BILL NUMBER: SB 138 CHAPTERED 02/18/99 CHAPTER 3 FILED WITH SECRETARY OF STATE FEBRUARY 18, 1999 APPROVED BY GOVERNOR FEBRUARY 17, 1999 PASSED THE ASSEMBLY FEBRUARY 12, 1999 PASSED THE SENATE FEBRUARY 4, 1999 AMENDED IN SENATE JANUARY 21, 1999 INTRODUCED BY Senator O'Connell JANUARY 4, 1999 An act to amend Sections 18903, 19170.1, and 21465.5 of, and to add Sections 21362.1, 21573.5, and 22955.1 to, the Government Code, relating to state employees, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 138, O'Connell. State Highway Patrol: memorandum of understanding. (1) Existing law provides that if any provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees requires the expenditure of funds, those provisions of the memorandum of understanding shall not become effective unless approved by the Legislature in the annual Budget Act. This bill would approve provisions that require the expenditure of funds of a memorandum of understanding entered into between the state employer and Unit 5--California Association of Highway Patrolmen, and would provide that the provisions of that memorandum of understanding that require the expenditure of funds shall become effective pursuant to the approval of the Legislature contained in the bill. (2) The State Civil Service Act requires that a general reemployment list be maintained for each class of state civil service employees consisting of the names of all persons who have occupied positions with probationary or permanent status in the class and who have been legally laid off or demoted in lieu of layoff. The act requires that for state employees in State Bargaining Unit 5, 6, 8, or 16, a general reemployment list be maintained for each entry level class listing the names of all persons who have occupied positions with probationary or permanent status in the class and who have been legally laid off, demoted in lieu of layoff, or transferred in lieu of layoff. This bill would require that for state employees in State Bargaining Unit 5 the general reemployment list be maintained for each class, rather than for each entry level class. Under the State Civil Service Act, the State Personnel Board is required to establish for each class of state civil service employees the length of the probationary period. The act generally requires that a state civil service employee serve a probationary period of 6 months, unless the board establishes a longer period of not more than one year. Under the act, the probationary period that a state employee in State Bargaining Unit 6, 8, or 16 is required to serve upon appointment is not less than 6 months nor more than 2 years. This bill would specify that the probationary period that a state employee in State Bargaining Unit 5 is to serve upon appointment is not less than 6 months nor more than 2 years. (3) The Public Employees' Retirement Law prescribes retirement benefits for patrol members. This bill would increase the service allowance limitation from 80% to 85% for members of State Bargaining Unit 5 who retire on and after January 1, 1999, and would establish a new retirement option consisting of a partial distribution of the present value of the actuarial amount of retirement allowances for those members. The bill would also provide increased basic death benefits for specified survivors of state members. (4) Existing law, the State Employees' Dental Care Act, provides dental care plan coverage to public employees and annuitants meeting the eligibility requirements prescribed by the Board of Administration of the Public Employees' Retirement System. Existing law provides that notwithstanding particular provisions of the act, state employees in State Bargaining Unit 6 may receive a percentage of the employer's contribution payable for annuitants if the employees are credited with 10 years of state service. This bill would also provide that state employees in State Bargaining Unit 5 may receive a percentage of the employer's contribution payable for annuitants if the employees are credited with 10 or more years of state service. (5) The bill would also declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares that the purpose of this act is to adopt an agreement pursuant to Section 3517 of the Government Code entered into by the state employer and a recognized employee organization to make any necessary statutory changes in health, retirement, salary, or other benefits. SEC. 2. (a) 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 Unit 5--California Association of Highway Patrolmen, dated ____, and requiring the expenditure of funds, are hereby approved for the purposes of Section 3517.6 of the Government Code. (b) Notwithstanding Section 3517.6 of the Government Code, the provisions of the memorandum of understanding described in subdivision (a) that require the expenditure of funds shall become effective pursuant to the approval by the Legislature contained in this act. SEC. 3. Section 18903 of the Government Code is amended to read: 18903. (a) (1) For each class there shall be maintained a general reemployment list consisting of the names of all persons who have occupied positions with probationary or permanent status in the class and who have been legally laid off or demoted in lieu of layoff. (2) Notwithstanding paragraph (1), this paragraph shall apply to state employees in State Bargaining Unit 6, 8, or 16. For each entry level class there shall be maintained a general reemployment list consisting of the names of all persons who have occupied positions with probationary or permanent status in the class and who have been legally laid off, demoted in lieu of layoff, or transferred in lieu of layoff. (3) Notwithstanding paragraph (1), this paragraph shall only apply to state employees in State Bargaining Unit 5. For each class there shall be maintained a general reemployment list consisting of the names of all persons who have occupied positions with probationary or permanent status in the class and who have been legally laid off, demoted in lieu of layoff, or transferred in lieu of layoff. (b) Within one year from the date of his or her resignation in good standing, or his or her voluntary demotion, the name of an employee who had probationary or permanent status may be placed on the general reemployment list with the consent of the appointing power and the board. The general reemployment list may also contain the names of persons placed thereon by the board in accordance with other provisions of this part. SEC. 4. Section 19170.1 of the Government Code is amended to read: 19170.1. (a) Notwithstanding Section 19170 for state employees in State Bargaining Unit 5, 6, 8, or 16, the board shall establish for each class the length of the probationary period. The probationary period that shall be served upon appointment shall be not less than six months nor more than two years. (b) The board may provide by rule: (1) for increasing the length of an individual probationary period by adding thereto periods of time during which an employee, while serving as a probationer, is absent from his or her position; or (2) for requiring an additional period not to exceed the length of the original probationary period when a probationary employee returns after an extended period of absence and the remainder of the probationary period is insufficient to evaluate his or her current performance. SEC. 5. Section 21362.1 is added to the Government Code, to read: 21362.1. Notwithstanding Section 21362, the limitation on the service retirement benefit shall be 85 percent for state patrol members who retire on and after January 1, 1999. This provision may also be applied to state patrol members in related supervisory or confidential positions, provided that the Department of Personnel Administration has approved this inclusion in writing to the board. SEC. 6. Section 21465.5 of the Government Code is amended to read: 21465.5. Section 21465 shall also apply to state patrol members in State Bargaining Unit 5 and state peace officer/firefighter members in State Bargaining Unit 8 who retire on and after January 1, 1999, provided that a memorandum of understanding has been agreed upon by the state and the recognized employee organization to become subject to that section. That section shall also apply to state patrol members and state peace officer/firefighter members in related supervisory and confidential positions, provided that the Department of Personnel Administration has approved their inclusion. SEC. 7. Section 21573.5 is added to the Government Code, to read: 21573.5. (a) In lieu of benefits provided in Section 21571, 21572, or 21573, if the death benefit provided by Section 21532 is payable on account of a state member's death that occurs under circumstances other than those described in subparagraph (F) of paragraph (1) of subdivision (a) of Section 21530, or if an allowance under Section 21546 is payable, the payment pursuant to subdivision (b) shall be made in the following order of priority: (1) The surviving spouse of the member who has the care of unmarried children, including stepchildren, of the member who are under age 22 years of age, or are incapacitated because of disability that began before and has continued without interruption after the attainment of that age. (2) The guardian of surviving unmarried children, including stepchildren, of the member who are 22 years of age or are so incapacitated. (3) The surviving spouse of the member, who does not qualify under paragraph (1). (4) Each surviving parent of the member. (b) Regardless of the benefit provided by Section 21532 and of the beneficiary designated by the member under that section, or regardless of the allowance provided under Section 21546, the following applicable 1959 survivor allowance, under the conditions stated and from contributions of the employer, shall be paid: (1) A surviving spouse who was either continuously married to the member for at least one year prior to death, or was married to the member prior to the occurrence of the injury or onset of the illness that resulted in death, and has the care of unmarried children, including stepchildren, of the deceased member who are under 22 years of age or are so incapacitated, shall be paid one thousand five hundred dollars ($1,500) per month is there is one child or one thousand eight hundred dollars ($1,800) per month if there are two or more children. If there also are children who are not in the care of the surviving spouse, the portion of the allowance payable under this paragraph, assuming that these children were in the care of the surviving spouse, that is in excess of seven hundred fifty dollars ($750) per month, shall be divided equally among all those children and payments made to the spouse and other children, as the case may be. (2) If there is no surviving spouse, or if the surviving spouse dies, and if there are unmarried children, including stepchildren of the deceased member who are under age 22 years of age or are so incapacitated, or if there are children not in the care of the spouse, the children shall be paid an allowance as follows: (A) If there is only one child, the child shall be paid seven hundred fifty dollars ($750) per month. (B) If there are two children, the children shall be paid one thousand five hundred dollars ($1,500) per month divided equally between them. (C) If there are three or more children, the children shall be paid one thousand eight hundred dollars ($1,800) per month divided equally among them. (3) A surviving spouse who has attained or attains the age of 62 years, and who was either continuously married to the member for at least one year prior to death, or was married to the member prior to the occurrence of the injury or onset of the illness that resulted in death, shall be paid seven hundred fifty dollars ($750) per month. No allowance shall be paid under paragraph (1), or while an allowance is being paid under subparagraph (C). No allowance shall be paid of paragraph (2). The allowance paid under this paragraph shall be three hundred dollars ($300) per month while an allowance is being paid under subparagraph (B) of paragraph (2). (4) If there is no surviving spouse or surviving child who qualifies for the 1959 survivor allowance, or if the surviving spouse dies and there is no surviving child, or if the surviving spouse dies and the children die or marry or, if not incapacitated, reach 22 years of age, each of the member's dependent parents who has attained or attains the age of 62 years, and who received at least one-half of his or her support from the member at the time of the member's death shall be paid seven hundred fifty dollars ($750) per month. (c) "Stepchildren" for purposes of this section shall include only stepchildren of the member living with the member in a regular parent-child relationship at the time of the death of the member. (d) This section shall apply to beneficiaries of state members whose death occurred before January 1, 1999, as well as to a surviving spouse who has attained age 62 prior to January 1, 1999. All assets and liabilities of all state agencies and their employees on account of benefits provided to beneficiaries specified in the subdivision shall be pooled into a single account. The board shall transfer from the reserve for 1959 survivor contributions retained in the retirement fund, an amount sufficient to pay the cost of the increased benefits provided by this subdivision for beneficiaries of members who died on or before December 31, 1998. (e) This section shall not apply to beneficiaries with respect to the death of a state member occurring on or after January 1, 1999, unless provided for in a memorandum of understanding reached pursuant to Section 3517.5, or authorized by the Director of Personnel Administration for classifications of state employees that are excluded from, or not subject to, collective bargaining. The memorandum of understanding adopting this section shall be controlling without further legislation, except that if those provisions of a memorandum of understanding require the expenditure of funds, those provisions shall not become effective unless approved by the Legislature as provided by law. (f) The rate of contribution for the state employer shall be calculated using a method determined by the board. Surplus assets shall be applied to reduce the rate of the employer contribution. Once the surplus assets have been fully utilized, under a uniform amortization schedule to be established by the board, and the total required amount exceeds a monthly premium of four dollars ($4), including the amount required of the member under Section 21581, the member and employer shall thereafter evenly share the required monthly premium. SEC. 8. Section 22955.1 is added to the Government Code, to read: 22955.1. (a) Notwithstanding Sections 22953 and 22954, an employee in State Bargaining Unit 5 who becomes a state member of the Public Employees' Retirement System after January 1, 1999, and who is included in the definition of state employee in subdivision (c) of Section 3513 shall not receive any portion of the employer's contribution payable for annuitants, pursuant to Sections 22953 and 22954, unless the employee is credited with 10 years or more of state service, as defined by this section, at the time of retirement. This subdivision shall have retroactive application to state employees in State Bargaining Unit 5 who become a state member of the Public Employees' Retirement System after January 1, 1999, but prior to the effective date of this section. (b) The percentage of employer's contribution amount payable for post retirement dental care benefits for an employee subject to this section shall be based on the funding provision of the plan and the member's completed years of state service at retirement as shown in the following table: Percentage of Credited Years of Service Employer Contribution 10 ................................ 50 11 ................................ 55 12 ................................ 60 13 ................................ 65 14 ................................ 70 15 ................................ 75 16 ................................ 80 17 ................................ 85 18 ................................ 90 19 ................................ 95 20 ................................ 100 (c) This section shall only apply to state employees who retire for service. (d) Benefits provided to an employee subject to this section shall be applicable to all future state service. (e) For purposes of this section, "state service" means service rendered as an employee or an appointed or elected officer of the state for compensation. In those cases where the state assumes or 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 local public agency shall not be credited, at retirement, as state service for the purposes of this section, unless the former employer has paid or agreed to pay the state agency 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. For noncontracting local public agencies the state department shall certify the completed years of local agency service to be credited to the employee to the Public Employees' Retirement System at the time of separation for retirement. (f) Whenever the state contracts to assume a local public agency function, completed years of service rendered by the personnel for compensation as employees or appointed or elected officers of the local public agency shall be credited as state service only upon a finding by the Department of Finance that the contract contains a benefit factor sufficient to reimburse the state for the amount necessary to compensate the state fully for post retirement dental benefit costs for those personnel. (g) This section shall not apply to employees of the California State University or the Legislature. SEC. 9. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order for the provisions of this act to be applicable as soon as possible in the 1998-99 fiscal year, and so facilitate the orderly administration of state government at the earliest possible time, it is necessary that this act take effect immediately.