Amended in Assembly August 22, 2014

Senate BillNo. 879


Introduced by Committee on Budget and Fiscal Review

January 9, 2014


An actbegin delete relating to the Budget Act of 2014.end deletebegin insert to add Sections 12440.6 and 12440.7 to the Government Code, relating to state employees, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 879, as amended, Committee on Budget and Fiscal Review. begin deleteBudget Act of 2014. end deletebegin insertState employees: memoranda of understanding.end insert

begin insert

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.

end insert
begin insert

This bill would approve provisions of memoranda of understanding entered into between the state employer and State Bargaining Unit 2, the California Attorneys, Administrative Law Judges, and Hearing Officers in State Employment, on August 14, 2014, and State Bargaining Unit 10, the California Association of Professional Scientists, on August 12, 2014, that require the expenditure of funds, and 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.

end insert
begin insert

The bill would prohibit provisions of the memorandum of understanding approved by this bill that authorize the expenditure of funds from taking 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 those provisions are not approved or fully funded by the Legislature.

end insert
begin insert

The bill would appropriate funds for expenditure in the 2014-15 fiscal year in augmentation of, and for the purpose of, state employee compensation, as provided in the Budget Act of 2014, in accordance with a specified schedule, from the General Fund, unallocated special funds, and other unallocated nongovernmental cost funds. The bill would also appropriate 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, in the amount necessary for the payment of compensation and employee benefits to state employees for work performed between July 1 and the enactment of the Budget Act in the 2015-16 and 2016-17 fiscal years if the Budget Act is not enacted on or before July 1 in those fiscal years.

end insert
begin insert

This bill would declare that it is to take effect immediately as an urgency statute.

end insert
begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2014.

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Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertThe Legislature finds and declares that the
2purpose of this act is to approve two agreements pursuant to
3Section 3517.5 of the Government Code entered into by the state
4employer and State Bargaining Units 2 and 10.end insert

5begin insert

begin insertSEC. 2.end insert  

end insert

begin insertNotwithstanding the Budget Act of 2014 (Chapter 25
6of the Statutes of 2014), Provision 7 of Item 9800-001-0001 and
7Provision 8 of Items 9800-001-0494 and 9800-001-0988, the
8provisions of the memoranda of understanding prepared pursuant
9to Section 3517.5 of the Government Code and entered into by the
10state employer and State Bargaining Unit 2 dated August 14, 2014,
11and State Bargaining Unit 10 dated August 12, 2014, and that
12require the expenditure of funds are hereby approved for the
13purposes of subdivision (b) of Section 3517.6 of the Government
14Code.end insert

P3    1begin insert

begin insertSEC. 3.end insert  

end insert

begin insertThe provisions of the memoranda of understanding
2approved in Section 2 of this act that are scheduled to take effect
3on or after July 1, 2014, and that require the expenditure of funds,
4shall not take effect unless funds for those provisions are
5specifically appropriated by the Legislature. If the Legislature
6does not approve or fully fund any provision of a memorandum of
7understanding approved in Section 2 of this act that requires the
8expenditure of funds, either party to the memorandum may reopen
9negotiations on all or part of the memorandum of understanding.end insert

10begin insert

begin insertSEC. 4.end insert  

end insert

begin insertNotwithstanding Section 3517.6 of the Government
11Code, the provisions of the memoranda of understanding approved
12in Section 2 that require the expenditure of funds shall become
13effective even if the provisions of the memoranda of understanding
14are approved by the Legislature in legislation other than the annual
15Budget Act.end insert

16begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

(a) The sum of twelve million six hundred twenty-nine
17thousand dollars ($12,629,000) is hereby appropriated for State
18Bargaining Unit 2 for expenditure in the 2014-15 fiscal year in
19augmentation of, and for the purpose of, state employee
20compensation, as provided in Items 9800-001-0001,
219800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget
22Act of 2014 (Chapter 25 of the Statutes of 2014), in accordance
23with the following schedule:

end insert
begin insert

24(1) Three million three hundred forty thousand dollars
25($3,340,000) from the General Fund in augmentation of Item
269800-001-0001.

end insert
begin insert

27(2) Six million two hundred twenty-four thousand dollars
28($6,224,000) from unallocated special funds in augmentation of
29Item 9800-001-0494.

end insert
begin insert

30(3) Three million sixty-five thousand dollars ($3,065,000) from
31other unallocated nongovernmental cost funds in augmentation
32of Item 9800-001-0988.

end insert
begin insert

33(b) The sum of three million one hundred twenty-four thousand
34dollars ($3,124,000) is hereby appropriated for State Bargaining
35Unit 10 for expenditure in the 2014-15 fiscal year in augmentation
36of, and for the purpose of, state employee compensation, as
37provided in Items 9800-001-0001, 9800-001-0494, and
389800-001-0988 of Section 2.0 of the Budget Act of 2014 (Chapter
3925 of the Statutes of 2014), in accordance with the following
40schedule:

end insert
begin insert

P4    1(1) Five hundred sixty-one thousand dollars ($561,000) from
2the General Fund in augmentation of Item 9800-001-0001.

end insert
begin insert

3(2) One million seven hundred seventeen thousand dollars
4($1,717,000) from unallocated special funds in augmentation of
5Item 9800-001-0494.

end insert
begin insert

6(3) Eight hundred forty-six thousand dollars ($846,000) from
7other unallocated nongovernmental cost funds in augmentation
8of Item 9800-001-0988.

end insert
9begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 12440.6 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
10read:end insert

begin insert
11

begin insert12440.6.end insert  

(a) Notwithstanding Section 13340, for the 2015-16
12fiscal year, if the Budget Act of 2015 is not enacted on or before
13July 1, 2015, for the memoranda of understanding entered into
14between the state employer and State Bargaining Unit 2 (effective
15July 1, 2013, to July 1, 2016, inclusive) and State Bargaining Unit
1610 (effective July 2, 2013, to July 1, 2015, inclusive), there is
17hereby continuously appropriated to the Controller from the
18General Fund, unallocated special funds, including, but not limited
19to, federal funds and unallocated nongovernmental cost funds,
20and any other fund from which state employees are compensated,
21the amount necessary for the payment of compensation and
22employee benefits to state employees covered by the above
23memoranda of understanding until the Budget Act of 2015 is
24enacted. The Controller may expend an amount no greater than
25necessary to enable the Controller to compensate state employees
26covered by the above memoranda of understanding for work
27performed between July 1, 2015, of the 2015-16 fiscal year, and
28the enactment of the Budget Act of 2015.

29(b) If the memoranda of understanding entered into between
30the state employer and State Bargaining Unit 2 (effective July 1,
312013, to July 1, 2016, inclusive) and State Bargaining Unit 10
32(effective July 2, 2013, to July 1, 2015, inclusive) are in effect and
33approved by the Legislature, the compensation and contribution
34for employee benefits for state employees represented by these
35bargaining units shall be at a rate consistent with the applicable
36memorandum of understanding referenced above.

37(c) Expenditures related to any warrant drawn pursuant to
38subdivision (a) are not augmentations to the expenditure authority
39of a department. Upon the enactment of the Budget Act of 2015,
P5    1these expenditures shall be subsumed by the expenditure authority
2approved in the Budget Act of 2015 for each affected department.

3(d) This section shall only apply to an employee covered by the
4terms of State Bargaining Unit 2 (effective July 1, 2013, to July 1,
52016, inclusive) and State Bargaining Unit 10 (effective July 2,
62013, to July 1, 2015, inclusive) memoranda of understanding.
7Notwithstanding Section 3517.8, this section shall not apply after
8the terms of the memoranda of understanding have expired. For
9purposes of this section, the memorandum of understanding for
10State Bargaining Unit 2 expires on July 1, 2016, and the
11memorandum of understanding for State Bargaining Unit 10
12expires on July 1, 2015.

end insert
13begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 12440.7 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
14read:end insert

begin insert
15

begin insert12440.7.end insert  

(a) Notwithstanding Section 13340, for the 2016-17
16fiscal year, if the Budget Act of 2016 is not enacted on or before
17July 1, 2016, for the memorandum of understanding entered into
18between the state employer and State Bargaining Unit 2 (effective
19July 1, 2013, to July 1, 2016, inclusive), there is hereby
20continuously appropriated to the Controller from the General
21Fund, unallocated special funds, including, but not limited to,
22federal funds and unallocated nongovernmental cost funds, and
23any other fund from which state employees are compensated, the
24amount necessary for the payment of compensation and employee
25benefits to state employees covered by the above memorandum of
26understanding until the Budget Act of 2016 is enacted. The
27Controller may expend an amount no greater than necessary to
28enable the Controller to compensate state employees covered by
29the above memorandum of understanding for work performed
30before July 1, 2016, of the 2016-17 fiscal year.

31(b) If the memorandum of understanding entered into between
32the state employer and State Bargaining Unit 2 (effective July 1,
332013, to July 1, 2016, inclusive) is in effect and approved by the
34Legislature, the compensation and contribution for employee
35benefits for state employees represented by this bargaining unit
36shall be at a rate consistent with the applicable memorandum of
37understanding referenced above.

38(c) Expenditures related to any warrant drawn pursuant to
39subdivision (a) are not augmentations to the expenditure authority
40of a department. Upon the enactment of the Budget Act of 2016,
P6    1these expenditures shall be subsumed by the expenditure authority
2approved in the Budget Act of 2016 for each affected department.

3(d) This section shall only apply to an employee covered by the
4term of the State Bargaining Unit 2 (effective July 1, 2013, to July
51, 2016, inclusive) memorandum of understanding.
6Notwithstanding Section 3517.8, this section shall not apply after
7the term of the memorandum of understanding has expired. For
8purposes of this section, the memorandum of understanding for
9State Bargaining Unit 2 expires on July 1, 2016.

end insert
10begin insert

begin insertSEC. 8.end insert  

end insert
begin insert

This act is an urgency statute necessary for the
11immediate preservation of the public peace, health, or safety within
12the meaning of Article IV of the Constitution and shall go into
13immediate effect. The facts constituting the necessity are:

end insert
begin insert

14In order for the provisions of this act to be applicable as soon
15as possible in the 2014-15 fiscal year, and thereby facilitate the
16orderly administration of state government at the earliest possible
17time, it is necessary for this act to take effect immediately.

end insert
begin delete
18

SECTION 1.  

It is the intent of the Legislature to enact statutory
19changes relating to the Budget Act of 2014.

end delete


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