SB 846 - An Act to Amend Sections 19999.3, 21353, 21354.1, 21362.2, 21363.1, and 21369.1 Of, and to Add Sections 19829.7, 19829.8, 19829.9, 19829.95, 20037.14, 20677.6, 20677.7, 20677.8, 20677.9, 21369.2, and 22874.1 To, the Government Code, Relating to State Employees, Making an Appropriation Therefor, and Declaring the Urgency Thereof, to Take Effect Immediately.

State employees: memoranda of understanding. 2009-2010 Legislature. View bill details
Author(s):
Summary:
(1)Existing law provides that if any provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees requires the expenditure of funds, those provisions of the memorandum of understanding shall not become effective unless approved by the Legislature in the annual Budget Act.

This bill would… More
(1)Existing law provides that if any provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees requires the expenditure of funds, those provisions of the memorandum of understanding shall not become effective unless approved by the Legislature in the annual Budget Act.

This bill would approve provisions that require the expenditure of funds for memoranda of understanding entered into between the state employer and State Bargaining Units 5, 12, and 18 and would provide that the provisions of any memorandum of understanding that require the expenditure of funds shall become effective even if the provisions of the memorandum of understanding are approved by the Legislature in legislation other than the annual Budget Act.

The bill would provide that provisions of the memoranda 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 memorandum of understanding that requires the expenditure of funds is not approved by the Legislature.

This bill would, with respect to salaries that are continuously appropriated prior to the enactment of the annual Budget Act, require the Director of Finance to reduce the necessary items for the payment of salaries from specified funds scheduled in that Budget Act to reflect the salaries paid prior to the enactment of the annual Budget Act.

(2)Existing law establishes an alternate retirement program and provides that state employees, as defined, who become new members of the Public Employees’ Retirement System (PERS) during their first 24 months of employment, do not make contributions to the system or receive service credit for their service, and the state employer shall not make contributions on their behalf. These members are instead required to contribute either 5% or 6% of their monthly compensation, as specified, to the alternate retirement program, administered by the Department of Personnel Administration, and these contributions cease when the state employees begin making their own contributions to PERS.

This bill would require all state employees participating in the alternate retirement system to contribute an amount equal to the same amount that employees in the same employment classifications in the same state bargaining units are required to contribute to PERS.

(3)The Public Employees’ Retirement Law (PERL) provides a comprehensive set of rights and benefits based upon age, service credit, and final compensation. Existing law defines final compensation variously for different member classifications and bargaining units and, in this regard, defines final compensation for a state member for the purpose of calculating retirement benefits as the highest annual average compensation earnable by the member during a designated 12-month or 36-month period, depending upon the bargaining unit and classification of that employee. Currently the final compensation for members hired on or after July 1, 2006, who are represented by State Bargaining Units 12, 16, 18, and 19, means the final compensation earnable by the member during a designated 36-month period.

This bill would provide that final compensation for a person who becomes a state member, as specified, on or after October 31, 2010, and who is represented by State Bargaining Units 5 and 8, means the highest annual average compensation earnable by the member during a designated 36-month period.

(4)PERL provides that the contribution rate for state miscellaneous members and specified state safety members is 5% or 6% of the compensation in excess of $513. Existing law provides that the contribution rate for specified state firefighters is 8% of compensation in excess of $238 per month. Existing law provides that the contribution rate for specified state safety patrol members is 8% of the compensation in excess of $863 per month.

This bill would increase the contribution rates by 5% for state miscellaneous members of State Bargaining Units 5, 8, 12, 16, 18, and 19 and state safety members of State Bargaining Units 12, 16, 18, and 19, and by 2% for state firefighter members of State Bargaining Unit 8 and state patrol members of State Bargaining Unit 5. By increasing member contributions into a continuously appropriated fund, this bill would make an appropriation.

(5)PERL establishes various retirement formulas that apply to specified membership categories. Under PERL, state miscellaneous members are generally subject to a retirement formula commonly known as 2% at 55, which, if the member retires at 55 years of age, yields a benefit equal to 2% of the member’s final compensation multiplied by the member’s years of service credit, as specified. Under PERL, patrol members and specified state peace officer/firefighter members are generally subject to a 3% at 50 retirement formula. Under PERL, state safety members are generally subject to a 2.5% at 55 retirement formula.

This bill would provide that state miscellaneous members who are first employed on and after the date the act takes effect, are subject to a 2% at 60 retirement formula. The bill would also provide that patrol members and firefighter members in State Bargaining Units 5 and 8 who are first employed on and after October 31, 2010, are subject to a 3% at 55 retirement formula.

(6)The Public Employees’ Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of PERS establishes percentages for levels of benefit coverage afforded under the approved health benefit plan in which the employee or annuitant is enrolled. Existing law provides that a represented state employee first hired on or after January 1, 1989, shall not be vested for the full employer contribution payable for annuitants unless he or she has 20 years of credited state service, as defined, at the time of retirement, as specified.

This bill would, instead, provide that these benefits vest at 50% for state employees represented by State Bargaining Unit 12, who become members of the system on and after January 1, 2011, and would increase that percentage by 5% for each year of credited state service up to 100% after 25 years of credited state service.

(7)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 5, 8, 12, 16, 18, and 19, provide for a continuous appropriation for the amount necessary for the payment of compensation and benefits to members of those bargaining units.

(8)This bill would provide that its provisions would not become operative unless AB 1592 of the 2009–10 Regular Session is enacted and takes effect on or before January 1, 2011.

(9)This bill would declare that it is to take effect immediately as an urgency statute. Hide
 
Status:
The bill has become law (chaptered). 
Senate Vote: On Passage

PASSED on August 19, 2010.

voted YES: 31 voted NO: 1
6 voted present/not voting

An Act to Amend Sections 19999.3, 21353, 21354.1, 21362.2, 21363.1, and 21369.1 Of, and to Add Sections 19829.7, 19829.8, 19829.9, 19829.95, 20037.14, 20677.6, 20677.7, 20677.8, 20677.9, 21369.2, and 22874.1 To, the Government Code, Relating to State Employees, Making an Appropriation Therefor, and Declaring the Urgency Thereof, to Take Effect Immediately.

SB 846 — 2009-2010 Legislature

Summary
(1)Existing law provides that if any provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees requires the expenditure of funds, those provisions of the memorandum of understanding shall not become effective unless approved by the Legislature in the annual Budget Act.

This bill would approve provisions that require the expenditure of funds for memoranda of understanding entered into between the state employer and State Bargaining Units 5, 12, and 18 and would provide that the provisions of any memorandum of understanding that require the expenditure of funds shall become effective even if the provisions of the memorandum of understanding are approved by the Legislature in legislation other than the annual Budget Act.

The bill would provide that provisions of the memoranda 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… More
(1)Existing law provides that if any provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees requires the expenditure of funds, those provisions of the memorandum of understanding shall not become effective unless approved by the Legislature in the annual Budget Act.

This bill would approve provisions that require the expenditure of funds for memoranda of understanding entered into between the state employer and State Bargaining Units 5, 12, and 18 and would provide that the provisions of any memorandum of understanding that require the expenditure of funds shall become effective even if the provisions of the memorandum of understanding are approved by the Legislature in legislation other than the annual Budget Act.

The bill would provide that provisions of the memoranda 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 memorandum of understanding that requires the expenditure of funds is not approved by the Legislature.

This bill would, with respect to salaries that are continuously appropriated prior to the enactment of the annual Budget Act, require the Director of Finance to reduce the necessary items for the payment of salaries from specified funds scheduled in that Budget Act to reflect the salaries paid prior to the enactment of the annual Budget Act.

(2)Existing law establishes an alternate retirement program and provides that state employees, as defined, who become new members of the Public Employees’ Retirement System (PERS) during their first 24 months of employment, do not make contributions to the system or receive service credit for their service, and the state employer shall not make contributions on their behalf. These members are instead required to contribute either 5% or 6% of their monthly compensation, as specified, to the alternate retirement program, administered by the Department of Personnel Administration, and these contributions cease when the state employees begin making their own contributions to PERS.

This bill would require all state employees participating in the alternate retirement system to contribute an amount equal to the same amount that employees in the same employment classifications in the same state bargaining units are required to contribute to PERS.

(3)The Public Employees’ Retirement Law (PERL) provides a comprehensive set of rights and benefits based upon age, service credit, and final compensation. Existing law defines final compensation variously for different member classifications and bargaining units and, in this regard, defines final compensation for a state member for the purpose of calculating retirement benefits as the highest annual average compensation earnable by the member during a designated 12-month or 36-month period, depending upon the bargaining unit and classification of that employee. Currently the final compensation for members hired on or after July 1, 2006, who are represented by State Bargaining Units 12, 16, 18, and 19, means the final compensation earnable by the member during a designated 36-month period.

This bill would provide that final compensation for a person who becomes a state member, as specified, on or after October 31, 2010, and who is represented by State Bargaining Units 5 and 8, means the highest annual average compensation earnable by the member during a designated 36-month period.

(4)PERL provides that the contribution rate for state miscellaneous members and specified state safety members is 5% or 6% of the compensation in excess of $513. Existing law provides that the contribution rate for specified state firefighters is 8% of compensation in excess of $238 per month. Existing law provides that the contribution rate for specified state safety patrol members is 8% of the compensation in excess of $863 per month.

This bill would increase the contribution rates by 5% for state miscellaneous members of State Bargaining Units 5, 8, 12, 16, 18, and 19 and state safety members of State Bargaining Units 12, 16, 18, and 19, and by 2% for state firefighter members of State Bargaining Unit 8 and state patrol members of State Bargaining Unit 5. By increasing member contributions into a continuously appropriated fund, this bill would make an appropriation.

(5)PERL establishes various retirement formulas that apply to specified membership categories. Under PERL, state miscellaneous members are generally subject to a retirement formula commonly known as 2% at 55, which, if the member retires at 55 years of age, yields a benefit equal to 2% of the member’s final compensation multiplied by the member’s years of service credit, as specified. Under PERL, patrol members and specified state peace officer/firefighter members are generally subject to a 3% at 50 retirement formula. Under PERL, state safety members are generally subject to a 2.5% at 55 retirement formula.

This bill would provide that state miscellaneous members who are first employed on and after the date the act takes effect, are subject to a 2% at 60 retirement formula. The bill would also provide that patrol members and firefighter members in State Bargaining Units 5 and 8 who are first employed on and after October 31, 2010, are subject to a 3% at 55 retirement formula.

(6)The Public Employees’ Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of PERS establishes percentages for levels of benefit coverage afforded under the approved health benefit plan in which the employee or annuitant is enrolled. Existing law provides that a represented state employee first hired on or after January 1, 1989, shall not be vested for the full employer contribution payable for annuitants unless he or she has 20 years of credited state service, as defined, at the time of retirement, as specified.

This bill would, instead, provide that these benefits vest at 50% for state employees represented by State Bargaining Unit 12, who become members of the system on and after January 1, 2011, and would increase that percentage by 5% for each year of credited state service up to 100% after 25 years of credited state service.

(7)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 5, 8, 12, 16, 18, and 19, provide for a continuous appropriation for the amount necessary for the payment of compensation and benefits to members of those bargaining units.

(8)This bill would provide that its provisions would not become operative unless AB 1592 of the 2009–10 Regular Session is enacted and takes effect on or before January 1, 2011.

(9)This bill would declare that it is to take effect immediately as an urgency statute. Hide
Learn More
At LegInfo.ca.gov
Title
An Act to Amend Sections 19999.3, 21353, 21354.1, 21362.2, 21363.1, and 21369.1 Of, and to Add Sections 19829.7, 19829.8, 19829.9, 19829.95, 20037.14, 20677.6, 20677.7, 20677.8, 20677.9, 21369.2, and 22874.1 To, the Government Code, Relating to State Employees, Making an Appropriation Therefor, and Declaring the Urgency Thereof, to Take Effect Immediately.
Author(s)
Lou Correa
Co-Authors
Subjects
  • State employees: memoranda of understanding
Major Actions
Introduced1/11/2010
Referred to Committee
Passed Senate4/22/2010
Passed Assembly Committee on Public Employees, Retirement and Social Security8/03/2010
Passed Assembly Committee on Appropriations8/04/2010
Passed Assembly8/12/2010
Passed Senate Committee on Public Employment and Retirement8/18/2010
Passed Senate8/19/2010
Presented to the governor (enrolled)8/20/2010
Became law (chaptered).8/23/2010
Bill History
Chamber/CommitteeMotionDateResult
select this voteSenateSenate 3rd Reading SB846 Committee on B. & F.R. (Ducheny)4/22/2010This bill PASSED the Senate
24 voted YES 5 voted NO 10 voted present/not voting
select this voteAssembly Committee on Public Employees, Retirement and Social SecurityDo pass and be re-referred to the Committee on Appropriations.8/03/2010This motion PASSED the Assembly Committee on Public Employees, Retirement and Social Security
4 voted YES 1 voted NO 1 voted present/not voting
select this voteAssembly Committee on AppropriationsDo pass.8/04/2010This motion PASSED the Assembly Committee on Appropriations
14 voted YES 3 voted NO 0 voted present/not voting
select this voteAssemblySB 846 Correa Third Reading Urgency By BUCHANAN8/12/2010This bill PASSED the Assembly
75 voted YES 4 voted NO 0 voted present/not voting
select this voteSenate Committee on Public Employment and RetirementFrom committee: That the Assembly Amendments be concurred in.8/18/2010This motion PASSED the Senate Committee on Public Employment and Retirement
5 voted YES 0 voted NO 1 voted present/not voting
currently selectedSenateUnfinished Business SB846 Correa Urgency Clause8/19/2010This bill PASSED the Senate
31 voted YES 1 voted NO 6 voted present/not voting
ActionDateDescription
Introduced1/11/2010
1/11/2010Introduced. Read first time. To Com. on RLS. for assignment. To print.
1/12/2010From print. May be acted upon on or after February 11.
1/21/2010To Com. on RLS.
4/15/2010Withdrawn from committee. Placed on second reading file.
4/19/2010Read second time. To third reading.
4/22/2010Read third time. Passed. (Ayes 24. Noes 5. Page 3266.) To Assembly.
4/22/2010In Assembly. Read first time. Held at Desk.
select this voteSenate Vote on Passage4/22/2010Senate 3rd Reading SB846 Committee on B. & F.R. (Ducheny)
6/10/2010Placed on second reading file. Read second time. To third reading.
8/02/2010Assembly Rule 69(b) suspended. (Page 6005.) Read third time. Amended. Re-referred to Coms. on P.E.,R. & S.S. and APPR. pursuant to Assembly Rule 77.2. Joint Rule 62(a) file notice in Com. on P.E.,R. & S.S. suspended. (Page 6005.) Assembly Rule 56 suspended. (Page 6005.) Joint Rule 62(a) file notice in Com. on APPR. suspended. (Page 6005.)
select this voteVote8/03/2010Do pass and be re-referred to the Committee on Appropriations.
8/03/2010From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 4. Noes 1.) Re-referred to Com. on APPR. (Heard in committee on August 3.)
select this voteVote8/04/2010Do pass.
8/05/2010From committee: Do pass. (Ayes 14. Noes 3.) (Heard in committee on August 4.)
8/09/2010Read second time. To third reading. Read third time. Amended. (Page 6110.) To third reading.
8/12/2010Read third time. Urgency clause adopted. Passed. (Ayes 75. Noes 4. Page 6168.) To Senate.
8/12/2010In Senate. To unfinished business.
select this voteAssembly Vote on Passage8/12/2010SB 846 Correa Third Reading Urgency By BUCHANAN
select this voteVote8/18/2010From committee: That the Assembly Amendments be concurred in.
8/18/2010Re-referred to Com. on RLS. pursuant to Senate Rule 29.10. From committee: Be re-referred to Com. on P.E. & R. pursuant to Senate Rule 29.10. (Ayes 4. Noes 0. Page 4565.) Re-referred to Com. on P.E. & R. Set for hearing August 18. From committee: That the Assembly amendments be concurred in. (Ayes 5. Noes 0. Page 4615.)
8/19/2010Urgency clause adopted. Senate concurs in Assembly amendments. (Ayes 31. Noes 1. Page 4676.) To enrollment.
currently selectedSenate Vote on Passage8/19/2010Unfinished Business SB846 Correa Urgency Clause
8/20/2010Enrolled. To Governor at 11:15 a.m.
8/23/2010Approved by Governor.
8/23/2010Chaptered by Secretary of State. Chapter 162, Statutes of 2010.

Total contributions given to Senators from interest groups that…

4 Organizations Supported and 0 Opposed; See Which Ones

Organizations that took a position on
An Act to Amend Sections 19999.3, 21353, 21354.1, 21362.2, 21363.1, and 21369.1 Of, and to Add Sections 19829.7, 19829.8, 19829.9, 19829.95, 20037.14, 20677.6, 20677.7, 20677.8, 20677.9, 21369.2, and 22874.1 To, the Government Code, Relating to State Employees, Making an Appropriation Therefor, and Declaring the Urgency Thereof, to Take Effect Immediately.: Unfinished Business SB846 Correa Urgency Clause

4 organizations supported this bill

California Association of Highway Patrolmen
Senate Public Employment & Retirement Committee (2010, August 18). Bill Analysis SB 846 8-18-2010. Retrieved October 8, 2010, from Leg Info.
California Association of Psychiatric Technicians
Senate Rules Committee (2010, August 18). Bill Analysis SB 846 8-18-2010. Retrieved October 8, 2010, from Leg Info.
Department of Personnel Administration
Senate Rules Committee (2010, August 18). Bill Analysis SB 846 8-18-2010. Retrieved October 8, 2010, from Leg Info.
International Union of Operating Engineers
Senate Rules Committee (2010, August 18). Bill Analysis SB 846 8-18-2010. Retrieved October 8, 2010, from Leg Info.

0 organizations opposed this bill

Need proof?

View citations of support and opposition

Includes reported contributions to campaigns of Senators in office on day of vote, from interest groups invested in the vote according to MapLight, January 1, 2007 – December 31, 2010.
Contributions data source: FollowTheMoney.org

Contributions by Legislator

Namesort iconPartyDistrict$ From Interest Groups
That Supported
$ From Interest Groups
That Opposed
Vote
Sam AanestadRCA-4$8,000$0Yes
Elaine AlquistDCA-13$65,085$0Yes
Roy AshburnRCA-18$0$0Yes
Ron CalderonDCA-30$113,350$0Yes
Gilbert CedilloDCA-22$51,000$0Yes
Dave CogdillRCA-14$45,900$0Not Voting
Ellen CorbettDCA-10$179,949$0Yes
Lou CorreaDCA-34$160,040$0Yes
Mark DeSaulnierDCA-7$418,691$0Not Voting
Jeff DenhamRCA-12$15,500$0Yes
Denise DuchenyDCA-40$0$0Yes
Bob DuttonRCA-31$53,350$0Yes
Bill EmmersonRCA-37$68,900$0Not Voting
Dean FlorezDCA-16$9,000$0Yes
Loni HancockDCA-9$114,899$0Yes
Tom HarmanRCA-35$50,750$0Yes
Dennis HollingsworthRCA-36$5,000$0Yes
Bob HuffRCA-29$72,747$0Yes
Christine KehoeDCA-39$107,900$0Yes
Mark LenoDCA-3$151,700$0Yes
Carol LiuDCA-21$106,095$0Yes
Alan LowenthalDCA-27$135,799$0Yes
Gloria Negrete McLeodDCA-32$129,000$0Yes
Jenny OropezaDCA-28$95,623$0Not Voting
Alex PadillaDCA-20$186,550$0Yes
Fran PavleyDCA-23$83,450$0Yes
Curren PriceDCA-26$88,600$0Yes
Gloria RomeroDCA-24$62,710$0Yes
George RunnerRCA-17$37,400$0Yes
Joe SimitianDCA-11$78,100$0Yes
Darrell SteinbergDCA-6$255,250$0Yes
Tony StricklandRCA-19$26,250$0Yes
Mimi WaltersRCA-33$23,100$0Not Voting
Pat WigginsDCA-2$60,399$0Not Voting
Lois WolkDCA-5$174,664$0Yes
Rod WrightDCA-25$103,550$0Yes
Mark WylandRCA-38$31,350$0No
Leland YeeDCA-8$191,808$0Yes

Add Data Filters:

Legislator Filters
Legislator Filters
Show All
NamePartyDistrict$ From Interest Groups
That Supported
$ From Interest Groups
That Opposed
Vote
Sam AanestadRCA-4$8,000$0Yes
Elaine AlquistDCA-13$65,085$0Yes
Roy AshburnRCA-18$0$0Yes
Ron CalderonDCA-30$113,350$0Yes
Gilbert CedilloDCA-22$51,000$0Yes
Dave CogdillRCA-14$45,900$0Not Voting
Ellen CorbettDCA-10$179,949$0Yes
Lou CorreaDCA-34$160,040$0Yes
Mark DeSaulnierDCA-7$418,691$0Not Voting
Jeff DenhamRCA-12$15,500$0Yes
Denise DuchenyDCA-40$0$0Yes
Bob DuttonRCA-31$53,350$0Yes
Bill EmmersonRCA-37$68,900$0Not Voting
Dean FlorezDCA-16$9,000$0Yes
Loni HancockDCA-9$114,899$0Yes
Tom HarmanRCA-35$50,750$0Yes
Dennis HollingsworthRCA-36$5,000$0Yes
Bob HuffRCA-29$72,747$0Yes
Christine KehoeDCA-39$107,900$0Yes
Mark LenoDCA-3$151,700$0Yes
Carol LiuDCA-21$106,095$0Yes
Alan LowenthalDCA-27$135,799$0Yes
Gloria Negrete McLeodDCA-32$129,000$0Yes
Jenny OropezaDCA-28$95,623$0Not Voting
Alex PadillaDCA-20$186,550$0Yes
Fran PavleyDCA-23$83,450$0Yes
Curren PriceDCA-26$88,600$0Yes
Gloria RomeroDCA-24$62,710$0Yes
George RunnerRCA-17$37,400$0Yes
Joe SimitianDCA-11$78,100$0Yes
Darrell SteinbergDCA-6$255,250$0Yes
Tony StricklandRCA-19$26,250$0Yes
Mimi WaltersRCA-33$23,100$0Not Voting
Pat WigginsDCA-2$60,399$0Not Voting
Lois WolkDCA-5$174,664$0Yes
Rod WrightDCA-25$103,550$0Yes
Mark WylandRCA-38$31,350$0No
Leland YeeDCA-8$191,808$0Yes

Interest Groups that supported this bill

$ Donated
Construction unions$2,112,716
Police & fire fighters unions and associations$1,274,243
Psychiatrists & psychologists$174,400
Public official (elected or appointed)$100

Interest Groups that opposed this bill

$ Donated
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