Bill Text: CA AB131 | 2015-2016 | Regular Session | Amended
Bill Title: State public employment.
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Engrossed - Dead) 2016-11-30 - Died on Senate inactive file. [AB131 Detail]
Download: California-2015-AB131-Amended.html
BILL NUMBER: AB 131 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 8, 2015
INTRODUCED BY Committee on Budget (Weber (Chair), Bloom, Bonta,
Campos, Chiu, Cooper, Gordon, Jones-Sawyer, McCarty, Mullin,
Nazarian, O'Donnell, Rodriguez, Thurmond, Ting, and Williams)
JANUARY 9, 2015
An act relating to the Budget Act of 2015.
to amend Sections 18546, 18990, 18991, 18992, 18993, 19057.1,
19057.3, 19889, 19889.2, 19889.3, and 22879 of, to add Sections
19829.9840, 19829.9841, 19889.4, 22871.3, 22874.2, and 22944.5 to,
and to repeal Sections 19057, 19057.2, and 19057.4 of, the Government
Code, relating to state public employment, and making an
appropriation therefor, to take effect immediately, bill related to
the budget.
LEGISLATIVE COUNSEL'S DIGEST
AB 131, as amended, Committee on Budget. Budget Act of
2015. State public employment.
(1) 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 Professional Engineers in
California Government, State Bargaining Unit 9, and the California
Association of Professional Scientists, State Bargaining Unit 10,
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 memoranda of
understanding approved by the bill that require the expenditure of
funds from taking effect unless funds for those provisions are
specifically appropriated by the Legislature. The bill would require
the state employer and the affected employee organization to meet and
confer to renegotiate the affected provisions if funds for those
provisions are not specifically appropriated by the Legislature. The
bill would appropriate to the Controller from the General Fund,
unallocated special funds, including 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
memoranda of understanding described above if the Budget Act is not
enacted on or before July 1 in the 2016-17 or 2017-18 fiscal years,
as specified.
(2) The California Constitution provides that the civil service
includes every officer and employee in the state except as otherwise
provided in the Constitution, and existing statutory law, the State
Civil Service Act, prescribes a comprehensive civil service personnel
system for the state. The act grants eligibility for promotional
civil service examinations and career executive assignment
examinations to persons who meet certain requirements and minimum
qualifications and who are employed by the Legislature, persons who
are retired from the United States armed forces, honorably discharged
from active military duty with a service-connected disability, or
honorably discharged from active duty, or persons who were employees
of the executive branch in exempt positions.
This bill would revise eligibility standards applicable to people
who were employed by the Legislature, people who retired or were
discharged from the armed forces, and people who were formerly
employed in exempt, executive branch positions, as described above,
to permit them, upon request, to obtain civil service appointment
list eligibility by taking promotional exams or career executive
exams for which they meet minimum qualifications, as specified. The
bill would eliminate the requirement that an employee or veteran, in
this context, select only one promotional examination in which to
compete when multiple examinations are given. Among other things, the
bill would also remove a time limit on this eligibility granted to
specified former employees of the Legislature and employees of the
executive branch in exempt positions.
(3) Existing law generally requires that appointments to vacant
positions be made by lists. Existing law requires, with specified
exceptions, that an appointing power receive the names and addresses
of the three persons highest on a promotional employment list for the
class in which a position belongs, and if there are fewer than three
names, as specified, additional names are provided from the various
lists next lower in order of preference. Existing law prescribes
requirements for providing names to an appointing power for positions
designated as management and specifies a method of ranking eligible
candidates in this context. Existing law prescribes requirements for
providing names to an appointing power for positions designated as
supervisory and not professional, scientific, or administrative, and
that are not examined for on an open basis, and specifies a method of
ranking eligible candidates in this context. Existing law requires
an appointing power to fill a position from the names of the persons
provided.
This bill would repeal these provisions and make conforming
changes.
(4) Existing law provides for career executive assignments to
encourage the development for well-qualified executives and requires
the State Personnel Board to establish, by a rule, a system of merit
personnel administration specifically suited to the selection and
placement of executive personnel. The State Civil Service Act defines
career executive. Existing law requires the State Personnel Board,
by rule, to provide that employees whose appointments to career
executive assignments are terminated to be reinstated to civil
service positions, as specified, at their option.
This bill would revise the definition of career executive to
eliminate the requirement that the person have permanent status in
the civil service. This bill would provide that various provisions
relating to personnel examinations don't apply to career executive
assignments unless provided for by rule, as specified. The bill would
grant reinstatement rights to employees who at the time of
appointment to a career executive assignment were not employed by the
state but who had previously worked for it and had gained permanent
civil service status. The bill would grant an employee who, at the
time of his or her appointment to a career executive assignment, was
from outside civil service the right to defer examination for any
open eligible list, as specified, in existence at the time of the
termination of the career executive assignment for which he or she
meets the minimum qualifications of the class to which appointment is
sought. The bill would require, in this regard, that related
experience gained in a career executive assignment be considered
state civil service experience in a comparable class, as specified.
(5) The Public Employees' Medical and Hospital Care Act (PEMHCA),
which is administered by the Board of Administration of the Public
Employees' Retirement System, prescribes methods for calculating the
state employer contribution for postemployment health care benefits
for eligible retired public employees and their families and for the
vesting of these benefits. PEMHCA requires the employer contribution
for an employee or annuitant who is in employment or retired from
state service, to be adjusted by the Legislature in the annual Budget
Act, as specified. PEMHCA prescribes different ways of calculating
the employer contributions for employees and annuitants depending on
date of hire, years of service, and bargaining unit.
This bill, for state employees who are first employed and become
members of the retirement system on or after January 1, 2016, and are
represented by State Bargaining Unit 9 or 10, as specified, would
limit the employer contribution for annuitants to 80% of the weighted
average of the health benefit plan premiums for an active employee
enrolled for self-alone, during the benefit year to which the formula
is applied, for the 4 health benefit plans with the largest state
civil service enrollment, as specified. The bill would similarly
limit the employer contribution for an enrolled family member of an
annuitant to 80% of the weighted average of the additional premiums
required for enrollment of those family members during the benefit
year to which the formula is applied. The bill would similarly limit
employer contributions for annuitants enrolled in Medicare health
benefit plans.
(6) PEMHCA requires state employees to have a specified number of
years of state service, depending on hiring date and other factors,
before they may receive any portion of the employer contribution
payable for annuitants for postretirement health benefits and
increases the percentage they may receive based upon additional years
of service.
This bill would prohibit state employees who are first employed
and become members of the retirement system on or after January 1,
2016, and are represented by State Bargaining Unit 9 or 10, as
specified, from receiving any portion of the employer contribution
payable for annuitants unless the person is credited with at least 15
years of state service at the time of retirement. The bill would
prescribe the percentage of the employer contribution payable for
postretirement health benefits for an employee based on the number of
completed years of credited state service at retirement, with 50%
after 15 credited years of service, and 100% after 25 or more years
of service.
(7) PEMHCA requires that an employee or annuitant who is enrolled
in, or whose family member is enrolled in, a Medicare health benefit
plan be paid the amount of the Medicare Part B premiums, as
specified, and prohibits this payment from exceeding the difference
between the maximum employer contribution and the amount contributed
by the employer toward the cost of premiums for the health benefit
plan in which the employee or annuitant and his or her family members
are enrolled.
This bill would prohibit application of this requirement to state
employees who are first employed and become members of the retirement
system on or after January 1, 2016, and are represented by State
Bargaining Unit 9 or 10, as specified.
(8) PEMHCA establishes the Public Employees' Contingency Reserve
Fund for the purpose of funding health benefits and funding
administrative expenses. PEMHCA establishes the Annuitants' Health
Care Coverage Fund, which is continuously appropriated, for the
purpose of prefunding of health care coverage for annuitants,
including administrative costs. PEMHCA defines "prefunding" for these
purposes.
This bill would require the state and employees of State
Bargaining Unit 9 or 10 to prefund retiree health care with the goal
of reaching a 50% cost sharing of normal costs by July 1, 2019. The
bill would prescribed schedules of contribution percentages in this
regard for state and these employees, based upon bargaining unit,
with the moneys to be deposited in the Annuitants' Health Care
Coverage Fund. By depositing new revenue in a continuously
appropriated fund, this bill would make an appropriation.
This bill would declare that it is to take effect immediately as a
bill providing for appropriations related to the Budget Bill.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2015.
Vote: majority. Appropriation: no yes
. Fiscal committee: no 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
one of the purposes of this act is to approve two agreements entered
into by the state employer and State Bargaining Unit 9 and 10
pursuant to Section 3517.5 of the Government Code.
SEC. 2. 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
9, dated August 31, 2015, and State Bargaining Unit 10, dated
September 4, 2015, 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 require the
expenditure of funds shall not take effect unless funds for these
provisions are specifically appropriated by the Legislature. If funds
for these provisions are not specifically appropriated by the
Legislature, either the state employer or the affected employee
organization 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
included 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. Section 18546 of the Government
Code is amended to read:
18546. (a) "Career
executive" means an employee appointed from an employment list
established for the express purpose of providing a list of persons
with permanent status in the civil service who are available
who are eligible for career executive assignments, as
specified in Article 5 (commencing with Section 18990) of Chapter 4
and Article 9 (commencing with Section 19889 ) of Chapter
2.5 of Part 2.6, in which examination, for career executive
assignments, in which selection, classification, salary, tenure, and
other conditions of employment may be varied from those prevailing
under Chapter 3 (commencing with Section 18800) to Chapter 7
(commencing with Section 19570), inclusive, for other employees in
the state civil service.
(b) This section shall become operative on January 1, 2013.
SEC. 6. Section 18990 of the Government
Code is amended to read:
18990. (a) Notwithstanding any other provision of law or rule,
persons employed by the Legislature for two or more consecutive years
shall be eligible to apply for given an
opportunity, upon request, to obtain civil service appointment list
eligibility by taking any promotional civil service
examinations, including examinations for examination
or career executive assignments,
assignment examinations for which they meet the minimum
qualifications as prescribed by of the
class specification. for which they seek
appointment. Persons receiving passing scores shall
have their names placed on promotional lists resulting from these
examinations or otherwise gain eligibility for appointment.
gain list eligibility for appointment. In evaluating
minimum qualifications, related a person's
legislative experience shall be considered state civil service
experience in a comparable class, based on the
class that has the same or substantially similar duties
and responsibilities assigned. as the person'
s legislative position.
(b) In cases where promotional examinations are given by more than
one department for the same classification, the employee shall
select one department in which to compete. Once this selection is
made, it cannot be changed for the duration of the promotional list
established from the examination in which the employee participated.
Employees may transfer list eligibility between departments in the
same manner as provided for civil service employees.
(c) Employees who meet the requirements of this section, are
employed by the Legislature, and who resign or are released from
service, shall be eligible to take promotional civil service
examinations, including examinations for career executive
assignments, for one year following their resignation or release in
accordance with subdivisions (a) and (b).
(d) Employees
(b) Persons who meet the
requirements of this section, are employed by the office of
the Auditor General or the office of the Legislative Analyst as of
January 1, 1992, and who resign or are but who
resigned or were released from service due to a force
reduction of the Legislature before January 1, 1994,
with the Legislature, shall be eligible to take promotional
civil service examinations, including
examinations and career executive assignments, for
three years following their resignation or release
assignment examinations in accordance with
subdivisions (a) and (b). subdivision (a).
(e) An employee who establishes eligibility on a promotional civil
service list, either pursuant to subdivision (c) or (d) or prior to
having resigned or having been released in a manner to which
subdivision (c) or (d) would apply, shall maintain that eligibility
for the duration of that particular list.
(f) This section shall become operative on January 1, 2013.
SEC. 7. Section 18991 of the Government
Code is amended to read:
18991. (a) Notwithstanding
any other provision of law, persons retired from the United States
military, honorably discharged from active military duty with a
service-connected disability, or honorably discharged from active
duty, shall be eligible to apply for promotional civil service
examinations, including examinations for
and career executive assignments,
assignment examinations for which they meet the
minimum qualifications as prescribed by of
the class specification. to which they
seek appointment. Persons receiving passing scores shall
have their names placed on promotional lists resulting from
these examinations or otherwise gain list
eligibility for appointment. In evaluating minimum qualifications,
related the person's military
experience shall be considered state civil service experience in a
comparable class, based on the class that has
the same or substantially similar duties and responsibilities
assigned. as the person's position in the
military.
(b) In cases where promotional examinations are given by more than
one department for the same classification, the employee shall
select one department in which to compete. Once this selection is
made, it cannot be changed for the duration of the promotional list
established from the examination in which the employee participated.
Employees may transfer list eligibility between departments in the
same manner as provided for civil service employees.
SEC. 8. Section 18992 of the Government
Code is amended to read:
18992. (a) Notwithstanding any other provision of law or rule,
persons holding, for two or more consecutive years, nonelected exempt
positions in the executive branch of government as defined in
subdivisions (c), (e), (f), (g), (i), and (m) of Section 4 of Article
VII of the Constitution and excluding those positions for which the
salaries are set by statute, shall be eligible to apply for
given the opportunity, upon request, to obtain civil
service appointment list eligibility by taking any promotional
civil service examinations, including, but not limited to,
examinations for examination or career executive
assignments assignment examination for
which they meet the minimum qualifications as prescribed by
of the class specification.
to which they seek appointment. Persons receiving passing
scores shall have their names placed on promotional lists
resulting from these examinations or otherwise gain
list eligibility for appointment. In evaluating minimum
qualifications, related exempt experience the
person's experience in the exempt position shall be considered
state civil service experience in a comparable class.
class that has the same or substantially similar
duties and responsibilities as the person's exempt position.
(b) In cases where promotional examinations are given by more than
one appointing authority for the same classification, the employee
shall select one appointing authority in which to compete. Once this
selection is made, it cannot be changed for the duration of the
promotional list established from the examination in which the
employee participated. Employees may transfer list eligibility
between appointing authorities in the same manner as provided for
civil service employees.
(c) Employees
(b) Persons who meet the
requirements of this section and who resign or are
section, but who resigned or were released from exempt
employment of the executive branch of government
government, shall be eligible to take promotional civil
service examinations, including examinations
for and career executive
assignments, for one year following their resignation or release
assignment examinations in accordance with
subdivisions (a) and (b). subdivision (a).
(d) An employee who establishes eligibility on a promotional civil
service list, either pursuant to subdivision (c) or prior to having
resigned or having been released in a manner to which subdivision (c)
would apply, shall maintain that eligibility for the duration of
that particular list.
(e) This section shall become operative on January 1, 2013.
SEC. 9. Section 18993 of the Government
Code is amended to read:
18993. (a) Notwithstanding any other provision of law, a
legislative or nonelected exempt executive branch employee who is
appointed to a career executive assignment pursuant to Section 18990
or 18992, shall be eligible to compete in his or her
department's appointing power's promotional
examinations for which he or she meets the minimum
qualifications. qualifications of the class to which
he or she seeks appointment. When such an employee's career
executive assignment is terminated by the appointing power, he or she
shall have the right to request a deferred examination for any
promotional eligible list for that his
or her department appointing power has
in existence at the time of the appointment
termination if of the career executive
assignment and for which he or she meets the minimum
qualifications specified for the promotional examination.
of the class to which he or she seeks appointment.
(b) A request for a deferred examination pursuant to subdivision
(a) shall be made no later than 10 days after the effective date of
the termination of the career executive assignment. The department
shall administer the deferred examination within 30 days of the date
of the request.
SEC. 10. Section 19057 of the
Government Code is repealed.
19057. Except as provided in Section 19056, there shall be
certified to the appointing power the names and addresses of the
three persons standing highest on the promotional employment list for
the class in which the position belongs and who have indicated their
willingness to accept appointment under the conditions of employment
specified. If fewer than three names of persons willing to accept
appointment are on the list from which certification is to be made,
then additional eligibles shall be certified from the various lists
next lower in order of preference until three names are certified. If
there are fewer than three names on such lists, there shall be
certified the number thereon. In such case the appointing power may
demand certification of three names and examinations shall be
conducted until three names may be certified. The appointing power
shall fill the position by the appointment of one of the persons
certified.
SEC. 11. Section 19057.1 of the
Government Code is amended to read:
19057.1. Notwithstanding Section 19057, for positions in
classes designated as professional, scientific, or administrative,
or for any open employment list, Except for
reemployment lists, State Restriction of Appointment lists, and
Limited Examination and Appointment Program referral lists,
there shall be certified to the appointing power the names and
addresses of all those eligibles whose scores, at the time
of certification, represent the three highest ranks on the
employment list for the class, and who have indicated their
willingness to accept appointment under the conditions of employment
specified.
For purposes of ranking, scores of eligibles on employment lists
for these classes covered by this section
shall be rounded to the nearest whole percent. A rank shall
consist of one or more eligibles with the same whole percentage
score.
If the names on the list from which certification is being made
represent fewer than three ranks, then then,
consistent with board rules, additional eligibles
shall may be certified from the various lists
next lower in order of preference until names from three ranks
appear. If there are fewer than three names available for
certification, and the appointing authority does not choose to
appoint from among these, the appointing authority may demand
certification of three names. In that case, examinations shall be
conducted until at least three names may be certified by the
procedure described in this section, and the appointing authority
shall fill the position by appointment of one of the persons
certified.
Fractional examination scores shall be provided to, and used by,
the Department of the California Highway Patrol for its peace officer
classes.
The department may may, consistent with
board rules, provide for certifying less than three ranks where
the size of the certified group is disproportionate to the number of
vacancies.
SEC. 12. Section 19057.2 of the
Government Code is repealed.
19057.2. Notwithstanding the provisions of Section 19057, for
positions in classes designated as management, there shall be
certified to the appointing power the names and addresses of all
those applicants whose scores, at the time of certification,
represent the three highest ranks on the employment list for the
class, and who have indicated their willingness to accept appointment
under the conditions of employment specified.
For purposes of ranking, scores of eligibles on employment lists
for such classes shall be divided into six ranks. The first rank
shall consist of eligibles who receive a score of 95 percent or
higher. The second rank shall consist of eligibles who receive a
score of 90 to 94 percent, inclusive. The third rank shall consist of
eligibles who receive a score of 85 to 89 percent, inclusive. The
fourth rank shall consist of eligibles who receive a score of 80 to
84 percent, inclusive. The fifth rank shall consist of eligibles who
receive a score of 75 to 79 percent, inclusive. The sixth rank shall
consist of eligibles who receive a score of 70 to 74 percent,
inclusive. All examination scores for positions in these classes
shall be rounded to the nearest whole percent.
If the names on the list from which certification is being made
represent fewer than three ranks, then additional eligibles shall be
certified from the various lists next lower in order of preference
until names from three ranks appear. If there are fewer than three
names available for certification, and the appointing authority does
not choose to appoint from among these, the appointing authority may
demand certification of three names. In such case, examinations shall
be conducted until at least three names may be certified by the
procedure described in this section, and the appointing authority
shall fill the position by appointment of one of the persons
certified.
The department may certify less than three ranks where the size of
the certified group is disproportionate to the number of vacancies.
SEC. 13. Section 19057.3 of the
Government Code is amended to read:
19057.3. (a) Notwithstanding Section 19057, for
For a position in the Department of Corrections
and Rehabilitation, there shall be certified to the appointing power
the names and addresses of all those eligibles for peace officer and
closely allied classes whose scores, at the time of certification,
represent the three highest ranks on the employment list for the
class in which the position belongs and who have indicated their
willingness to accept appointment under the conditions of employment
specified.
(b) For purposes of ranking, scores of eligibles on employment
lists for the classes shall be rounded to the nearest whole percent.
A rank consists of one or more eligibles with the same whole
percentage score.
(c) If fewer than three ranks of persons willing to accept
appointment are on the list from which certification is to be made,
then additional eligibles shall be certified from the various lists
next lower in order of preference until names from three ranks are
certified. If there are fewer than three names on those lists, and
the appointing power does not choose to appoint from among these, the
appointing power may demand certification of three names and
examinations shall be conducted until at least three names may be
certified. The appointing power shall fill the position by the
appointment of one of the persons certified.
(d) The department may, consistent with board rules, provide for
certifying less than three ranks where the size of the certified
group is disproportionate to the number of vacancies.
(e) The department may, consistent with board rules, allow for the
names of eligibles to be transferred from lists for the same class
or comparable classes where names from one list were certified under
the rule of three ranks, and names from the other list were certified
under the rule of three names.
SEC. 14. Section 19057.4 of the
Government Code is repealed.
19057.4. Notwithstanding Section 19057, for positions in classes
which are designated by the board as supervisory and not
professional, scientific, or administrative, and are not examined for
on an open basis, there shall be certified to the appointing power
the names and addresses of all those eligible whose scores, at the
time of certification, represent the highest rank on the employment
list for the class, and who have indicated their willingness to
accept appointment under the conditions of employment specified.
For purposes of ranking, scores of eligible on employment lists
for these classes shall be rounded to the nearest whole percent. A
rank shall consist of one or more eligibles with the same whole
percentage score.
If the highest rank contains fewer than three eligibles, then the
next highest rank shall be certified until a minimum of three
eligibles willing to accept appointment under the conditions
specified are certified. If fewer than three names of persons willing
to accept appointment are on the list from which certification is to
be made, then additional eligibles shall be certified from the
various lists next lower in order of preference until three names are
certified. If there are fewer than three names available for
certification, and the appointing authority does not choose to
appoint from among these, the appointing authority may demand
certification of three names. In that case, examinations shall be
conducted until at least three names may be certified by the
procedure described in this section, and the appointing authority
shall fill the position by appointment of one of the persons
certified.
Fractional examination scores shall be provided to, and utilized
by, the California Highway Patrol for its peace officer classes.
SEC. 15. Section 19829.9840 is added to the
Government Code , to read:
19829.9840. (a) Notwithstanding Section 13340, for the 2016-17
fiscal year, if the Budget Act of 2016 is not enacted by July 1,
2016, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 9 (effective July 2, 2015,
to June 30, 2018 inclusive) and State Bargaining Unit 10 (effective
July 2, 2015, to July 1, 2018 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
between July 1, 2016, of the 2016-17 fiscal year, and the enactment
of the Budget Act of 2016.
(b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 9 (effective July 2, 2015,
to June 30, 2018, inclusive) and State Bargaining Unit 10 (effective
July 2, 2015, to July 1, 2018 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 9 (effective July 2, 2015, to June
30, 2018, inclusive) and State Bargaining Unit 10 (effective July 2,
2015, to July 1, 2018 inclusive) memoranda of understanding.
Notwithstanding Section 3517.8, this section shall not apply after
the term of the memorandum of understanding has expired. For purposes
of this section, the memorandum of understanding for State
Bargaining Unit 9 expires on June 30, 2018, and the memoranda of
understanding for State Bargaining Unit 10 expires on July 1, 2018.
SEC. 16. Section 19829.9841 is added to the
Government Code , to read:
19829.9841. (a) Notwithstanding Section 13340, for the 2017-18
fiscal year, if the Budget Act of 2017 is not enacted by July 1,
2017, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 9 (effective July 2, 2015,
to June 30, 2018 inclusive) and State Bargaining Unit 10 (effective
July 2, 2015, to July 1, 2018 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 2017 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, 2017, of the 2017-18 fiscal year, and the enactment
of the Budget Act of 2017.
(b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 9 (effective July 2, 2015,
to June 30, 2018, inclusive) and State Bargaining Unit 10 (effective
July 2, 2015, to July 1, 2018 inclusive) is 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 2017, these expenditures shall be
subsumed by the expenditure authority approved in the Budget Act of
2017 for each affected department.
(d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 9 (effective July 2, 2015, to June
30, 2018, inclusive) and State Bargaining Unit 10 (effective July 2,
2015, to July 1, 2018 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 9 expires on June 30, 2018, and the memorandum of
understanding for State Bargaining Unit 10 expires on July 1, 2018.
SEC. 17. Section 19889 of the
Government Code is amended to read:
19889. It is the purpose of this article to encourage the
development and effective use in the civil service
of well-qualified and carefully selected executives. In order to
carry out this purpose purpose, the
State Personnel Board shall establish by rule a system of
merit personnel administration
system specifically suited to the selection and placement of
executive personnel. The department shall be responsible for salary
administration, position classification, and for the motivation and
training of executive personnel. For the purpose of administering
this system there is established herewith a category of civil service
appointment called "career executive assignments." The department
shall designate positions of a high administrative and policy
influencing character for inclusion in or removal from this category
subject to review by the State Personnel Board, except that the
department shall not so designate a position in which there is an
incumbent already appointed under the provisions of this part
governing employees other than career executives.
SEC. 18. Section 19889.2 of the
Government Code is amended to re ad:
19889.2. The provisions of this part governing the
examination, selection, classification, and tenure of employees
in the regular civil service shall not apply in
administering executive personnel through a merit system utilizing
to "career executive assignments" unless
the application is provided for by
State Personnel Board rule. The provisions of this part relating to
punitive actions shall apply to all employees serving in
career executive assignments, except that termination of a career
executive assignment as provided for in Section 19889.3 is not a
punitive action. With reference to termination of career
executive assignments, the State Personnel Board rules
shall, as at a minimum, afford
an employee all employees whose career executive
assignments are terminated by the appointing power a right of
appeal to the State Personnel Board for restoration of his or her
assignment when he or she alleges that his or her
the termination was for reasons prohibited in Chapter 10
(commencing with Section 19680) of Part 2.
SEC. 19. Section 19889.3 of the
Government Code is amended to read:
19889.3. (a) Eligibility for appointment to positions in the
career executive assignment category shall be established as a result
of competitive examination of persons with permanent status
in the civil service who examinations. All candidates
shall meet such minimum qualifications as the State Personnel
Board may determine are requisite to the performance of high
administrative and policy influencing functions.
(b) No person employed in a career executive assignment shall be
deemed to acquire as a result of such service any rights to or status
in positions governed by the provisions of this part relating to the
civil service other than the category of career executive
assignment, except as provided by State Personnel Board rule.
(c) The State Personnel Board shall provide by rule that an
employee shall, if he or she so desires, at the termination of his or
her appointment to a career executive assignment, be reinstated to a
civil service position that is (1) not a career executive assignment
and (2) that is at least at the same salary level as the last
position that he or she held as a permanent or probationary employee.
If the employee has completed a minimum of five years of state
service, he or she may return to a position that is (1) at
substantially the same salary level as the last position in which he
or she had permanent or probationary status or (2) at a salary level
that is at least two steps lower than that of the career executive
position from which the employee is being terminated.
(d) For the purpose of this section "employee" means a permanent
employee, or an employee serving under another appointment who
previously had permanent status and who, since such permanent status,
has had no break in the continuity of his or her state service.
(e) This section shall become operative on January 1, 2013.
SEC. 20. Section 19889.4 is added to the
Government Code , to read:
19889.4. In accordance with State Personnel Board rules, the
following shall apply when an appointing power terminates a career
executive assignment:
(a) An employee who at the time of his or her appointment to a
career executive assignment was employed by the state and had
permanent civil service status shall, if he or she so desires, be
reinstated to a civil service position that is (1) not a career
executive assignment and (2) that is at least at the same salary
level as the last position that he or she held as a permanent or
probationary employee. If the employee had completed a minimum of
five years of state service, he or she may return to a position that
is (1) at substantially the same salary level as the last position in
which he or she had permanent or probationary status or (2) at a
salary level that is at least two steps lower than that of the career
executive position from which the employee is being terminated.
(b) Article 5 (commencing with Section 19140) of Chapter 5 of Part
2 shall apply to an employee who at the time of his or her
appointment to a career executive assignment was not employed by the
state but who had previously worked for the state and gained
permanent civil service status.
(c) (1) An employee who at the time of his or her appointment to a
career executive assignment was from outside civil service shall
have the right to request a deferred examination for any open
eligible list that his or her appointing power or the department has
in existence at the time of the termination of the career executive
assignment and for which he or she meets the minimum qualifications
of the class to which he or she seeks appointment. Whether the
employee takes a deferred examination or other open civil service
examination, for purposes of evaluating whether he or she meets the
minimum qualifications of the class to which he or she seeks
appointment, related experience gained in a career executive
assignment shall be considered as state civil service experience in a
comparable class.
(2) A request for a deferred examination pursuant to paragraph (1)
shall not be made later than 10 days after the effective date of the
termination of the career executive assignment. The department or
its designee shall administer the deferred examination within 30 days
of the date of the request.
SEC. 21. Section 22871.3 is added to the
Government Code , to read:
22871.3. (a) The employer contribution for each annuitant
enrolled in a basic plan shall be an amount equal to 80 percent of
the weighted average of the health benefit plan premiums for an
employee or annuitant enrolled for self-alone, during the benefit
year to which the formula is applied, for the four health benefit
plans that had the largest active state civil service enrollment,
excluding family members, during the previous benefit year. For each
annuitant with enrolled family members, the employer contribution
shall be an amount equal to 80 percent of the weighted average of the
additional premiums required for enrollment of those family members,
during the benefit year to which the formula is applied, in the four
health benefit plans that had the largest active state civil service
enrollment, excluding family members, during the previous benefit
year.
(b) The employer contribution for each annuitant enrolled in a
Medicare health benefit plan in accordance with Section 22844 shall
be an amount equal to 80 percent of the weighted average of the
health benefit plan premiums for an annuitant enrolled in a Medicare
health benefit plan for self-alone, during the benefit year to which
the formula is applied, for the four Medicare health benefit plans
that had the largest state annuitant enrollment, excluding family
members, during the previous benefit year. For each annuitant with
enrolled family members, the employer contribution shall be an amount
equal to 80 percent of the weighted average of the additional
premiums required for enrollment of those family members, during the
benefit year to which the formula is applied, in the four Medicare
health benefit plans that had the largest state annuitant enrollment,
excluding family members, during the previous benefit year. If the
annuitant is eligible for Medicare Part A, with or without cost, and
Medicare Part B, regardless of whether the annuitant is actually
enrolled in Medicare Part A or Part B, the employer contribution
shall not exceed the amount calculated under this subdivision.
(c) This section applies to a state employee who is first employed
by the state and becomes a state member of the system on or after
January 1, 2016, and who is represented by State Bargaining Unit 9 or
10.
(d) This section shall also apply to a state employee related to
State Bargaining Unit 9 or 10 who is excepted from the definition of
"state employee" in subdivision (c) of Section 3513 and first
employed by the state and becomes a state member of the system on or
after January 1, 2016.
(e) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or Chapter 12 (commencing with Section 3560) of
Division 4 of Title 1, the memorandum of understanding shall be
controlling without further legislative action, except that if those
provisions require the expenditure of funds, the provisions may not
become effective unless approved by the Legislature.
SEC. 22. Section 22874.2 is added to the
Government Code , to read:
22874.2. (a) Notwithstanding Sections 22870, 22871, 22873, and
22874, a state employee, as defined by subdivision (c) of Section
3513, who is first employed by the state and becomes a state member
of the system on or after January 1, 2016, and is represented by
State Bargaining Unit 9 or 10 shall not receive any portion of the
employer contribution payable for annuitants unless the person is
credited with 15 years of state service at the time of retirement.
(b) The percentage of the employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the completed years of credited state
service at retirement as shown in the following table:
Credited Years
Years of Service Percentage
Contribution
of Employer
Contribution
15.......................... 50
16.......................... 55
17.......................... 60
18.......................... 65
19.......................... 70
20.......................... 75
21.......................... 80
22.......................... 85
23.......................... 90
24.......................... 95
25 or more.................. 100
(c) This section shall apply only to state employees that retire
for service. For purposes of this section, "state service" means
service rendered as an employee of the state or an appointed or
elected officer of the state for compensation.
(d) This section does not apply to:
(1) Former state employees previously employed before January 1,
2016, who return to state employment on or after January 1, 2016.
(2) State employees hired prior to January 1, 2016, who become
subject to representation by State Bargaining Unit 9 or 10 on or
after January 1, 2016.
(3) State employees on an approved leave of absence employed
before January 1, 2016, who return to active employment on or after
January 1, 2016.
(4) State employees hired after January 1, 2016, who are first
represented by a state bargaining unit other than Bargaining Unit 9
or 10, who later become represented by state bargaining unit 9 or 10.
(e) Notwithstanding Section 22875, this section shall also apply
to a related state employee who is excepted from the definition of
"state employee" in subdivision (c) of Section 3513, and is first
employed by the state and becomes a state member of the system on or
after January 1, 2016.
SEC. 23. Section 22879 of the
Government Code is amended to read:
22879. (a) The board shall pay monthly to an employee or
annuitant who is enrolled in, or whose family member is enrolled in,
a Medicare health benefit plan under this part the amount of the
Medicare Part B premiums, exclusive of penalties, except as provided
in Section 22831. This payment may not exceed the difference between
the maximum employer contribution and the amount contributed by the
employer toward the cost of premiums for the health benefit plan in
which the employee or annuitant and his or her family members are
enrolled. No payment may be made in any month if the difference is
less than one dollar ($1).
(b) This section shall be applicable only to state employees,
annuitants who retired while state employees, and the family members
of those persons.
(c) With respect to an annuitant, the board shall pay to the
annuitant the amount required by this section from the same source
from which his or her allowance is paid. Those amounts are hereby
appropriated monthly from the General Fund to reimburse the board for
those payments.
(d) There is hereby appropriated from the appropriate funds the
amounts required by this section to be paid to active state
employees.
(e) This section does not apply to:
(1) A state employee who is first employed by the state and
becomes a state member of the system on or after January 1, 2016, and
who is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who
is excepted from the definition of "state employee" in subdivision
(c) of Section 3513 and is first employed by the state and becomes a
state member of the system on or after January 1, 2016.
SEC. 24. Section 22944.5 is added to the
Government Code , to read:
22944.5. (a) The state and employees in State Bargaining Unit 9
or 10 shall prefund retiree health care, with the goal of reaching a
50-percent cost sharing of actuarially determined normal costs for
both employer and employees by July 1, 2019.
(b) (1) The employees in State Bargaining Unit 9 shall make
contributions to prefund retiree health care based on the following
schedule and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.5 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 0.5 percent for a total
employee contribution of 1.0 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.0 percent for a total
employee contribution of 2.0 percent of pensionable compensation.
(2) The employees in State Bargaining Unit 10 shall make
contributions to prefund retiree health care based on the following
schedule and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.7 percent of pensionable
compensation.
(B) Effective July 1, 2018, an additional 0.7 percent for a total
employee contribution of 1.4 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.4 percent for a total
employee contribution of 2.8 percent of pensionable compensation.
(c) This section only applies to employees in State Bargaining
Unit 9 or 10 who are eligible for health benefits, including
permanent intermittent employees.
(d) Contributions paid pursuant to this section shall be deposited
in the Annuitants' Health Care Coverage Fund and shall not be
refundable under any circumstances to an employee in State Bargaining
Unit 9 or 10 or his or her beneficiary or survivor.
(e) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if those provisions
of a memorandum of understanding require the expenditure of funds,
the provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
(f) This section shall also apply to a state employee related to
State Bargaining Unit 9 or 10 who is excepted from the definition of
"state employee" in subdivision (c) of Section 3513.
SEC. 25. The sum of three hundred thousand dollars
($300,000) is hereby appropriated from the General Fund to the
Department of Finance for the purpose of funding the posting on the
department's Internet Web site of all budget requests included as
part of the Governor's Budget.
SEC. 26. 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.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2015.
