Bill Text: CA AB151 | 2021-2022 | Regular Session | Chaptered
Bill Title: State employment: State Bargaining units: agreements: compensation and benefits.
Spectrum: Committee Bill
Status: (Passed) 2022-09-06 - Chaptered by Secretary of State - Chapter 250, Statutes of 2022. [AB151 Detail]
Download: California-2021-AB151-Chaptered.html
Assembly Bill
No. 151
CHAPTER 250
An act to amend Sections 19829.9850, 19829.9851, 19829.9852, 19878.5, 20677.5, 20683.81.3, and 22944.5 of, and to add Sections 19829.9853 and 20640 to, the Government Code, and to add Section 4811 to the Labor Code, relating to state employment, and making an appropriation therefor, to take effect immediately, bill related to the budget.
[
Approved by
Governor
September 06, 2022.
Filed with
Secretary of State
September 06, 2022.
]
LEGISLATIVE COUNSEL'S DIGEST
AB 151, Committee on Budget.
State employment: State Bargaining units: agreements: compensation and benefits.
(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 by the state employer and State Bargaining Units 2, 8, 9, 10, 18, and 19. The bill would provide that the provisions of the agreements 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 State Bargaining Units 2, 8, 9, 10, 18, or 19 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 2022–23 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 memoranda of understanding for State Bargaining Unit 2 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 8 (effective July 1, 2022, to June 30, 2024,
inclusive), State Bargaining Unit 9 (effective July 1, 2022, to June 30, 2025, inclusive) and State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive).
Existing law, for the 2023–24 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 memoranda of understanding for State Bargaining Unit 2
(effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 8 (effective July 1, 2022, to June 30, 2024, inclusive), State Bargaining Unit 9 (effective July 1, 2022, to June 30, 2025, inclusive), and State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive).
Existing law, for the 2024–25 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 memoranda of understanding for State Bargaining Unit 2 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 9 (effective July 1, 2025, to June 30, 2025, inclusive), and State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive).
This bill, for the 2025–26 fiscal year, if the Budget Act of 2025 is not enacted by July 1, 2025, with respect to the memorandum of understanding between the state employer and State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive), would continuously appropriate to the Controller from the General Fund, unallocated special funds in the amount necessary for the payment of compensation and employee benefits to state employees covered by this memorandum of understanding until the Budget Act of 2025 in enacted, subject to certain conditions.
(2) Under existing law, an eligible employee is entitled to receive up to 6 weeks of benefits during a 12-month period for Nonindustrial Disability Insurance Family Care Leave, and defines “eligible employee” for purposes of those provisions.
This bill would also include in the definition of “eligible employee” an employee enrolled in a specified annual leave program who is represented by State Bargaining Unit 2 or State Bargaining Unit 9 and for which a memorandum of understanding has been agreed to by the state employer and the recognized employee organization to be subject to the Nonindustrial Disability Insurance Family Care Leave provisions.
(3) The Public Employees’ Retirement Law (PERL) establishes the Public Employees’ Retirement System (PERS), which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to
certain variations. PERL vests the Board of Administration of PERS with management and control of the system.
This bill, for purposes of calculating retirement benefits, would include longevity pay in final compensation, as provided in a memorandum of understanding, for represented state members in State Bargaining Unit 18 and nonrepresented state members associated with State Bargaining Unit 18, as defined.
Existing law adjusts the normal rate of contribution for specified state miscellaneous or state industrial members who are represented by State Bargaining Unit 2 to 10% of the compensation in excess of $317 per month paid to a member whose service is not included in the federal system, and by 9% of compensation in excess of $513 per month paid to a member whose service has been included in the federal system. Existing law, on and after July 1, 2022, adjusts these amounts to 9.5% of compensation in excess of $317 per
month and 8.5% per month in excess of $513, as specified.
This bill would revise the rate of contribution for state industrial members and state miscellaneous members whose service is not included in the federal system to 10% and 9.5%, respectively, of compensation in excess of $317 per month, and would revise the rate of contribution for state industrial members and state miscellaneous members whose service is included in the federal system to 9% and 8.5%, respectively, of compensation in excess of $513.
Existing law, effective July 1, 2023, adjusts the normal rate of contribution for state safety members represented by State Bargaining Unit 2 in accordance with specified provisions if the total normal cost rate for the category in effect for the 2021–22 fiscal year has increased or decreased by at least 1%.
This bill would instead require the normal rate of contribution to be
adjusted if the total normal cost rate for the category in effect for the 2022–23 fiscal year has increased or decreased by at least 1%.
(4) 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 18 to make contributions to prefund retiree health care and requires the state employer to make a matching contribution, as specified. PEMHCA suspends those employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year. PEMHCA provides that the employer’s monthly contribution for prefunding other postemployment benefits continues in the 2020–21 fiscal year.
This bill, with respect to State Bargaining Units 2, 8, and 18, would adjust the employer and employee contribution percentages, effective the first day of the pay period following ratification by both parties, based on the actuarially determined total normal costs, subject to specified increases or decreases, to maintain a 50% cost sharing of actuarially determined total normal costs. The bill, with respect to State Bargaining Unit 8, would also decrease the employer and employee contribution by 1%,
from 4.4% to 3.4%, effective the first day of the pay period following ratification by both parties.
(5) Existing law establishes a workers’ compensation system, administered by the Administrative Director of the Division of Workers’ Compensation, to compensate an employee for injuries sustained in the course of employment. Existing law entitles certain law enforcement personnel, disabled by injury arising out of the course of their duties, to leave of absence while so disabled without loss of salary, for a period not exceeding one year.
This bill would entitle a member of State Bargaining Unit 8, employed by the Department of Forestry and Fire Protection, who becomes disabled by injury arising out of and in the course of their duties, regardless of their period of service with the department, to leave of absence while so disabled without loss of salary, in lieu of disability payments, for a period not
exceeding one year, and in certain cases in which the injury is determined to be a severe burn, not exceeding 3 years, subject to certain exclusions. The bill would apply these provisions to injuries sustained on or after November 1, 2022. The bill also would apply these provisions to an employee related to State Bargaining Unit 8 and employed by the department who is excepted from the definition of “state employee,” as specified.
(6)This bill would appropriate the sum of $298,737,000 for State Bargaining Units 2, 5, 8, 9, 10, 18, and 19, and judges, and 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.
(7) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the
Budget Bill.
Digest Key
Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares that the purpose of this act is to approve the agreements and make conforming statutory changes for the agreements entered into by the state employer and State Bargaining Units 2, 8, 9, 10, 18, and 19, pursuant to Section 3517.5 of the Government Code.SEC. 2.
Notwithstanding Section 19829.5 of the Government Code, the provisions of the memorandum of understanding or addenda, or both, prepared pursuant to Section 3517.5 of the Government Code and entered into by the state employer and State Bargaining Unit 2, dated August 19, 2022 (Memorandum of Understanding), State Bargaining Unit 8, dated July 28, 2022, and August 24, 2022 (Workers’ Compensation Full Salary Benefit and Memorandum of Understanding), State Bargaining Unit 9, dated August 19, 2022 (Memorandum of Understanding), State Bargaining Unit 10, dated July 21, 2022 (Health Care Facility Retention Payment), State Bargaining Unit 18, dated July 1, 2022 (Memorandum of Understanding), and State Bargaining Unit 19, dated July 25, 2022 (California Correctional Health Care Services Recruitment and Retention Pay Differential), that require the expenditure of funds, are hereby approved for the purposes of Section 3517.6 of the Government Code.SEC. 3.
The provisions of the memorandum of understanding or addenda, or both, approved in Section 2 of this act that require the expenditure of funds shall not take effect unless funds for these provisions are specifically appropriated by the Legislature. If funds for these provisions are not specifically appropriated by the Legislature, either the state employer or State Bargaining Units 2, 8, 9, 10, 18, or 19 may reopen negotiations on all or part of the memorandum of understanding or addenda, or both.SEC. 4.
Notwithstanding Section 3517.6 of the Government Code, the provisions of the memorandum of understanding or addenda, or both, included in Section 2 of this act that require the expenditure of funds shall become effective even if the provisions of the memorandum of understanding or addenda, or both, are approved by the Legislature in legislation other than the annual Budget Act.SEC. 5.
Section 19829.9850 of the Government Code is amended to read:19829.9850.
(a) Notwithstanding Section 13340, for the 2022–23 fiscal year, if the Budget Act of 2022 is not enacted by July 1, 2022, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 1 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 2 (effective July 1, 2022 to June 30, 2025, inclusive), State Bargaining Unit 3 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 4 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 5 (effective July 1, 2019, to July 3, 2024, inclusive), State Bargaining Unit 6 (effective July 3, 2020, to July 2, 2023, inclusive), State Bargaining Unit 7 (effective July 2, 2019, to July 1, 2023, inclusive), State Bargaining Unit 8 (effective July 1, 2022, to June 30, 2024, inclusive), State Bargaining Unit 9 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 11 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 12 (effective July 1, 2021, to June 30, 2023, inclusive), State Bargaining Unit 13 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 14 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 15 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 16 (effective July 1, 2020, to July 1, 2023, inclusive), State Bargaining Unit 17 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive), State Bargaining Unit 19 (effective July 2, 2020, to July 1, 2023, inclusive), State Bargaining Unit 20 (effective January 2, 2020, to June 30, 2023, inclusive), and State Bargaining Unit 21 (effective January 2, 2020, to June 30, 2023, inclusive), there is hereby continuously appropriated to the Controller from the General Fund, unallocated special funds, including, but not limited to, 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 the above memoranda of understanding until the Budget Act of 2022 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memoranda of understanding for work performed between July 1, 2022, of the 2022–23 fiscal year and the enactment of the Budget Act of 2022.(b) If the memoranda of understanding entered
into between the state employer and State Bargaining Unit 1 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 2 (effective July 1, 2022 to June 30, 2025, inclusive), State Bargaining Unit 3 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 4 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 5 (effective July 1, 2019, to July 3, 2024, inclusive), State Bargaining Unit 6 (effective July 3, 2020, to July 2, 2023, inclusive), State Bargaining Unit 7 (effective July 2, 2019, to July 1, 2023, inclusive), State Bargaining Unit 8 (effective July 1, 2022, to June 30, 2024, inclusive), State Bargaining Unit 9 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 11 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 12 (effective July 1, 2021, to June 30, 2023, inclusive), State Bargaining Unit 13 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 14 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 15 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 16 (effective July 1, 2020, to July 1, 2023, inclusive), State Bargaining Unit 17 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive), State Bargaining Unit 19 (effective July 2, 2020, to July 1,
2023, inclusive), State Bargaining Unit 20 (effective January 2, 2020, to June 30, 2023, inclusive), and State Bargaining Unit 21 (effective January 2, 2020, to June 30, 2023, inclusive) are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units shall be at a rate consistent with the memoranda of understanding referenced above, unless otherwise provided for by the Budget Act or other legislative enactment.
(c) Expenditures related to any warrant drawn pursuant to subdivision (a) are not augmentations to the expenditure authority of a department. Upon the enactment of the Budget Act of 2022, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2022 for each affected department.
(d) This section shall only apply to an employee covered by
the terms of the State Bargaining Unit 1 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 2 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 3 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 4 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 5 (effective July 1, 2019, to July 3, 2024, inclusive), State Bargaining Unit 6 (effective July 3, 2020, to July 2, 2023, inclusive), State Bargaining Unit 7 (effective July 2, 2019, to July 1, 2023, inclusive), State Bargaining Unit 8 (effective July 1, 2022, to June 30, 2024, inclusive), State Bargaining Unit 9 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 11 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 12 (effective July 1, 2021, to June 30, 2023, inclusive), State Bargaining Unit 13 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 14 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 15 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 16 (effective July 1, 2020, to July 1, 2023, inclusive), State Bargaining Unit 17 (effective January 2, 2020, to June 30, 2023, inclusive), State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive), State Bargaining Unit 19 (effective July 2, 2020, to July 1,
2023, inclusive), State Bargaining Unit 20 (effective January 2, 2020, to June 30, 2023, inclusive), and State Bargaining Unit 21 (effective January 2, 2020, to June 30, 2023, inclusive) memoranda of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 1 expires on June 30, 2023, the memorandum of understanding for State Bargaining Unit 2 expires on June 30, 2025, the memorandum of understanding for State Bargaining Unit 3 expires on June 30, 2023, the memorandum of understanding for State Bargaining Unit 4 expires on June 30, 2023, the memorandum of understanding for State Bargaining Unit 5 expires on July 3, 2024, the memorandum of understanding for State Bargaining Unit 6 expires on July 2, 2023, the memorandum of understanding
for State Bargaining Unit 7 expires on July 1, 2023, the memorandum of understanding for State Bargaining Unit 8 expires on June 30, 2024, the memorandum of understanding for State Bargaining Unit 9 expires on June 30, 2025, the memorandum of understanding for State Bargaining Unit 11 expires on June 30, 2023, the memorandum of understanding for State Bargaining Unit 12 expires June 30, 2023, the memorandum of understanding for State Bargaining Unit 13 expires June 30, 2025, the memorandum of understanding for State Bargaining Unit 14 expires on June 30, 2023, the memorandum of understanding for State Bargaining Unit 15 expires on June 30, 2023, the memorandum of understanding for State Bargaining Unit 16 expires on July 1, 2023, the memorandum of understanding for State Bargaining Unit 17 expires on June 30, 2023, the memorandum of understanding for State Bargaining Unit 18 expires on July 1, 2025, the memorandum of understanding for State Bargaining Unit
19 expires on July 1, 2023, the memorandum of understanding for State Bargaining Unit 20 expires on June 30, 2023, and the memorandum of understanding for State Bargaining Unit 21 expires on June 30, 2023.
SEC. 6.
Section 19829.9851 of the Government Code is amended to read:19829.9851.
(a) Notwithstanding Section 13340, for the 2023–24 fiscal year, if the Budget Act of 2023 is not enacted by July 1, 2023, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 5 (effective July 1, 2019, to July 3, 2024, inclusive), State Bargaining Unit 6 (effective July 3, 2020, to July 2, 2023, inclusive), State Bargaining Unit 8 (effective July 1, 2022, to June 30, 2024, inclusive), State Bargaining Unit 9 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 13 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 16 (effective July 1, 2020, to July 1, 2023, inclusive), State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive), and State Bargaining Unit 19 (effective July 2, 2020, to July 1, 2023, inclusive), there is hereby continuously appropriated to the Controller from the General Fund, unallocated special funds, including, but not limited to, 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 the above memoranda of understanding until the Budget Act of 2023 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memoranda of understanding for work performed between July 1, 2023, of the 2023–24 fiscal year and the enactment of the Budget Act of 2023.(b) If the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 5 (effective July 1, 2019, to July 3, 2024, inclusive), State Bargaining Unit 6 (effective July 3, 2020, to July 2, 2023, inclusive), State Bargaining Unit 8 (effective July 1, 2022, to June 30, 2024, inclusive), State Bargaining Unit 9 (effective July 1, 2022, to July 1, 2025, inclusive), State Bargaining Unit 13 (effective July 1, 2022, to June 30,
2025, inclusive), State Bargaining Unit 16 (effective July 1, 2020, to July 1, 2023, inclusive), State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive), and State Bargaining Unit 19 (effective July 2, 2020, to July 1, 2023, inclusive), are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units shall be at a rate consistent with the memoranda of understanding referenced above, unless otherwise provided for by the Budget Act or other legislative enactment.
(c) Expenditures related to any warrant drawn pursuant to subdivision (a) are not augmentations to the expenditure authority of a department. Upon the enactment of the Budget Act of 2023, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2023 for each affected department.
(d) This section shall only apply to an employee covered by the terms of the State Bargaining Unit 2 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit
5 (effective July 1, 2019, to July 3, 2024, inclusive), State Bargaining Unit 6 (effective July 3, 2020, to July 2, 2023, inclusive), State Bargaining Unit 8 (effective July 1, 2022, to June 30, 2024, inclusive), State Bargaining Unit 9 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 13 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 16 (effective July 1, 2020, to July 1, 2023, inclusive), State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive), and State Bargaining Unit 19 (effective July 2, 2020, to July 1, 2023, inclusive), memorandum of understanding. Notwithstanding Section 3517.8, this
section shall not apply after the term of the memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit
2 expires on June 30, 2025, the memorandum of understanding for State Bargaining Unit 5 expires on July 3, 2024, the memorandum of understanding for State Bargaining Unit 6 expires on July 2, 2023, the memorandum of understanding for State Bargaining Unit 8 expires on June 30, 2024, the memorandum of understanding for State Bargaining Unit 9 expires on June 30, 2025, the memorandum of understanding for State Bargaining Unit 13 expires on June 30, 2025, the memorandum of understanding for State Bargaining Unit 16 expires on July 1, 2023, the memorandum of understanding for State Bargaining Unit 18 expires on July 1, 2025, and the memorandum of
understanding for State Bargaining Unit 19 expires on July 1, 2023.
SEC. 7.
Section 19829.9852 of the Government Code is amended to read:19829.9852.
(a) Notwithstanding Section 13340, for the 2024–25 fiscal year, if the Budget Act of 2024 is not enacted by July 1, 2024, for the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 5 (effective July 1, 2019, to July 3, 2024, inclusive), State Bargaining Unit 9 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 13 (effective July 1, 2022, to June 30, 2025, inclusive), and State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive), there is hereby continuously appropriated to the Controller from the General Fund, unallocated special funds, including, but not limited to, 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 the above memoranda of understanding until the Budget Act of 2024 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memoranda of understanding for work performed between July 1, 2024, of the 2024–25 fiscal year and the enactment of the Budget Act of 2024.(b) If the memoranda of understanding entered into between the state employer and State Bargaining Unit 2 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 5 (effective July 1, 2019, to July 3, 2024, inclusive), State Bargaining Unit 9 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 13 (effective July 1, 2022, to June 30, 2025, inclusive), and State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive), are in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units shall be at a rate consistent with the memoranda of understanding referenced above, unless otherwise provided for by the Budget Act or other legislative enactment.
(c) Expenditures related to any warrant drawn pursuant to subdivision (a) are not augmentations to the expenditure authority of a department. Upon the enactment of the Budget Act of 2024, these expenditures shall be subsumed by the expenditure authority approved in the Budget Act of 2024 for each affected department.
(d) This section shall only apply to an employee covered by the terms of the State Bargaining Unit 2 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit
5 (effective July 1, 2019, to July 3, 2024, inclusive), State Bargaining Unit 9 (effective July 1, 2022, to June 30, 2025, inclusive), State Bargaining Unit 13 (effective July 1, 2022, to June 30, 2025, inclusive), and State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive) memoranda of understanding. Notwithstanding Section 3517.8, this section shall not apply after the term of the memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 2 expires on June 30, 2025, the memorandum of understanding for State Bargaining Unit 5 expires on July 3, 2024, the memorandum of understanding for State Bargaining Unit 9 expires on June 30, 2025, the memorandum of understanding for State Bargaining Unit 13 expires on June 30, 2025, and the memorandum of
understanding for State Bargaining Unit 18 expires on July 1, 2025.
SEC. 8.
Section 19829.9853 is added to the Government Code, to read:19829.9853.
(a) Notwithstanding Section 13340, for the 2025–26 fiscal year, if the Budget Act of 2025 is not enacted by July 1, 2025, for the memorandum of understanding entered into between the state employer and State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive), there is hereby continuously appropriated to the Controller from the General Fund, unallocated special funds, including, but not limited to, 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 the above memoranda of understanding until the Budget Act of 2025 is enacted. The Controller may expend an amount no greater than necessary to enable the Controller to compensate state employees covered by the above memorandum of understanding for work performed between July 1, 2025, of the 2025–26 fiscal year and the enactment of the Budget Act of 2025.(b) If the memorandum of understanding entered into between the state employer and State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive) is in effect and approved by the Legislature, the compensation and contribution for employee benefits for state employees represented by these bargaining units shall be at a rate consistent with the memorandum of understanding referenced above, unless otherwise provided for by the Budget Act or other legislative enactment.
(c) Expenditures related to any warrant drawn pursuant to subdivision (a) are not augmentations to the expenditure authority of a department. Upon the enactment of the Budget Act of 2025, these expenditures shall be
subsumed by the expenditure authority approved in the Budget Act of 2025 for each affected department.
(d) This section shall only apply to an employee covered by the terms of the State Bargaining Unit 18 memorandum of understanding (effective July 1, 2022, to July 1, 2025). Notwithstanding Section 3517.8, this section shall not apply after the term of the memorandum of understanding has expired. For purposes of this section, the memorandum of understanding for State Bargaining Unit 18 expires on July 1, 2025.
SEC. 9.
Section 19878.5 of the Government Code is amended to read:19878.5.
(a) For purposes of this article relating to Nonindustrial Disability Insurance Family Care Leave, an “eligible employee” is either of the following:(1) An
employee excluded from the definition of “state employee” in subdivision (c) of Section 3513 or a nonelected officer of the executive branch exempt from civil service and eligible for managerial benefits, who has enrolled in the annual leave program under Article 2.5 (commencing with Section 19858.3).
(2) An employee enrolled in the annual leave program and represented by State Bargaining Unit 2 or State Bargaining Unit 9 and for which a memorandum of understanding has been agreed to by the state employer and the recognized employee organization to be subject to this article and has been approved by the Legislature pursuant to law.
(b) An eligible employee shall be entitled to receive up to six weeks of benefits during a 12-month period for
Nonindustrial Disability Insurance Family Care Leave in accordance with this article.
SEC. 10.
Section 20640 is added to the Government Code, to read:20640.
(a) (1) Notwithstanding any other law, the following item of pay shall be included in the final compensation of state members for purposes of calculating their retirement benefits and contributions under the Public Employees’ Retirement Law:(2) Effective upon ratification of the State Bargaining Unit 18 memorandum of understanding by both the state and the bargaining unit, but no earlier than January 1, 2023, Longevity Pay, as provided in the memorandum of understanding for represented state members in State Bargaining Unit 18 and nonrepresented state members associated with State Bargaining Unit 18.
(b) For the purposes of this section, “nonrepresented
state member” includes employees excluded from the definition of state employee in Section 3513, or nonelected officers or employees of the executive branch of government who are not members of the civil service.
SEC. 11.
Section 20677.5 of the Government Code is amended to read:20677.5.
(a) Notwithstanding any provisions of Section 20677.4 to the contrary, effective with the beginning of the pay period following the operative date of the amendments to this section made by Senate Bill 151 of the 2011–12 Regular Session, the normal rate of contribution for state miscellaneous or state industrial members who are subject to Section 21353 or 21354.1, and who are represented by State Bargaining Unit 2, shall be:(1) Ten percent of the compensation in excess of three hundred seventeen dollars ($317) per month paid to a state industrial member whose service is not included in the federal system.
(2) Nine percent of compensation in excess of five hundred thirteen dollars ($513) per month paid to a state industrial member whose service has been included in the federal system.
(3) Effective July 1, 2022, nine and one-half percent of compensation in excess of three hundred seventeen dollars ($317) per month paid to a state miscellaneous member whose service is not included in the federal system.
(4) Effective July 1, 2022, eight and one-half percent of compensation in excess of five hundred thirteen dollars ($513) per month paid to a state miscellaneous member whose service is included in the
federal system.
(b) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless and until approved by the Legislature in the annual Budget Act.
(c) Consistent with the normal rate of contribution for all members identified in this section, the Director of the Department of Human Resources may establish the normal rate of contribution for a state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service. The normal rate
of contribution shall be the same for all members identified in this subdivision. The contribution rate shall be effective the beginning of the pay period indicated by the Director of the Department of Human Resources but shall be no earlier than the beginning of the pay period following the date the board receives notification.
SEC. 12.
Section 20683.81.3 of the Government Code is amended to read:20683.81.3.
(a) Notwithstanding Sections 20683.1, 20683.2, and 20683.81.2, effective July 1, 2023, the normal rate of contribution for state safety members who are represented by State Bargaining Unit 2 shall be adjusted in accordance with this section when both of the following occur:(1) The total normal cost rate for the category in effect for the 2022–23 fiscal year has increased or decreased by at least 1 percent.
(2) Fifty percent of the new normal cost rate, rounded to the nearest one-quarter of 1 percent, is greater or less than the normal contribution rate established in Section 20683.81.2.
(b) If on July 1, 2023, the board determines that the requirements of paragraphs (1) and (2) of subdivision (a) have been met, the normal rate of contribution for state safety members who are represented by State Bargaining Unit 2 shall be adjusted to 50 percent of the normal cost rate rounded to the nearest one-quarter of 1 percent, but not to increase or decrease by more than 1 percent.
(c) Each
year thereafter, the rate shall only be adjusted if the board determines the total normal cost rate increases or decreases by more than 1 percent of payroll above the total normal cost rate in effect at the time the employee contribution rate was last adjusted. The increase or decrease to the employee contribution in any given fiscal year shall not exceed 1 percent per year.
(d) The normal rate of contribution established pursuant to this section shall be applied to the compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system.
(e) Consistent with the normal rate of contribution for all members identified in this section, the Director of the Department Human Resources may exercise their discretion to establish the normal rate of contributions for a state employee who is excepted from the
definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service. The normal rate of contribution shall be the same for all members identified in this subdivision. The contribution rate shall be effective at the beginning of the pay period indicated by the Director of the Department of Human Resources but shall be no earlier than the beginning of the pay period following the date the board receives notification.
(f) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless and until approved by the Legislature in the
annual Budget Act.
SEC. 13.
Section 22944.5 of the Government Code is amended to read:22944.5.
(a) (1) The state and employees in State Bargaining Unit 2, 7, 8, 9, 10, 13, 18, or 19 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2019.(2) The state and employees in State Bargaining Units 6 and 16 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2018.
(3) The state and employees in the judicial branch shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for
both employer and employees by July 1, 2017.
(4) The state and employees in State Bargaining Unit 1, 3, 4, 5, 11, 12, 14, 15, 17, 20, or 21 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2020.
(b) (1) The employees in State Bargaining Unit 9 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.5 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 0.5 percent for a total employee contribution of 1.0 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning with the July 2020 pay period and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraph (C).
(2) The employees in State Bargaining Unit 10 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.7 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 0.7 percent for a total employee contribution of 1.4 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 2.8 percent of pensionable compensation.
(D) Effective July 1, 2020, the employer and employee contribution percentages will be increased or decreased to maintain a 50-percent cost sharing of the actuarially determined total normal costs. Adjustments to both the employer and employee contribution percentages will occur if the actuarially determined total normal costs increase or decrease by more than one-half of 1 percent from the total normal cost contribution percentages in effect on July 1, 2019. The increase or
decrease to the employer or employee contribution shall not exceed 0.5 percent per year.
(E) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in subparagraph (D), is suspended and shall not be withheld from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraph (D).
(3) The employees in State Bargaining Unit 6 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2016, 1.3 percent of pensionable compensation.
(B) Effective July 1, 2017, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C) Effective July 1, 2018, an additional 1.4 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning on July 1, 2020, and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraph (C).
(4) The state employees in the judicial branch shall make contributions to
prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2016, 1.5 percent of pensionable compensation.
(B) Effective July 1, 2017, up to an additional 1.5 percent for a total employee contribution of up to 3.0 percent of pensionable compensation. The additional amount shall be determined by the Director of Finance no later than April 1, 2017, based on the actuarially determined normal costs identified in the state valuation.
(C) This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(5) The employees in State Bargaining Unit 12 shall make contributions to prefund retiree
health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.5 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.0 percent for a total employee contribution of 2.5 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 3.5 percent of pensionable compensation.
(D) Effective July 1, 2020, an additional 1.1 percent for a total employee contribution of 4.6 percent of pensionable compensation.
(E) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in
subparagraph (D), is suspended and shall not be withheld from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraph (D).
(F) Effective the first day of the pay period following ratification by both parties, but no sooner than July 1, 2021, the employer and employee contribution percentages shall be increased or decreased to maintain a 50-percent cost sharing of the actuarially determined total normal costs. Adjustments to both the employer and employee contribution percentages will occur if the actuarially determined total normal costs increase or decrease by more than one-half of 1 percent from the total normal cost contribution percentages in effect at the time. The increase or decrease to the employer or employee contribution
shall not exceed 0.5 percent per year.
(6) The employees in State Bargaining Unit 2 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 0.7 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 0.6 percent for a total employee contribution of 1.3 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 0.7 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in subparagraph
(C), is suspended and shall not be withheld from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraph (C).
(E) Effective the first day of the pay period following ratification by both parties, the employer and State Bargaining Unit 2 employee contribution percentages will be adjusted based on actuarially determined total normal costs. Adjustments to both the employer and employee contribution percentages will occur if the actuarially determined total normal costs increase or decrease by more than 0.5 percent from the total normal cost contribution percentages in effect at the time. Commencing the first day of the pay period following ratification, and
on July 1 of each fiscal year thereafter, the employer and employee contribution percentages will be increased or decreased to maintain a 50-percent cost sharing of actuarially determined total normal costs. Furthermore, the increase or decrease to the employer or employee contribution in any given fiscal year shall not exceed 0.5 percent per year.
(7) The employees in State Bargaining Unit 7 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.3 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.4 percent for a total employee contribution of 2.7 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraph (C).
(8) The employees in State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2018, 1.2 percent of pensionable compensation.
(B) Effective July 1, 2019, an additional 1.1 percent for a total employee contribution of 2.3 percent of pensionable compensation.
(C) Effective July 1, 2020, an additional 1.2 percent for a total employee contribution of 3.5 percent of pensionable compensation.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning on July 1, 2020, and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraph (C).
(9) The employees in State Bargaining Unit 8 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.5 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.5 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 4.4 percent of pensionable compensation.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in subparagraph (C), is suspended and shall not be withheld
from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraph (C).
(E) Effective the first day of the pay period following ratification by both parties, but no sooner than November 1, 2022, the employer and employee contribution will be decreased by 1 percent from 4.4 percent to 3.4 percent.
(F) Effective July 1, 2023, the contribution percentages will be adjusted based on the actuarially determined total normal cost. Adjustments to both the employer and employee contribution
percentages will occur if the actuarially determined total normal costs increase or decrease by more than “0.5 percent” or “one-half of 1 percent” from the normal total cost contribution percentages in effect at the time. If it is determined that an adjustment to the contribution rate is necessary, commencing no sooner than July 1, 2023, and July 1 of each fiscal year thereafter, the employer and employee contribution percentages will be increased or decreased to maintain a 50-percent cost sharing of actuarially determined total normal costs. Furthermore, the increase or decrease to the employer or employee contribution in any given fiscal year shall not exceed 0.5 percent per year.
(10) The employees in State Bargaining Unit 13 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.3 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.3 percent for a total employee contribution of 3.9 percent of pensionable compensation.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning with the August 2020 pay period and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraph (C).
(E) Effective the first day of the pay period following ratification by both parties, the employer and employee contribution percentages will be adjusted based on actuarially determined total normal costs. Adjustments to both the employer and employee contribution percentages will occur if the actuarially determined total normal costs increase or decrease by more than 0.5 percent from the total normal cost contribution percentages in effect at the time. Commencing no sooner than July 1, 2022, the employer and employee contribution percentages will be increased or decreased to maintain a 50-percent cost sharing of actuarially determined total normal costs. Furthermore, the increase or decrease to the employer or employee contribution in any given fiscal year shall not exceed 0.5 percent per year.
(11) The employees in State Bargaining Unit 18 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.3 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.3 percent for a total employee contribution of 2.6 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.4 percent for a total employee contribution of 4.0 percent of pensionable compensation.
(D) After July 1, 2019, the employer and employee contribution percentages will be adjusted based on actuarially determined total normal costs. Adjustments to both the employer and employee contribution percentages will occur if the actuarially determined total normal costs increase by more than 0.5 percent from the total normal cost contribution percentages in effect at the time. Commencing no sooner than July 1, 2021, and on July 1 of each fiscal year thereafter, if it is determined that an adjustment to the contribution rate is necessary, the employer and employee contribution percentages will be increased to maintain a 50-percent cost sharing of actuarially determined total normal costs. The increase to the employer or employee contribution in any given fiscal year shall not exceed 0.5 percent per
year.
(E) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in subparagraphs (C) and (D), is suspended and shall not be withheld from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraphs (C) and (D).
(F) Effective the first day of the pay period following ratification by both parties, the employer and employee contribution percentages will be adjusted based on actuarially determined total normal costs. Adjustments to both the employer and employee contribution percentages will occur if the actuarially determined
total normal costs increase or decrease by more than 0.5 percent from the total normal cost contribution percentages in effect at the time. Commencing the first day of the pay period following ratification, and on July 1 of each fiscal year thereafter, the employer and employee contribution percentages will be increased or decreased to maintain a 50-percent cost sharing of actuarially determined total normal costs. Furthermore, the increase or decrease to the employer or employee contribution in any given fiscal year shall not exceed 0.5 percent per year.
(12) The employees in State Bargaining Unit 19 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1.0 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 1.0 percent for a total employee contribution of 2.0 percent of pensionable compensation.
(C) Effective July 1, 2019, an additional 1.0 percent for a total employee contribution of 3.0 percent of pensionable compensation.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in subparagraph (C), is suspended and shall not be withheld from employees’ salaries beginning with the July 2020 pay period and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraph (C).
(13) The employees in State Bargaining Unit 16 shall make contributions to prefund retiree health care based on
the following schedule, and the state shall make a matching contribution:
(A) Effective July 1, 2017, 1 percent of pensionable compensation.
(B) Effective July 1, 2018, an additional 0.4 percent for a total employee contribution of 1.4 percent of pensionable compensation.
(C) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in subparagraph (B), is suspended and shall not be withheld from employees’ salaries beginning on the first day of the pay period following ratification and ending on June 30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will continue in the 2020–21 fiscal year, as described in subparagraph (B).
(14) Notwithstanding
Section 22944.3 of the Government Code, the state and employees in State Bargaining Unit 5 shall prefund retiree health care, with the goal of reaching a 50-percent cost sharing of actuarially determined total normal costs for both employer and employees by July 1, 2020.
(A) The employees in State Bargaining Unit 5 shall make contributions to prefund retiree health care based on the following schedule, and the state shall make a matching contribution:
(B) Effective July 1, 2020, 0.0 percent of pensionable compensation for employees and 3.4 percent of pensionable statutory salary increases redirected to prefund OPEB paid for by the employer.
(C) After July 1, 2020, the employer and employee contribution percentages will be adjusted based on actuarially determined total normal costs. Adjustments to both the employer
and employee contribution percentages will occur if the actuarially determined total normal costs increase or decrease by more than 0.5 percent from the total normal cost contribution percentages in effect at the time. Commencing no sooner than July 1, 2021, and on July 1 of each fiscal year thereafter, if it is determined that an adjustment to the contribution rate is necessary, the employer and employee contribution percentages will be increased or decreased to maintain a 50-percent cost sharing of actuarially determined total normal costs. The increase or decrease to the employer or employee contribution in any given fiscal year shall not exceed 0.5 percent per year.
(D) The employees’ monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year, as described in subparagraphs (B) and (C), is suspended and shall not be withheld from employees’ salaries beginning with the July 2020 pay period and ending on June
30, 2021. The employer’s monthly contribution for prefunding other postemployment benefits will also be suspended during the 2020–21 fiscal year, as described in subparagraphs (B) and (C), beginning with the July 2020 pay period and ending on June 30, 2021.
(E) Effective July 1, 2020, the statutory increase redirected as a result of subdivision (a) of Section 19827 shall count towards the employee contribution percentage when determining the 50-percent cost sharing of actuarially determined total normal costs.
(F) Effective the first day of the pay period following ratification by both parties, but no sooner than July 1, 2021, the parties shall incorporate the 3.4 percent employee share of pensionable compensation into the salary survey conducted pursuant to Section 19827 of Government Code.
(G) Effective the first
day of the pay period following ratification by both parties, but no sooner than July 1, 2021, the employees in State Bargaining Unit 5 and the state shall make contributions to prefund retiree health care based on the following schedule:
(i) Effective the first day of the pay period following ratification by both parties, but no sooner than July 1, 2021, employees shall contribute 0.9 percent of pensionable compensation and the employer shall contribute 5.9 percent of pensionable compensation, for a total of 6.8 percent pensionable compensation.
(ii) Effective July 1, 2022, or July 1, 2024, employees shall contribute 1.7 percent of pensionable compensation and the employer shall contribute 5.1 percent of pensionable compensation, for a total of 6.8 percent pensionable compensation.
(iii) Effective July 1, 2023, or
July 1, 2025, employees shall contribute 2.6 percent of pensionable compensation and the employer shall contribute 4.2 percent of pensionable compensation, for a total of 6.8 percent pensionable compensation.
(iv) Effective July 1, 2024, employees shall contribute 3.4 percent of pensionable compensation and the employer shall contribute 3.4 percent of pensionable compensation, for a total of 6.8 percent of pensionable compensation.
(c) This section only applies to employees who are eligible for health benefits, including permanent intermittent employees.
(d) Contributions paid pursuant to this section shall be deposited in the Annuitants’ Health Care Coverage Fund and shall not be refundable under any circumstances to an employee or the employee’s beneficiary or survivor.
(e) If the provisions of this section are in conflict with the provisions of a memorandum of understanding or addenda, or both, reached pursuant to Section 3517.5, that memorandum of understanding or addenda, or both, shall be controlling without further legislative action, except that if those provisions of the memorandum of understanding or addenda require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(f) This section shall also apply to a state employee related to a bargaining unit described in subdivision (a) who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and the Director of the Department of Human Resources may establish the total employee contribution to prefund retiree health care as a percentage of pensionable compensation.
(g) (1) With the goal of reaching a 50-percent cost sharing of actuarially determined normal costs for both employer and employees by July 1, 2020, the Director of the Department of Human Resources may establish the total employee contribution to prefund retiree health care as a percentage of pensionable compensation for the following:
(A) A state employee who is not related to a bargaining unit described in subdivision (a) and who is excepted from the definition of “state employee” in subdivision (c) of Section 3513.
(B) An officer or employee of the executive branch of state government who is not a member of the civil service.
(2) An employee or officer to whom this subdivision applies shall make contributions to prefund retiree
health care based on the percentages established in paragraph (1), and the state shall match the contributions.
SEC. 14.
Section 4811 is added to the Labor Code, to read:4811.
(a) Whenever any member of State Bargaining Unit 8 employed by the Department of Forestry and Fire Protection is disabled by injury arising out of and in the course of their duties, they shall become entitled, regardless of their period of service with the Department of Forestry and Fire Protection, to leave of absence while disabled without loss of salary, in lieu of disability payments under this chapter, for a period not exceeding one year.(b) If the disabling injury described in subdivision (a) is a severe burn as determined by the Director of Forestry and Fire Protection or their designee, the employee shall become entitled, regardless of their period of service, to leave of absence while so disabled without loss of salary, in lieu of
disability payments under this chapter, for a period not exceeding three years.
(c) An employee shall only receive benefits pursuant to this section during the time period for which they would normally be employed. When this section does not apply, the employee shall be eligible for those benefits that would apply if this section had not been enacted.
(d) This section shall not apply to periods of disability that occur subsequent to termination of employment by resignation, retirement, or dismissal. When this section does not apply, the employee shall be eligible for those benefits that would apply if this section had not been enacted.
(e) This section shall also apply to an employee related to State Bargaining Unit 8 and employed by the Department of Forestry and Fire Protection who is excepted from the definition
of “state employee” in subdivision (c) of Section 3513 of the Government Code.
(f) This section shall apply to injuries sustained on or after November 1, 2022.
SEC. 15.
The sum of two hundred ninety-eight million seven hundred thirty-seven thousand dollars ($298,737,000) is hereby appropriated for State Bargaining Units 2, 5, 8, 9, 10, 18, and 19, and judges, and employees excluded from collective bargaining for the purpose of state employee compensation, as provided in Items 9800-001-0001, 9800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget Act of 2022, in accordance with the following schedule:(a) One hundred five million five hundred thirty-one thousand dollars ($105,531,000) from the General Fund
in augmentation of Item 9800-001-0001 of Section 2.00 of the Budget Act of 2022.
(b) One hundred forty-four million nine hundred seventy-five thousand dollars ($144,975,000) from unallocated special funds in augmentation of Item 9800-001-0494 of Section 2.00 of the Budget Act of 2022.
(c) Forty-eight million two hundred thirty-one thousand dollars ($48,231,000) from other unallocated nongovernmental cost funds in augmentation of Item 9800-001-0988 of Section 2.00 of the Budget Act of 2022.
