BILL ANALYSIS �
SB 151
Page 1
SENATE THIRD READING
SB 151 (Correa)
As Amended April 14, 2011
2/3 vote. Urgency
SENATE VOTE :27-13
PUBLIC EMPLOYEES 4-2 APPROPRIATIONS 12-4
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|Ayes:|Furutani, Allen, Ma, |Ayes:|Fuentes, Blumenfield, |
| |Wieckowski | |Bradford, Charles |
| | | |Calderon, Campos, Davis, |
| | | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Mansoor, Harkey |Nays:|Harkey, Nielsen, Norby, |
| | | |Wagner |
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SUMMARY : Provides legislative ratification for the memoranda of
understanding (MOU) agreed to by the state and the following
state bargaining units (BUs):
1)BU 2 (Attorneys and Hearing Officers), represented exclusively
by the California Attorneys, Administrative Law Judges, and
Hearing Officers in State Employment (CASE);
2)BU 6 (Corrections), represented exclusively by the California
Correctional Peace Officers Association (CCPOA);
3)BU 7 (Protective Services and Public Safety), represented
exclusively by the California Statewide Law Enforcement
Association (CSLEA);
4)BU 9 (Professional Engineers), represented exclusively by the
Professional Engineers in California Government (PECG);
5)BU 10 (Professional Scientific), represented exclusively by
the California Association of Professional Scientists; and,
6)BU 13 (Stationary Engineers), represented exclusively by the
International Union of Operating Engineers (IUOE).
SB 151
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This bill ratifies 13 addenda to MOUs ratified in 2010 in order
to make provisions of those MOUs consistent with the agreements
reached in the six MOUs ratified in this bill.
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
MOUs.
2)Establishes the Department of Personnel Administration (DPA)
as the official representative of the Governor in all matters
related to collective bargaining.
3)Requires that any MOU between the state and an official
representative must be ratified by the Legislature.
4)Requires that an addendum to a ratified MOU must be submitted
to the Joint Legislative Budget Committee (JLBC) for analysis,
and, if so required by the JLBC, must also be approved by the
Legislature.
5)Establishes the Public Employees Retirement Law, which
provides health and retirement benefits for state employees.
6)Specifies that if the provisions of certain statutes are in
conflict with an MOU, the terms of the MOU will be prevailing
in those cases.
7)Specifies that if a state MOU expires, the provisions of the
MOU continue in effect until a new MOU is ratified, as long as
the parties continue to bargain in good faith.
8)Requires the Legislative Analyst's Office (LAO) to analyze all
state MOUs and to provide analyses of the MOUs and their
fiscal impact to the Legislature within 10 days of receipt of
the MOUs from the DPA.
9)Creates the State Peace Officers' and Firefighters' Defined
Contribution Plan (PO/FF II), a defined contribution plan
exclusively for correctional peace officers. Since 1998, the
state has contributed 2% of correctional officer pay to this
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plan for all officers in the plan.
FISCAL EFFECT :
1)According to DPA the savings (in millions) created by the MOUs
are as follows:
--------------------------------------------------------------
| BU | FY 2010/2011 | Total Savings over Life of |
| | | Contract |
|------+--------------------------+----------------------------|
| 2 |$34.4 (GF=$9.4; OF=$25.0) | $29.5 (GF=$8.7; OF=$20.8) |
|------+--------------------------+----------------------------|
| 6 | $291.2 (GF=$290.9; |$233.2 (GF=$233.0; OF=$.24) |
| | OF=$.29) | |
|------+--------------------------+----------------------------|
| 7 |$37.8 (GF=$11.2; OF=26.4) | $24.5 (GF=$7.8; OF=$16.6) |
|------+--------------------------+----------------------------|
| 9 | $134 (GF=$3.10; OF=$131 | $231 (GF=$5.3; OF=$226) |
|------+--------------------------+----------------------------|
| 10 |$22.9 (GF=$3.2; OF=$19.6) | $38.2 (GF=$5.4; OF=$32.7) |
|------+--------------------------+----------------------------|
| 13 | $7.5 (GF=$5.1; OF=$2.3) | $6.7 (GF=$4.4; OF=$2.2) |
|------+--------------------------+----------------------------|
|Total | $527.8 |$563.1 |
| | | |
--------------------------------------------------------------
Costs related to the addenda for the personal professional
days are minimal and absorbable by the departments
according to DPA.
2)The LAO analyses show an erosion of savings based on the
current year fiscal budget, which includes a full year of
furlough for employees in these bargaining units (i.e., three
days per month/approximately 15% salary reduction). The
agreements result in the furlough program ending as of March
31, thus resulting in a reduction in the anticipated savings
for the final three months of the fiscal year.
DPA does not include the savings erosion due to ending the
furlough program in its cost analyses.
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COMMENTS : The following information regarding this bill was
provided by DPA:
1)Provides legislative ratification for the MOUs agreed to
between the state and state BUs 2 (CASE), 6 (CCPOA), 7
(CSLEA), 9 (PECG), 10 (CAPS), and 13 (IUOE).
2)Increases the normal employee contribution rate to fund
retirement benefits, effective on the first day of the pay
period following legislative ratification, as follows:
--------------------------------------------------------------
|Retirement Classification |Current |New |
| |Contribution |Contribution |
| |Rate |Rate |
| | |(SB 151) |
|----------------------------------+-------------+-------------|
|BU 2: Miscellaneous & Industrial |6% |9% |
|w/Social Security | | |
|----------------------------------+-------------+-------------|
|BU 2: Miscellaneous & Industrial |7% |10% |
|wo/Social Security | | |
|----------------------------------+-------------+-------------|
|BU 2: Safety |7% |10% |
|----------------------------------+-------------+-------------|
|BUs 6, 7, 9, 10: Miscellaneous & |5% |8% |
|Industrial w/Social Security | | |
|----------------------------------+-------------+-------------|
|BUs 6, 7, 9, 10: Miscellaneous & |6% |9% |
|Industrial wo/Social Security | | |
|----------------------------------+-------------+-------------|
|BUs 7, 9, 10: Safety |6% |9% |
|----------------------------------+-------------+-------------|
|BU 6: Peace Officers |8% |11% |
|----------------------------------+-------------+-------------|
|BU 7: Peace Officers |8% |10% |
|----------------------------------+-------------+-------------|
|BU 13: Miscellaneous & Industrial |5% |10% |
|w/Social Security | | |
|----------------------------------+-------------+-------------|
|BU 13: Miscellaneous & Industrial |6% |11% |
|wo/Social Security | | |
|----------------------------------+-------------+-------------|
|BU 13: Safety |6% |11% |
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| | | |
--------------------------------------------------------------
3)Requires that compensation for employees covered by these
agreements shall be continuously appropriated in the event of
a late budget for fiscal years 2012-2013 and 2013-2014.
4)Makes three technical clarifications to previous legislation
enacted in 2010 as follows:
a) AB 1625 (John A. P�rez), Chapter 728, Statutes of 2010,
reduces by 1% the contribution rate for excluded and exempt
employees connected to BU 2. DPA states that the current
rates in statute are incorrect with regard to these
employees, who have always paid the lower amount, as
corrected by this bill;
b) SB 846 (Correa), Chapter 162, Statutes of 2010, ratifies
the 2010 MOU agreement between the state and BU 5 (Highway
Patrol), which allows the member contribution, for a
limited time as specified, to be redirected to the members'
retirement contribution. The amendment included in this
bill will allow DPA to apply that provision to excluded and
exempt patrol members of CalPERS as well; and,
c) Changes a section number for a continuous appropriation
section added in 2010 so that it is consistent with other
such sections.
5)Ratifies other terms and conditions of the MOUs, including
changes to the previous contracts, which are summarized as
follows:
---------------------------------------------------------------
|Contract Provision |BU |Amount/Time Frame/Other Information |
|--------------------+-----+------------------------------------|
|Increase to Maximum |All |BU 2: Misc/Sfty: 4% |
|Salary Step (linked | |BU 6: Misc/Ind: 3% |
|to amount of | |BU 6: PO: 4% |
|increased member | |BU 7: Misc/Ind/Sfty: 3% |
|contributions and | |BU 7: PO: 2% |
|other concessions); | |BU 9 & 10: 3% |
|Effective 7/1/13 | |BU 13: Misc/Sfty: 5% |
|--------------------+-----+------------------------------------|
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|Personal Leave |All |Effective for 12 months. Days have |
|Program (PLP): | |no cash value. BUs 2, 10, 13: |
|Approximately 5% | |Employees at State Compensation |
|pay reduction in | |Insurance Fund exempt from PLP. |
|exchange for 1 day | |BU 10: Employees may choose to have |
|of leave per month. | |proportional pay reduction in |
| | |exchange for 2 or 3 PLP days per |
| | |month over successive months until |
| | |12 PLP days are taken. |
|--------------------+-----+------------------------------------|
|Personal/Professiona|All |BU 2: 2 days |
|l Days: To be used | |BUs 7, 9, 10, 13: 2 days |
|for personal or | |BU 6: 4 days in 2012 and 2 days in |
|professional | |2013 |
|development. No | | |
|cash value and must | | |
|be used in a fiscal | | |
|year (BU 6 must use | | |
|the days in a | | |
|calendar year). | | |
|--------------------+-----+------------------------------------|
|Other Leave |BU 2 |1.73 hours/month through 6/2013 |
| | |(may be saved and cashed out) |
|--------------------+-----+------------------------------------|
|Health Benefits: |All |BUs 2, 7, 10, 13: 80/80 Formula |
|80/80 Formula: | |1/1/12 & 1/1/13 |
|$482/Employee only | | |
|$946/Employee and 1 | |BU 9: 85/80 Formula 1/1/12 & 1/1/13 |
|dependent | | |
|$1,241/Employee and | |BU 6: Partial increase upon |
|2 or more | |ratification with full increase to |
|dependents | |80/80 Formula paid 1/1/12 and |
| | |1/1/13 |
|85/80 Formula: | | |
|$460/Employee only | |(Note: BUs 9 and 10 have the 80/80 |
|$893/Employee and 1 | |Formula provided in statute which |
|dependent | |can be modified via MOU) |
|$1,156/Employee and | | |
|2 or more | | |
|dependents | | |
|--------------------+-----+------------------------------------|
|Length of Contract |All |BUs 2, 7, 9, 10, 13: 4/1/2011 to |
| | |7/1/2013 |
| | |BU 6: 4/1/2011 to 7/2/2013 |
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|--------------------+-----+------------------------------------|
|Furlough Protection |All |No furloughs during the 12 months |
| | |that the Personal Leave Program is |
| | |in effect. |
|--------------------+-----+------------------------------------|
|Number of Employees | |BU 2: 3,300 |
|Covered (in | |BU 6: 28,124 |
|full-time | |BU 7: 6,185 |
|equivalents) | |BU 9: 10,112 |
| | |BU 10: 2,440 |
| | |BU 13: 912 |
|--------------------+-----+------------------------------------|
|Other Provisions |All |Acknowledge legislation reducing |
| | |retirement formulas for employees |
| | |hired after 1/15/2011, 3-year final |
| | |compensation if applicable, and |
| | |elimination of 2 state holidays. |
| | |SB8 X3, (Ducheny), Chapter 4, |
| | |Statutes of 2009-10, Third |
| | |Extraordinary Session; SB22 X6, |
| | |(Hollingsworth), Chapter 3, |
| | |Statutes of 2009-10, Sixth |
| | |Extraordinary Session) |
|--------------------+-----+------------------------------------|
|Other Provisions |BU 6 |Terminates employer contribution of |
| | |2% of pay to PO/FF II. Employees |
| | |will fund union release time bank |
| | |by contributing 1 hour per year. |
| | |Acknowledges legislation |
| | |prohibiting leave from being |
| | |counted as time worked for the |
| | |purpose of calculating overtime. |
| | |Employees who work on holidays earn |
| | |2 times normal hourly rate. |
| | |$200 month differential for working |
| | |at Pelican Bay State Prison, High |
| | |Desert State Prison, or California |
| | |Correctional Center. |
|--------------------+-----+------------------------------------|
|Other Provisions |BU 7 |Employees will fund union release |
| | |time bank by contributing 1.5 hours |
| | |per year. |
| | |Time and a half plus holiday credit |
| | |for working on specified holidays. |
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| | |Employees in state-owned housing |
| | |will pay fair market value. |
|--------------------+-----+------------------------------------|
|Other Provisions |BUs |Time and a half for working on |
| |9, |specified holidays. |
| |10 |Salary survey for informational |
| | |purposes. |
| | |Joint Labor/Management Committee to |
| | |assist with HR Modernization |
| | | |
---------------------------------------------------------------
6)Provides legislative ratification for addenda to MOUs ratified
in 2010 between the state and state BUs 12 (Craft and
Maintenance), 16 (Physicians, Dentists and Podiatrists), 18
(Psychiatric Technicians), and 19 (Health and Social
Services/Professional).
Specifically, these addenda provide two personal/professional
days for employees in these units, consistent with the two
days provided to SEIU in its 2010 contract and the contracts
covered by this legislation.
7)Provides legislative ratification for addenda to MOUs ratified
in 2010 between the state and state BUs 1 (Professional,
Administrative, Financial, and Staff Services), 3
(Professional Educators and Librarians), 4 (Office and
Allied), 11 (Engineering and Scientific Technicians), 14
(Printing and Allied Trades), 15 (Allied Services), 17
(Registered Nurses), 20 (Medical and Social Services), 21
(Educational Consultant and Library) represented exclusively
by the Service Employees International Union (SEIU), Local
1000.
Specifically, these addenda exempt employees in these bargaining
units who work at the State Compensation Insurance Fund from
the Personal Leave Program.
Arguments in support: Citing concessions in the MOU and the
fact that many CASE members will not have had a salary increase
in over seven years, while seeing salary cuts during that time,
CASE states: "While these concessions were difficult for our
members, CASE recognizes the fiscal realities facing the State
of California, and understands the need to contribute to solving
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the current deficit."
From CCPOA: "A collective bargaining agreement is the
foundation of a harmonious relationship between the state
employer and its workforce." "Mindful of the fiscal challenges
facing the state, we are pleased to have reached an agreement
with the current Administration that helps resolve the current
budget shortfall while re-establishing a solid framework for the
relationship between our members and the state."
From CSLEA: "In recent years, state employees have experienced
significant reductions in compensation in order to help the
state deal with its budget challenges. This agreement continues
to help the state cope with the current budget problem while
providing needed stability to our members."
From PECG: "This bill generates hundreds of millions of dollars
in budget savings for the State at the same time it provides
state engineers and other state employees definitive terms of
employment."
From CAPS: "SB 151 provides significant savings to the state
during difficult times while ensuring stable working conditions
for state scientists and other state employees."
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
FN: 0000659