BILL NUMBER: SB 848	CHAPTERED
	BILL TEXT

	CHAPTER  35
	FILED WITH SECRETARY OF STATE  JUNE 27, 2016
	APPROVED BY GOVERNOR  JUNE 27, 2016
	PASSED THE SENATE  JUNE 15, 2016
	PASSED THE ASSEMBLY  JUNE 15, 2016
	AMENDED IN ASSEMBLY  JUNE 12, 2016
	AMENDED IN ASSEMBLY  MAY 25, 2016

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 7, 2016

   An 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.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 848, Committee on Budget and Fiscal Review. State employment.
   (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.
   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.
   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.
   (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.
   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.
   (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.
   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.
   (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.
   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.
   (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.
   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.
   (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.
   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.
   (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.
   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.
   (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.
   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.
   (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.
   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.
   (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.
   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.
   (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.
   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.
   (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.
   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.
   (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.
   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.
   (14) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares that one of the
purposes of this act is to approve the agreement entered into by the
state employer and State Bargaining Unit 12 pursuant to Section
3517.5 of the Government Code.
  SEC. 2.  The provisions of the memorandum of understanding prepared
pursuant to Section 3517.5 of the Government Code and entered into
by the state employer and State Bargaining Unit 12, dated May 26,
2016, and that require the expenditure of funds, are hereby approved
for the purposes of subdivision (b) of Section 3517.6 of the
Government Code.
  SEC. 3.  The provisions of the memorandum of understanding approved
in Section 2 of this act that require the expenditure of funds shall
not take effect unless funds for these provisions are specifically
appropriated by the Legislature. If funds for these provisions are
not specifically appropriated by the Legislature, either the state
employer or the affected employee organization may reopen
negotiations on all or part of the memorandum of understanding.
  SEC. 4.  Notwithstanding Section 3517.6 of the Government Code, the
provisions of the memorandum of understanding included in Section 2
of this act that require the expenditure of funds shall become
effective even if the provisions of the memorandum of understanding
are approved by the Legislature in legislation other than the annual
Budget Act.
  SEC. 5.  The sum of forty-five million four hundred nineteen
thousand dollars ($45,419,000) is hereby appropriated for State
Bargaining Unit 12 for expenditure in the 2016-17 fiscal year in
augmentation of, and for the purpose of, state employee compensation,
as provided in Items 9800-001-0001, 9800-001-0494, and 9800-001-0988
of Section 2.00 of the Budget Act of 2016, in accordance with the
following schedule:
   (a) Fourteen million five hundred ninety-six thousand dollars
($14,596,000) from the General Fund in augmentation of Item
9800-001-0001.
   (b) Twenty million six hundred fifty-one thousand dollars
($20,651,000) from unallocated special funds in augmentation of Item
9800-001-0494.
   (c) Ten million one hundred seventy-two thousand dollars
($10,172,000) from other unallocated nongovernmental cost funds in
augmentation of Item 9800-001-0988.
  SEC. 6.  Section 19141 of the Government Code is amended to read:
   19141.  (a) This section applies only to an employee in an exempt
position who previously had permanent status in the civil service. As
used in this section, "former position" is defined as in Section
18522, or, if the appointing power to which reinstatement is to be
made and the employee agree, a vacant position in any department,
commission, or state agency for which he or she is qualified and
which is at substantially the same level as the employee's former
position.
   (b) An employee who vacates a civil service position to accept an
appointment to an exempt position shall be reinstated to his or her
former position at the termination of the exempt appointment,
provided both of the following conditions are met:
   (1) He or she accepted the appointment without a break in the
continuity of state service.
   (2) Within 10 working days after the effective date of the
termination, he or she makes a written request to the appointing
power to be reinstated to his or her former position. If an employee
accepts an appointment to an exempt position and seeks reinstatement
to his or her former position more than 10 working days after the
effective date of the termination of the exempt appointment, Section
19140 shall apply.
   (c) An employee who vacates his or her civil service position to
accept an assignment as a member, inmate, or patient helper under
subdivision (j) of Section 4 of Article VII of the California
Constitution shall not have a right to mandatory reinstatement.
   (d) If an employee in an exempt appointment accepts an extension
of the exempt appointment or accepts a new exempt appointment with no
break in the continuity of state service in an exempt appointment,
subdivision (b) shall apply when the extension or new exempt
appointment is terminated.
   (e) If an employee exercises his or her right of reinstatement and
returns to his or her former position, the service while under an
exempt appointment shall be deemed to be time served in the former
position for the purpose of determining his or her seniority and
eligibility for merit salary increases.
   (f) If the termination of an exempt appointment is for a reason
contained in Section 19997 and the employee does not have a right to
mandatory reinstatement, he or she shall have his or her name placed
on the departmental and general reemployment lists for the class of
his or her former position.
  SEC. 7.  Section 19141.1 of the Government Code is amended to read:

   19141.1.  (a) This section only applies to employees in an exempt
position who have reinstatement rights to their former positions
under Section 19141.
   (b) Within four years of the termination of an appointment in an
exempt position, an employee who has completed a minimum of five
years of state service experience shall be given an opportunity upon
request 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.
  SEC. 8.  Section 19243 of the Government Code is amended to read:
   19243.  Upon successful completion of the job examination period,
the candidate shall have qualified in the examination. With the
approval of the department, the appointing power may appoint the
candidate, without further examination, to an appropriate position
where civil service status may accumulate. A candidate appointed in
this way is not required to serve a probationary period.
  SEC. 9.  Section 19829.9844 is added to the Government Code, to
read:
   19829.9844.  (a) Notwithstanding Section 13340, for the 2016-17
fiscal year, if the Budget Act of 2016 is not enacted by July 1,
2016, for the memorandum of understanding entered into between the
state employer and State Bargaining Unit 12 (effective July 1, 2015,
to July 1, 2019, inclusive) there is hereby continuously appropriated
to the Controller from the General Fund, unallocated special funds,
including, but not limited to, 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
above memorandum of understanding until the Budget Act of 2016 is
enacted. The Controller may expend an amount no greater than
necessary to enable the Controller to compensate state employees
covered by the above memorandum of understanding for work performed
between July 1, 2016, of the 2016-17 fiscal year and the enactment of
the Budget Act of 2016.
   (b) If the memorandum of understanding entered into between the
state employer and State Bargaining Unit 12 (effective July 1, 2015,
to July 1, 2019, inclusive) is in effect and approved by the
Legislature, the compensation and contribution for employee benefits
for state employees represented by this bargaining unit shall be at a
rate consistent with the applicable memorandum of understanding
referenced above.
   (c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the Budget Act of 2016, these
expenditures shall be subsumed by the expenditure authority approved
in the Budget Act of 2016 for each affected department.
   (d) This section shall only apply to an employee covered by the
term of the State Bargaining Unit 12 (effective July 1, 2015, to July
1, 2019, inclusive) memorandum of understanding. Notwithstanding
Section 3517.8, this section shall not apply after the term of the
memorandum of understanding has expired. For purposes of this
section, the memorandum of understanding for State Bargaining Unit 12
expires on July 1, 2019.
  SEC. 10.  Section 19829.9845 is added to the Government Code, to
read:
   19829.9845.  (a) Notwithstanding Section 13340, for the 2017-18
fiscal year, if the Budget Act of 2017 is not enacted by July 1,
2017, for the memorandum of understanding entered into between the
state employer and State Bargaining Unit 12 (effective July 1, 2015,
to July 1, 2019, inclusive) there is hereby continuously appropriated
to the Controller from the General Fund, unallocated special funds,
including, but not limited to, 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
above memorandum of understanding until the Budget Act of 2017 is
enacted. The Controller may expend an amount no greater than
necessary to enable the Controller to compensate state employees
covered by the above memorandum of understanding for work performed
between July 1, 2017, of the 2017-18 fiscal year and the enactment of
the Budget Act of 2017.
   (b) If the memorandum of understanding entered into between the
state employer and State Bargaining Unit 12 (effective July 1, 2015,
to July 1, 2019, inclusive) is in effect and approved by the
Legislature, the compensation and contribution for employee benefits
for state employees represented by this bargaining unit shall be at a
rate consistent with the applicable memorandum of understanding
referenced above.
   (c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the Budget Act of 2017, these
expenditures shall be subsumed by the expenditure authority approved
in the Budget Act of 2017 for each affected department.
   (d) This section shall only apply to an employee covered by the
term of the State Bargaining Unit 12 (effective July 1, 2015, to July
1, 2019, inclusive) memorandum of understanding. Notwithstanding
Section 3517.8, this section shall not apply after the term of the
memorandum of understanding has expired. For purposes of this
section, the memorandum of understanding for State Bargaining Unit 12
expires on July 1, 2019.
  SEC. 11.  Section 19829.9846 is added to the Government Code, to
read:
   19829.9846.  (a) Notwithstanding Section 13340, for the 2018-19
fiscal year, if the Budget Act of 2018 is not enacted by July 1,
2018, for the memorandum of understanding entered into between the
state employer and State Bargaining Unit 12 (effective July 1, 2015,
to July 1, 2019, inclusive) there is hereby continuously appropriated
to the Controller from the General Fund, unallocated special funds,
including, but not limited to, 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
above memorandum of understanding until the Budget Act of 2018 is
enacted. The Controller may expend an amount no greater than
necessary to enable the Controller to compensate state employees
covered by the above memorandum of understanding for work performed
between July 1, 2018, of the 2018-19 fiscal year and the enactment of
the Budget Act of 2018.
   (b) If the memorandum of understanding entered into between the
state employer and State Bargaining Unit 12 (effective July 1, 2015,
to July 1, 2019, inclusive) is in effect and approved by the
Legislature, the compensation and contribution for employee benefits
for state employees represented by this bargaining unit shall be at a
rate consistent with the applicable memorandum of understanding
referenced above.
   (c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the Budget Act of 2018, these
expenditures shall be subsumed by the expenditure authority approved
in the Budget Act of 2018 for each affected department.
   (d) This section shall only apply to an employee covered by the
term of the State Bargaining Unit 12 (effective July 1, 2015, to July
1, 2019, inclusive) memorandum of understanding. Notwithstanding
Section 3517.8, this section shall not apply after the term of the
memorandum of understanding has expired. For purposes of this
section, the memorandum of understanding for State Bargaining Unit 12
expires on July 1, 2019.
  SEC. 12.  Section 19838 of the Government Code is amended to read:
   19838.  (a) When the state determines an overpayment has been made
to an employee, it shall notify the employee of the overpayment and
afford the employee an opportunity to respond prior to commencing
recoupment actions. Thereafter, reimbursement shall be made to the
state through one of the following methods mutually agreed to by the
employee and the state:
   (1) Cash payment or payments.
   (2) Installments through payroll deduction to cover at least the
same number of pay periods in which the error occurred. When
overpayments have continued for more than one year, full payment may
be required by the state through payroll deductions over the period
of one year.
   (3) The adjustment of appropriate leave credits or compensating
time off, provided that the overpayment involves the accrual or
crediting of leave credits (e.g., vacation, annual leave, or holiday)
or compensating time off. Any errors in sick leave balances may only
be adjusted with sick leave credits.
   Absent mutual agreement on a method of reimbursement, the state
shall proceed with recoupment in the manner set forth in paragraph
(2).
   (b) An employee who is separated from employment prior to full
repayment of the amount owed shall have withheld from any money owing
the employee upon separation an amount sufficient to provide full
repayment. If the amount of money owing upon separation is
insufficient to provide full reimbursement to the state, the state
shall have the right to exercise any and all other legal means to
recover the additional amount owed.
   (c) Amounts deducted from payment of salary or wages pursuant to
the above provisions, except as provided in subdivision (b), shall in
no event exceed 25 percent of the employee's net disposable
earnings.
   (d) An administrative action shall not be taken by the state
pursuant to this section to recover an overpayment unless the action
is initiated within three years from the date of overpayment. If an
overpayment involves leave credits, the date of overpayment is the
date that the employee receives compensation in exchange for leave
erroneously credited to the employee. For purposes of this section,
leave hours are considered exchanged for compensation in the order
they were credited.
   (e) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 13.  Section 19995.1 of the Government Code is amended to
read:
   19995.1.  For the purpose of meeting the development needs of the
state's workforce, the department shall analyze, design, develop,
implement, and evaluate an integrated development strategy to
continually advance employee skills and improve performance
productivity and service. The department may prescribe regulations
and conditions for the administration of this chapter. The conditions
prescribed by the department may include, but not be limited to, the
requirements that the training shall be cost effective, of value to
the state, and relevant to the employee's career development in state
service. The department may further prescribe the conditions under
which an employee may be required to reimburse the state for the
costs of out-service training in the event he or she fails to remain
in state service for a reasonable time after receiving the training.
   If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 14.  Section 19995.4 of the Government Code is amended to
read:
   19995.4.  (a) The department shall devise plans for, and cooperate
with appointing powers in the conduct of, supervisor 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.
   (b) Upon the initial appointment of an employee to a designated
supervisory position, the employee shall be provided a minimum of 80
hours of training, as prescribed by the department. The training
shall address the role of the supervisor, techniques of supervision,
planning, organizing, staffing, performance standards, performance
appraisals, discipline, labor relations, equal employment opportunity
principles, and affirmative action for persons with disabilities.
Every supervisor shall have access to a copy of each bargaining
agreement covering the employees he or she supervises.
   (c) The required hours of supervisory training shall be
successfully completed within the term of the probationary period or
within six months of the employee's initial appointment, unless it is
demonstrated that to do so creates additional costs or that the
training cannot be completed during this time period due to limited
availability of training courses. Upon completion of the initial
appointment training, supervisory employees shall be provided
biannually a minimum of 20 hours of leadership training and
development, as prescribed by the department.
   (d) Upon the initial appointment of an employee to a management
position, the employee shall be provided a minimum of 40 hours of
leadership training and development, as prescribed by the department,
within 12 months of appointment. Thereafter, the employee shall be
provided biannually a minimum of 20 hours of leadership training, as
prescribed by the department.
   (e) Upon the initial appointment of an employee to a career
executive assignment position, the employee shall be provided a
minimum of 20 hours of leadership training and development as
prescribed by the department within 12 months of appointment.
Thereafter, the employee shall be provided biannually a minimum of 20
hours of leadership training and development as prescribed by the
department.
  SEC. 15.  Section 20683.3 is added to the Government Code, to read:

   20683.3.  Notwithstanding Sections 20677 and 20687, on and after
July 1, 2017, the normal rate of contribution for an employee of the
judicial branch who is not subject to Section 7522.30 shall be the
following:
   (a) For a state miscellaneous member:
   (1) Nine percent of the compensation in excess of three hundred
seventeen dollars ($317) per month paid to a member whose service is
not included in the federal system.
   (2) Eight percent of compensation in excess of five hundred
thirteen dollars ($513) per month paid to that member whose service
has been included in the federal system.
   (b) For a peace officer/firefighter member, 11 percent of
compensation in excess of two hundred thirty-eight dollars ($238) per
month paid to that member.
  SEC. 16.  Section 22871.3 of the Government Code is amended to
read:
   22871.3.  (a) The employer contribution for each annuitant
enrolled in a basic plan shall be an amount equal to 80 percent of
the weighted average of the health benefit plan premiums for an
employee or annuitant enrolled for self-alone, during the benefit
year to which the formula is applied, for the four health benefit
plans that had the largest active state civil service enrollment,
excluding family members, during the previous benefit year. For each
annuitant with enrolled family members, 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 to which the formula is applied, in the four
health benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year.
   (b) The employer contribution for each annuitant enrolled in a
Medicare health benefit plan in accordance with Section 22844 shall
be an amount equal to 80 percent of the weighted average of the
health benefit plan premiums for an annuitant enrolled in a Medicare
health benefit plan for self-alone, during the benefit year to which
the formula is applied, for the four Medicare health benefit plans
that had the largest state annuitant enrollment, excluding family
members, during the previous benefit year. For each annuitant with
enrolled family members, 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 to which the formula is applied, in the four Medicare
health benefit plans that had the largest state annuitant enrollment,
excluding family members, during the previous benefit year. If the
annuitant is eligible for Medicare Part A, with or without cost, and
Medicare Part B, regardless of whether the annuitant is actually
enrolled in Medicare Part A or Part B, the employer contribution
shall not exceed the amount calculated under this subdivision.
   (c) This section applies to:
   (1) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2016, and
who is represented by State Bargaining Unit 9 or 10.
   (2) A state employee related to State Bargaining Unit 9 or 10 who
is excepted from the definition of "state employee" in subdivision
(c) of Section 3513 and first employed by the state and becomes a
state member of the system on or after January 1, 2016.
   (3) A state employee represented by State Bargaining Unit 6 or 12
who is first employed by the state and becomes a state member of the
system on or after January 1, 2017.
   (4) A state employee related to State Bargaining Unit 6 or 12 who
is excepted from the definition of "state employee" in subdivision
(c) of Section 3513 and first employed by the state and becomes a
state member of the system on or after January 1, 2017.
   (5) A judicial branch employee who is first employed by the state
and becomes a state member of the system on or after January 1, 2017.
This paragraph does not apply to a judge who is subject to Chapter
11 (commencing with Section 75000) or Chapter 11.5 (commencing with
Section 75500) of Title 8.
   (d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
  SEC. 17.  Section 22874.4 is added to the Government Code, to read:

   22874.4.  (a) Notwithstanding Sections 22870, 22871, and 22873, a
judicial branch employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2017,
shall not receive any portion of the employer contribution payable
for annuitants unless the person is credited with 15 years of state
service at the time of retirement.
   (b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the completed years of credited state
service at retirement as shown in the following table:
Credited                 Percentage of
Years                    Employer
of Service               Contribution
15...................... 50
16...................... 55
17...................... 60
18...................... 65
19...................... 70
20...................... 75
21...................... 80
22...................... 85
23...................... 90
24...................... 95
25 or more.............. 100


   (c) This section shall apply only to judicial branch employees who
retire for service. For purposes of this section, "state service"
means service rendered as an employee of the state or an appointed or
elected officer of the state for compensation.
   (d) This section does not apply to any of the following:
   (1) Former state employees previously employed prior to January 1,
2017, who return to state employment on or after January 1, 2017.
   (2) State employees on an approved leave of absence employed
before January 1, 2017, who return to active employment on or after
January 1, 2017.
   (3) A judge who retires pursuant to Chapter 11 (commencing with
Section 75000) or Chapter 11.5 (commencing with Section 75500) of
Title 8.
  SEC. 18.  Section 22879 of the Government Code is amended to read:
   22879.  (a) The board shall pay monthly to an employee or
annuitant who is enrolled in, or whose family member is enrolled in,
a Medicare health benefit plan under this part the amount of the
Medicare Part B premiums, exclusive of penalties, except as provided
in Section 22831. This payment may not exceed 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. No payment may be made in any month if the difference is
less than one dollar ($1).
   (b) This section shall be applicable only to state employees,
annuitants who retired while state employees, and the family members
of those persons.
   (c) With respect to an annuitant, the board shall pay to the
annuitant the amount required by this section from the same source
from which his or her allowance is paid. Those amounts are hereby
appropriated monthly from the General Fund to reimburse the board for
those payments.
   (d) There is hereby appropriated from the appropriate funds the
amounts required by this section to be paid to active state
employees.
                                                        (e) This
section does not apply to:
   (1) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2016, and
who is represented by State Bargaining Unit 9 or 10.
   (2) A state employee related to State Bargaining Unit 9 or 10 who
is excepted from the definition of "state employee" in subdivision
(c) of Section 3513 and is first employed by the state and becomes a
state member of the system on or after January 1, 2016.
   (3) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2017, and
who is represented by State Bargaining Unit 6 or 12.
   (4) A state employee related to State Bargaining Unit 6 or 12 who
is excepted from the definition of "state employee" in subdivision
(c) of Section 3513 and is first employed by the state and becomes a
state member of the system on or after January 1, 2017.
   (5) A judicial branch employee who is first employed by the state
and becomes a state member of the system on or after January 1, 2017.
This paragraph does not apply to a judge who is subject to Chapter
11 (commencing with Section 75000) or Chapter 11.5 (commencing with
Section 75500) of Title 8.
  SEC. 19.  Section 22944.5 of the Government Code is amended to
read:
   22944.5.  (a)  (1)  The state and employees in State Bargaining
Unit 9, 10, or 12 shall prefund retiree health care, with the goal of
reaching a 50-percent cost sharing of actuarially determined normal
costs for both employer and employees by July 1, 2019.
   (2) The state and employees in State Bargaining Unit 6 shall
prefund retiree health care, with the goal of reaching a 50-percent
cost sharing of actuarially determined normal costs for both employer
and employees by July 1, 2018.
   (3) The state and employees in the judicial branch shall prefund
retiree health care, with the goal of reaching a 50-percent cost
sharing of actuarially determined normal costs for both employer and
employees by July 1, 2017.
   (b) (1) The employees in State Bargaining Unit 9 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
   (A) Effective July 1, 2017, 0.5 percent of pensionable
compensation.
   (B) Effective July 1, 2018, an additional 0.5 percent for a total
employee contribution of 1.0 percent of pensionable compensation.
   (C) Effective July 1, 2019, an additional 1.0 percent for a total
employee contribution of 2.0 percent of pensionable compensation.
   (2) The employees in State Bargaining Unit 10 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
   (A) Effective July 1, 2017, 0.7 percent of pensionable
compensation.
   (B) Effective July 1, 2018, an additional 0.7 percent for a total
employee contribution of 1.4 percent of pensionable compensation.
   (C) Effective July 1, 2019, an additional 1.4 percent for a total
employee contribution of 2.8 percent of pensionable compensation.
   (3) The employees in State Bargaining Unit 6 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
   (A) Effective July 1, 2016, 1.3 percent of pensionable
compensation.
   (B) Effective July 1, 2017, an additional 1.3 percent for a total
employee contribution of 2.6 percent of pensionable compensation.
   (C) Effective July 1, 2018, an additional 1.4 percent for a total
employee contribution of 4.0 percent of pensionable compensation.
   (4) The state employees in the judicial branch shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
   (A) Effective July 1, 2016, 1.5 percent of pensionable
compensation.
   (B) Effective July 1, 2017, up to an additional 1.5 percent for a
total employee contribution of up to 3.0 percent of pensionable
compensation. The additional amount shall be determined by the
Director of Finance no later than April 1, 2017, based on the
actuarially determined normal costs identified in the state
valuation.
   (C) This paragraph does not apply to a judge who is subject to
Chapter 11 (commencing with Section 75000) or Chapter 11.5
(commencing with Section 75500) of Title 8.
   (5) The employees in State Bargaining Unit 12 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
   (A) Effective July 1, 2017, 1.9 percent of pensionable
compensation.
   (B) Effective July 1, 2018, an additional 1.4 percent for a total
employee contribution of 3.3 percent of pensionable compensation.
   (C) Effective July 1, 2019, an additional 1.3 percent for a total
employee contribution of 4.6 percent of pensionable compensation.
   (c) This section only applies to employees who are eligible for
health benefits, including permanent intermittent employees.
   (d) Contributions paid pursuant to this section shall be deposited
in the Annuitants' Health Care Coverage Fund and shall not be
refundable under any circumstances to an employee or his or her
beneficiary or survivor.
   (e) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if those provisions
of a memorandum of understanding require the expenditure of funds,
the provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
   (f) This section shall also apply to a state employee related to a
bargaining unit described in subdivision (a) who is excepted from
the definition of "state employee" in subdivision (c) of Section
3513.
  SEC. 20.  Section 22958.1 of the Government Code is amended to
read:
   22958.1.  (a) Notwithstanding Sections 22953, 22957, and 22958,
the following employees shall not receive any portion of the employer
contribution payable for annuitants unless the person is credited
with 15 or more years of state service, as defined by this section,
at the time of retirement:
   (1) A state employee, as defined by subdivision (c) of Section
3513, who is first employed by the state and becomes a state member
of the system on or after January 1, 2017, and is represented by
State Bargaining Unit 6 or 12.
   (2) A state employee related to State Bargaining Unit 6 or 12 who
is excepted from the definition of "state employee" in subdivision
(c) of Section 3513 and is first employed by the state and becomes a
state member of the system on or after January 1, 2017.
   (b) The percentage of the employer contribution payable for
postretirement dental care benefits for an employee subject to this
section shall be based on the funding provision of the plan and the
completed years of credited state service at retirement as shown in
the following table:
Credited                 Percentage of
Years                    Employer
of Service               Contribution
15...................... 50
16...................... 55
17...................... 60
18...................... 65
19...................... 70
20...................... 75
21...................... 80
22...................... 85
23...................... 90
24...................... 95
25 or more.............. 100


   (c) This section shall apply only to state employees that retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation.
   (d) This section does not apply to:
   (1) Former state employees previously employed prior to January 1,
2017, who return to state employment on or after January 1, 2017.
   (2) State employees hired prior to January 1, 2017, who become
subject to representation by State Bargaining Unit 6 or 12 on or
after January 1, 2017.
   (3) State employees on an approved leave of absence employed
before January 1, 2017, who return to active employment on or after
January 1, 2017.
   (4) State employees hired after January 1, 2017, who are first
represented by a State Bargaining Unit other than Bargaining Unit 6
or 12, who later become represented by State Bargaining Unit 6 or 12.

   (e) In those cases where the state has assumed from a public
agency a function and the related personnel, service rendered by that
personnel for compensation as employees or appointed or elected
officers of that public agency may not be credited as state service
for the purposes of this section unless the former employer has paid
or agreed to pay the state the amount actuarially determined to equal
the cost for any employee dental benefits that were vested at the
time that the function and the related personnel were assumed by the
state, and the Department of Finance finds that the contract contains
a benefit factor sufficient to reimburse the state for the amount
necessary to fully compensate for the postretirement dental benefit
costs of those personnel. For noncontracting public agencies, the
state agency that has assumed the function shall certify the
completed years of public agency service to be credited to the
employee as state service credit under this section.
  SEC. 21.  Section 22958.2 is added to the Government Code, to read:

   22958.2.  (a) Notwithstanding Sections 22953, 22957, and 22958, a
judicial branch employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2017,
shall not receive any portion of the employer contribution payable
for annuitants unless the person is credited with 15 years of state
service at the time of retirement.
   (b) The percentage of the employer contribution payable for
postretirement dental care benefits for an employee subject to this
section shall be based on the funding provision of the plan and the
completed years of credited state service at retirement as shown in
the following table:
Credited                 Percentage of
Years                    Employer
of Service               Contribution
15...................... 50
16...................... 55
17...................... 60
18...................... 65
19...................... 70
20...................... 75
21...................... 80
22...................... 85
23...................... 90
24...................... 95
25 or more.............. 100


   (c) This section shall apply only to judicial branch employees who
retire for service. For purposes of this section, "state service"
means service rendered as an employee of the state or an appointed or
elected officer of the state for compensation.
   (d) This section does not apply to any of the following:
   (1) Former state employees previously employed prior to January 1,
2017, who return to state employment on or after January 1, 2017.
   (2) State employees on an approved leave of absence employed
before January 1, 2017, who return to active employment on or after
January 1, 2017.
   (3) A judge who retires pursuant to Chapter 11 (commencing with
Section 75000) or Chapter 11.5 (commencing with Section 75500) of
Title 8.
  SEC. 22.  Section 68203 of the Government Code is amended to read:
   68203.  (a) On July 1, 1980, and on July 1 of each year
thereafter, the salary of each justice and judge named in Sections
68200 to 68202, inclusive, and 68203.1 shall be increased by the
amount that is produced by multiplying the then current salary of
each justice or judge by the average percentage salary increase for
the current fiscal year for California state employees; provided,
that in any fiscal year in which the Legislature places a dollar
limitation on salary increases for state employees the same
limitation shall apply to judges in the same manner applicable to
state employees in comparable wage categories.
   (b) (1) For the purposes of this section, average percentage
salary increases for California state employees shall be those
increases as reported by the Department of Human Resources to the
State Controller in a pay letter.
   (2) For purposes of this section the average percentage salary
increase for the current fiscal year 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, as determined
by the Department of Human Resources, in consultation with the
Department of Finance.
   (3) If the reduction required pursuant to paragraph (2) results in
a percentage that is equal to or less than zero, the salary of each
justice and judge named in Sections 68200 to 68202, inclusive, and
68203.1 shall not be increased.
   (4) Persons working for the California State University system,
the judicial branch, or the Legislature are not considered California
state employees for purposes of this subdivision.
   (c) The salary increase for judges and justices made on July 1,
1980, for the 1980-81 fiscal year, shall in no case exceed 5 percent.

   (d) On January 1, 2001, the salary of the justices and judges
named in Sections 68200 to 68202, inclusive, shall be increased by
the amount that is produced by multiplying the salary of each justice
and judge as of December 31, 2000, by 81/2 percent.
   (e) On January 1, 2007, the salary of the justices and judges
identified in Sections 68200 to 68202, inclusive, and 68203.1 shall
also be increased by the amount that is produced by multiplying the
salary of each justice and judge as of December 31, 2006, by 8.5
percent.
   (f) Notwithstanding Article 2 (commencing with Section 3287) of
Chapter 1 of Title 2 of Part 1 of Division 4 of the Civil Code,
Chapter 5 (commencing with Section 685.010) of Division 1 of Title 9
of Part 2 of the Code of Civil Procedure, any other law, or any court
judgment that has not been finally determined upon appeal as of the
date this subdivision is enacted, any award of interest on an order
to pay unpaid salary or judicial retiree benefits pursuant to this
section shall not exceed the rate of interest accrued on moneys in
the Pooled Money Investment Account.
  SEC. 23.  By amending Section 68203 of the Government Code in this
act, the Legislature does not intend to create an inference about the
legal effect of the statute prior to the enactment of this act.
  SEC. 24.  This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.