Assembly Standing Committee on Public Employment and Retirement

Good morning. Good morning, Members of the Committee and the public to the Assembly Committee on Public Employee and Retirement. Before we begin, we need to establish a quorum. Secretary, please call the roll.

[Roll Call]

Thank you. I have a few announcements to make. We have four items on the agenda with one on the Consent calendar. That Bill is file number one, SB 432, Cortese. Second, we will be limiting testimony to two primary witnesses on each side of the Bill, and each will have three minutes to speak. Let's begin with the consent calendar. Is there any Member who wishes to remove file item one from the consent calendar hearing? None. Is there a motion and a second on the consent calendar? The motion has been made by Assemblymember Fong and second by Assemblymember Addis. Please count the votes.

The motion is do passed and be referred to the Committee on Appropriations with recommendations. [Roll Call]

It's on call. The Consent Calendar is on call. Let's move on to file number 3 and 4, Senator Niello. Senator Niello will be presenting for Senator Alvarado-Gil. Thanks. Which one?. I'll go either way. Whichever you want, Senator.

Thank you. Well, good morning, Madam Chair and Members. Thanks for your consideration of SB 548, which provides a permissive option for interested courts and counties to establish a separate CalPERS contract for court employees. I do accept the amendments suggested by CalPERS. And there are a couple of technical changes that need to take place. Also, in 1997, the state took action to move all facets of the courts from the purview of the counties and separate them operationally, financially and organizationally.

The very last piece that has yet to be separated from the county is the court employees presence in the county's CalPERS Retirement Plans, which includes the related pension liability. SB 548 creates a again permissive mechanism for a county and trial court to move forward with completing that work that began in the late 1990s. The separation between a county and a trial court would only be triggered when there are willing participants at the local level. And with me here this morning, I'm pleased to introduce Placer County Auditor Controller Andrew Sisk and Matt Silverling with the State Association of County Auditors to testify in support of the Bill.

Thank you. You may begin. Great.

Good morning, Committee Members. My name is Andy Sisk. I'm the Placer County Auditor Controller. I'm also the Legislative Committee chair for the State Association of County Auditors. Yeah, this is a loose end. We're trying to close up for CalPERS counties. There's about 37 CalPERS counties to once and for all, hopefully remove the court employees from the County's Miscellaneous Pension Plans. This will assist many counties. Every year we're entering into MOUs with the courts to establish rates that need to be paid for the unfunded liabilities.

I don't want to get too technical, because when you start talking about actuarials, it does get very technical. This also helps from a financial reporting standpoint, we have to put these liabilities, these pension liabilities, on audited financial statements. And currently we're working through a process with the courts and the State Controller's Office to remove the court's share of that pension liability and then putting it with the courts so they can put it in the state's audited financial statements. So that would put an additional relief on those CalPERS counties. So, again, we're excited that this Bill is moving forward. I'm happy to answer any questions you might have.

Thank you.

Good morning, Madam Chair and Members. Matthew Siverling, on behalf of the State Association of County Auditors. Again, in the interest of time, just wanted to reiterate, this is a permissive option for counties and courts who are interested in moving forward with doing this. We've had a handful over the years that have been very much wanting to do this and looking for a mechanism to do it. This Bill finally provides them statutory authority to move forward. And we urge your aye vote. Thank you.

Thank you. Are there any others remaining in support that would like to come forward? Seeing none hearing any in opposition? Any witnesses in opposition? Anyone to come up in opposition? Hearing? None. I will bring it back to the Members. Do you have any questions? No, no questions. So it was moved by Assembly Member Fung and second by Assembly Member Addis. Please call the roll.

The motion is do pass as amended and re referred to the Committee on Appropriations.[Roll Call]

I'm sorry, Senator, and I didn't let you close, but I think you did okay.

Well, since the Bill just passed, one of the rules of salesmanship is when you close the deal, you shut up.

Well, thank you, Senator. We now have SB 716. Thank you.

Thank you again, Madam Chair and Members. This is the first time SB 716 is being presented in Committee, and Senator Alvarado-Gil would like to take the opportunity to dedicate this Bill to the late John Lovell, the original sponsor of the Bill. John was an advocate in the Capitol for nearly 40 years and worked on previous iterations of this legislation. SB 716 simply authorizes an organization representing an employee who has filed a grievance with CalHR to request arbitration if certain conditions are met.

These disagreements are often filed in Superior Court, which can take years to resolve and incur large expenses to the state. Binding arbitration is a useful tool that can hold both sides accountable during the process and helps resolve issues in good faith. This Bill and many like it have passed through the process unanimously without opposition. Here to testify in support is Fred Canut with the California Correctional Supervisors Organization. I respectfully ask for an I vote.

We'll start with the witness in support. Please keep it three minutes each. Thank you.

Good morning, Madam Chairman. Paul Cray with the Correctional Supervisors Organization. Mr. Canut was here to answer any. Questions the Committee may have.

Thank you.

Yes, I'm prepared for any questions or technical assistance you might need about this Bill. I would like to point out that we litigated one issue for 18 years and got $155,000,000, which is far more than what the cost of arbitration. Which would be. We figure around 45, but they have it listed at 50,000 and the loser pays. So if we can't bring up frivolous arbitration and lose, our organization would have to pay. The state would not have to pay. So it's probably the best arbitration Bill out of all 21 bargaining units. Thank you.

Thank you. Are there any more witnesses in support? Please come forward. Any witnesses in opposition? Anyone wants to come forward in opposition? Seeing no opposition? Anyone on the desk? Any Members would like to ask any questions? I'll move the Bill again. Senator, would you like to close?

Respectfully request an aye vote.

Assembly Member Fong moved the Bill. Assembly Member Addis second, please. Call the roll.

The motion is due, passed, and re referred to the Committee on Judiciary. [Roll Call]

That Bill is out, seven to zero. Congratulations. Thank you, Senator.

Thank you. And it's very nice to be back in the Assembly again.

While we're waiting for Senator Wahab, we'll take up the bills that are on call.

Item number one, the current vote is four to zero. SB 432. Lackey, aye. Lackey, aye. [Roll Call] that Bill is out, seven to zero.

Thank you.

Item number three, SB five, four, eight. The current vote is five to zero. [Roll Call] that Bill is out, seven to zero.

I like to recognize Assemblymember Schiavo to make introductions. Thank you.

So I know we have in the room with us. Thank you. Madam Chair. The students from the new UC Davies labor center. Am I right? Yes. Visiting our capitol today. This is a new center That's just starting at UC Davis. My good friend Edgar Wong Chen is the Director and doing the good work over there. Maybe I don't know if I got titles right, but I'm going to find out the official thing when we meet later.

But I just wanted to welcome you to the Assembly and we're going to have some action in a minute when the author of the Bill comes. And until then, we're just sitting here and waiting. And That's sometimes what you do in the Assembly. So welcome i

We're ready for you, Senator. Good morning. Good morning. Did we get a second? Do you accept amendments? Thank you. You're just done. You're like, do you want me to go? You can if you want to. We have students here, so if we could just let them learn process. All right, thank you.

Thank you, Chair. I want to thank the Committee for its diligent work on SB 461. And I accept the Committee's amendments as proposed. With amendments, SB 461 authorizes state employees to take 8 hours paid holiday credit in lieu of 8 hours personal holiday time for the state employees religious or cultural observance. This Bill does not increase available holiday credits or hours off for state employees and therefore will have negligible fiscal impact.

Instead, SB 461 will increase inclusivity and awareness of the true diversity in our state workforce. It will improve employer employee relations by formally recognizing more holidays and encouraging people to use paid time to celebrate their heritage. It will reinforce California's values for respect and acceptance. I'd like to introduce our supporting witness but you don't have to come up.

If you don't want to. Yes. Well, I don't know. We might want you to come up so the students can hear we're exercising today, so if we can hear the witness in support you have three minutes. Y Okay.

I'll make it extra nice for you guys. Thank you. Senator Wahab, Madam Chair and Members. My name is Nazeehah Khan and I'm the policy and Government affairs manager with the Council on American Islamic Relations. California today is actually Eid, which is a Muslim holiday. So it's coincidental that we're hearing this Bill. I have to work, but state employees should have the option not to.

SB 461 is a common sense Bill celebrating diversity and protecting an employee from having to informally disclose their religion or heritage to an employer, making themselves vulnerable to discrimination just to celebrate a holiday. It builds on last year's bills identifying specific holidays and goes a step further to broaden to all religious and cultural holidays. As a former state employee, I can't emphasize enough how important diversity is in public service, both for those giving it and those receiving it.

When we're serving our most vulnerable populations, when we're creating policy for them, designing programs for them, improving services for them, it's important that diverse voices are part of the conversation and at the decision table. California, being the most diverse state in the nation, brings those voices into public service, but it also needs to acknowledge them. This Bill does what states across the country are already doing. It recognizes that diversity, celebrates that diversity, and protects it. We did see the Committee's amendments were in agreement. I'm requesting The Committee's aye vote and happy to take questions.

Thank you so much. Is there any others in support? No other witnesses?

Rebecca Gonzalez, National Association of Social Workers, California Chapter in support.

Thank you. Are there any witness in opposition seeing none. Any questions from the Assembly Members? Assemblymember Schiavo.

You know, we have students from the UC Berkeley New Labor Center, so thank you for doing a full presentation. I just wanted to thank you for bringing this forward. One of my staff is off today celebrating Eid, and it would be wonderful if instead of having to take a vacation day, she could use one of her holidays to celebrate her cultural holidays. So appreciate you bringing this forward and happy to support it.

Thank you. And this Bill does include more than just Eid. It's for anybody of any religious background. Cultural background their choice. So it's very inclusive. Thank you.

Any others? I'd like to thank you, Senator, for bringing this forward. Thanks for the diversity. You're absolutely right. We should be able to celebrate our diversity and our culture without discrimination. And happy holidays to you.

Thank you.

It was moved by assemblymember Addis second by Assembly Member Nguyen. Please call the roll.

The motion is do pass as amended and re referred to the Committee on Appropriations. [Roll Call]

I will place this Bill on call.

Thank you.

Item number two, SB 461. The current vote is 6-0. Vince Fong aye. Vince Fong aye. That Bill is out seven to zero.