BILL ANALYSIS
AB 649
Page 1
Date of Hearing: August 23, 2000
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Carole Migden, Chairwoman
AB 649 (Machado) - As Amended: June 8, 2000
Policy Committee:
P.E.R.&S.S.Vote:6-0
Urgency: Yes State Mandated Local
Program:NoReimbursable:
SUMMARY :
This bill makes several technical changes to Memoranda of
Understanding (MOUs) negotiated between the state and various
bargaining units (BUs) for 1999-2001, and makes an appropriation
to fully fund the employee compensation package negotiated
between the state and its 21 BUs. Specifically, this bill
contains the following key provisions:
1)Conforms drug testing policy to the BU 11 collective
bargaining agreement.
2)Conforms safety retirement benefits for excluded employees to
those negotiated for represented employees through collective
bargaining.
3)Adds benefit contracts covering excluded employees to those
exempt from Department of General Services (DGS) review.
4)Clarifies eligibility and appropriates funding for the Rural
Health Subsidy Program.
5)Clarifies employee health benefit eligibility for BU 19
members.
6)Allows State Teachers' Retirement System (CalSTRS) members who
become state employees to stay in the STRS, instead of joining
the Public Employees' Retirement System (CalPERS).
7)Permits Security Officers employed by the State Department of
Justice (DOJ) to have PERS State Peace Officer/Firefighter
(POFF) retirement benefits.
AB 649
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FISCAL EFFECT :
This bill appropriates $65.4 million as follows:
1)$47.6 million from unallocated special funds to fully fund the
state employee compensation item provided in the Budget Act of
1999.
2)$12.6 million from the General Fund for the purpose of funding
the Rural Area Health Subsidy Program.
3)$175,000 from the General Fund to contract with a third-party
administrator for recordkeeping services for the Rural Area
Health Subsidy Program.
4)$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.
COMMENTS :
1)Department of Finance (DOF) Agrees to Reduce Appropriation .
The $47.6 million special fund appropriation in this bill
covers a deficiency in the CalTRANS budget for employee
compensation. Since this provision was amended into the bill,
DOF has revised shortfall downward by $17 million. Because
this bill is in the Assembly for concurrence in Senate
amendments, the bill cannot be amended further. However, DOF
has agreed that the Governor will reduce this appropriation to
$30.6 million when he signs the bill.
2)BU 11 Drug Testing Policy . The MOU between the state and BU
11 (Engineering and Scientific Technicians, represented by the
California State Employee Association), effective July 1,
1999, provides for an election of remedies when employees are
disciplined or rejected on probation for positive drug test
results. This provision of the MOU conflicts with existing
law, however, which does not allow the employee to choose
AB 649
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between a neutral third party grievance procedure or an appeal
to the State Personnel Board (SPB). This bill amends the
Government Code and the Code of Civil Procedure to allow an
employee to choose between arbitration and an appeal to the
SPB, thereby allowing full implementation of the BU 11 MOU.
3)Rural Health Subsidy . 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. Sufficient
monies were not appropriated to the Work and Family Program
and the Rural Health Subsidy Program pursuant to SB 339
(Burton), Chapter 776 of 1999. This bill appropriates $12.6
million from the General Fund to the Department of Personnel
Administration to fully fund the program.
4)Other Significant Changes . This bill also allows specified
members of CalSTRS who became employed by the state after July
1, 1991 to remain in CalSTRS instead of participating in
CalPERS; and, provides Peace Officer/Firefighter Retirement
benefits (3% at age 50) to security officers employed by the
Department of Justice.
Analysis Prepared by : Stephen Shea / APPR. / (916) 319-2081