BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  SB 1113|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  SB 1113
          Author:   Evans (D)
          Amended:  4/23/12
          Vote:     21

           
           SENATE PUBLIC EMPLOY. & RETIRE. COMMITTEE  :  4-0, 3/26/12
          AYES:  Negrete McLeod, Walters, Gaines, Vargas
          NO VOTE RECORDED:  Padilla

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Memoranda of understanding:  fiscal analysis

           SOURCE  :     California Correctional Supervisors 
          Organization


           DIGEST  :    This bill requires that, whenever the Department 
          of Human Resources (CalHR) provides a fiscal analysis of a 
          memorandum of understanding, it also must provide an 
          analysis of the financial obligation for related excluded 
          employees.

           ANALYSIS  :    

          Existing law:

          1.Effective July 1, 2012, merges the Department of 
            Personnel Administration and the administrative functions 
            of the State Personnel Board to form CalHR, which among 
            other duties serves as the representative for the 
                                                           CONTINUED





                                                               SB 1113
                                                                Page 
          2

            Governor in all state collective bargaining activities.

          2.Requires that CalHR and each of the state's 21 collective 
            bargaining units meet and confer and enter into contracts 
            over wages and working conditions for represented 
            employees.

          3.Requires that, upon reaching a collective bargaining 
            agreement or memorandum of understanding (MOU) with a 
            state bargaining unit, CalHR submit to the Legislative 
            Analyst's Office (LAO) and the Legislature an analysis of 
            the agreement or MOU, including a fiscal analysis of any 
            related costs or cost savings, and requires that the 
            agreement or MOU be approved by the Legislature before 
            being implemented.

          4.Requires that CalHR set salaries for excluded and exempt 
            employees, and allows excluded employee representatives 
            to meet and confer with CalHR, but does not otherwise 
            make the state employer or excluded employees subject to 
            collective bargaining requirements.

          This bill requires that in addition to providing a fiscal 
          analysis for the MOU, CalHR also must include an analysis 
          of the financial obligation required for related managerial 
          and exempt employees who are not covered under the 
          provisions of the MOU.

           Comments
           
           Current practice  .  Often, when an agreement or MOU is 
          reached with a state bargaining unit, certain provisions of 
          the agreement or MOU are also extended to related classes 
          of employees who are excluded from bargaining (mostly 
          managers and supervisors).  For example, if represented 
          employees are given a salary increase of three percent that 
          same increase is often extended to excluded employees in 
          related classes.

          However, CalHR sets compensation for excluded employees.  
          There is no statutory requirement to extend, to excluded 
          employees, a pay package that was bargained for represented 
          employees, or to study the impact of the MOU on related 
          excluded classes.  According to CalHR, they do not 

                                                           CONTINUED





                                                               SB 1113
                                                                Page 
          3

          routinely do compaction studies upon reaching a MOU 
          agreement, nor do they routinely include estimated costs or 
          savings of extending MOU provisions to related excluded 
          classes when submitting the MOU package to the Legislature 
          and LAO.

           FISCAL EFFECT :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  4/30/12)

          California Correctional Supervisors Organization (source)
          California Police Chiefs Association
          California Narcotic Officers Association
          Los Angeles Police Chiefs Association

           ARGUMENTS IN SUPPORT  :    According to the sponsor, the 
          California Correctional Supervisors Organization, this bill 
          is a transparency bill intended to ensure that legislators 
          receive a complete picture of the potential financial 
          ramifications of a memorandum of understanding.


          DLW:do  5/1/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****
          
















                                                           CONTINUED