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Bills

AB 196: State employment: State Bargaining Units: agreements.

  • Session Year: 2021-2022
  • House: Assembly
  • Latest Version Date: 2022-06-25
Version:

(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.

Existing law requires the Department of Human Resources to provide a memorandum of understanding to the Legislative Analyst who then has 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, notwithstanding the above statutory provisions, would approve provisions of agreements entered into between the state employer and State Bargaining Units 1, 3, 4, 8, 11, 13, 14, 15, 16, 17, 19, 20, and 21. The bill would provide that the provisions of the addenda or memorandum of understanding that require the expenditure of funds will not take effect unless funds for these provisions are specifically appropriated by the Legislature. The bill would authorize the state employer or these state bargaining units to reopen negotiations if funds for these provisions are not specifically appropriated by the Legislature. The bill would require the provisions of the agreements that require the expenditure of funds to become effective even if the provisions are approved by the Legislature in legislation other than the annual Budget Act.

Existing law, for the 202223 fiscal year, continuously appropriates 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 specified memoranda of understanding, if the Budget Act of 2022 is not enacted by July 1, 2022.

This bill would further include, within these continuous appropriation provisions, the amount necessary for the payment of compensation and employment benefits to state employees covered by the memorandum of understanding for State Bargaining Unit 13 (effective July 1, 2022, to June 30, 2025, inclusive).

Existing law, for the 202324 fiscal year, continuously appropriates 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 specified memoranda of understanding if the Budget Act of 2023 is not enacted by July 1, 2023.

This bill would further include, within these continuous appropriation provisions, the amount necessary for the payment of compensation and employment benefits to state employees covered by the memorandum of understanding for State Bargaining Unit 13 (effective July 1, 2022, to June 30, 2025, inclusive).

Existing law, for the 202425 fiscal year, continuously appropriates 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 and compensation and employee benefits to state employees covered by specified memoranda of understanding if the Budget Act of 2024 is not enacted by July 1, 2024.

This bill would further include, within these continuous appropriation provisions, the amount necessary for the payment of compensation and employee benefits to state employees covered by the memorandum of understanding for State Bargaining Unit 13 (effective July 1, 2022, to June 30, 2025, inclusive).

(2)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 establishes the Annuitants Health Care Coverage Fund, which is continuously appropriated, for the purpose of prefunding health care coverage for annuitants, including administrative costs.

PEMHCA requires the state and employees in specified State Bargaining Units to prefund retiree health care costs, subject to certain conditions. PEMHCA requires employees in State Bargaining Unit 13 to make contributions to prefund retiree health care and the state employer to make a matching contribution, as specified. PEMHCA suspends those employees monthly contribution for prefunding other postemployment benefits for the 202021 fiscal year. PEMHCA provides that the employers monthly contribution for prefunding other postemployment benefits continues in the 202021 fiscal year.

This bill, with respect to State Bargaining Unit 13, would adjust the employer and employee contributions, effective the first day of the pay period following ratification by both parties, based on the actuarially determined normal costs, subject to certain conditions. The bill, commencing no sooner than July 1, 2022, would increase or decrease the employer and employee contribution percentages to maintain a 50% cost sharing of actuarially determined total normal costs, as specified.

(3)This bill would appropriate the sum of $59,535,000 for State Bargaining Units 1, 3, 4, 8, 11, 13, 14, 15, 16, 17, 19, 20, 21, and all employees excluded from collective bargaining, for the purpose of state employee compensation, as provided in specified items of the Budget Act of 2022, in accordance with a specified schedule.

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 2021.
Authors shown for version:
Amended Senate (6/25/2022)