BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                          AB649  (Machado)
          
          Hearing Date:6/6/2000           Amended:6/5/2000       
          Consultant: Maureen Brooks          Policy Vote:P. E. & R.   
          3-1                      
          ____________________________________________________________ 
          ___
          BILL SUMMARY:    AB 649, an urgency measure, makes various  
          changes in the state negotiated Memoranda of Understanding  
          contracts (MOUs) for 1999-2001.  
          The bill also allows specified members of STRS who became  
          employed by the state after July 1, 1991 to remain in STRS  
          instead of participating in PERS; and, provides Peace  
          Officer/Firefighter Retirement benefits (3% at age 50) to  
          security officers employed by the Department of Justice.

          AB 649 appropriates $65,414,288 as follows:
           $5 million from the General Fund to the Controller for  
            allocation to the Work and Family Fund for the purpose of  
            establishing and maintaining work and family programs for  
            state employees as specified,
           $47.6 million from unallocated special funds for state  
            employee compensation provided in the Budget Act of 1999,
           $12.6 million from the General Fund for the purpose of  
            funding the Rural Area Health Subsidy Program established  
            by Chapter 743 of 1999 until 1-1-2005,
           $175,000 from the General Fund pursuant to the Budget Act  
            of 1999 to be used to contract with a third-party  
            administrator for recordkeeping services for the Rural  
            Area Health Subsidy Program.
                              Fiscal Impact (in thousands)
           Major Provisions            2000-01             2001-02              
           2002-03            Fund  
          
          Work and Family Fund    $5,000                 General

          State employee comp     $47,600                Specials

          Rural Health Subsidy      $12,639              General

          3rd Party Administrator       $175             General
          STAFF COMMENTS:  This bill meets the criteria to be placed  
          on the Suspense File, however, historically bills relating  
          to MOU's are not sent to Suspense due to the urgency of the  










          legislation.
          
          There are five basic changes to the MOUs negotiated last  
          year as follows: 
          1)  conforms drug testing policy with the Unit 11  
          collective bargaining agreement, 2)  includes managers and  
          supervisors in safety retirement inadvertently omitted and  
          includes only those units which agreed to this provision in  
          collective bargaining,  3)  adds benefit contracts covering  
          excluded employees to those exempt from Department of  
          General Services review,  4)  appropriates funding to the  
          Rural Health Subsidy Program, and 5) conforms employee  
          health benefit eligibility for Unit 19 members which was  
          inadvertently omitted in the ratifying legislation last  
          year.