BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1625|
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THIRD READING
Bill No: AB 1625
Author: John A. Perez (D)
Amended: 10/7/10 in Senate
Vote: 27 Urgency
PRIOR VOTE NOT RELEVANT
SUBJECT : State employees: Memorandum of Understanding
SOURCE : Author
DIGEST : This bill provides legislative ratification for
a Memorandum of Understanding between the Administration
and the numerous bargaining units represented by the
Service Employees International Union, Local 1000.
Senate Floor Amendments of 10/7/10 delete the prior version
of the bill expressing the intent of the Legislature to
enact statutory changes relating to the Budget Act of 2010
and replace it with the current content regarding
ratification of a Memorandum of Understanding.
ANALYSIS : This bill provides legislative ratification
for a Memorandum of Understanding (MOU) between the
Administration and the following state bargaining units
(BUs) represented by the Service Employees International
Union (SEIU), Local 1000:
BU 1 (Professional, Administrative, Financial and Staff
Services)
CONTINUED
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BU 3 (Professional Educators and Librarians)
BU 4 (Office and Allied)
BU 11 (Engineering and Scientific Technicians)
BU 14 (Printing and Allied Trades)
BU 15 (Allied Services)
BU 17 (Registered Nurses)
BU 20 (Medical and Social Services)
BU 21 (Educational Consultant and Library)
Number of employees: approximately 95,000 full-time
equivalents
Existing Law
1.Establishes the Ralph C. Dills Act, which requires the
State to collectively bargain with official
representatives of employee groups (i.e., bargaining
units) regarding wages and working conditions, and to
define negotiated agreements in a MOU.
2.Requires that any MOU between the State and an official
representative must be ratified by the Legislature.
3.Establishes the Public Employees Retirement Law, which
provides health and retirement benefits for state
employees.
4.Establishes five separate retirement classes for state
employees: State Miscellaneous and Industrial (which
receive substantially the same benefits), State Safety,
State Peace Officer/Firefighter, and State Patrol.
5.Specifies that if the provisions of certain statutes are
in conflict with a MOU, the terms of the MOU shall
prevail.
Specifically, this bill:
1. Retirement
A. Benefit Formula Calculation
( 1) Effective the pay period following
ratification by both parties, BU 1, 3, 4, 11, 14,
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15, 17, 20 and 21 Miscellaneous and Industrial
First Tier retirement members, first employed by
the state, will be subject to the "New 2010 First
Tier Retirement Formula" of 2% at age 60 (from
current 2% at 55).
(2) Effective the pay period following
ratification by both parties, BU 1, 3, 4, 11, 14,
15, 17, 20 and 21 State Safety retirement members,
first employed by the state, will be subject to
the "New 2010 First Tier Retirement Formula" of 2%
at age 55 (from current 2.5% at 55).
B. Employee Contribution Formula
(1) Effective the pay period following
ratification by both parties, current BU 1, 3, 4,
11, 14, 15, 17, 20 and 21 Miscellaneous and
Industrial members of the First Tier retirement
category shall have their contribution increased
from 5% to 8% of monthly compensation over $513.
(2) Effective the pay period following
ratification by both parties, current BU 1, 3, 4,
11, 14, 15, 17, 20 and 21 State Safety retirement
members shall have their contributions increased
from 6% to 9% of monthly compensation over $317.
2. Compensation
A. Adjusted Pay Ranges
( 1) Effective July 1, 2013, all BU 1, 3, 4, 11,
14, 15, 17, 20 and 21 represented classifications
(excluding Seasonal Clerks and BU 3
classifications in the California Department of
Corrections and Rehabilitation (CDCR) who work on
an academic calendar) shall be adjusted by
increasing the maximum step of the pay range by
3%. This only applies to BU 1, 3, 4, 11, 14, 15,
17, 20 and 21 employees who reach the top step of
the pay range.
(2) Effective July 1, 2013, all BU 3 represented
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classification in CDCR who work an academic
calendar shall receive a 3% salary differential.
This only applies to BU 3 employees in CDCR who
work an academic calendar who reach step 6 or
higher of the pay range.
(3) Effective July 1, 2013, the Seasonal Clerk
classification shall have 50 cents added to each
salary rate.
B. Personal Leave Program (PLP 2010)
(1) Effective the pay period following
ratification by both parties, the Personal Leave
Program (PLP 2010) will apply to BU 1, 3, 4, 11,
14, 15, 17, 20 and 21 employees. This program
shall remain in effect for 12 months.
3. Health Benefits
A. Employer Contribution
(1) Effective the pay period following
ratification by both parties, the State's monthly
contribution to the health insurance portion of
the BU 1, 4, 11, 14, 15, 17, 20 and 21 employee's
allowance shall be an amount equal to 80 percent
of the weighted average of the premiums for the
four Basic health benefit plans with the largest
enrollment (the 80/80 formula).
(2) Effective the pay period following
ratification by both parties, the State's monthly
contribution to the health insurance portion of BU
3 employee's allowance will be set at a dollar
amount that equals the 80/80 formula. The amounts
shall be increased pursuant to the formulas on
January 1, 2011, January 1, 2012, and January 1,
2013.
4. Miscellaneous
A. The State will not implement a new furlough
program for BU 1, 3, 4, 11, 14, 15, 17, 20 and 21
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employees during the 12 full months following
ratification by both parties.
B. The State and SEIU Local 1000 agree to present
to the Legislature, as part of the legislation
implementing the MOU, a provision to appropriate
funds to cover the economic terms of this agreement
through July 1, 2013.
C. The State and SEIU Local 1000 agree to delete
Lincoln's Birthday and Columbus Day as recognized
holidays.
D. Employees that work on January 1st, the last
Monday in May, July 4th, the first Monday in
September, Thanksgiving Day or Christmas shall
receive one and one-half times the employee's
regular rate of pay and up to eight hours of
holiday credit for all hours worked on the holiday.
E. This bill increases the employee contribution
to their retirement for excluded and exempt
employees.
5. Duration
July 1, 2010, through July l1, 2013.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
CPM:cm 10/7/10 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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