires the Department of Human Resources to devise plans for, and cooperate with appointing powers and other supervising officials in the conduct of, employee training programs so that the quality of service rendered by persons in the state civil service may be continually improved. Existing law also requires the department to devise plans for, and cooperate with appointing powers in the conduct of, supervisorial employee training programs and prescribes training requirements in this regard.

end insert
begin insert

This bill would require the department to analyze, design, develop, implement, and evaluate an integrated development strategy to continually advance employee skills and improve performance productivity and service. The bill would instead require the department to devise plans for, and cooperate with appointing powers in the conduct of, supervisor, manager, and career executive assignment employee training programs so that the quality of leadership services rendered by persons in those positions may be continually improved and succession planning supported. The bill would prescribe requirements for supervisor, manager, and career executive assignment employees in connection with this training.

end insert
begin insert

(7) The Public Employees’ Retirement Law (PERL) creates the Public Employees’ Retirement System for the purpose of providing pension and other benefits to public employees, which are funded by employee and employer contributions and investment returns. PERL prescribes different normal rates for employee contributions depending on bargaining unit, employer, and inclusion of service in the federal Social Security system, among other factors.

end insert
begin insert

This bill, on and after July 1, 2017, would raise the normal rates of contribution for specified judicial branch employees to 9% of compensation over $317 per month for state miscellaneous members whose service is not included in the federal system, 8% of compensation over $513 per month for state miscellaneous members whose service has been included in the federal system, and 11% of compensation over $238 for peace officer/firefighter members.

end insert
begin insert

(8) 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 judicial branch employees and state employees represented by State Bargaining Unit 12 who are first employed and become state members of the retirement system on or after January 1, 2017, 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 and would provide the same limit on employer contributions for annuitants enrolled in Medicare health benefit plans.

end insert
begin insert

(9) 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 judicial branch employees who are first employed and become state members of the retirement system on or after January 1, 2017, 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 these employees 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. The bill would except specified employees from this prohibition.

end insert
begin insert

(10) PEMHCA generally 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. Existing law excepts specified state employees from this requirement.

end insert
begin insert

This bill would also except from the requirement described above judicial branch employees and state employees represented by State Bargaining Unit 12 who are first employed and become state members of the retirement system on or after January 1, 2017.

end insert
begin insert

(11) 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 health care coverage for annuitants, including administrative costs. PEMHCA defines prefunding for these purposes. Existing law requires the state and employees of State Bargaining Unit 6, 9, or 10 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs, and prescribes schedules of contribution percentages in this regard.

end insert
begin insert

This bill would require the state and state employees in the judicial branch to make contributions to prefund retiree health care pursuant to a prescribed schedule of contribution percentages and would also require the state and employees in State Bargaining Unit 12 to prefund retiree health care pursuant to a separate prescribed schedule of contribution percentages, with the contributions to be deposited in the Annuitants’ Health Care Coverage Fund. By depositing new revenue in a continuously appropriated fund, this bill would make an appropriation.

end insert
begin insert

(12) Existing law, the State Employees’ Dental Care Act, authorizes the state to enter into contracts, upon negotiations with employee organizations, with carriers for dental care plans for employees, annuitants, and eligible family members. Existing law permits these plans to include premiums to be paid by employees and annuitants and also authorizes the plans to be self-funded if an employer determines it to be cost effective. Existing law prohibits specified employees from receiving an employer contribution for these benefits for annuitants unless the person is credited with 10 or more years of state service, and inhibits other specified employees from receiving that contribution unless the person is credited with 15 or more years of state service, and prohibits other specified employees from receiving that contribution unless the person is credited with 15 or more years of state service.

end insert
begin insert

This bill would prohibit judicial branch employees and state employees in State Bargaining Unit 12 who are first employed and become state members of the retirement system on or after January 1, 2017, from receiving an employer contribution for dental benefits, as described above, for annuitants unless the person is credited with 15 or more years of state service. The bill would prescribe the percentage of the employer contribution payable for these dental benefits for these employees 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. The bill would except specified employees from these provisions.

end insert
begin insert

(13) Existing law authorizes the Legislature to prescribe compensation for judges of courts of record. Existing law specifies the salaries of justices and judges of the Supreme Court, the courts of appeal, and trial courts and provides for the annual increase of those salaries by the amount that is produced by multiplying the judge’s or justice’s current salary by the average percentage salary increase for the current fiscal year for California state employees, as provided.

end insert
begin insert

This bill would state that, for purpose of calculating a judge’s or justice’s salary, the average percentage salary increases for California state employees shall be reduced by the average percentage salary decrease resulting from the furlough or enrollment in a personal leave program of California state employees in that current fiscal year and would exempt employees of the California State University system, judicial branch, and Legislature from the definition of California state employee for this purpose. The bill would prohibit a salary increase for justices and judges if the resulting percentage, including the reduction, is equal to or less than zero. The bill would also limit the award of interest on an order to pay unpaid salary or judicial retiree benefits based on these provisions to the rate of interest on the Pooled Money Investment Account.

end insert
begin insert

(14) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

end insert
begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.

end delete

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

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

P7    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 the agreement entered into
3by the state employer and State Bargaining Unit 12 pursuant to
4Section 3517.5 of the Government Code.

end insert
P8    1begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

The provisions of the memorandum of understanding
2prepared pursuant to Section 3517.5 of the Government Code and
3entered into by the state employer and State Bargaining Unit 12,
4dated May 26, 2016, and that require the expenditure of funds,
5are hereby approved for the purposes of subdivision (b) of Section
63517.6 of the Government Code.

end insert
7begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

The provisions of the memorandum of understanding
8approved in Section 2 of this act that require the expenditure of
9funds shall not take effect unless funds for these provisions are
10specifically appropriated by the Legislature. If funds for these
11provisions are not specifically appropriated by the Legislature,
12either the state employer or the affected employee organization
13may reopen negotiations on all or part of the memorandum of
14understanding.

end insert
15begin insert

begin insertSEC. 4.end insert  

end insert
begin insert

Notwithstanding Section 3517.6 of the Government
16Code, the provisions of the memorandum of understanding included
17in Section 2 of this act that require the expenditure of funds shall
18become effective even if the provisions of the memorandum of
19understanding are approved by the Legislature in legislation other
20than the annual Budget Act.

end insert
21begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

The sum of forty-five million four hundred nineteen
22thousand dollars ($45,419,000) is hereby appropriated for State
23Bargaining Unit 12 for expenditure in the 2016-17 fiscal year in
24augmentation of, and for the purpose of, state employee
25compensation, as provided in Items 9800-001-0001,
269800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget
27Act of 2016, in accordance with the following schedule:

end insert
begin insert

28
(a) Fourteen million five hundred ninety-six thousand dollars
29($14,596,000) from the General Fund in augmentation of Item
309800-001-0001.

end insert
begin insert

31
(b) Twenty million six hundred fifty-one thousand dollars
32($20,651,000) from unallocated special funds in augmentation of
33Item 9800-001-0494.

end insert
begin insert

34
(c) Ten million one hundred seventy-two thousand dollars
35($10,172,000) from other unallocated nongovernmental cost funds
36in augmentation of Item 9800-001-0988.

end insert
37begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 19141 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
38read:end insert

39

19141.  

(a) This section applies only tobegin delete a permanent employee,
40orend delete
an employeebegin insert in an exempt positionend insert who previously had
P9    1permanent statusbegin delete and who, since that permanent status, has had no
2break in the continuity of his or her state service due to a permanent
3separation.end delete
begin insert in the civil service.end insert As used in this section, “former
4position” is defined as in Section 18522, or, if the appointing power
5to which reinstatement is to be made and the employee agree, a
6vacant position in any department, commission, or state agency
7for which he or she is qualifiedbegin insert and which isend insert at substantially the
8samebegin delete level.end deletebegin insert level as the employee’s former position.end insert

9(b) begin deleteWithin the periods of time specified below, an end deletebegin insertAn end insertemployee
10who vacates a civil service position to accept an appointment to
11an exempt position shall be reinstated to his or her former position
12at the terminationbegin delete either by the employee or appointing powerend delete of
13the exempt appointment, providedbegin delete he or she (1) acceptedend deletebegin insert both of
14the following conditions are met:end insert

15begin insert(1)end insertbegin insertend insertbegin insertHe or she acceptedend insert the appointment without a break in the
16continuity of statebegin delete service, and (2) requests in writing reinstatement
17of the appointing power of his or her former position within 10
18working days after the effective date of the termination.end delete
begin insert service.end insert

begin delete

19(c) The reinstatement may be requested by the employee only
20within the following periods of time:

end delete
begin delete

21(1) At any time after the effective date of the exempt
22appointment if the employee was appointed under one of the
23following:

end delete
begin delete

24(A) Subdivision (a), (b), (c), (d), (e), (f), (g), or (m) of Section
254 of Article VII of the California Constitution.

end delete
begin delete

26(B) Section 2.1 of Article IX of the California Constitution.

end delete
begin delete

27(C) Section 22 of Article XX of the California Constitution.

end delete
begin delete

28(D) To an exempt position under the same appointing power as
29the former position even though a shorter period of time may be
30otherwise specified for that appointment.

end delete
begin delete

31(2) Within six months after the effective date of the exempt
32appointment if appointed under subdivision (h), (i), (k), or (l) of
33Section 4 of Article VII of the California Constitution.

end delete
begin delete

34(3) Within four years after the effective date of an exempt
35appointment if appointed under any other authority.

end delete
begin insert

36
(2) Within 10 working days after the effective date of the
37termination, he or she makes a written request to the appointing
38power to be reinstated to his or her former position. If an employee
39accepts an appointment to an exempt position and seeks
40reinstatement to his or her former position more than 10 working
P10   1days after the effective date of the termination of the exempt
2appointment, Section 19140 shall apply.

end insert
begin delete

3(d)

end delete

4begin insert(c)end insert An employee who vacates his or her civil service position
5to accept an assignment as a member, inmate, or patient helper
6under subdivision (j) of Section 4 of Article VII of the California
7Constitution shall not have a right tobegin insert mandatoryend insert reinstatement.

begin delete

8(e) An employee who is serving under an exempt appointment
9retains a right of reinstatement when he or she accepts an extension
10of that exempt appointment or accepts a new exempt appointment,
11provided the extension or new appointment is made within the
12specified reinstatement time limit and there is no break in the
13continuity of state service. The period for which that right is
14retained is for the period applicable to the extended or new exempt
15appointment as if that appointment had been made on the date of
16the initial exempt appointment.

end delete
begin insert

17
(d) If an employee in an exempt appointment accepts an
18extension of the exempt appointment or accepts a new exempt
19appointment with no break in the continuity of state service in an
20exempt appointment, subdivision (b) shall apply when the extension
21or new exempt appointment is terminated.

end insert
begin delete

22(f) When

end delete

23begin insert(e)end insertbegin insertend insertbegin insertIfend insert an employee exercises his or her right of reinstatement
24and returns to his or her former position, the service while under
25an exempt appointment shall be deemed to be time served in the
26former position for the purpose of determining his or her seniority
27and eligibility for merit salary increases.

begin delete

28(g)

end delete

29begin insert(f)end insert If the termination of an exempt appointment is for a reason
30contained in Section 19997 and the employee does not have a right
31tobegin insert mandatoryend insert reinstatement, he or she shall have his or her name
32placed on the departmental and general reemployment lists for the
33class of his or her former position.

34begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 19141.1 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
35to read:end insert

36

19141.1.  

(a) This sectionbegin insert onlyend insert appliesbegin delete only to a permanent
37employee, or an employee who previously had permanent status,
38and who has a reinstatement right pursuant toend delete
begin insert to employees in an
39exempt position who have reinstatement rights to their former
40positions underend insert
Section 19141.

P11   1(b) Within four years of the termination of an appointment in
2an exempt position,begin delete either by the employee or the appointing
3power,end delete
an employee who has completed a minimum of five years
4of state service experiencebegin delete and at least one year but less than three
5years of exempt serviceend delete
shall be given an opportunity upon request
6to obtain civil service appointmentbegin delete eligibility, throughend deletebegin insert list eligibility
7by takingend insert
a deferred begin delete examination, for any position offered by any
8appointing power in any class for which a current eligible list exists
9and which has a salary range up to two steps higher than the
10employee’s former position. If the employee has three or more
11years of exempt service, the opportunity shall be provided for any
12class at least two salary steps below the employee’s exempt salary
13level.end delete
begin insert examination for any class that has a current eligible list and
14for which the employee meets the minimum qualifications of the
15class.end insert

begin delete

16(c) At the termination of an exempt appointment, either by the
17employee or the appointing power, on or after January 1, 1987, an
18employee who has at least 10 years of state service including five
19years of civil service experience and at least three consecutive
20years of exempt service under a single appointing power and who
21requests reinstatement in writing within 10 days of the termination,
22shall be reinstated upon request to (1) his or her former position
23or (2) any vacant position for which the employee has civil service
24eligibility under the appointing power where the three years of
25service were completed and which is at least two salary steps below
26the employee’s exempt salary level. In the absence of current list
27eligibility, an employee shall be entitled to a deferred examination
28for placement on a current eligible list for classes meeting the
29mandatory reinstatement criteria. If the employee obtains civil
30service appointment eligibility at any time within two years of the
31termination of the exempt appointment, and a vacant position in
32the appropriate class is not available, the employee’s name shall
33be placed on the appointing power’s departmental or subdivisional
34reemployment for any classes and locations which would satisfy
35the employee’s reinstatement request. Departmental or
36subdivisional reemployment list eligibility granted under this
37section shall not result in placement on any general reemployment
38list.

P12   1If an employee cannot be placed in a vacant position pursuant
2to this section, the employee shall be reinstated to his or her former
3position.

end delete
4begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 19243 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
5read:end insert

6

19243.  

Upon successful completion of the job examination
7period, the candidate shall have qualified in the examination. With
8the approval of the department, the appointing power may appoint
9the candidate, without further examination, to an appropriate
10position where civil service status may accumulate.begin insert A candidate
11appointed in this way is not required to serve a probationary
12period.end insert

13begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 19829.9844 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
14to read:end insert

begin insert
15

begin insert19829.9844.end insert  

(a) Notwithstanding Section 13340, for the
162016-17 fiscal year, if the Budget Act of 2016 is not enacted by
17July 1, 2016, for the memorandum of understanding entered into
18between the state employer and State Bargaining Unit 12 (effective
19July 1, 2015, to July 1, 2019, inclusive) there is hereby
20continuously appropriated to the Controller from the General
21Fund, unallocated special funds, including, but not limited to,
22federal funds and unallocated nongovernmental cost funds, and
23any other fund from which state employees are compensated, the
24amount necessary for the payment of compensation and employee
25benefits to state employees covered by the above memorandum of
26understanding until the Budget Act of 2016 is enacted. The
27Controller may expend an amount no greater than necessary to
28enable the Controller to compensate state employees covered by
29the above memorandum of understanding for work performed
30between July 1, 2016, of the 2016-17 fiscal year and the enactment
31of the Budget Act of 2016.

32
(b) If the memorandum of understanding entered into between
33the state employer and State Bargaining Unit 12 (effective July 1,
342015, to July 1, 2019, inclusive) is in effect and approved by the
35Legislature, the compensation and contribution for employee
36benefits for state employees represented by this bargaining unit
37shall be at a rate consistent with the applicable memorandum of
38understanding referenced above.

39
(c) Expenditures related to any warrant drawn pursuant to
40subdivision (a) are not augmentations to the expenditure authority
P13   1of a department. Upon the enactment of the Budget Act of 2016,
2these expenditures shall be subsumed by the expenditure authority
3approved in the Budget Act of 2016 for each affected department.

4
(d) This section shall only apply to an employee covered by the
5term of the State Bargaining Unit 12 (effective July 1, 2015, to
6July 1, 2019, inclusive) memorandum of understanding.
7Notwithstanding Section 3517.8, this section shall not apply after
8the term of the memorandum of understanding has expired. For
9purposes of this section, the memorandum of understanding for
10State Bargaining Unit 12 expires on July 1, 2019.

end insert
11begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 19829.9845 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
12to read:end insert

begin insert
13

begin insert19829.9845.end insert  

(a) Notwithstanding Section 13340, for the
142017-18 fiscal year, if the Budget Act of 2017 is not enacted by
15July 1, 2017, for the memorandum of understanding entered into
16between the state employer and State Bargaining Unit 12 (effective
17July 1, 2015, to July 1, 2019, inclusive) there is hereby
18continuously appropriated to the Controller from the General
19Fund, unallocated special funds, including, but not limited to,
20federal funds and unallocated nongovernmental cost funds, and
21any other fund from which state employees are compensated, the
22amount necessary for the payment of compensation and employee
23benefits to state employees covered by the above memorandum of
24understanding until the Budget Act of 2017 is enacted. The
25Controller may expend an amount no greater than necessary to
26enable the Controller to compensate state employees covered by
27the above memorandum of understanding for work performed
28between July 1, 2017, of the 2017-18 fiscal year and the enactment
29of the Budget Act of 2017.

30
(b) If the memorandum of understanding entered into between
31the state employer and State Bargaining Unit 12 (effective July 1,
322015, to July 1, 2019, inclusive) is in effect and approved by the
33Legislature, the compensation and contribution for employee
34benefits for state employees represented by this bargaining unit
35shall be at a rate consistent with the applicable memorandum of
36understanding referenced above.

37
(c) Expenditures related to any warrant drawn pursuant to
38subdivision (a) are not augmentations to the expenditure authority
39of a department. Upon the enactment of the Budget Act of 2017,
P14   1these expenditures shall be subsumed by the expenditure authority
2approved in the Budget Act of 2017 for each affected department.

3
(d) This section shall only apply to an employee covered by the
4term of the State Bargaining Unit 12 (effective July 1, 2015, to
5July 1, 2019, inclusive) memorandum of understanding.
6Notwithstanding Section 3517.8, this section shall not apply after
7the term of the memorandum of understanding has expired. For
8purposes of this section, the memorandum of understanding for
9State Bargaining Unit 12 expires on July 1, 2019.

end insert
10begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 19829.9846 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
11to read:end insert

begin insert
12

begin insert19829.9846.end insert  

(a) Notwithstanding Section 13340, for the
132018-19 fiscal year, if the Budget Act of 2018 is not enacted by
14July 1, 2018, for the memorandum of understanding entered into
15between the state employer and State Bargaining Unit 12 (effective
16July 1, 2015, to July 1, 2019, inclusive) there is hereby
17continuously appropriated to the Controller from the General
18Fund, unallocated special funds, including, but not limited to,
19federal funds and unallocated nongovernmental cost funds, and
20any other fund from which state employees are compensated, the
21amount necessary for the payment of compensation and employee
22benefits to state employees covered by the above memorandum of
23understanding until the Budget Act of 2018 is enacted. The
24Controller may expend an amount no greater than necessary to
25enable the Controller to compensate state employees covered by
26the above memorandum of understanding for work performed
27between July 1, 2018, of the 2018-19 fiscal year and the enactment
28of the Budget Act of 2018.

29
(b) If the memorandum of understanding entered into between
30the state employer and State Bargaining Unit 12 (effective July 1,
312015, to July 1, 2019, inclusive) is in effect and approved by the
32Legislature, the compensation and contribution for employee
33benefits for state employees represented by this bargaining unit
34shall be at a rate consistent with the applicable memorandum of
35understanding referenced above.

36
(c) Expenditures related to any warrant drawn pursuant to
37subdivision (a) are not augmentations to the expenditure authority
38of a department. Upon the enactment of the Budget Act of 2018,
39these expenditures shall be subsumed by the expenditure authority
40approved in the Budget Act of 2018 for each affected department.

P15   1
(d) This section shall only apply to an employee covered by the
2term of the State Bargaining Unit 12 (effective July 1, 2015, to
3July 1, 2019, inclusive) memorandum of understanding.
4Notwithstanding Section 3517.8, this section shall not apply after
5the term of the memorandum of understanding has expired. For
6purposes of this section, the memorandum of understanding for
7State Bargaining Unit 12 expires on July 1, 2019.

end insert
8begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 19838 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
9to read:end insert

10

19838.  

(a) When the state determines an overpayment has
11been made to an employee, it shall notify the employee of the
12overpayment and afford the employee an opportunity to respond
13prior to commencing recoupment actions. Thereafter,
14reimbursement shall be made to the state through one of the
15following methods mutually agreed to by the employee and the
16state:

17(1) Cash payment or payments.

18(2) Installments through payroll deduction to cover at least the
19same number of pay periods in which the error occurred. When
20overpayments have continued for more than one year, full payment
21may be required by the state through payroll deductions over the
22period of one year.

23(3) The adjustment of appropriate leave credits or compensating
24time off, provided that the overpayment involves the accrual or
25crediting of leave credits (e.g., vacation, annual leave, or holiday)
26or compensating time off. Any errors in sick leave balances may
27only be adjusted with sick leave credits.

28Absent mutual agreement on a method of reimbursement, the
29state shall proceed with recoupment in the manner set forth in
30paragraph (2).

31(b) An employee who is separated from employment prior to
32full repayment of the amount owed shall have withheld from any
33money owing the employee upon separation an amount sufficient
34to provide full repayment. If the amount of money owing upon
35separation is insufficient to provide full reimbursement to the state,
36the state shall have the right to exercise any and all other legal
37means to recover the additional amount owed.

38(c) Amounts deducted from payment of salary or wages pursuant
39to the above provisions, except as provided in subdivision (b),
P16   1shall in no event exceed 25 percent of the employee’s net
2disposable earnings.

3(d) begin deleteNo end deletebegin insertAn end insertadministrative action shallbegin insert notend insert be taken by the state
4pursuant to this section to recover an overpayment unless the action
5is initiated within three years from the date of overpayment.begin insert If an
6overpayment involves leave credits, the date of overpayment is the
7date that the employee receives compensation in exchange for
8leave erroneously credited to the employee. For purposes of this
9section, leave hours are considered exchanged for compensation
10in the order they were credited.end insert

11(e) If the provisions of this section are in conflict with the
12provisions of a memorandum of understanding reached pursuant
13to Section 3517.5, the memorandum of understanding shall be
14controlling without further legislative action, except that if the
15provisions of a memorandum of understanding require the
16expenditure of funds, the provisions shall not become effective
17unless approved by the Legislature in the annual Budget Act.

18begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 19995.1 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
19to read:end insert

20

19995.1.  

For the purpose of meeting thebegin insert developmentend insert needs
21of thebegin delete state service for continuing employee educational
22development, the upgrading of employee skills, and improving
23productivity and quality service, theend delete
begin insert state’s workforce, the
24department shall analyze, design, develop, implement, and evaluate
25an integrated development strategy to continually advance
26employee skills and improve performance productivity and service.
27Theend insert
department may prescribe regulations and conditions for the
28administration of this chapter. The conditions prescribed by the
29department may include, but not be limited to, the requirements
30that the training shall bebegin delete cost-effective,end deletebegin insert cost effective,end insert of value to
31the state, and relevant to the employee’s career development in
32state service. The department may further prescribe the conditions
33under which an employee may be required to reimburse the state
34for the costs of out-service training in the event he or she fails to
35remain in state service for a reasonable time after receiving the
36training.

37If the provisions of this section are in conflict with the provisions
38of a memorandum of understanding reached pursuant to Section
393517.5, the memorandum of understanding shall be controlling
40without further legislative action, except that if the provisions of
P17   1a memorandum of understanding require the expenditure of funds,
2the provisions shall not become effective unless approved by the
3Legislature in the annual Budget Act.

4begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 19995.4 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
5to read:end insert

6

19995.4.  

(a) The department shall devise plans for, and
7cooperate with appointing powers in the conduct of,begin delete supervisorialend delete
8begin insert supervisor and career executive assignmentend insert employee training
9programs so that the quality ofbegin delete supervisorialend deletebegin insert leadershipend insert services
10rendered by persons in those positions may be continually
11
begin delete improved.end deletebegin insert improved and succession planning supported.end insert

12(b) begin deleteEach supervisorial employee, upon the employee’s initial
13appointment end delete
begin insertUpon the initial appointment of an employee end insertto a
14designated supervisory position,begin insert the employeeend insert shall be provided
15a minimum of 80 hours of training,begin delete at least 40 hours of which shall
16be structured and be provided by a qualified instructor.end delete
begin insert as
17prescribed by the department.end insert
The training shallbegin delete consist ofend deletebegin insert addressend insert
18 the role of the supervisor, techniques of supervision, planning,
19organizing,begin delete staffing and controlling,end deletebegin insert staffing,end insert performance
20standards, performancebegin delete appraisal, affirmative action,end deletebegin insert appraisals,end insert
21 discipline, labor relations,begin delete employment law relating to persons
22with disabilities, and grievances.end delete
begin insert equal employment opportunity
23principles, and affirmative action for persons with disabilities.end insert

24 Every supervisor shall have access to a copy of each bargaining
25agreement covering the employees he or she supervises.begin delete The
26additional 40 hours of training may be provided on-the-job by a
27qualified higher level supervisor or manager.end delete

28(c) Thebegin delete entire 80end deletebegin insert requiredend insert hours ofbegin delete training shall beend deletebegin insert supervisory
29training shall be successfullyend insert
completed within the term of the
30probationary period or withinbegin delete 12 months of appointment to a
31supervisorial classification. The training shall be completed within
32the term of the probationary period unless it is demonstrated that
33to do so creates additional costs or that the training cannot be
34completed during the probationary period due to the limited
35availability of training courses.end delete
begin insert six months of the employee’s initial
36appointment, unless it is demonstrated that to do so creates
37additional costs or that the training cannot be completed during
38this time period due to limited availability of training courses.
39Upon completion of the initial appointment training, supervisory
40employees shall be provided biannually a minimum of 20 hours
P18   1of leadership training and development, as prescribed by the
2department.end insert

begin insert

3
(d) Upon the initial appointment of an employee to a
4management position, the employee shall be provided a minimum
5of 40 hours of leadership training and development, as prescribed
6by the department, within 12 months of appointment. Thereafter,
7the employee shall be provided biannually a minimum of 20 hours
8of leadership training, as prescribed by the department.

end insert
begin insert

9
(e) Upon the initial appointment of an employee to a career
10executive assignment position, the employee shall be provided a
11minimum of 20 hours of leadership training and development as
12prescribed by the department within 12 months of appointment.
13Thereafter, the employee shall be provided biannually a minimum
14of 20 hours of leadership training and development as prescribed
15by the department.

end insert
16begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 20683.3 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
17to read:end insert

begin insert
18

begin insert20683.3.end insert  

Notwithstanding Sections 20677 and 20687, on and
19after July 1, 2017, the normal rate of contribution for an employee
20of the judicial branch who is not subject to Section 7522.30 shall
21be the following:

22
(a) For a state miscellaneous member:

23
(1) Nine percent of the compensation in excess of three hundred
24seventeen dollars ($317) per month paid to a member whose
25service is not included in the federal system.

26
(2) Eight percent of compensation in excess of five hundred
27thirteen dollars ($513) per month paid to that member whose
28service has been included in the federal system.

29
(b) For a peace officer/firefighter member, 11 percent of
30compensation in excess of two hundred thirty-eight dollars ($238)
31per month paid to that member.

end insert
32begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 22871.3 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
33to read:end insert

34

22871.3.  

(a) The employer contribution for each annuitant
35enrolled in a basic plan shall be an amount equal to 80 percent of
36the weighted average of the health benefit plan premiums for an
37employee or annuitant enrolled for self-alone, during the benefit
38year to which the formula is applied, for the four health benefit
39plans that had the largest active state civil service enrollment,
40excluding family members, during the previous benefit year. For
P19   1each annuitant with enrolled family members, the employer
2contribution shall be an amount equal to 80 percent of the weighted
3average of the additional premiums required for enrollment of
4those family members, during the benefit year to which the formula
5is applied, in the four health benefit plans that had the largest active
6state civil service enrollment, excluding family members, during
7 the previous benefit year.

8(b) The employer contribution for each annuitant enrolled in a
9Medicare health benefit plan in accordance with Section 22844
10shall be an amount equal to 80 percent of the weighted average of
11the health benefit plan premiums for an annuitant enrolled in a
12Medicare health benefit plan for self-alone, during the benefit year
13to which the formula is applied, for the four Medicare health benefit
14plans that had the largest state annuitant enrollment, excluding
15family members, during the previous benefit year. For each
16annuitant with enrolled family members, the employer contribution
17shall be an amount equal to 80 percent of the weighted average of
18the additional premiums required for enrollment of those family
19members, during the benefit year to which the formula is applied,
20in the four Medicare health benefit plans that had the largest state
21annuitant enrollment, excluding family members, during the
22previous benefit year. If the annuitant is eligible for Medicare Part
23A, with or without cost, and Medicare Part B, regardless of whether
24the annuitant is actually enrolled in Medicare Part A or Part B, the
25employer contribution shall not exceed the amount calculated
26under this subdivision.

27(c) This section applies to:

28(1) A state employee who is first employed by the state and
29becomes a state member of the system on or after January 1, 2016,
30and who is represented by State Bargaining Unit 9 or 10.

31(2) A state employee related to State Bargaining Unit 9 or 10
32who is excepted from the definition of “state employee” in
33subdivision (c) of Section 3513 and first employed by the state
34and becomes a state member of the system on or after January 1,
352016.

36(3) A state employee represented by State Bargaining Unit 6begin insert or
3712end insert
who is first employed by the state and becomes a state member
38of the system on or after January 1, 2017.

39(4) A state employee related to State Bargaining Unit 6begin insert or 12end insert
40 who is excepted from the definition of “state employee” in
P20   1subdivision (c) of Section 3513 and first employed by the state
2and becomes a state member of the system on or after January 1,
32017.

begin insert

4
(5) A judicial branch employee who is first employed by the
5state and becomes a state member of the system on or after January
61, 2017. This paragraph does not apply to a judge who is subject
7to Chapter 11 (commencing with Section 75000) or Chapter 11.5
8(commencing with Section 75500) of Title 8.

end insert

9(d) If the provisions of this section are in conflict with the
10provisions of a memorandum of understanding reached pursuant
11to Section 3517.5 or Chapter 12 (commencing with Section 3560)
12of Division 4 of Title 1, the memorandum of understanding shall
13be controlling without further legislative action, except that if those
14provisions require the expenditure of funds, the provisions may
15not become effective unless approved by the Legislature.

16begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 22874.4 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
17to read:end insert

begin insert
18

begin insert22874.4.end insert  

(a) Notwithstanding Sections 22870, 22871, and
1922873, a judicial branch employee who is first employed by the
20state and becomes a state member of the system on or after January
211, 2017, shall not receive any portion of the employer contribution
22payable for annuitants unless the person is credited with 15 years
23of state service at the time of retirement.

24
(b) The percentage of the employer contribution payable for
25postretirement health benefits for an employee subject to this
26section shall be based on the completed years of credited state
27service at retirement as shown in the following table:


28

 

begin insert

Credited Years
of Service

end insert
begin insert

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
P21   2

 

3
(c) This section shall apply only to judicial branch employees
4who retire for service. For purposes of this section, “state service”
5means service rendered as an employee of the state or an appointed
6or elected officer of the state for compensation.

7
(d) This section does not apply to any of the following:

8
(1) Former state employees previously employed prior to
9January 1, 2017, who return to state employment on or after
10January 1, 2017.

11
(2) State employees on an approved leave of absence employed
12before January 1, 2017, who return to active employment on or
13after January 1, 2017.

14
(3) A judge who retires pursuant to Chapter 11 (commencing
15with Section 75000) or Chapter 11.5 (commencing with Section
1675500) of Title 8.

end insert
17begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 22879 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
18to read:end insert

19

22879.  

(a) The board shall pay monthly to an employee or
20annuitant who is enrolled in, or whose family member is enrolled
21in, a Medicare health benefit plan under this part the amount of
22the Medicare Part B premiums, exclusive of penalties, except as
23provided in Section 22831. This payment may not exceed the
24difference between the maximum employer contribution and the
25amount contributed by the employer toward the cost of premiums
26for the health benefit plan in which the employee or annuitant and
27his or her family members are enrolled. No payment may be made
28in any month if the difference is less than one dollar ($1).

29(b) This section shall be applicable only to state employees,
30annuitants who retired while state employees, and the family
31members of those persons.

32(c) With respect to an annuitant, the board shall pay to the
33annuitant the amount required by this section from the same source
34from which his or her allowance is paid. Those amounts are hereby
35appropriated monthly from the General Fund to reimburse the
36board for those payments.

37(d) There is hereby appropriated from the appropriate funds the
38amounts required by this section to be paid to active state
39employees.

40(e) This section does not apply to:

P22   1(1) A state employee who is first employed by the state and
2becomes a state member of the system on or after January 1, 2016,
3and who is represented by State Bargaining Unit 9 or 10.

4(2) A state employee related to State Bargaining Unit 9 or 10
5who is excepted from the definition of “state employee” in
6subdivision (c) of Section 3513 and is first employed by the state
7and becomes a state member of the system on or after January 1,
82016.

9(3) A state employee who is first employed by the state and
10becomes a state member of the system on or after January 1, 2017,
11and who is represented by State Bargaining Unitbegin delete 6.end deletebegin insert 6 or 12.end insert

12(4) A state employee related to State Bargaining Unit 6begin insert or 12end insert
13 who is excepted from the definition of “state employee” in
14subdivision (c) of Section 3513 and is first employed by the state
15and becomes a state member of the system on or after January 1,
162017.

begin insert

17
(5) A judicial branch employee who is first employed by the
18state and becomes a state member of the system on or after January
191, 2017. This paragraph does not apply to a judge who is subject
20to Chapter 11 (commencing with Section 75000) or Chapter 11.5
21(commencing with Section 75500) of Title 8.

end insert
22begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 22944.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
23to read:end insert

24

22944.5.  

(a)  (1)  The state and employees in State Bargaining
25Unitbegin delete 9 or 10end deletebegin insert 9, 10, or 12end insert shall prefund retiree health care, with the
26goal of reaching a 50-percent cost sharing of actuarially determined
27normal costs for both employer and employees by July 1, 2019.

28(2) The state and employees in State Bargaining Unit 6 shall
29prefund retiree health care, with the goal of reaching a 50-percent
30cost sharing of actuarially determined normal costs for both
31employer and employees by July 1, 2018.

begin insert

32
(3) The state and employees in the judicial branch shall prefund
33retiree health care, with the goal of reaching a 50-percent cost
34sharing of actuarially determined normal costs for both employer
35and employees by July 1, 2017.

end insert

36(b) (1) The employees in State Bargaining Unit 9 shall make
37contributions to prefund retiree health care based on the following
38schedule, and the state shall make a matching contribution:

39(A) Effective July 1, 2017, 0.5 percent of pensionable
40compensation.

P23   1(B) Effective July 1, 2018, an additional 0.5 percent for a total
2employee contribution of 1.0 percent of pensionable compensation.

3(C) Effective July 1, 2019, an additional 1.0 percent for a total
4employee contribution of 2.0 percent of pensionable compensation.

5(2) The employees in State Bargaining Unit 10 shall make
6contributions to prefund retiree health care based on the following
7schedule, and the state shall make a matching contribution:

8(A) Effective July 1, 2017, 0.7 percent of pensionable
9compensation.

10(B) Effective July 1, 2018, an additional 0.7 percent for a total
11employee contribution of 1.4 percent of pensionable compensation.

12(C) Effective July 1, 2019, an additional 1.4 percent for a total
13employee contribution of 2.8 percent of pensionable compensation.

14(3) The employees in State Bargaining Unit 6 shall make
15contributions to prefund retiree health care based on the following
16schedule, and the state shall make a matching contribution:

17(A) Effective July 1, 2016, 1.3 percent of pensionable
18compensation.

19(B) Effective July 1, 2017, an additional 1.3 percent for a total
20employee contribution of 2.6 percent of pensionable compensation.

21(C) Effective July 1, 2018, an additional 1.4 percent for a total
22employee contribution of 4.0 percent of pensionable compensation.

begin insert

23
(4) The state employees in the judicial branch shall make
24contributions to prefund retiree health care based on the following
25schedule, and the state shall make a matching contribution:

end insert
begin insert

26
(A) Effective July 1, 2016, 1.5 percent of pensionable
27compensation.

end insert
begin insert

28
(B) Effective July 1, 2017, up to an additional 1.5 percent for
29a total employee contribution of up to 3.0 percent of pensionable
30compensation. The additional amount shall be determined by the
31Director of Finance no later than April 1, 2017, based on the
32actuarially determined normal costs identified in the state
33valuation.

end insert
begin insert

34
(C) This paragraph does not apply to a judge who is subject to
35Chapter 11 (commencing with Section 75000) or Chapter 11.5
36(commencing with Section 75500) of Title 8.

end insert
begin insert

37
(5) The employees in State Bargaining Unit 12 shall make
38contributions to prefund retiree health care based on the following
39schedule, and the state shall make a matching contribution:

end insert
begin insert

P24   1
(A) Effective July 1, 2017, 1.9 percent of pensionable
2compensation.

end insert
begin insert

3
(B) Effective July 1, 2018, an additional 1.4 percent for a total
4employee contribution of 3.3 percent of pensionable compensation.

end insert
begin insert

5
(C) Effective July 1, 2019, an additional 1.3 percent for a total
6employee contribution of 4.6 percent of pensionable compensation.

end insert

7(c) This section only applies to employeesbegin delete in State Bargaining
8Unit 6, 9, or 10end delete
who are eligible for health benefits, including
9permanent intermittent employees.

10(d) Contributions paid pursuant to this section shall be deposited
11in the Annuitants’ Health Care Coverage Fund and shall not be
12refundable under any circumstances to an employeebegin delete in State
13Bargaining Unit 6, 9, or 10end delete
or his or her beneficiary or survivor.

14(e) If the provisions of this section are in conflict with the
15provisions of a memorandum of understanding reached pursuant
16to Section 3517.5, the memorandum of understanding shall be
17controlling without further legislative action, except that if those
18provisions of a memorandum of understanding require the
19expenditure of funds, the provisions shall not become effective
20unless approved by the Legislature in the annual Budget Act.

21(f) This section shall also apply to a state employee related to
22begin delete State Bargaining Unit 6, 9, or 10end deletebegin insert a bargaining unit described in
23subdivision (a)end insert
who is excepted from the definition of “state
24employee” in subdivision (c) of Section 3513.

25begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 22958.1 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
26to read:end insert

27

22958.1.  

(a) Notwithstanding Sections 22953, 22957, and
2822958, the following employees shall not receive any portion of
29the employer contribution payable for annuitants unless the person
30is credited with 15 or more years of state service, as defined by
31this section, at the time of retirement:

32(1) A state employee, as defined by subdivision (c) of Section
333513, who is first employed by the state and becomes a state
34member of the system on or after January 1, 2017, and is
35represented by State Bargaining Unitbegin delete 6.end deletebegin insert 6 or 12.end insert

36(2) A state employee related to State Bargaining Unit 6begin insert or 12end insert
37 who is excepted from the definition of “state employee” in
38subdivision (c) of Section 3513 and is first employed by the state
39and becomes a state member of the system on or after January 1,
402017.

P25   1(b) The percentage of the employer contribution payable for
2postretirement dental care benefits for an employee subject to this
3section shall be based on the funding provision of the plan and the
4completed years of credited state service at retirement as shown
5in the following table:


6

 

begin delete

Years of Service Contribution

end delete
begin insert

Credited Years
of Service

end insert
begin delete

Credited Years Percentage
of Employer Contribution

end delete
begin insert

Percentage of Employer
Contribution

end insert

15   

50

16   

55

17   

60

18   

65

19   

70

20   

75

21   

80

22   

85

23   

90

24   

95

25 or more   

100

P25  22

 

23(c) This section shall apply only to state employees that retire
24for service. For purposes of this section, “state service” means
25service rendered as an employee of the state or an appointed or
26elected officer of the state for compensation.

27(d) This section does not apply to:

28(1) Former state employees previously employedbegin delete beforeend deletebegin insert prior
29toend insert
January 1, 2017, who return to state employment on or after
30January 1, 2017.

31(2) State employees hired prior to January 1, 2017, who become
32subject to representation by State Bargaining Unit 6begin insert or 12end insert on or
33after January 1, 2017.

34(3) State employees on an approved leave of absence employed
35before January 1, 2017, who return to active employment on or
36after January 1, 2017.

37(4) State employees hired after January 1, 2017, who are first
38represented by a State Bargaining Unit other than Bargaining Unit
39begin delete 6,end deletebegin insert 6 or 12,end insert who later become represented by State Bargaining Unit
40
begin delete 6.end deletebegin insert 6 or 12.end insert

P26   1(e) In those cases where the state has assumed from a public
2agency a function and the related personnel, service rendered by
3that personnel for compensation as employees or appointed or
4elected officers of that public agency may not be credited as state
5service for the purposes of this section unless the former employer
6has paid or agreed to pay the state the amount actuarially
7determined to equal the cost for any employee dental benefits that
8were vested at the time that the function and the related personnel
9were assumed by the state, and the Department of Finance finds
10that the contract contains a benefit factor sufficient to reimburse
11the state for the amount necessary to fully compensate for the
12postretirement dental benefit costs of those personnel. For
13noncontracting public agencies, the state agency that has assumed
14the function shall certify the completed years of public agency
15service to be credited to the employee as state service credit under
16this section.

17begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 22958.2 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
18to read:end insert

begin insert
19

begin insert22958.2.end insert  

(a) Notwithstanding Sections 22953, 22957, and
2022958, a judicial branch employee who is first employed by the
21state and becomes a state member of the system on or after January
221, 2017, shall not receive any portion of the employer contribution
23payable for annuitants unless the person is credited with 15 years
24of state service at the time of retirement.

25
(b) The percentage of the employer contribution payable for
26postretirement dental care benefits for an employee subject to this
27section shall be based on the funding provision of the plan and
28the completed years of credited state service at retirement as shown
29in the following table:


30

 

begin insert

Credited Years
of Service

end insert
begin insert

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
P27   4

 

5
(c) This section shall apply only to judicial branch employees
6who retire for service. For purposes of this section, “state service”
7means service rendered as an employee of the state or an appointed
8or elected officer of the state for compensation.

9
(d) This section does not apply to any of the following:

10
(1) Former state employees previously employed prior to
11January 1, 2017, who return to state employment on or after
12January 1, 2017.

13
(2) State employees on an approved leave of absence employed
14before January 1, 2017, who return to active employment on or
15after January 1, 2017.

16
(3) A judge who retires pursuant to Chapter 11 (commencing
17with Section 75000) or Chapter 11.5 (commencing with Section
1875500) of Title 8.

end insert
19begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 68203 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
20to read:end insert

21

68203.  

(a) On July 1, 1980, and on July 1 of each year
22thereafter, the salary of each justice and judge named in Sections
2368200 to 68202, inclusive, and 68203.1 shall be increased by the
24amount that is produced by multiplying the then current salary of
25each justice or judge by the average percentage salary increase for
26the current fiscal year for California state employees; provided,
27that in any fiscal year in which the Legislature places a dollar
28limitation on salary increases for state employees the same
29limitation shall apply to judges in the same manner applicable to
30state employees in comparable wage categories.

31(b) begin insert(1)end insertbegin insertend insertFor the purposes of this section,begin insert average percentageend insert
32 salary increases forbegin insert Californiaend insert state employees shall be those
33increases as reported by the Department of Humanbegin delete Resources.end delete
34
begin insert Resources to the State Controller in a pay letter.end insert

begin insert

35
(2) For purposes of this section the average percentage salary
36increase for the current fiscal year for California state employees
37shall be reduced by the average percentage salary decrease
38resulting from the furlough or enrollment in a personal leave
39program of California state employees in that current fiscal year,
P28   1as determined by the Department of Human Resources, in
2consultation with the Department of Finance.

end insert
begin insert

3
(3) If the reduction required pursuant to paragraph (2) results
4in a percentage that is equal to or less than zero, the salary of
5each justice and judge named in Sections 68200 to 68202,
6inclusive, and 68203.1 shall not be increased.

end insert
begin insert

7
(4) Persons working for the California State University system,
8the judicial branch, or the Legislature are not considered
9California state employees for purposes of this subdivision.

end insert

10(c) The salary increase for judges and justices made on July 1,
111980, for the 1980-81 fiscal year, shall in no case exceed 5 percent.

12(d) On January 1, 2001, the salary of the justices and judges
13named in Sections 68200 to 68202, inclusive, shall be increased
14by the amount that is produced by multiplying the salary of each
15justice and judge as of December 31, 2000, by 812 percent.

16(e) On January 1, 2007, the salary of the justices and judges
17identified in Sections 68200 to 68202, inclusive, and 68203.1 shall
18also be increased by the amount that is produced by multiplying
19the salary of each justice and judge as of December 31, 2006, by
208.5 percent.

begin insert

21
(f) Notwithstanding Article 2 (commencing with Section 3287)
22of Chapter 1 of Title 2 of Part 1 of Division 4 of the Civil Code,
23Chapter 5 (commencing with Section 685.010) of Division 1 of
24Title 9 of Part 2 of the Code of Civil Procedure, any other law, or
25any court judgment that has not been finally determined upon
26appeal as of the date this subdivision is enacted, any award of
27interest on an order to pay unpaid salary or judicial retiree benefits
28pursuant to this section shall not exceed the rate of interest accrued
29on moneys in the Pooled Money Investment Account.

end insert
30begin insert

begin insertSEC. 23.end insert  

end insert
begin insert

By amending Section 68203 of the Government Code
31in this act, the Legislature does not intend to create an inference
32about the legal effect of the statute prior to the enactment of this
33act.

end insert
34begin insert

begin insertSEC. 24.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
35to the Budget Bill within the meaning of subdivision (e) of Section
3612 of Article IV of the California Constitution, has been identified
37as related to the budget in the Budget Bill, and shall take effect
38immediately.

end insert
begin delete
P29   1

SECTION 1.  

It is the intent of the Legislature to enact statutory
2changes, relating to the Budget Act of 2016.

end delete


O

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