Amended in Assembly August 27, 2014

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, to take effect immediately, bill related to the budget.

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, State Bargaining Unit 10, the California Association of Professional Scientists, on August 12, 2014, and State Bargaining Unit 13, the International Union of Operating Engineers, Stationary Engineers, on August 21, 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.

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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Existing law requires the Department of Human Resources to provide to the Joint Legislative Budget Committee any side letter, appendix, or other addendum to a properly ratified memorandum of understanding that requires the expenditure of $250,000 or more related to salary and benefits and that is not already contained in the original memorandum of understanding or the Budget Act. Existing law requires the Joint Legislative Budget Committee, within 30 days after receiving the side letter, appendix, or other addendum, to determine if the addendum presents substantial additions that are not reasonably within the parameters of the original memorandum of understanding and thereby requires legislative action to ratify the addendum.

end insert begin insert

This bill would approve the addenda to memoranda of understanding entered into by the state employer and State Bargaining Unit 8, the California Department of Forestry Firefighters on August 26, 2014. The bill would also appropriate $10,236,000 from the General Fund and other unallocated special and nongovernmental cost funds for those purposes. The bill would prohibit provisions of the addenda to the memorandum of understanding approved by this bill that authorize the expenditure of funds from taking effect unless funds for those provisions already exist within other available appropriations or are specifically appropriated by the Legislature, and would require the state employer and the affected employee organization to meet and confer to renegotiate the affected provisions if funds for these purposes are not specifically appropriated by the Legislature.

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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.

Vote: majority. 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 three agreements pursuant to
Section 3517.5 of the Government Code entered into by the state
employer and State Bargaining Units 2, 10, and 13 begin insert , and to approve
addenda to a memorandum of understanding entered into by the
state employer and State Bargaining Unit 8 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,
State Bargaining Unit 10 dated August 12, 2014, and State
Bargaining Unit 13 dated August 21, 2014, 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.

(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:

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

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

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

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 2, 2013, to July 1, 2016, inclusive), State Bargaining Unit 10
(effective July 2, 2013, to July 1, 2015, inclusive), and State
Bargaining Unit 13 (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 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 2,
2013, to July 1, 2016, inclusive), State Bargaining Unit 10
(effective July 2, 2013, to July 1, 2015, inclusive), and State
Bargaining Unit 13 (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 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 2, 2013, to July
1, 2016, inclusive), State Bargaining Unit 10 (effective July 2,
2013, to July 1, 2015, inclusive), and State Bargaining Unit 13
(effective July 2, 2013, to July 1, 2016, inclusive) 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,
the memorandum of understanding for State Bargaining Unit 10
expires on July 1, 2015, and the memorandum of understanding
for State Bargaining Unit 13 expires on July 1, 2016.

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 memoranda of understanding entered into
between the state employer and State Bargaining Unit 2 (effective
July 2, 2013, to July 1, 2016, inclusive) and State Bargaining Unit
13 (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 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 memoranda of understanding for work performed before
July 1, 2016, of the 2016-17 fiscal year.

(b) If the memoranda of understanding entered into between
the state employer and State Bargaining Unit 2 (effective July 2,
2013, to July 1, 2016, inclusive) and State Bargaining Unit 13
(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 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
terms of the State Bargaining Unit 2 (effective July 2, 2013, to
July 1, 2016, inclusive) and State Bargaining Unit 13 (effective
July 2, 2013, to July 1, 2016, inclusive) 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,
and the memorandum of understanding for State Bargaining Unit
13 expires on July 1, 2016.

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begin insert SEC. 8. end insert   

end insert begin insert

(a) The provisions of the following addenda to the
memorandum of understanding entered into by the state employer
and State Bargaining Unit 8 that require the expenditure of funds,
are hereby approved for the purposes of Section 3517.63 of the
Government Code:

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(1) The addendum dated August 26, 2014, effective July 1, 2014,
related to minimum wage increase compaction issues.

end insert begin insert

(2) The addendum dated August 26, 2014, effective January 1,
2015, related to a general salary increase requiring an
appropriation.

end insert begin insert

(b) The sum of ten million two hundred thirty-six thousand
dollars ($10,236,000) is appropriated, relative to the addendum
described in paragraph (2) of subdivision (a), for State Bargaining
Unit 8 for expenditures 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:

end insert begin insert

(1) Six million four hundred thirty-eight thousand dollars
($6,438,000) from the General Fund in augmentation of Item
9800-001-0001.

end insert begin insert

(2) Two million five hundred forty-five thousand dollars
($2,545,000) from unallocated special funds in augmentation of
Item 9800-001-0494.

end insert begin insert

(3) One million two hundred fifty-three thousand dollars
($1,253,000) from other unallocated nongovernmental cost funds
in augmentation of Item 9800-001-0988.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert The provisions of the addenda to the memorandum of
understanding approved by Section 8 of this act that require the
expenditure of funds shall not take effect unless funds for these
provisions already exist within available appropriations or are
specifically appropriated by the Legislature. If funds for these
provisions are not specifically appropriated by the Legislature,
the state employer and the affected employee organization shall
meet and confer to renegotiate the affected provisions. end insert

begin delete SEC. 8. end delete
begin insert SEC. 10. end 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.