Amended in Assembly August 26, 2014

Amended in Assembly August 22, 2014

Senate Bill No. 879

Introduced by Committee on Budget and Fiscal Review

January 9, 2014

An act to add Sections 12440.6 and 12440.7 to the Government Code, relating to state employees, making an appropriation therefor, begin delete and declaring the urgency thereof, to take effect immediately. end delete begin insert to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 879, as amended, Committee on Budget and Fiscal Review. State employees: memoranda 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 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, begin delete and end delete State Bargaining Unit 10, the California Association of Professional Scientists, on August 12, 2014, begin insert and State Bargaining Unit 13, the International Union of Operating Engineers, Stationary Engineers, on August 21, 2014, end insert 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.

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.

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.

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

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This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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Vote:  begin delete ²⁄₃ end delete begin insert majority end insert . Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

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 begin delete two end delete begin insert three end insert agreements pursuant to
Section 3517.5 of the Government Code entered into by the state
employer and State Bargaining Units begin delete 2 and 10. end delete begin insert 2, 10, and 13. end insert

SEC. 2.  

Notwithstanding the Budget Act of 2014 (Chapter 25
of the Statutes of 2014), Provision 7 of Item 9800-001-0001 and
Provision 8 of Items 9800-001-0494 and 9800-001-0988, the
provisions of the memoranda of understanding prepared pursuant
to Section 3517.5 of the Government Code and entered into by the
state employer and State Bargaining Unit 2 dated August 14, 2014,
begin delete and end delete State Bargaining Unit 10 dated August 12, 2014, begin insert and State
Bargaining Unit 13 dated August 21, 2014, end insert and that require the
expenditure of funds are hereby approved for the purposes of
subdivision (b) of Section 3517.6 of the Government Code.

SEC. 3.  

The provisions of the memoranda of understanding
approved in Section 2 of this act that are scheduled to take effect
on or after July 1, 2014, and that require the expenditure of funds,
shall not take effect unless funds for those provisions are
specifically appropriated by the Legislature. If the Legislature does
not approve or fully fund any provision of a memorandum of
understanding approved in Section 2 of this act that requires the
expenditure of funds, either party to the memorandum 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 the memoranda of understanding approved
in Section 2 that require the expenditure of funds shall become
effective even if the provisions of the memoranda of understanding
are approved by the Legislature in legislation other than the annual
Budget Act.

SEC. 5.  

(a) The sum of twelve million six hundred twenty-nine
thousand dollars ($12,629,000) is hereby appropriated for State
Bargaining Unit 2 for expenditure in the 2014-15 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 2014 (Chapter 25 of the Statutes of 2014), in accordance
with the following schedule:

(1) Three million three hundred forty thousand dollars
($3,340,000) from the General Fund in augmentation of Item
9800-001-0001.

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

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

(b) The sum of three million one hundred twenty-four thousand
dollars ($3,124,000) is hereby appropriated for State Bargaining
Unit 10 for expenditure in the 2014-15 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 2.0 of the Budget Act of 2014 (Chapter
25 of the Statutes of 2014), in accordance with the following
schedule:

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

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

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

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(c) The sum of two million three hundred fifty-six thousand
dollars ($2,356,000) is hereby appropriated for State Bargaining
Unit 13 for the expenditure in the 2014-15 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 2014 (Chapter 25 of the Statutes of 2014), in accordance
with the following schedule:

end insert begin insert

(1) One million six hundred thirty-four thousand dollars
($1,634,000) from the General Fund in augmentation of Item
9800-001-0001.

end insert begin insert

(2) Four hundred eighty-four thousand dollars ($484,000) from
unallocated special funds in augmentation of Item 9800-001-0494.

end insert begin insert

(3) Two hundred thirty-eight thousand dollars ($238,000) from
other unallocated, nongovernmental cost funds in augmentation
of Item 9800-001-0988.

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SEC. 6.  

Section 12440.6 is added to the Government Code, to
read:

12440.6.  

(a) Notwithstanding Section 13340, for the 2015-16
fiscal year, if the Budget Act of 2015 is not enacted on or before
July 1, 2015, for the memoranda of understanding entered into
between the state employer and State Bargaining Unit 2 (effective
July begin delete 1, end delete begin insert 2, end insert 2013, to July 1, 2016, begin delete inclusive) and end delete begin insert inclusive), end insert State
Bargaining Unit 10 (effective July 2, 2013, to July 1, 2015,
inclusive), begin insert and State Bargaining Unit 13 (effective July 2, 2013,
to July 1, 2016, inclusive), end insert 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 Budget Act of 2015 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 Budget Act of 2015.

(b) If the memoranda of understanding entered into between
the state employer and State Bargaining Unit 2 (effective July begin delete 1, end delete
begin insert 2, end insert 2013, to July 1, 2016, begin delete inclusive) and end delete begin insert inclusive), end insert State Bargaining
Unit 10 (effective July 2, 2013, to July 1, 2015, begin delete inclusive) end delete
begin insert inclusive), and State Bargaining Unit 13 (effective July 2, 2013,
to July 1, 2016, inclusive) end insert 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 Budget Act of 2015,
these expenditures shall be subsumed by the expenditure authority
approved in the Budget Act of 2015 for each affected department.

(d) This section shall only apply to an employee covered by the
terms of State Bargaining Unit 2 (effective July begin delete 1, end delete begin insert 2, end insert 2013, to July
1, 2016, begin delete inclusive) and end delete begin insert inclusive), end insert State Bargaining Unit 10
(effective July 2, 2013, to July 1, 2015, begin delete inclusive) end delete begin insert inclusive), and
State Bargaining Unit 13 (effective July 2, 2013, to July 1, 2016,
inclusive) end insert memoranda of understanding. Notwithstanding Section
3517.8, this section shall not apply after the terms of the
memoranda of understanding have expired. For purposes of this
section, the memorandum of understanding for State Bargaining
Unit 2 expires on July 1, 2016, begin delete and end delete the memorandum of
understanding for State Bargaining Unit 10 expires on July 1, begin delete 2015. end delete
begin insert 2015, and the memorandum of understanding for State Bargaining
Unit 13 expires on July 1, 2016. end insert

SEC. 7.  

Section 12440.7 is added to the Government Code, to
read:

12440.7.  

(a) Notwithstanding Section 13340, for the 2016-17
fiscal year, if the Budget Act of 2016 is not enacted on or before
July 1, 2016, for the begin delete memorandum end delete begin insert memoranda end insert of understanding
entered into between the state employer and State Bargaining Unit
2 (effective July begin delete 1, end delete begin insert 2, end insert 2013, to July 1, 2016, begin delete inclusive), end delete begin insert inclusive)
and State Bargaining Unit 13 (effective July 2, 2013, to July 1,
2016, inclusive), end insert 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 begin delete memorandum end delete begin insert memoranda end insert of understanding until the
Budget Act of 2016 is enacted. The Controller may expend an
amount no greater than necessary to enable the Controller to
compensate state employees covered by the above begin delete memorandum end delete
begin insert memoranda end insert of understanding for work performed before July 1,
2016, of the 2016-17 fiscal year.

(b) If the begin delete memorandum end delete begin insert memoranda end insert of understanding entered
into between the state employer and State Bargaining Unit 2
(effective July begin delete 1, end delete begin insert 2, end insert 2013, to July 1, 2016, inclusive) begin delete is end delete begin insert and State
Bargaining Unit 13 (effective July 2, 2013, to July 1, 2016,
inclusive) are end insert in effect and approved by the Legislature, the
compensation and contribution for employee benefits for state
employees represented by begin delete this bargaining unit end delete begin insert these bargaining
units end insert 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 Budget Act of 2016,
these expenditures shall be subsumed by the expenditure authority
approved in the Budget Act of 2016 for each affected department.

(d) This section shall only apply to an employee covered by the
begin delete term end delete begin insert terms end insert of the State Bargaining Unit 2 (effective July begin delete 1, end delete begin insert 2, end insert 2013,
to July 1, 2016, inclusive) begin delete memorandum end delete begin insert and State Bargaining
Unit 13 (effective July 2, 2013, to July 1, 2016, inclusive)
memoranda end insert of understanding. Notwithstanding Section 3517.8,
this section shall not apply after the begin delete term end delete begin insert terms end insert of the begin delete memorandum end delete
begin insert memoranda end insert of understanding begin delete has end delete begin insert have end insert expired. For purposes of
this section, the memorandum of understanding for State
Bargaining Unit 2 expires on July 1, begin delete 2016. end delete begin insert 2016, and the
memorandum of understanding for State Bargaining Unit 13
expires on July 1, 2016. end insert

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SEC. 8.  

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 2014-15 fiscal year, and thereby facilitate the
orderly administration of state government at the earliest possible
time, it is necessary for this act to take effect immediately.

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begin insert SEC. 8. end insert   

end insert begin insert

This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.

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