BILL NUMBER: AB 1377	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JULY 3, 2013
	PASSED THE ASSEMBLY  JUNE 25, 2013
	AMENDED IN ASSEMBLY  JUNE 20, 2013

INTRODUCED BY   Committee on Public Employees, Retirement and Social
Security (Bonta (Chair), Jones-Sawyer, Mullin, Rendon, and
Wieckowski)

                        FEBRUARY 26, 2013

   An act to add Sections 19829.981, 19829.982, and 19829.983 to the
Government Code, relating to state employees, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1377, Committee on Public Employees, Retirement and Social
Security. State employees: memorandum of understanding.
   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 specified
bargaining units for the 2013-14, 2014-15, and 2015-16 fiscal years
that require the expenditure of funds. The bill 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.
   The 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 reopen
negotiations on all or part of the memorandum of understanding if
funds for those provisions are not specifically appropriated by the
Legislature.
   The bill also would appropriate $1,351,000 for expenditure in the
2013-14 fiscal year for state employee compensation, as prescribed.
   If a Budget Act is not enacted July 1 of each year covered by the
memorandum of understanding for specified bargaining units, the bill
would continuously appropriate to the Controller unspecified amounts
as necessary for the payment of compensation and employee benefits
until the Budget Act is enacted for the 2013-14, 2014-15, and 2015-16
fiscal years and would require these expenditures to be subsumed by
the eventual expenditure authority approved for each fiscal year.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Appropriation: yes.


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 approve the provisions of agreements pursuant to
Section 3517.5 of the Government Code entered into by the state
employer and State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and
21 that require the expenditure of funds.
  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 Service Employees International Union,
State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, on June
11, 2013, and that require the expenditure of funds, are hereby
approved for the purposes of Section 3517.6 of the Government Code.
  SEC. 3.  The provisions of the memorandum of understanding approved
by Section 2 of this act that are scheduled to take effect on or
after July 1, 2013, and that require the expenditure of funds, shall
not take effect unless funds for these provisions are specifically
appropriated by the Legislature. If the Legislature does not approve
or fully fund any provision of the memorandum of understanding that
requires the expenditure of funds, either party 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 any memorandum of understanding 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.  Section 19829.981 is added to the Government Code,
immediately following Section 19829.98, to read:
   19829.981.  (a) Notwithstanding Section 13340, for the 2013-14
fiscal year, if the 2013-14 Budget Act is not enacted by July 1,
2013, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 1 (effective July 2, 2013,
to July 1, 2016, inclusive), State Bargaining Unit 3 (effective July
2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 4
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 11 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 14 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 15 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 17
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 20 (effective July 2, 2013, to July 1, 2016,
inclusive), and State Bargaining Unit 21 (effective July 2, 2013, to
July 1, 2016, 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 memoranda of understanding until the 2013-14 Budget Act is
enacted. The Controller may expend an amount no greater than
necessary to enable the Controller to compensate state employees
covered by the above memoranda of understanding for work performed
between July 1, 2013, of the 2013-14 fiscal year and the enactment of
the 2013-14 Budget Act.
   (b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 1 (effective July 2, 2013,
to July 1, 2016, inclusive), State Bargaining Unit 3 (effective July
2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 4
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 11 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 14 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 15 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 17
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 20 (effective July 2, 2013, to July 1, 2016,
inclusive), and State Bargaining Unit 21 (effective July 2, 2013, to
July 1, 2016, inclusive), are in effect and approved by the
Legislature, the compensation and contribution for employee benefits
for state employees represented by these bargaining units 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 2013-14 Budget Act, these
expenditures shall be subsumed by the expenditure authority approved
in the 2013-14 Budget Act for each affected department.
   (d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 1 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 3 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 4 (effective
July 2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 11
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 14 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 15 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 17 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 20
(effective July 2, 2013, to July 1, 2016, inclusive), and State
Bargaining Unit 21 (effective July 2, 2013, to July 1, 2016,
inclusive), memoranda 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 1 expires on
July 1, 2016, the memorandum of understanding for State Bargaining
Unit 3 expires on July 1, 2016, the memorandum of understanding for
State Bargaining Unit 4 expires on July 1, 2016, the memorandum of
understanding for State Bargaining Unit 11 expires on July 1, 2016,
the memorandum of understanding for State Bargaining Unit 14 expires
on July 1, 2016, the memorandum of understanding for State Bargaining
Unit 15 expires on July 1, 2016, the memorandum of understanding for
State Bargaining Unit 17 expires on July 1, 2016, the memorandum of
understanding for State Bargaining Unit 20 expires on July 1, 2016,
and the memorandum of understanding for State Bargaining Unit 21
expires on July 1, 2016.
  SEC. 6.  Section 19829.982 is added to the Government Code, to
read:
   19829.982.  (a) Notwithstanding Section 13340, for the 2014-15
fiscal year, if the 2014-15 Budget Act is not enacted by July 1,
2014, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 1 (effective July 2, 2013,
to July 1, 2016, inclusive), State Bargaining Unit 3 (effective July
2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 4
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 11 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 14 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 15 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 17
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 20 (effective July 2, 2013, to July 1, 2016,
inclusive), and State Bargaining Unit 21 (effective July 2, 2013, to
July 1, 2016, 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 memoranda of understanding until the 2014-15 Budget Act is
enacted. The Controller may expend an amount no greater than
necessary to enable the Controller to compensate state employees
covered by the above memoranda of understanding for work performed
between July 1, 2014, of the 2014-15 fiscal year and the enactment of
the 2014-15 Budget Act.
   (b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 1 (effective July 2, 2013,
to July 1, 2016, inclusive), State Bargaining Unit 3 (effective July
2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 4
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 11 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 14 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 15 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 17
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 20 (effective July 2, 2013, to July 1, 2016,
inclusive), and State Bargaining Unit 21 (effective July 2, 2013, to
July 1, 2016, inclusive), are in effect and approved by the
Legislature, the compensation and contribution for employee benefits
for state employees represented by these bargaining units 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 2014-15 Budget Act, these
expenditures shall be subsumed by the expenditure authority approved
in the 2014-15 Budget Act for each affected department.
   (d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 1 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 3 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 4 (effective
July 2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 11
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 14 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 15 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 17 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 20
(effective July 2, 2013, to July 1, 2016, inclusive), and State
Bargaining Unit 21 (effective July 2, 2013, to July 1, 2016,
inclusive), memoranda 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 1 expires on
July 1, 2016, the memorandum of understanding for State Bargaining
Unit 3 expires on July 1, 2016, the memorandum of understanding for
State Bargaining Unit 4 expires on July 1, 2016, the memorandum of
understanding for State Bargaining Unit 11 expires on July 1, 2016,
the memorandum of understanding for State Bargaining Unit 14 expires
on July 1, 2016, the memorandum of understanding for State Bargaining
Unit 15 expires on July 1, 2016, the memorandum of understanding for
State Bargaining Unit 17 expires on July 1, 2016, the memorandum of
understanding for State Bargaining Unit 20 expires on July 1, 2016,
and the memorandum of understanding for State Bargaining Unit 21
expires on July 1, 2016.
  SEC. 7.  Section 19829.983 is added to the Government Code, to
read:
   19829.983.  (a) Notwithstanding Section 13340, for the 2015-16
fiscal year, if the 2015-16 Budget Act is not enacted by July 1,
2015, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 1 (effective July 2, 2013,
to July 1, 2016, inclusive), State Bargaining Unit 3 (effective July
2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 4
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 11 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 14 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 15 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 17
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 20 (effective July 2, 2013, to July 1, 2016,
inclusive), and State Bargaining Unit 21 (effective July 2, 2013, to
July 1, 2016, 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 memoranda of understanding until the 2015-16 Budget Act is
enacted. The Controller may expend an amount no greater than
necessary to enable the Controller to compensate state employees
covered by the above memoranda of understanding for work performed
between July 1, 2015, of the 2015-16 fiscal year and the enactment of
the 2015-16 Budget Act.
   (b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 1 (effective July 2, 2013,
to July 1, 2016, inclusive), State Bargaining Unit 3 (effective July
2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 4
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 11 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 14 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 15 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 17
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 20 (effective July 2, 2013, to July 1, 2016,
inclusive), and State Bargaining Unit 21 (effective July 2, 2013, to
July 1, 2016, inclusive), are in effect and approved by the
Legislature, the compensation and contribution for employee benefits
for state employees represented by these bargaining units 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 2015-16 Budget Act, these
expenditures shall be subsumed by the expenditure authority approved
in the 2015-16 Budget Act for each affected department.
   (d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 1 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 3 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 4 (effective
July 2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 11
(effective July 2, 2013, to July 1, 2016, inclusive), State
Bargaining Unit 14 (effective July 2, 2013, to July 1, 2016,
inclusive), State Bargaining Unit 15 (effective July 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 17 (effective July 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 20
(effective July 2, 2013, to July 1, 2016, inclusive), and State
Bargaining Unit 21 (effective July 2, 2013, to July 1, 2016,
inclusive), memoranda 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 1 expires on
July 1, 2016, the memorandum of understanding for State Bargaining
Unit 3 expires on July 1, 2016, the memorandum of understanding for
State Bargaining Unit 4 expires on July 1, 2016, the memorandum of
understanding for State Bargaining Unit 11 expires on July 1, 2016,
the memorandum of understanding for State Bargaining Unit 14 expires
on July 1, 2016, the memorandum of understanding for State Bargaining
Unit 15 expires on July 1, 2016, the memorandum of understanding for
State Bargaining Unit 17 expires on July 1, 2016, the memorandum of
understanding for State Bargaining Unit 20 expires on July 1, 2016,
and the memorandum of understanding for State Bargaining Unit 21
expires on July 1, 2016.
  SEC. 8.  The sum of one million, three hundred fifty-one thousand
dollars ($1,351,000) is hereby appropriated for expenditure in the
2013-14 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
2013 (Ch. 20, Statutes of 2013) in accordance with the following
schedule:
   (a) Three hundred seventy-three thousand dollars ($373,000) from
the General Fund in augmentation of Item 9800-001-0001.
   (b) Six hundred fifty-five thousand dollars ($655,000) from
unallocated special funds in augmentation of Item 9800-001-0494.
   (c) Three hundred twenty-three thousand dollars ($323,000) from
other unallocated nongovernmental cost funds in augmentation of Item
9800-001-0988.
  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 2013-14 fiscal year and thereby facilitate the
orderly administration of state government at the earliest possible
time, it is necessary that this act take effect immediately.