AB 1625

Bill Subjects

Abstract

(1) Under existing law, 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 that require the expenditure of funds of a memorandum of understanding entered into between the state employer and State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, 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. This bill would provide that provisions of the memorandum of understanding approved by this bill that require the expenditure of funds will not take effect unless funds for these provisions are specifically appropriated by the Legislature, and would authorize the state employer and the affected employee organizations to reopen negotiations on all or part of the memorandum of understanding if the Legislature does not approve or fully fund any provision of the memorandum of understanding that requires the expenditure of funds. (2) The Public Employees' Retirement Law (PERL) provides a comprehensive set of rights and benefits based upon age, service credit, and final compensation. PERL prescribes contribution rates for state employees who are state miscellaneous, state industrial, state safety members, patrol members, or state peace officer/firefighter members, among others, in amounts based on percentages of monthly compensation. PERL reduces those contributions by excepting from the definition of monthly compensation specified amounts ranging between $238 and $863, based on member classification, among other things. Member contributions are deposited into the Public Employees' Retirement Fund, which is a continuously appropriated trust fund. This bill would increase the contribution rates by 3% for those state miscellaneous or state industrial members, and state safety members of State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21. The bill would also increase the rate of contribution for a state employee who is excepted from the definition of "state employee," and for an officer or employee of the executive branch who is not a member of civil service as follows: the rate for state miscellaneous or state industrial members would increase to 9% for those employees not included in the federal system, and to 8% for those included in the federal system, except that for those persons related to Bargaining Unit 2, the increase would be to 10% or 9%, respectively; the rate for state safety members would increase to 9%; the rate for peace officer/firefighter members who are related to Bargaining Unit 6 or 7 would increase to 11%. By increasing member contributions into a continuously appropriated fund, this bill would make an appropriation. (3) The annual Budget Act appropriates specified amounts from the General Fund, unallocated special funds, and unallocated nongovernmental cost funds, for state employee compensation. This bill would, in the event that the annual Budget Act is not enacted prior to July 1 of each year covered by the memoranda of understanding for State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, provide for a continuous appropriation for the amount necessary for the payment of compensation and benefits to members of those bargaining units. (4) Existing law requires the Department of Personnel Administration to provide a memorandum of understanding to the Legislative Analyst who shall have 10 calendar days from the date the tentative agreement is received to issue a fiscal analysis to the Legislature. Existing law prohibits the memorandum of understanding from being subject to legislative determination until either the Legislative Analyst has presented a fiscal analysis of the memorandum of understanding or until 10 calendar days has elapsed since the memorandum was received by the Legislative Analyst. This bill would state that any failure to comply with those provisions shall not affect the validity of this act. (5) This bill would declare that it is to take effect immediately as an urgency statute.