This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

 THIRD READING  

Bill No: AB 102

Author: Committee on Budget

Amended: 6/22/20 in Senate

Vote: 21

PRIOR VOTES NOT RELEVANT

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 13-5, 6/24/20

AYES: Mitchell, Beall, Caballero, Durazo, Hurtado, Leyva, McGuire, Monning, Pan, Roth, Skinner, Stern, Wieckowski

NOES: Nielsen, Dahle, Melendez, Moorlach, Morrell

SUBJECT: Retirement savings

SOURCE: Author

DIGEST:

This bill is a trailer bill associated with the 2020 Budget Act that transfers enforcement responsibilities for the CalSavers program from the Employment Development Department (EDD) to the CalSavers Retirement Board and Franchise Tax Board (FTB) and makes other technical updates to the CalSavers program.

ANALYSIS: This budget trailer bill for 2020 makes technical changes to the CalSavers program to adjust the program’s forthcoming implementation to reflect the challenges faced by EDD in addressing unprecedented workload.

According to the State Treasurer’s Office “the CalSavers Board is eager to proactively support employers throughout this difficult time. The Board voted to delay the first employer registration deadline slated for June 30, 2020, to September 30, 2020. However, this legislation is necessary this session in order to enable FTB and CalSavers to do regulatory and operational development in advance of implementation in 2021.”

Specifically, this bill:

1. Provides authority to the CalSavers Retirement Board to enforce compliance with CalSavers, to be administered through action by the FTB and deletes current provisions related to the EDD.
   1. Allows employers to appeal any penalty imposed in writing to the FTB.
   2. Requires CalSavers Retirement Board to reimburse the FTB for any costs for administering the program.
   3. Authorizes the FTB to disclose information to the CalSavers Board to facilitate the collections of amounts due and the appeals of the determination of the board, as specified.
2. Allows cannabis-regulating agencies to share data with CalSavers for its licensed cannabis businesses at no cost to the businesses, state agencies, or California taxpayers.
3. Allows an eligible employee to opt out of the program by phone.
4. Allows the CalSavers Retirement Board the discretion to determine whether employees who opted out of the program are to be re-enrolled into it, rather than requiring this practice.
5. Renames the program in statue from California Secure Choice to CalSavers.
6. Removes the obsolete language requirement that any investments in CalSavers be invested in United States Treasuries, myRAs and similar investments for the first three years of implementation and instead requires the board to create an investment policy.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Budget and Fiscal Review Committee, this bill is not expected to change the overall cost of the CalSavers program, but will change which departments will provide the enforcement services. By authorizing amounts collected by the FTB to be transferred to the board for deposit into the CalSavers Retirement Savings Trust, a continuously appropriated trust, this bill would make an appropriation.

SUPPORT: (Verified 6/23/20)

None received

OPPOSITION: (Verified 6/23/20)

None received

Prepared by: Joe Stephenshaw / B. & F.R. / 916-651-4103

6/25/20 0:58:11

**** END ****

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 102

Author:(Committee on Budget)

As Amended Ver:June 22, 2020

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This 2020 budget trailer bill transfers enforcement responsibilities for the CalSavers program from the Employment Development Department to the CalSavers Retirement Board and the Franchise Tax Board and makes other technical updates to the CalSavers program.

The Senate Amendments:

1. Provide authority to the CalSavers Retirement Board to enforce compliance with CalSavers, to be administered through action by the Franchise Tax Board
   1. Allows employers to appeal any penalty imposed in writing to the Franchise Tax Board
   2. Requires CalSavers Retirement Board to reimburse the Franchise Tax Board for any costs for administering the program.
2. Allow cannabis-regulating agencies to share data with CalSavers for its licensed cannabis businesses at no cost to the businesses, state agencies, or California taxpayers
3. Allow the CalSavers Retirement Board the discretion to determine whether employees who opted out of the program to be re-enrolled into it, rather than requiring this practice.
4. Rename the program in statue from California Secure Choice to CalSavers.
5. Remove the obsolete language requirement that any investments in CalSavers be invested in United States Treasuries, myRAs and similar investments for the first three years of implementation and instead requires the board to create an investment policy.

COMMENTS:

This budget trailer bill for 2020 makes technical changes to the CalSavers program to adjust the program's forthcoming implementation to reflect the challenges faced by the Employment Development Department in addressing unprecedented workload. The bill moves enforcement activities for the program from the Employment Development Department to the CalSavers Retirement Board and the Franchise Tax Board. The bill also includes some technical changes to the program to conform to the upcoming implementation of the program.

According to the State Treasurer's Office, "the CalSavers Board is eager to proactively support employers throughout this difficult time. The Board voted to delay the first employer registration deadline slated for June 30, 2020 to September 30, 2020. However, this legislation is necessary this session in order to enable FTB and CalSavers to do regulatory and operational development in advance of implementation in 2021."

According to the Author:

This budget trailer bill reflects the 2020 budget agreement.

Arguments in Support:

None on file.

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

This bill is not expected to change the overall cost of the CalSavers program, but will change which departments will provide the enforcement services. Pursuant to the language, the CalSavers Board will reimburse the Franchise Tax Board for any administrative activities associated with this bill.

VOTES:

ASSEMBLY FLOOR: 54-13-13

YES: Aguiar-Curry, Bauer-Kahan, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chu, Cooper, Daly, Eggman, Frazier, Friedman, Gabriel, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Limón, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Weber, Wicks, Wood, Rendon

NO: Bigelow, Brough, Dahle, Flora, Fong, Gallagher, Kiley, Mathis, Melendez, Obernolte, Patterson, Voepel, Waldron

ABS, ABST OR NV: Arambula, Berman, Chen, Chiu, Choi, Cooley, Cunningham, Diep, Eduardo Garcia, Lackey, Levine, Low, Mayes

UPDATED:

VERSION: June 22, 2020

CONSULTANT: Christian Griffith / BUDGET / (916) 319-2099 FN: 0003141

SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: AB 102 Hearing Date: June 24, 2020

Subject: CalSavers Program

Summary: This is a trailer bill associated with the 2020 budget act that transfers enforcement responsibilities for the CalSavers program from the Employment Development Department (EDD) to the CalSavers Retirement Board and the Franchise Tax Board (FTB) and makes other technical updates to the CalSavers program.

This budget trailer bill for 2020 makes technical changes to the CalSavers program to adjust the program’s forthcoming implementation to reflect the challenges faced by EDD in addressing unprecedented workload.

According to the State Treasurer’s Office “the CalSavers Board is eager to proactively support employers throughout this difficult time. The Board voted to delay the first employer registration deadline slated for June 30, 2020 to September 30, 2020. However, this legislation is necessary this session in order to enable FTB and CalSavers to do regulatory and operational development in advance of implementation in 2021.”

Proposed Law: Specifically, this bill:

Provides authority to the CalSavers Retirement Board to enforce compliance with CalSavers, to be administered through action by the FTB and deletes current provisions related to the EDD.

Allows employers to appeal any penalty imposed in writing to the FTB.

Requires CalSavers Retirement Board to reimburse the FTB for any costs for administering the program.

• 1. Authorizes the FTB to disclose information to the CalSavers Board to facilitate the collections of amounts due and the appeals of the determination of the board, as specified.

Allows cannabis-regulating agencies to share data with CalSavers for its licensed cannabis businesses at no cost to the businesses, state agencies, or California taxpayers.

1. Allows an eligible employee to opt out of the program by phone.

Allows the CalSavers Retirement Board the discretion to determine whether employees who opted out of the program are to be re-enrolled into it, rather than requiring this practice.

Renames the program in statue from California Secure Choice to CalSavers.

Removes the obsolete language requirement that any investments in CalSavers be invested in United States Treasuries, myRAs and similar investments for the first three years of implementation and instead requires the board to create an investment policy.

Fiscal Effect: This bill is not expected to change the overall cost of the CalSavers program, but will change which departments will provide the enforcement services. By authorizing amounts collected by the FTB to be transferred to the board for deposit into the CalSavers Retirement Savings Trust, a continuously appropriated trust, this bill would make an appropriation.

Support:

None on file.

Opposed:

None on file.

-- END --

 THIRD READING  

Bill No: AB 102

Author: Committee on Budget

Amended: 6/13/19 in Senate

Vote: 21

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 13-2, 6/19/19

AYES: Mitchell, Nielsen, Beall, Hurtado, Jones, Leyva, McGuire, Monning, Pan, Roth, Skinner, Stone, Wieckowski

NOES: Moorlach, Morrell

NO VOTE RECORDED: Durazo, Stern, Umberg

ASSEMBLY FLOOR: Not relevant

SUBJECT: State employees: memorandum of understanding

SOURCE: Author

DIGEST:

This bill provides legislative ratification of the memorandum of understanding (MOU) agreed to by the state and Bargaining Unit (BU) 6, represented by the Correctional Peace Officers Association.

ANALYSIS:

Existing law:

1. Establishes the Ralph C. Dills Act, which requires the state to collectively bargain with the exclusive representatives of employee groups (i.e. bargaining units) regarding wages and working conditions, and to define negotiated agreements in MOUs.
2. Establishes the California Department of Human Resources (CalHR) as the official representative of the Governor in all matters related to collective bargaining with state employees.
3. Requires that any MOU between the state and an exclusive representative must be ratified by the Legislature.
4. Establishes the California Public Employees' Retirement System, which administers health and retirement benefits for state employees.
5. Requires the Legislative Analyst's Office to analyze all state MOUs and to provide analyses of an MOU and its fiscal impact to the Legislature within 10 days of receipt of an MOU from CalHR.
6. Provides that fully vested state retirees (e.g., with 20 or more years of state employment or with 25 years or more depending on the bargaining unit) are entitled to an employer contribution for retiree health care equal to 100 percent of the weighted average premium of the four health plans most highly utilized by all members. Dependents are eligible for a contribution based on 90 percent of the average additional premiums paid for dependents during the benefit year in which the formula is applied. This is referred to as the 100/90 formula.
7. Requires that Medicare-eligible retirees enroll in Medicare and choose a Medicare-coordinated health plan.
8. Provides that most state employees (those hired after 1985 or 1989, depending on class) must work for 10 years to receive 50 percent of the 100/90 formula, with an additional five percent per year of service until, after 20 years, they are vested to receive 100 percent of the 100/90 formula. Individuals hired prior to 1985 or 1989 could be subject to either five year or 10 year vesting for full coverage of the 100/90 formula. Some employees must work up to 15 years for 50 percent up to 25 years to receive 100 percent of the employer contribution.
9. Provides that retirees who were covered in certain bargaining units while actively employed will receive an employer retiree health contribution based on the 80/80 formula (i.e., 80 percent of the weighted average premium of the four health plans most highly utilized by all members).
10. Provides that the employer contribution for active state employee health care shall be determined through collective bargaining.

This bill will be in effect from July 3, 2019, through July 2, 2020, and will impact approximately 27,694 full-time equivalent employees.

Health Benefits

1. Employer Contribution for Active State Employees. The state’s monthly health benefit contribution for each employee shall continue to be a flat dollar amount equal to 80 percent of the weighted average of the basic health benefit plan premiums of the four largest enrolled basic health plans. The flat dollar amounts shall be increased or decreased as appropriate pursuant to the formula on January 1, 2020.

Compensation

1. General Salary Increase (GSI)
   1. Effective July 1, 2020, all BU 6 represented classifications shall receive a three percent GSI.
2. Night Shift and Weekend Pay Differentials
   1. Increases the night shift pay differential (earned by employees who work more than four hours between 6:00 p.m. and 6:00 a.m.) by $0.85 per hour.
   2. Increases the weekend pay differential (earned by employees who work more than four hours between midnight Friday and midnight Saturday) by $0.70 per hour.
3. Leave Buy Back
   1. All BU 6 represented employees will be permitted to continue to cash out up to 80 hours of accumulated compensable leave. California Department of Corrections and Rehabilitation will notify employees in August and employees will have until September 10, 2019, to indicate that they want to participate. It is anticipated that payment for one-time cash out will be issued by November 15, 2019.

Miscellaneous

1. Leave time (excluding sick leave in all forms) to be counted as time worked for purposes of calculating overtime when an employee is required to work overtime involuntarily.
2. Includes new, more limited, definition of “holdover” to avoid confusion about when someone will have leave time, count as hours worked, for purposes of calculating overtime.
3. Provides employees with two hours work time when placed on standby time for a possible work-related court appearance outside of normal work hours or on a day off.
4. Provides eight hours of holiday credit to employees working posted positions who have their scheduled Regular Day Off fall on an observed state holiday.
5. Increases the number of gender restricted posts and increases ability for employees who are women to transfer to female institutions.
6. Creates a joint workgroup to facilitate recruitment and retention of women at female institutions.
7. Increases ability for Correctional Counselors to focus on rehabilitation.
8. Increases ability to maintain programming through the effective utilization of staff.
9. Creates a joint workgroup to explore less lethal force options.
10. Reopener language to initiate a meet and confer process at least 120 days prior to the transition of the Division of Juvenile Justice to the Department of Youth and Community Restoration within the California Health and Human Services Agency.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Budget & Fiscal Review Committee, the Budget trailer bill includes a continuous appropriation. This bill appropriates $131.2 million ($128.28 million General Fund) for 2019-20 to implement the bargaining agreement for rank-and-file employees and to provide similar benefits for excluded employees.

SUPPORT: (Verified 6/13/19)

None received

OPPOSITION: (Verified 6/13/19)

None received

Prepared by: Anita Lee / B. & F.R. / 916-651-4103

6/19/19 16:38:11

**** END ****

SENATE COMMITTEE ON

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: Hearing Date: June 19, 2019

Subject:

Summary:

Provides legislative ratification of the memorandum of understanding (MOU) agreed to by the state and Bargaining Unit (BU) 6, represented by the Correctional Peace Officers Association.

Existing Law:

1. Establishes the Ralph C. Dills Act, which requires the state to collectively bargain with the exclusive representatives of employee groups (i.e. bargaining units) regarding wages and working conditions, and to define negotiated agreements in MOUs.
2. Establishes the California Department of Human Resources (CalHR) as the official representative of the Governor in all matters related to collective bargaining with state employees.
3. Requires that any MOU between the state and an exclusive representative must be ratified by the Legislature.
4. Establishes the California Public Employees' Retirement System (CalPERS), which administers health and retirement benefits for state employees.
5. Requires the Legislative Analyst's Office (LAO) to analyze all state MOUs and to provide analyses of an MOU and its fiscal impact to the Legislature within 10 days of receipt of an MOU from CalHR.
6. Provides that fully vested state retirees (e.g., with 20 or more years of state employment or with 25 years or more depending on the bargaining unit) are entitled to an employer contribution for retiree health care equal to 100 percent of the weighted average premium of the four health plans most highly utilized by all members. Dependents are eligible for a contribution based on 90 percent of the average additional premiums paid for dependents during the benefit year in which the formula is applied. This is referred to as the 100/90 formula.
7. Requires that Medicare-eligible retirees enroll in Medicare and choose a Medicare-coordinated health plan.
8. Provides that most state employees (those hired after 1985 or 1989, depending on class) must work for 10 years to receive 50 percent of the 100/90 formula, with an additional five percent per year of service until, after 20 years, they are vested to receive 100 percent of the 100/90 formula. Individuals hired prior to 1985 or 1989 could be subject to either five year or 10 year vesting for full coverage of the 100/90 formula. Some employees must work up to 15 years for 50 percent up to 25 years to receive 100 percent of the employer contribution.
9. Provides that retirees who were covered in certain bargaining units while actively employed will receive an employer retiree health contribution based on the 80/80 formula (i.e., 80 percent of the weighted average premium of the four health plans most highly utilized by all members).
10. Provides that the employer contribution for active state employee health care shall be determined through collective bargaining.

Proposed Law: This bill will be in effect from July 3, 2019 through July 2, 2020, and would impact approximately 27,694 full-time equivalent employees.

Health Benefits

1. Employer Contribution for Active State Employees: The state’s monthly health benefit contribution for each employee shall continue to be a flat dollar amount equal to 80 percent of the weighted average of the basic health benefit plan premiums of the four largest enrolled basic health plans. The flat dollar amounts shall be increased or decreased as appropriate pursuant to the formula on January 1, 2020.

Compensation

1. General Salary Increase (GSI)
   1. Effective July 1, 2020, all BU 6 represented classifications shall receive a three percent GSI.
2. Night Shift and Weekend Pay Differentials
   1. Increases the night shift pay differential (earned by employees who work more than four hours between 6:00 p.m. and 6:00 a.m.) by $0.85 per hour.
   2. Increases the weekend pay differential (earned by employees who work more than four hours between midnight Friday and midnight Saturday) by $0.70 per hour.
3. Leave Buy Back
   1. All BU 6 represented employees will be permitted to continue to cash out up to 80 hours of accumulated compensable leave. California Department of Corrections and Rehabilitation (CDCR) will notify employees in August and employees will have until September 10, 2019, to indicate that they want to participate. It is anticipated that payment for one-time cash out will be issued by November 15, 2019.

Miscellaneous

1. Leave time (excluding sick leave in all forms) to be counted as time worked for purposes of calculating overtime when an employee is required to work overtime involuntarily.
2. Includes new, more limited, definition of “holdover” to avoid confusion about when someone will have leave time, count as hours worked, for purposes of calculating overtime.
3. Provides employees with two hours work time when placed on standby time for a possible work-related court appearance outside of normal work hours or on a day off.
4. Provides eight hours of holiday credit to employees working posted positions who have their scheduled Regular Day Off fall on an observed state holiday.
5. Increases the number of gender restricted posts and increases ability for employees who are women to transfer to female institutions.
6. Creates a joint workgroup to facilitate recruitment and retention of women at female institutions.
7. Increases ability for Correctional Counselors to focus on rehabilitation.
8. Increases ability to maintain programming through the effective utilization of staff.
9. Creates a joint workgroup to explore less lethal force options.
10. Reopener language to initiate a meet and confer process at least 120 days prior to the transition of the Division of Juvenile Justice to the Department of Youth and Community Restoration within the California Health and Human Services Agency.

Fiscal Effect: The budget trailer bill includes a continuous appropriation. The bill appropriates $131.2 million ($128.28 million General Fund) for 2019-20 to implement the bargaining agreement for rank-and-file employees and to provide similar benefits for excluded employees.

Support:

None on file.

Opposed:

None on file.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 102

Author:(Ting)

As Introduced Ver:December 3, 2018

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This bill expresses the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

Major Provisions

COMMENTS:

According to the Author:

Arguments in Support:

Arguments in Opposition:

FISCAL COMMENTS:

VOTES:

UPDATED:

VERSION: December 3, 2018

CONSULTANT: Christian Griffith / BUDGET / (916) 319-2099 FN: 0000145