BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 649|
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THIRD READING
Bill No: AB 649
Author: Machado (D), et al
Amended: 5/24/00 in Senate
Vote: 27 - Urgency
ALL PRIOR VOTES NOT RELEVANT
SUBJECT : State employees: Memoranda of Understanding
Clean Up
SOURCE : Department of Personnel Administration
DIGEST : Senate Floor Amendment of 5/24/00 deletes prior
version of the bill requiring state agency employers to
make payment of overtime wages no later than the payday for
the next regular payroll period.
The bill now makes various changes in the state negotiated
Memoranda of Understanding contracts (MOUs) for 1999-2001.
These MOUs need technical clean-up (#1-6 below). Also
included are two provisions reflecting other negotiated
agreements (#7-8 below). This URGENCY bill contains these
key provisions:
1.Conform drug testing policy with the Unit 11 collective
bargaining agreement.
2.Safety retirement.
3.Public Contract Code.
CONTINUED
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4.Rural Health Subsidy.
5.Employee Health Benefit Eligibility for Bargaining Unit
19.
6.Appropriations.
7.Allow STRS members who become State employees to stay in
STRS, instead of joining PERS
8.Permit Security Officers Employed By the State Department
of Justice to have PERS State Peace Officer/Firefighter
(POFF) Retirement Benefits.
ANALYSIS :
1.Drug Testing Policy
PROBLEM:
State Bargaining Unit 11 (Engineering and Scientific
Technician, represented by CSEA) MOU, which took effect
July 1, 1999, provides for an election of remedies/forums
when employees are disciplined or rejected on probation
for positive drug test results.
Existing law does not allow the employee to choose
between a neutral third party grievance procedure or an
appeal to the State Personnel Board (SPB). In addition,
statutory language is needed to make it clear that when
an employee elects a third party, his/her access to court
review is under the law governing the arbitration
process, and not under the law governing State Personnel
Board appeals.
This bill would amend the Government Code and the Code of
Civil Procedure to conform with the Unit 11 collective
bargaining agreement.
FISCAL IMPACT:
The Department of Personnel Administration (DPA)
anticipates savings.
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State agencies are required to reimburse the SPB for all
costs incurred to conduct appeal hearings. State
agencies are also obligated to employ, or pay for,
individuals to represent the agency at appeal hearings.
Employees do not pay any of the SPB costs. Employees
generally receive no-cost representation from their
unions. Consequently, there is no reason for employees
not to appeal to the SPB; the State must bear a
disproportionate amount of the costs.
Under the terms of the Bargaining Unit 11 MOU, only the
union can invoke arbitration and the union must pay
one-half of the arbitrator's costs and fees.
Consequently, fewer hearings are anticipated and the cost
will be borne equally.
2.Safety Membership for Excluded Employees
PROBLEM:
Existing law provides that DPA administers safety
retirement benefits for State employees through the
collective bargaining process, when this provision was
added to law, the inclusion of managers and supervisors
in the safety requirement was inadvertently omitted.
In addition, not all bargaining units agreed to the DPA
process of inclusion of managers and supervisors in
safety retirement.
This bill would amend the Government Code (Section
19816.20 and Section 19816. 20 (d)) to include excluded
employees in the definition of "state employees" who are
not members of civil service and amend Section 20405.1 (
c ) to cover only those units that agreed to the
provision in collective bargaining.
FISCAL IMPACT:
None
3.Public Contract Code
PROBLEM:
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Existing Public Contract Code was previously amended to
exclude DPA from Department of General Services (DGS)
review of contracts for benefits, health and safety, and
training services for those items bargained in an MOU.
Contracts covering "excluded employees" (managers and
supervisors), however, are not exempt from DGS review.
This bill would amend the Public Contract Code (Section
10295.4) to extend the exclusion to cover the benefit
contracts covering "excluded employees."
FISCAL IMPACT:
None
4.Rural Health Subsidy Appropriation and Appropriation For
Other Employee Compensation
PROBLEM:
Existing law, pursuant to SB 514 (Chesbro), Chapter 743
of 1999, authorized a rural health subsidy for state
employees and retirees who live in areas of the State
where there is no health maintenance organization (HMO)
available.
Monies were not appropriated to the Work and Family
Program and the Rural Health Subsidy Program pursuant to
Chapter 743 of 1999.
This bill appropriates money to fully fund the Employee
Compensation Package, fulfilling the State's obligations
made in the MOUs negotiated with the 21 bargaining units.
This is a technical change that appropriates the monies
that were agreed to in bargaining.
5.Employee Eligibility for Bargaining Unit 19
PROBLEM:
As the result of an MOU agreed to in 1999, the employee
eligibility for representation in Bargaining Unit 19
(Health and Social Services Professionals, represented by
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AFSCME) was changed to be consistent with all other State
employees. When the legislation was passed that ratified
the MOU for Unit 19, the change in employee eligibility
was inadvertently omitted.
This bill would amend Government Code section 22754.2 to
remove Subsection 4, which defines employee eligibility
for Unit 19.
FISCAL IMPACT:
None. This employee eligibility change was never fully
implemented.
6.Allow STRS Members to Stay in STRS When Becoming State
Employees
PROBLEM:
Existing STRS law provides, pursuant to 1997 legislation,
that a STRS member who subsequently was employed by the
state Community Colleges in a position requiring PERS
membership may elect to remain in STRS.
This bill would:
A.allow any certificated teacher member of STRS who
becomes employed by the state to stay in STRS instead
of joining PERS,
B.allow current State employees, who were vested members
of STRS and became mandatory members of the PERS
Second Tier plan, to elect to return to STRS
membership,
C.apply only to employees who were hired after June 30,
1991 and before the date the First Tier plan became
effective for new employees represented by this Union,
and
D.provide that employees hired on and after January 1,
2000 will have the option of membership under the
Second Tier or the First Tier plan.
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FISCAL IMPACT:
None
1.Permit Security Officers Employed By the State Department
of Justice to have PERS State Peace Officer/Firefighter
(POFF) Retirement Benefits.
PROBLEM:
Existing PERS law specifically provides that security
officers of the State Department of Justice shall be
"state miscellaneous" members of PERS. "State
miscellaneous" members of PERS receive a retirement
benefit based on the "2% @ age 55" formula, and are
covered by "Ordinary Disability Retirement" benefits.
This bill would provide that security officers of the
Department of Justice shall be "state Peace
Officer/Firefighter" members of PERS, receiving a
retirement benefit based on the "3% @ age 50" formula,
and are covered by "Industrial Disability Retirement"
benefits.
According to DPA:
"Initially the Security Officer, DOJ was not included in
POFF because, when the class was established, the
existing Attorney General did not want them included.
However, over the past 10 to 12 years, their duties have
significantly been expanded, necessitating recruitment of
a more highly trained Officer . The DOJ supports the
inclusion of the Security Officer into the POFF and we
(DPA) agreed to including them in bargaining."
FISCAL IMPACT:
Possible savings because state "POFF" members of PERS do
not participate in the federal Social Security program,
while "state miscellaneous members" of PERS are in Social
Security.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
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SUPPORT : (Verified 5/25/00)
Department of Personnel Administration (source)
DLW:jk 5/25/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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