BILL NUMBER: SB 1308	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 21, 2012

INTRODUCED BY   Committee on Public Employment and Retirement
(Senators Negrete McLeod (Chair), Gaines, Padilla, Vargas, and
Walters)

                        FEBRUARY 23, 2012

   An act to amend Sections 107, 4809.8, 11310, 19428, and 19816 of
the Business and Professions Code, to amend Sections 22717.5,
22901.3, 24003, 24103, 59008, 59104, and 59205 of the Education Code,
to amend Section 17450 of the Family Code, to amend Section 2203 of
the Fish and Game Code, to amend Sections 6006, 6042, 6047.4, 6988,
14581, 14971, 27574, 29028, 40576, 41008, 41867, 52885, 54442, 74743,
77939, and 78239 of the Food and Agricultural Code, to amend
Sections 927.13, 1150, 1156, 1156.1,  3513, 
3517.63,  3527,  3535, 3537, 3539.5, 3541, 3572.1,
7507, 8546, 8870.4, 8880.18, 8903, 9149.4,  11270, 11552,
 11565.5, 12010.6, 12012.85, 13332.07, 14876, 14998.3,
16649.94, 18000.5, 18573, 18574, 18706, 18707, 18708, 18711, 18714,
18717, 18801.1, 18802, 18904, 18905, 19134, 19172, 19253.5, 19261,
19576.1, 19582, 19583, 19592, 19770, 19775, 19775.1, 19775.15,
19775.16, 19775.17, 19775.18,  19815,  19815.41,
19815.8, 19816.21, 19816.22, 19819.5, 19822.6, 19827.3, 19829.5,
19829.6, 19844.7, 19849.11, 19849.13, 19849.14, 19849.16, 19853,
19853.1, 19867, 19999.1, 19999.3, 19999.21, 19999.31, 20068, 20090,
20090.1, 20398, 20405, 20405.1, 20405.2, 20405.3, 20407, 20408,
20632, 20636, 20672.5, 20677.4, 20683, 20683.1, 20687, 20963.1,
21159, 21160, 21195, 21223, 21251.13, 21353, 21354.1, 21362.2, 21363,
21363.1, 21363.4, 21363.8, 21369, 21369.1, 21410, 21465, 21672,
21674, 22808, 22811, 22814, 22815, 22816, 22850, 22865, 22871.5,
22944.3, 22953, 22954, 22959, 22959.2, 22959.4, 22959.6, 22960,
22960.35, 22960.60, 22960.100, 68203, 77601, 77602, and 100503 of, to
amend the heading of Chapter 1 (commencing with Section 19815) of
Part 2.6 of Division 5 of Title 2 of, to amend and repeal 
Sections   Section  19608  and 21369.2
 of, to add Section 19573 to, to repeal Section 19702 of,
 to repeal and amend Section 21369.2 of,  and to repeal and
add Section 19815.2 of, the Government Code, to amend 
Sections 11755 and   Section  50909 of the Health
and Safety Code, to amend Sections 10203.2, 11871, 12693.65, and
12710 of the Insurance Code, to amend Sections 122, 123, 3352, and
4600 of the Labor Code, to amend Sections 322 and 1011 of the
Military and Veterans Code, to amend Sections 832.9 and 6050 of the
Penal Code, to amend Sections 10295, 10344.1, and 10349 of the Public
Contract Code, to amend Sections 309.1 and 185024 of the Public
Utilities Code, to amend Section 19270 of the Revenue and Taxation
Code, to amend Section 2266 of the Vehicle Code, and to amend Section
80122 of the Water Code, relating to the Department of Human
Resources.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1308, as amended, Committee on Public Employment and
Retirement. State human resources functions.
   The California Constitution establishes the State Personnel Board
and requires the board to, among other things, enforce the civil
service statutes, prescribe probationary periods and classifications,
adopt rules authorized by statute, and review disciplinary actions.
The Constitution also requires the executive officer of the board to
administer the civil service statutes under the rules of the board.
Existing law establishes the Department of Personnel Administration
for purposes of managing the nonmerit aspects of the state's
personnel system.
   Governor's Reorganization  Plan  No. 1, operative July 1,
2012, creates the Department of Human Resources, which is vested
with the duties, purposes, responsibilities, and jurisdiction
exercised by the State Personnel Board as its designee with respect
to the State Personnel Board's administrative and ministerial
functions. The plan also abolishes the Department of Personnel
Administration, and transfers the functions and duties performed by
the Department of Personnel Administration to the Department of Human
Resources. The plan eliminates certain functions of the State
Personnel Board relating to investigating and hearing complaints of
discrimination in the civil service. The plan also authorizes the
Department of Human Resources to establish disciplinary criteria
applicable to adverse actions taken by appointing bodies pursuant to
causes of discipline for employees and individuals established
pursuant to specified provisions of law. The plan requires the State
Personnel Board to give consideration and respect to any applicable
disciplinary criteria established by the Department of Human
Resources in making certain decisions relating to disciplinary
proceedings.
   This bill would enact the statutory changes necessary to reflect
the changes made by the Governor's Reorganization Plan No. 1. 
   This bill would provide that any section of any act enacted by the
Legislature during the 2012 calendar year that takes effect on or
before January 1, 2013, and affects any section of this act, would
prevail over this act, whether that act is enacted prior to, or
subsequent to, the enactment of this act. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 107 of the Business and Professions Code is
amended to read:
   107.  Pursuant to subdivision (e) of Section 4 of Article VII of
the California Constitution, each board may appoint a person exempt
from civil service and may fix his or her salary, with the approval
of the Department of Human Resources pursuant to Section 19825 of the
Government Code, who shall be designated as an executive officer
unless the licensing act of the particular board designates the
person as a registrar.
  SEC. 2.  Section 4809.8 of the Business and Professions Code is
amended to read:
   4809.8.  (a) The board shall establish an advisory committee to
assist, advise, and make recommendations for the implementation of
rules and regulations necessary to ensure proper administration and
enforcement of this chapter and to assist the board in its
examination, licensure, and registration programs. This committee
shall be known as the Veterinary Medicine Multidisciplinary Advisory
Committee. Members of the multidisciplinary committee shall be
appointed by the board from lists of nominees solicited by the board.
The committee shall consist of the following seven members: four
licensed veterinarians, two registered veterinary technicians, and
one public member. Members of the multidisciplinary committee shall
represent a sufficient cross section of the interests in veterinary
medicine in order to address the issues before it, as determined by
the board, including veterinarians, registered veterinary
technicians, and members of the public.
   (b) Multidisciplinary committee members shall hold office for a
term of three years and appointments shall be staggered accordingly.
A member may be reappointed, but no person shall serve as a member of
the committee for more than two consecutive terms. Vacancies
occurring shall be filled by appointment for the unexpired term,
within 90 days after they occur.
   (c) The multidisciplinary committee shall be subject to the
requirements of Article 9 (commencing with Section 11120) of Chapter
1 of Part 1 of Division 3 of Title 2 of the Government Code.
   (d) Multidisciplinary committee members shall receive a per diem
as provided in Section 103 and shall be compensated for their actual
travel expenses in accordance with the rules and regulations adopted
by the Department of Human Resources.
   (e) The board may remove a member of the multidisciplinary
committee for continued neglect of a duty required by this chapter,
for incompetency, or for unprofessional conduct.
  SEC. 3.  Section 11310 of the Business and Professions Code is
amended to read:
   11310.  The Governor shall appoint, subject to confirmation by the
Senate, the Director of the Office of Real Estate Appraisers who
shall, in consultation with the Governor and secretary, administer
the licensing and certification program for real estate appraisers.
In making the appointment, consideration shall be given to the
qualifications of an individual that demonstrate knowledge of the
real estate appraisal profession.
   (a) The director shall serve at the pleasure of the Governor. The
salary for the director shall be fixed and determined by the
secretary with approval of the Department of Human Resources.
   (b) The director shall not be actively engaged in the appraisal
business or any other affected industry for the term of appointment,
and thereafter the director shall be subject to Section 87406 of the
Government Code.
   (c) The director, in consultation with the secretary and in
accordance with the State Civil Service Act, may appoint and fix the
compensation of legal, clerical, technical, investigation, and
auditing personnel as may be necessary to carry out this part. All
personnel shall perform their respective duties under the supervision
and direction of the director.
   (d) The director may appoint not more than four deputy directors
as he or she deems appropriate. The deputy directors shall perform
their respective duties under the supervision and direction of the
director.
   (e) Every power granted to or duty imposed upon the director under
this part may be exercised or performed in the name of the director
by the deputy directors, subject to conditions and limitations as the
director may prescribe.
  SEC. 4.  Section 19428 of the Business and Professions Code is
amended to read:
   19428.  The board shall appoint an executive director who shall
receive the annual salary established by the board and approved by
the Department of Human Resources. The executive director shall be
the board's executive officer and shall carry out and execute the
duties as specified by law and by the board.
  SEC. 5.  Section 19816 of the Business and Professions Code is
amended to read:
   19816.  (a) The commission shall have an executive director
appointed by the commission. A person is ineligible for appointment
as executive director or deputy executive director if, within two
years prior to appointment, the person, or any partnership or
corporation in which the person is a principal, was employed by,
retained by, or derived substantial income from, any gambling
establishment, whether or not a controlled gambling establishment.
   (b) The executive director shall receive the annual salary
established by the commission and approved by the Department of Human
Resources. The executive director shall be the commission's
executive officer and shall carry out and execute the duties as
specified by law and by the commission.
   (c) The commission may appoint other staff and clerical personnel
as necessary to carry out its duties under this chapter.
  SEC. 6.  Section 22717.5 of the Education Code is amended to read:
   22717.5.  (a) A member shall be credited at service retirement for
each day of accumulated and unused leave of absence for education
for which full salary is allowed on the member's final day of
employment with the state.
   (b) The amount of service credit to be granted shall be 0.004
years of service for each unused day of educational leave credit.
   (c) When the member has made application for service retirement
under this part, the employer shall certify to the board, within 30
days following the effective date of the member's service retirement,
the number of days of accumulated and unused leave of absence for
education that the member was entitled to on the final day of
employment. The board may assess a penalty on delinquent reports.
   (d) This section shall apply to eligible state employees in state
bargaining units that have agreed to this section in a memorandum of
understanding, or as authorized by the Director of Human Resources
for classifications of state employees that are excluded from the
definition of "state employee" by paragraph (c) of Section 3513 of
the Government Code.
   (e) The provisions of this section shall be effective for eligible
members who retire directly from state employment on or after
January 1, 2000.
  SEC. 7.  Section 22901.3 of the Education Code is amended to read:
   22901.3.  (a) Notwithstanding Section 22901, the normal rate of
contribution for a "state employee," as defined in subdivision (c) of
Section 3513 of the Government Code, who is a member of the Defined
Benefit Program, may be established by a memorandum of understanding
reached pursuant to Section 3517.5 of the Government Code. The
memorandum of understanding shall be controlling without further
legislative action, except that if the provisions of the memorandum
of understanding require the expenditure of funds, the provisions may
not become effective unless approved by the Legislature in the
annual Budget Act.
   (b) The Director of Human Resources may establish the normal rate
of contribution for a state employee who is a member of the Defined
Benefit Program who is excepted from the definition of "state
employee" in subdivision (c) of Section 3513 of the Government Code,
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 Human Resources but
shall be no earlier than the beginning of the pay period following
the date the board receives notification.
  SEC. 8.  Section 24003 of the Education Code is amended to read:
   24003.  (a) The member shall provide medical documentation to
substantiate the impairment qualifying the member for the disability
allowance.
   (b) On receipt of an application for disability allowance under
this part, the system may order a medical examination or review of
medical documentation of a member to determine whether the member is
incapacitated for performance of service. The medical examination or
review of medical documentation shall be conducted by a practicing
physician, selected by the board, with expertise in the member's
impairment and the board shall pay all costs associated with the
examination or review of medical documentation. If the member refuses
to submit to the required medical examination or review of medical
documentation, the application for disability allowance shall be
rejected. If a medical examination is ordered:
   (1) The member shall either remain in this state, or return to
this state at the member's own expense, to undergo the medical
examination, or the application shall be rejected, unless this
requirement is waived by the board. The board shall pay all other
reasonable costs related to travel and meals in accordance with the
rates set for state employees by the Department of Human Resources.
   (2) If the member is too ill to be examined, the system shall
postpone the examination until the member can be examined. The member
or the member's treating physician shall inform the system, in
writing, when the medical examination can be rescheduled.
   (c) The system may reject the disability allowance application
under this part if the member fails to provide requested medical
documentation to substantiate a disability, as defined in Section
22126, within 45 days from the date of the request or within 30 days
from the time that a legally designated representative is empowered
to act on behalf of a member who is mentally or physically
incapacitated.
   (d) If the board determines that a member who has applied for a
disability allowance under this part may perform service in the
member's former position of employment or in a comparable level
position with the assistance of reasonable accommodation, the board
may require the member to request reasonable accommodation from the
employer. Failure of the member to request reasonable accommodation,
as directed by the board, may be grounds for cancellation of the
disability allowance application.
   (e) If the employer fails or refuses to provide reasonable
accommodation, the board may require the member to pursue an
administrative appeal of the employer's denial as a condition for
receiving a disability allowance under this part.
   (f) The system shall inform the member of the rejection or
cancellation of the member's disability allowance application under
this part within 30 days after that determination is made by the
system.
   (g) In determining whether a member meets the definition of
disability pursuant to Section 22126, the board shall make a
determination on the basis of competent medical documentation and
shall not use the awarding of a disability allowance as a substitute
for the disciplinary process.
  SEC. 9.  Section 24103 of the Education Code is amended to read:
   24103.  (a) The member shall provide medical documentation
substantiating the impairment qualifying the member for the
disability retirement under this part.
   (b) On receipt of an application for disability retirement under
this part, the system may order a medical examination or review of
medical documentation of a member to determine whether the member is
incapacitated for performance of service. The medical examination or
review of medical documentation shall be conducted by a practicing
physician, selected by the board, with expertise in the member's
impairment, and the board shall pay all costs associated with the
examination or review of medical documentation. If the member refuses
to submit to the required medical examination or review of medical
documentation, the application for disability retirement shall be
rejected. If a medical examination is ordered:
   (1) The member shall either remain in this state, or return to
this state at the member's own expense, to undergo the medical
examination or the application shall be rejected, unless this
requirement is waived by the board. The board shall pay all other
reasonable costs related to travel and meals in accordance with the
rates set for state employees by the Department of Human Resources.
   (2) If the member is too ill to be examined, the system shall
postpone the examination until the member can be examined. The member
or the member's treating physician shall inform the system, in
writing, when the medical examination can be rescheduled.
   (c) The system may reject the disability retirement application
under this part if the member fails to provide requested medical
documentation to substantiate a disability, as defined in Section
22126, within 45 days from the date of the request or within 30 days
from the time that a legally designated representative is empowered
to act on behalf of a member who is mentally or physically
incapacitated.
   (d) If the board determines that a member who has applied for
disability retirement under this part may perform service in the
member's former position of employment or in a comparable level
position with the assistance of reasonable accommodation, the board
may require the member to request reasonable accommodation from the
employer. Failure of the member to request reasonable accommodation,
as directed by the board, may be grounds for cancellation of the
disability retirement application under this part.
   (e) If the employer fails or refuses to provide reasonable
accommodation, the board may require the member to pursue an
administrative appeal of the employer's denial as a condition for
receiving a disability retirement allowance under this part.
   (f) The system shall inform the member of the rejection or
cancellation of the member's disability retirement allowance
application under this part within 30 days after that determination
is made by the system.
   (g) In determining whether a member meets the definition of
disability pursuant to Section 22126, the board shall make a
determination on the basis of competent medical documentation and
shall not use the awarding of a disability retirement as a substitute
for the disciplinary process.
  SEC. 10.  Section 59008 of the Education Code is amended to read:
   59008.  (a) The Department of Human Resources shall consider
making salaries for teachers, specialists, and administrators of the
California School for the Deaf competitive with the salaries of
similarly qualified school teachers, specialists, and administrators
who are employed by the encompassing school districts.
   (b) For purposes of this section, "teachers," "teacher
specialists," and "administrators" mean those individuals who hold
the appropriate teaching, service, or teaching and administrative
credential, as appropriate, as issued by the Commission on Teacher
Credentialing, as determined by the employing state agency.
  SEC. 11.  Section 59104 of the Education Code is amended to read:
   59104.  (a) The Department of Human Resources shall consider
making salaries for teachers, specialists, and administrators of the
California School for the Blind competitive with the salaries of
similarly qualified school teachers, specialists, and administrators
who are employed by the encompassing school districts.
   (b) For purposes of this section, "teachers," "teacher
specialists," and "administrators" mean those individuals who hold
the appropriate teaching, service, or teaching and administrative
credential, as appropriate, as issued by the Commission on Teacher
Credentialing, as determined by the employing state agency.
  SEC. 12.  Section 59205 of the Education Code is amended to read:
   59205.  (a) The Department of Human Resources shall consider
making salaries for teachers, specialists, and administrators of the
Diagnostic Center, Southern California, the Diagnostic Center,
Central California, and the Diagnostic Center, Northern California,
competitive with the salaries of similarly qualified school teachers,
specialists, and administrators who are employed by the encompassing
school districts.
   (b) For purposes of this section, "teachers," "teacher
specialists," and "administrators" mean those individuals who hold
the appropriate teaching, service, or teaching and administrative
credential, as appropriate, as issued by the Commission on Teacher
Credentialing, as determined by the employing state agency.
  SEC. 13.  Section 17450 of the Family Code is amended to read:
   17450.  (a) For purposes of this article:
   (1) "Child support delinquency" means a delinquency defined in
subdivision (c) of Section 17500.
   (2) "Earnings" shall include the items described in Section 5206.
   (b) (1) When a delinquency is submitted to the department pursuant
to subdivision (c) of Section 17500, the amount of the child support
delinquency shall be collected by the department in any manner
authorized under state or federal law.
   (2) Any compensation, fee, commission, expense, or any other fee
for service incurred by the department in the collection of a child
support delinquency authorized under this article shall not be an
obligation of, or collected from, the obligated parent.
   (c) (1) The department may return or allow a local child support
agency to retain a child support delinquency for a specified purpose
for collection where the department determines that the return or
retention of the delinquency for the purpose so specified will
enhance the collectibility of the delinquency. The department shall
establish a process whereby a local child support agency may request
and shall be allowed to withdraw, rescind, or otherwise recall the
submittal of an account that has been submitted.
   (2) If an obligor is disabled, meets the federal Supplemental
Security Income resource test, and is receiving Supplemental Security
Income/State Supplementary Payments (SSI/SSP), or, but for excess
income as described in Section 416.1100 and following of Part 416 of
Title 20 of the Code of Federal Regulations, would be eligible to
receive as SSI/SSP, pursuant to Section 12200 of the Welfare and
Institutions Code, and the obligor has supplied the local child
support agency with proof of his or her eligibility for, and, if
applicable, receipt of, SSI/SSP or Social Security Disability
Insurance benefits, then the child support delinquency shall not be
referred to the department for collection, and, if referred, shall be
withdrawn, rescinded, or otherwise recalled from the department by
the local child support agency. The department shall not take any
collection action, or if the local child support agency has already
taken collection action, shall cease collection actions in the case
of a disabled obligor when the delinquency is withdrawn, rescinded,
or otherwise recalled by the local child support agency in accordance
with the process established as described in paragraph (1).
   (d) It is the intent of the Legislature that when the California
Child Support Automation System (CCSAS) is fully operational, any
statutes that should be modified based upon the status of the system
shall be revised. During the development and implementation of CCSAS,
the department, as the Title IV-D agency, may, through appropriate
interagency agreement, delegate any and all of the functions or
procedures specified in this article to the Franchise Tax Board. The
Franchise Tax Board shall perform those functions or procedures as
specified in Sections 19271 to 19275, inclusive, of the Revenue and
Taxation Code until such time as the director, by letter to the
executive officer of the Franchise Tax Board, revokes such delegation
of Title IV-D functions. Sections 19271 to 19275, inclusive, of the
Revenue and Taxation Code shall be effective for these purposes until
the revocation of delegation to the Franchise Tax Board.
   (e) Consistent with the development and implementation of the
California Child Support Automation System (CCSAS), the Franchise Tax
Board and the department shall enter into a letter of agreement and
an interagency agreement whereby the department shall assume
responsibility for collection of child support delinquencies and the
Financial Institution Data Match System as set forth in this article.
The letter of agreement and interagency agreement shall, at a
minimum, set forth all of the following:
   (1) Contingent upon the enactment of the Budget Act, and staffing
authorization from the Department of Finance and the Department of
Human Resources, the department shall assume responsibility for
leadership and staffing of the collection of child support
delinquencies and the Financial Institution Data Match System.
   (2) All employees and other personnel who staff or provide support
for the collection of child support delinquencies and the Financial
Institution Data Match System at the Franchise Tax Board shall become
the employees of the department at their existing or equivalent
classification, salaries, and benefits.
   (3) Any other provisions necessary to ensure continuity of
function and meet or exceed existing levels of service, including,
but not limited to, agreements for continued use of automated systems
used by the Franchise Tax Board to locate child support obligors and
their assets.
  SEC. 14.  Section 2203 of the Fish and Game Code is amended to
read:
   2203.  (a) The director, with the advice of the committee
established pursuant to Section 2150.3, shall adopt regulations to
establish and administer a grant program, including eligibility
criteria, by which persons or governmental agencies who operate
facilities to care and shelter mammals may apply for grants for
maintenance, operations, and capital improvements. The program shall
include provisions for emergency grants with an expedited review
process.
   (b) Each member of the committee who is eligible to receive per
diem and mileage shall be allowed per diem and mileage in accordance
with the rules of the Department of Human Resources for attending any
meeting of the committee involving this article.
  SEC. 15.  Section 6006 of the Food and Agricultural Code is amended
to read:
   6006.  The director shall appoint a Cotton Pest Control Board,
consisting of 10 members, to assist and advise him or her on matters
which pertain to the control of cotton pests and to carry out its
authority specified in this article.
   The membership shall consist of at least one cottongrower from
each of the major cotton-growing counties in the state, and one
member who is not a cottongrower and who represents the public.
   Any member of the board who misses two meetings without the
permission of the board, is deemed to have resigned as a member of
the board.
   The board may meet in regular session each month. The chairperson
of the board or the director may call any other meeting of the board
at any time. Each member shall be allowed per diem and mileage in
accordance with Department of Human Resources rules for attending any
meeting of the board.
   The board shall annually review the effectiveness of the cotton
pest control program.
  SEC. 16.  Section 6042 of the Food and Agricultural Code is amended
to read:
   6042.  The board shall meet at the call of its chairman or the
secretary or at the request of any three members of the board. The
board shall meet at least once a year. Members of the board shall be
allowed per diem and mileage in accordance with rules of the
Department of Human Resources for attendance at meetings and other
board activities authorized by the board and approved by the
secretary.
  SEC. 17.  Section 6047.4 of the Food and Agricultural Code is
amended to read:
   6047.4.  (a) The powers of the board shall be the following:
   (1) Submit recommendations to the secretary on, but not limited
to, the following:
   (A) Selection of officers.
   (B) Terms of office for board members.
   (C) Annual assessment rate.
   (D) Annual budget.
   (E) Expenditures authorized under Sections 6047.5 and 6047.30.
   (2) Receive money from the assessment and other sources.
   (3) Adopt, amend, and rescind all proper and necessary bylaws and
procedures.
   (4) Coordinate its activities with the secretary's science
advisory board and agricultural/governmental advisory task force.
   (b) A majority of the members of the board shall constitute a
quorum of the board. The vote of a majority of the members present at
a meeting at which there is a quorum constitutes an act of the
board, except for actions taken pursuant to subdivision (a) of
Section 6047.7, which shall require a majority of the vote of the
board. The board may continue to transact business at a meeting where
a quorum is initially present, notwithstanding the withdrawal of
members, provided any action is approved by the requisite majority of
the required quorum.
   (c) As authorized by the board, members of the board may receive
per diem and mileage in accordance with the rules of the Department
of Human Resources for attendance at meetings and other approved
board activities.
  SEC. 18.  Section 6988 of the Food and Agricultural Code is amended
to read:
   6988.  The secretary, upon consultation with the pome and stone
fruit tree, nut tree, olive tree, and grapevine nursery industry,
shall appoint a board to assist and advise him or her concerning the
implementation of this article.
   (a) Membership on the board shall consist of 11 representatives, a
majority of whom are licensed producers of pome, stone, nut, olive,
and grape nursery stock, but also users and a public member as
follows:
   (1) Two each from the stone fruit (including almonds) and nut
(other than almond) industries.
   (2) Four from the grape industry.
   (3) One each from the pome fruit and olive industries.
   (4) One public representative.
   (b) Board members shall represent all areas of the state involved
in the production of pome and stone fruit trees, nut trees, olive
trees, and grapevines.
   (c) The members of the board shall serve for fixed terms of up to
two years. The secretary, upon nomination by the industry, may
appoint a member for three consecutive terms. The secretary shall
reappoint no more than eight of the then-current members of the board
within a two-year
period.
   (d) The board shall meet at least twice a year. The chair or the
secretary may call any other meeting when it is deemed necessary by
one or both of them. Each member shall be allowed per diem and
mileage in accordance with Department of Human Resources rules for
attending any meeting of the board.
   (e) The board shall review and make recommendations to the
secretary concerning the ongoing operations of the department and the
University of California pertaining to this article. This shall
include advice on fiscal expenditure, assessments needed to cover
costs, and proposals concerning the development of planting
materials.
  SEC. 19.  Section 14581 of the Food and Agricultural Code is
amended to read:
   14581.  There is, in the department, a Fertilizer Inspection
Advisory Board consisting of nine persons appointed by the secretary,
eight of whom shall be licensed under this chapter and subject to
the payment of the inspection fee in accordance with this chapter,
and one of whom shall be a public member. The members of the board
shall receive no compensation, but are entitled to payment of
necessary traveling expenses in accordance with the rules of the
Department of Human Resources. These expenses shall be paid out of
appropriations made to the department pursuant to this chapter.
  SEC. 20.  Section 14971 of the Food and Agricultural Code is
amended to read:
   14971.  There is in state government a Feed Inspection Advisory
Board consisting of eight persons appointed by the director, who are
licensed under this chapter, and who are subject to payment of the
inspection tonnage tax in accordance with this chapter. The director
may appoint one additional member to the board who shall be a public
member. The members of the board shall receive no salary, but are
entitled to payment of necessary traveling expenses in accordance
with Department of Human Resources rules. These expenses shall be
paid out of appropriations made to the department.
   Upon the director's request, the board shall submit to the
director the names of three or more natural persons, each of whom
shall be a citizen and resident of this state and not a producer,
shipper, or processor nor financially interested in any producer,
shipper, or processor, for appointment by the director as a public
member of the board. The director may appoint one of the nominees as
the public member on the board. If all nominees are unsatisfactory to
the director, the board shall continue to submit lists of nominees
until the director has made a selection. Any vacancy in the office of
the public member of the board shall be filled by appointment by the
director from the nominee or nominees similarly qualified submitted
by the board. The public member of the board shall represent the
interests of the general public in all matters coming before the
board and shall have the same voting and other rights and immunities
as other members of the board.
  SEC. 21.  Section 27574 of the Food and Agricultural Code is
amended to read:
   27574.  The committee shall meet at the call of its chairman, the
director, or at the request of any three members of the committee.
The committee shall meet at least once a year. Necessary expenditures
incurred by the committee members in attending committee meetings
may be reimbursed in accordance with Department of Human Resources
rules.
  SEC. 22.  Section 29028 of the Food and Agricultural Code is
amended to read:
   29028.  Each member of the board shall serve without compensation,
but each member shall be reimbursed for actual and necessary
expenses, including travel expenses, incurred in attending meetings
of the board and any other official duty authorized by the board and
approved by the director. The reimbursements shall be made in
accordance with the rules of the Department of Human Resources.
  SEC. 23.  Section 40576 of the Food and Agricultural Code is
amended to read:
   40576.  Each member of the committee, or any alternate member
serving in the absence of a regular member, may, with the approval of
the director, be reimbursed for the actual and necessary expenses
incurred in the performance of his or her official duties. However, a
member or alternate member may not receive any other consideration
for serving on the committee. The reimbursement shall be made at the
rate permitted under the rules of the Department of Human Resources.
  SEC. 24.  Section 41008 of the Food and Agricultural Code is
amended to read:
   41008.  Each member of the committee, any alternate member serving
in the absence of a regular member, and any member of an advisory
committee appointed by the chairman of the committee, may, with
approval of the director, be reimbursed for the actual and necessary
expenses incurred in the performance of their official duties.
However, members may not receive any other consideration. Any of
these reimbursements shall be made at the rate permitted under the
rules of the Department of Human Resources.
  SEC. 25.  Section 41867 of the Food and Agricultural Code is
amended to read:
   41867.  Each member of the committee, any alternate member serving
in the absence of a regular member, and any member of an advisory
committee appointed by the chairman of the committee, with approval
of the secretary, may be reimbursed for the actual necessary expenses
incurred in the performance of their official duties. Any
reimbursement shall be made at the rate permitted under the rules of
the Department of Human Resources and a member shall not receive any
other compensation.
  SEC. 26.  Section 52885 of the Food and Agricultural Code is
amended to read:
   52885.  No board member, alternate, member of a committee who is a
nonmember of the board, or ex officio member shall receive a salary,
but may, if approved by the board, be allowed per diem in accordance
with Department of Human Resources rules for each day spent in
actual attendance on, or in traveling to and from, meetings of the
board or committees of the board, or on special assignment for the
board.
  SEC. 27.  Section 54442 of the Food and Agricultural Code is
amended to read:
   54442.  (a) To aid in preparation of the report required under
this chapter, the secretary shall establish an advisory committee
consisting of the following persons:
   (1) Six representatives of cooperative bargaining associations
from names submitted by cooperative bargaining associations, two of
whom shall be appointed by the Governor, two of whom shall be
appointed by the Speaker of the Assembly, and two of whom shall be
appointed by the Senate Committee on Rules.
   (2) Six representatives of processors from names submitted by
processors, two of whom shall be appointed by the Governor, two of
whom shall be appointed by the Speaker of the Assembly, and two of
whom shall be appointed by the Senate Committee on Rules.
   (b) The members of the advisory committee shall be reimbursed for
travel expenses pursuant to the rules and regulations adopted by the
Director of Human Resources pursuant to Section 19820 of the
Government Code for attendance at a meeting approved by the Secretary
of Food and Agriculture.
  SEC. 28.  Section 74743 of the Food and Agricultural Code is
amended to read:
   74743.  No board member or alternate member or member of a
committee established by the commission who is a nonmember of the
commission shall receive any compensation. Each board member or each
alternate member serving in place of a board member, except ex
officio members who are state officers or employees, and each member
of a committee established by the commission who is not a board
member or alternate member, may receive per diem not to exceed one
hundred dollars ($100) per day, as established by the commission. In
addition, board members and alternate members of the commission and
members of committees established by the commission shall be
reimbursed for actual and necessary travel expenses under the rules
of the Department of Human Resources. The per diem and reimbursement
for travel expenses shall be paid to those members for each day spent
in actual attendance at, or in traveling to and from, meetings of
the commission or committees of the commission, or on special
assignment for the commission, as provided by the commission.
  SEC. 29.  Section 77939 of the Food and Agricultural Code is
amended to read:
   77939.  Members and alternate members of the commission and
members of committees established by the commission shall not receive
any compensation but shall receive the per diem established by
Section 11564.5 of the Government Code. Ex officio members who are
state officers or employees and who are compensated by the state are
not eligible for per diem pursuant to this section. In addition,
members and alternate members of the commission and members of
committees established by the commission shall be reimbursed for
actual and necessary travel expenses under the rules of the
Department of Human Resources. The per diem and reimbursement for
travel expenses shall be paid to those members for each day spent in
actual attendance at, or in traveling to and from, meetings of the
commission or committees of the commission, or on special assignment
for the commission, as approved by the commission.
  SEC. 30.  Section 78239 of the Food and Agricultural Code is
amended to read:
   78239.  Members and alternate members of the commission, and
members of committees established by the commission, shall not
receive any compensation, but notwithstanding Section 11564.5 of the
Government Code, shall receive the per diem established by the
commission, not to exceed one hundred dollars ($100) per day. Ex
officio members who are state officers or employees are not eligible
for per diem pursuant to this section. In addition, members and
alternate members of the commission, and members of committees
established by the commission, shall be reimbursed for actual and
necessary travel expenses under the rules of the Department of Human
Resources. The per diem and reimbursement for travel expenses shall
be paid to those members for each day spent in actual attendance at,
or in traveling to and from, meetings of the commission or committees
of the commission, or on special assignment for the commission, as
approved by the commission.
  SEC. 31.  Section 927.13 of the Government Code is amended to read:

   927.13.  (a) Unless otherwise provided for by statute, any state
agency that fails to submit a correct claim schedule to the
Controller within 30 days of receipt of a notice of refund or other
payment due, and fails to issue payment within 45 days from the
notice of refund or other payment due, shall be liable for penalties
on the undisputed amount pursuant to this section. The penalties
shall be paid out of the agency's funds at a rate equal to the Pooled
Money Investment Account daily rate on June 30 of the prior fiscal
year minus 1 percent. The penalties shall cease to accrue on the date
full payment or refund is made. If the amount of the penalty is ten
dollars ($10) or less, the penalty shall be waived and not paid by
the state agency. On an exception basis, state agencies may avoid
payment of penalties for failure to submit a correct claim schedule
to the Controller by paying the claimant directly from the state
agency's revolving fund within 45 calendar days following the agency'
s receipt of the notice of refund or other payment due.
   (b) The Controller shall pay claimants within 15 calendar days of
receipt of a correct claim schedule from the state agency. If the
Controller fails to make payment within 15 calendar days of receipt
of the claim schedule from a state agency, and payment is not issued
within 45 calendar days following the agency's receipt of a notice of
refund or undisputed payment due, the Controller shall pay
applicable penalties to the claimant. Penalties shall cease to accrue
on the date full payment is made, and shall be paid out of the
Controller's funds. If the amount of the penalty is ten dollars ($10)
or less, the penalty shall be waived and not paid by the Controller.

   (c) No person shall receive an interest payment pursuant to this
section if it is determined that the person has intentionally
overpaid on a liability solely for the purpose of receiving a penalty
payment.
   (d) No penalty shall accrue during any time period for which there
is no Budget Act in effect, nor on any payment or refund that is the
result of a federally mandated program or that is directly dependent
upon the receipt of federal funds by a state agency.
   (e) This section shall not apply to any of the following:
   (1) Payments, refunds, or credits for income tax purposes.
   (2) Payment of claims for reimbursement for health care services
or mental health services provided under the Medi-Cal program,
pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of
Division 9 of the Welfare and Institutions Code.
   (3) Any payment made pursuant to a public social service or public
health program to a recipient of benefits under that program.
   (4) Payments made on claims by the California Victim Compensation
and Government Claims Board.
   (5) Payments made by the Commission on State Mandates.
   (6) Payments made by the Department of Human Resources pursuant to
Section 19823.
  SEC. 32.  Section 1150 of the Government Code is amended to read:
   1150.  As used in this article:
   (a) "State employee" means all persons who receive wages for
services through the uniform payroll system established and
administered by the Controller under Section 12470.
   (b) "Public agency" includes counties, cities, municipal
corporations, political subdivisions, public districts, and other
public agencies of the state.
   (c) "Employee organization" means an organization which represents
employees of the state or the California State University in their
employer-employee relations, and which is registered with the
Department of Human Resources or the Trustees of the California State
University, or which has been recognized or certified by the Public
Employment Relations Board.
   (d) "Bona fide association" means an organization of employees and
former employees of an agency of the state and the California State
University, and which does not have as one of its purposes
representing these employees in their employer-employee relations.
   (e) "Deduction" does not include direct deposit by electronic fund
transfer, as authorized by Sections 7506 and 12480.
  SEC. 33.  Section 1156 of the Government Code is amended to read:
   1156.  (a) Any eligible employee who is participating in a
flexible benefits program may elect to receive one or more benefits
that qualify to be excluded from gross income in lieu of a portion of
his or her salary.
   (b) For purposes of this section, an "eligible employee" means any
of the following:
   (1) An employee excluded from the definition of "state employee"
in Section 3513.
   (2) A "managerial employee" as defined in Section 3513.
   (3) A "confidential employee" as defined in Section 3513 and
Section 3562.
   (4) A "supervisory employee" as defined in Section 3580.3.
   (5) An officer or employee of the State of California in the
executive or judicial branch of government who is not a state civil
service employee pursuant to Part 2 (commencing with Section 18500)
of Division 5 of Title 2.
   (6) A "state employee," as defined by Section 3513 or employed by
the state as provided for in Article VI of the Constitution.
   (c) Any eligible employee participating in the flexible benefits
program shall be subject to federal laws and implementing regulations
of the Department of Human Resources which affects the flexible
benefit program throughout the period of the employee's enrollment.
   (d) Unless the trustee or the administrator of the state's
flexible benefit program is the Controller or another state officer,
that program shall be administered in compliance with the federal
Employee Retirement Income Security Act of 1974 (ERISA: 29 U.S.C.
Sec. 1001 et seq.).
   (e) As a condition of participating in a flexible benefits
program, each eligible employee shall provide evidence, in a manner
satisfactory to the Department of Human Resources, that the employee
is covered by a basic health benefits plan, and his or her agreement
to remain covered for the period of participation in the flexible
benefits plan.
   (f) There is in the State Treasury the Flexelect Benefit Fund
which, notwithstanding Section 13340, is continuously appropriated
without regard to fiscal years to the Department of Human Resources
for expenditure to implement the flexible benefits program and to pay
the related administrative costs. The fund shall consist of the
amounts received from state employee compensation excluded from gross
income and transmitted to the Flexelect Benefit Fund, income of
whatever nature earned on the money in the Flexelect Benefit Fund
during any fiscal year and credited to the fund, and amounts
appropriated therefor in the annual Budget Act and other statutes.
   (g) On or after July 1, 1990, any funds remaining in the State
Employees' Dependent Care Assistance and Health Care Assistance Fund
shall be transmitted into the account in the Flexelect Benefit Fund
for the administrative expenses of the Controller's office to pay the
related administrative costs.
  SEC. 34.  Section 1156.1 of the Government Code is amended to read:

   1156.1.  (a) Any eligible employee may elect to participate in the
State Employees' Pretax Parking Payroll Deduction Program. The
program shall be administered by the Department of Human Resources.
An amount equivalent to the value of the parking, to the extent
permitted by Internal Revenue Code Section 132, shall be excluded
from the gross income of the employee, in lieu of a portion of the
employee's compensation, and shall be transmitted to the State
Employees' Pretax Parking Fund. Each eligible employee electing to
participate in the program, for the period that he or she is enrolled
as a participant in the program, shall be subject to the applicable
federal law and regulations and related state administrative
regulations adopted by the Department of Human Resources.
   (b) For purposes of this section, an "eligible employee" means any
of the following:
   (1) A "state employee," as defined in Section 3513.
   (2) An "excluded employee," as defined in Section 3527.
   (3) An officer or employee of the State of California in the
executive branch of government who is not a state civil service
employee pursuant to Part 2 (commencing with Section 18500) of
Division 5 of Title 2.
   (c) There is in the State Treasury the State Employees' Pretax
Parking Fund which, notwithstanding Section 13340, is continuously
appropriated without regard to fiscal years to the Department of
Human Resources for expenditure to implement the State Employees'
Pretax Parking Payroll Deduction Program. The fund shall consist of
the amounts received from employee compensation excluded from gross
income and transmitted to the State Employees' Pretax Parking Fund
pursuant to subdivision (a). 
  SEC. 35.    Section 3513 of the Government Code is
amended to read:
   3513.  As used in this chapter:
   (a) "Employee organization" means any organization that includes
employees of the state and that has as one of its primary purposes
representing these employees in their relations with the state.
   (b) "Recognized employee organization" means an employee
organization that has been recognized by the state as the exclusive
representative of the employees in an appropriate unit.
   (c) "State employee" means any civil service employee of the
state, and the teaching staff of schools under the jurisdiction of
the State Department of Education or the Superintendent of Public
Instruction, except managerial employees, confidential employees,
supervisory employees, employees of the Department of Human
Resources, professional employees of the Department of Finance
engaged in technical or analytical state budget preparation other
than the auditing staff, professional employees in the
Personnel/Payroll Services Division of the Controller's office
engaged in technical or analytical duties in support of the state's
personnel and payroll systems other than the training staff,
employees of the Legislative Counsel Bureau, employees of the Bureau
of State Audits, employees of the office of the Inspector General,
employees of the board, conciliators employed by the State
Conciliation Service within the Department of Industrial Relations,
employees of the Office of the State Chief Information Officer except
as otherwise provided in Section 11546.5, and intermittent athletic
inspectors who are employees of the State Athletic Commission.
   (d) "Mediation" means effort by an impartial third party to assist
in reconciling a dispute regarding wages, hours and other terms and
conditions of employment between representatives of the public agency
and the recognized employee organization or recognized employee
organizations through interpretation, suggestion and advice.
   (e) "Managerial employee" means any employee having significant
responsibilities for formulating or administering agency or
departmental policies and programs or administering an agency or
department.
   (f) "Confidential employee" means any employee who is required to
develop or present management positions with respect to
employer-employee relations or whose duties normally require access
to confidential information contributing significantly to the
development of management positions.
   (g) "Supervisory employee" means any individual, regardless of the
job description or title, having authority, in the interest of the
employer, to hire, transfer, suspend, lay off, recall, promote,
discharge, assign, reward, or discipline other employees, or
responsibility to direct them, or to adjust their grievances, or
effectively to recommend this action, if, in connection with the
foregoing, the exercise of this authority is not of a merely routine
or clerical nature, but requires the use of independent judgment.
Employees whose duties are substantially similar to those of their
subordinates shall not be considered to be supervisory employees.
   (h) "Board" means the Public Employment Relations Board. The
Educational Employment Relations Board established pursuant to
Section 3541 shall be renamed the Public Employment Relations Board
as provided in Section 3540. The powers and duties of the board
described in Section 3541.3 shall also apply, as appropriate, to this
chapter.
   (i) "Maintenance of membership" means that all employees who
voluntarily are, or who voluntarily become, members of a recognized
employee organization shall remain members of that employee
organization in good standing for a period as agreed to by the
parties pursuant to a memorandum of understanding, commencing with
the effective date of the memorandum of understanding. A maintenance
of membership provision shall not apply to any employee who within 30
days prior to the expiration of the memorandum of understanding
withdraws from the employee organization by sending a signed
withdrawal letter to the employee organization and a copy to the
Controller's office.
   (j) "State employer," or "employer," for the purposes of
bargaining or meeting and conferring in good faith, means the
Governor or his or her designated representatives.
   (k) "Fair share fee" means the fee deducted by the state employer
from the salary or wages of a state employee in an appropriate unit
who does not become a member of and financially support the
recognized employee organization. The fair share fee shall be used to
defray the costs incurred by the recognized employee organization in
fulfilling its duty to represent the employees in their employment
relations with the state, and shall not exceed the standard
initiation fee, membership dues, and general assessments of the
recognized employee organization. 
   SEC. 36.   SEC. 35.   Section 3517.63 of
the Government Code is amended to read:
   3517.63.  (a) Any side letter, appendix, or other addendum to a
properly ratified memorandum of understanding that requires the
expenditure of two hundred fifty thousand dollars ($250,000) or more
related to salary and benefits and that is not already contained in
the original memorandum of understanding or the Budget Act, shall be
provided by the Department of Human Resources to the Joint
Legislative Budget Committee. The Joint Legislative Budget Committee
shall determine within 30 days after receiving the side letter,
appendix, or other addendum if it presents substantial additions that
are not reasonably within the parameters of the original memorandum
of understanding and thereby requires legislative action to ratify
the side letter, appendix, or other addendum.
   (b) A side letter, appendix, or other addendum to a properly
ratified memorandum of understanding that does not require the
expenditure of funds shall be expressly identified by the Department
of Human Resources if that side letter, appendix, or other addendum
is to be incorporated in a subsequent memorandum of understanding
submitted to the Legislature for approval. 
  SEC. 37.    Section 3527 of the Government Code is
amended to read:
   3527.  As used in this chapter:
   (a) "Employee" means a civil service employee of the State of
California. The "State of California" as used in this chapter
includes such state agencies, boards, and commissions as may be
designated by law that employ civil service employees, except the
University of California, Hastings College of the Law, and the
California State University.
   (b) "Excluded employee," means all managerial employees, as
defined in subdivision (e) of Section 3513, all confidential
employees, as defined in subdivision (f) of Section 3513, and all
supervisory employees, as defined in subdivision (g) of Section 3513,
and all civil service employees of the Department of Human
                                     Resources, professional
employees of the Department of Finance engaged in technical or
analytical state budget preparation other than the auditing staff,
professional employees in the Personnel/Payroll Services Division of
the Controller's office engaged in technical or analytical duties in
support of the state's personnel and payroll systems other than the
training staff, employees of the Legislative Counsel Bureau,
employees of the Bureau of State Audits, employees of the Public
Employment Relations Board, conciliators employed by the State
Conciliation Service within the Department of Industrial Relations,
employees of the office of the State Chief Information Officer except
as provided in Section 11546.5, and intermittent athletic inspectors
who are employees of the State Athletic Commission.
   (c) "Supervisory employee organization" means an organization that
represents members who are supervisory employees under subdivision
(g) of Section 3513.
   (d) "Excluded employee organization" means an organization that
includes excluded employees of the state, as defined in subdivision
(b), and that has as one of its primary purposes representing its
members in employer-employee relations. Excluded employee
organization includes supervisory employee organizations.
   (e) "State employer" or "employer," for purposes of meeting and
conferring on matters relating to supervisory employer-employee
relations, means the Governor or his or her designated
representatives. 
   SEC. 38.   SEC. 36.   Section 3535 of
the Government Code is amended to read:
   3535.  The Department of Human Resources may adopt rules and
regulations for the administration of excluded employer-employee
relations, including supervisory employer-employee relations, under
these provisions. Such rules and regulations may include provisions
for:
   (a) Verifying that an excluded employee organization does in fact
represent excluded employees.
   (b) Verifying the official status of excluded employee
organization officers and representatives.
   (c) Access of excluded employee organization officers and
representatives to work locations.
   (d) Use of official bulletin boards and other means of
communication by excluded employee organizations.
   (e) Furnishing nonconfidential information pertaining to excluded
employee relations to excluded employee organizations.
   (f) Any other matters as are necessary to carry out the purposes
of this chapter.
   SEC. 39.   SEC. 37.   Section 3537 of
the Government Code is amended to read:
   3537.  Every excluded employee organization shall submit an annual
registration statement on or before July 1 of each calendar year to
the Department of Human Resources. The registration statement shall,
at a minimum, list the name of the organization, its affiliations,
headquarters, and other business addresses, its principal business
telephone number, a list of principal officers and representatives,
and a copy of its organization bylaws.
   SEC. 40.   SEC. 38.   Section 3539.5 of
the Government Code is amended to read:
   3539.5.  (a) The Department of Human Resources may adopt or amend
regulations to implement employee benefits for those state officers
and employees excluded from, or not otherwise subject to, the Ralph
C. Dills Act (Chapter 10.3 (commencing with Section 3512)).
   (b) These regulations shall not be subject to the review and
approval of the Office of Administrative Law pursuant to the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2). These regulations shall
become effective immediately upon filing with the Secretary of State.

   SEC. 41.   SEC. 39.   Section 3541 of
the Government Code is amended to read:
   3541.  (a) There is in state government the Public Employment
Relations Board which shall be independent of any state agency and
shall consist of five members. The members of the board shall be
appointed by the Governor by and with the advice and consent of the
Senate. One of the original members shall be chosen for a term of one
year, one for a term of three years, and one for a term of five
years. The first term for the two new members of the board resulting
from the expansion of the board to five members shall be reduced by
the Governor as necessary so that the term of only one member of the
board shall expire in any given year. Thereafter, terms shall be for
a period of five years, except that any person chosen to fill a
vacancy shall be appointed only for the unexpired term of the member
whom he or she succeeds. Members of the board shall be eligible for
reappointment. The Governor shall select one member to serve as
chairperson. A member of the board may be removed by the Governor
upon notice and hearing for neglect of duty or malfeasance in office,
but for no other cause.
   (b) A vacancy in the board shall not impair the right of the
remaining members to exercise all the powers of the commission, and
three members of the board shall at all times constitute a quorum.
   (c) The board may delegate its powers to any group of three or
more board members. Nothing shall preclude any board member from
participating in any case pending before the board.
   (d) Members of the board shall hold no other public office in the
state, and shall not receive any other compensation for services
rendered.
   (e) Each member of the board shall receive the salary provided for
by Chapter 6 (commencing with Section 11550) of Part 1 of Division 3
of Title 2. In addition to his or her salary, each member of the
board shall be reimbursed for all actual and necessary expenses
incurred by him or her in the performance of his or her duties,
subject to the rules of the Department of Human Resources relative to
the payment of these expenses to state officers generally.
   (f) The board shall appoint an executive director who shall be the
chief administrative officer. The executive director shall appoint
other persons that may, from time to time, be deemed necessary for
the performance of the board's administrative functions, prescribe
their duties, fix their compensation, and provide for reimbursement
of their expenses in the amounts made available therefor by
appropriation. The executive director shall be a person familiar with
employer-employee relations. The executive director shall be subject
to removal at the pleasure of the board. The Governor shall appoint
a general counsel, upon the recommendation of the board, to assist
the board in the performance of its functions under this chapter. The
general counsel shall serve at the pleasure of the board.
   (g) The executive director and general counsel serving the board
on December 31, 1977, shall become employees of the Public Employment
Relations Board and shall continue to serve at the discretion of the
board. A person so employed may, independently of the Attorney
General, represent the board in any litigation or other matter
pending in a court of law to which the board is a party or in which
it is otherwise interested.
   (h) The Governor shall appoint one legal adviser for each member
of the board upon the recommendation of that board member. Each
appointee shall serve at the pleasure of the recommending board
member and shall receive a salary as shall be fixed by the board with
the approval of the Department of Human Resources.
   (i) Attorneys serving the board on May 19, 1978, shall not be
appointed as legal advisers to board members pursuant to subdivision
(h) until the time that they have attained permanent civil service
status.
   (j) Notwithstanding subdivision (a), the member of the board
appointed by the Governor for the term beginning on January 1, 1991,
shall not be subject to the advice and consent of the Senate.
   SEC. 42.   SEC. 40.   Section 3572.1 of
the Government Code is amended to read:
   3572.1.  This section shall apply only to the California Maritime
Academy.
   (a) The duty to engage in meeting and conferring requires the
parties to begin meeting and conferring at least 60 days prior to the
expiration of memoranda of understanding, or May 1, if earlier, of
any year in which a memorandum shall expire, or May 1, if there is no
existing memorandum of understanding. The trustees shall maintain
close liaison with the Department of Finance and the Legislature
relative to the meeting and conferring on provisions of the written
memoranda that have fiscal ramifications.
   No written memoranda reached pursuant to this chapter that require
budgetary or curative action by the Legislature or other funding
agencies, including the Federal Maritime Administration, shall be
effective unless and until that action has been taken. Following
execution of written memoranda of understanding, an appropriate
request for financing or budgetary funding for all state-funded
employees or for necessary legislation will be forwarded promptly to
the Legislature and the Governor or other funding agencies. When
memoranda require legislative action pursuant to this section, if the
Legislature or the Governor fails fully to fund the memoranda or to
take the requisite curative action, the entire memoranda shall be
referred back to the parties for further meeting and conferring;
provided, however, that the parties may agree that provisions of the
memoranda that are nonbudgetary and do not require funding shall take
effect whether or not the funding requests submitted to the
Legislature are approved.
   The Legislature recognizes that the California Maritime Academy's
sources of funding are multiple, and approval by the Legislature, and
by other public agencies, as to employees funded by those agencies,
may be required prior to implementation of increased expenditures
resulting from agreements reached in accordance with this chapter.
   (b) The Legislature finds that federal funding in support of the
California Maritime Academy is essential. The trustees may suspend or
modify any provision of a memorandum of understanding that
jeopardizes federal funding, but shall provide notice to exclusive
representatives of any such suspension or modification and shall meet
and confer with the exclusive representative, if requested to do so,
to explain the need for, and the effects of, the suspension or
modification.
   (c) Any memorandum of understanding that is in effect at the time
that the employer-employee relations of the California Maritime
Academy is transferred from the Ralph C. Dills Act (Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1), to the
Higher Education Employer-Employee Relations Act (Chapter 12
(commencing with Section 3560) of Division 4 of Title 1), shall
remain in effect until the end of the term of the memorandum of
understanding, upon extension of the contracts in existence on June
30, 1995, or until superseded by a new memorandum of understanding.
   (d) If agreement is reached to extend existing memoranda of
understanding covering California Maritime Academy employees beyond
the current June 30, 1995, expiration date, then any decisions,
agreements, or settlements made by the California State University in
the administration of the memoranda of understanding relative to
employees of the California Maritime Academy shall not be binding
upon, or considered as precedent required to be followed by, the
Department of Human Resources.
   (e) This section shall become operative on July 1, 1995.
   SEC. 43.   SEC. 41.   Section 7507 of
the Government Code is amended to read:
   7507.  (a) For the purpose of this section:
   (1)  "Actuary" means an actuary who is an associate or fellow of
the Society of Actuaries.
   (2) "Future annual costs" includes, but is not limited to, annual
dollar changes, or the total dollar changes involved when available,
as well as normal cost and any change in accrued liability.
   (b) (1) Except as provided in paragraph (2), the Legislature and
local legislative bodies, including community college district
governing boards, when considering changes in retirement benefits or
other postemployment benefits, shall secure the services of an
actuary to provide a statement of the actuarial impact upon future
annual costs, including normal cost and any additional accrued
liability, before authorizing changes in public retirement plan
benefits or other postemployment benefits.
   (2) The requirements of this subdivision do not apply to:
   (A)  An annual increase in a premium that does not exceed 3
percent under a contract of insurance.
   (B) A change in postemployment benefits, other than pension
benefits, mandated by the state or federal government or made by an
insurance carrier in connection with the renewal of a contract of
insurance.
   (c) (1) (A) With regard to local legislative bodies, including
community college district governing boards, the future costs of
changes in retirement benefits or other postemployment benefits, as
determined by the actuary, shall be made public at a public meeting
at least two weeks prior to the adoption of any changes in public
retirement plan benefits or other postemployment benefits. If the
future costs of the changes exceed one-half of 1 percent of the
future annual costs, as defined in paragraph (2) of subdivision (a),
of the existing benefits for the legislative body, an actuary shall
be present to provide information as needed at the public meeting at
which the adoption of a benefit change shall be considered. The
adoption of any benefit to which this section applies shall not be
placed on a consent calendar.
   (B) The requirements of this paragraph do not apply to:
   (i) An annual increase in a premium that does not exceed 3 percent
under a contract of insurance.
   (ii) A change in postemployment benefits, other than pension
benefits, mandated by the state or federal government or made by an
insurance carrier in connection with the renewal of a contract of
insurance.
   (2) With regard to the Legislature, the future costs as determined
by the actuary shall be made public at the policy and fiscal
committee hearings to consider the adoption of any changes in public
retirement plan benefits or other postemployment benefits. The
adoption of any benefit to which this section applies shall not be
placed on a consent calendar.
   (d) Upon the adoption of any benefit change to which this section
applies, the person with the responsibilities of a chief executive
officer in an entity providing the benefit, however that person is
denominated, shall acknowledge in writing that he or she understands
the current and future cost of the benefit as determined by the
actuary. For the adoption of benefit changes by the state, this
person shall be the Director of Human Resources.
   (e) The requirements of this section do not apply to a school
district or a county office of education, which shall instead comply
with requirements regarding public notice of, and future cost
determination for, benefit changes that have been enacted to regulate
these entities. These requirements include, but are not limited to,
those enacted by Chapter 1213 of the Statutes of 1991 and by Chapter
52 of the Statutes of 2004.
   SEC. 44.   SEC. 42.   Section 8546 of
the Government Code is amended to read:
   8546.  It is the intent of the Legislature that the Bureau of
State Audits have the independence necessary to conduct all of its
audits in conformity with "Government Auditing Standards" published
by the Comptroller General of the United States and the standards
published by the American Institute of Certified Public Accountants,
free from influence of existing state control agencies that could be
the subject of audits conducted by the bureau. Therefore, all of the
following exclusions apply to the office:
   (a) Notwithstanding Section 19790, the State Auditor shall
establish an equal employment opportunity program that shall meet the
criteria and objectives established by the State Personnel Board.
The State Auditor shall report annually to the State Personnel Board
and the commission regarding the program.
   (b) Notwithstanding Section 12470, the State Auditor shall be
responsible for maintaining its payroll system. In lieu of audits of
the uniform payroll system performed by the Controller or any other
department, the office shall contract pursuant to subdivision (e) of
Section 8544.5 for an annual audit of its payroll and financial
operations by an independent public accountant.
   (c) Notwithstanding Section 13292, the State Auditor is delegated
the authority to establish and administer the fiscal and
administrative policies of the bureau in conformity with the State
Administrative Manual without oversight by the Department of Finance,
the Department of Information Technology, or any other state agency.

   (d) Notwithstanding Section 11032, the State Auditor may approve
actual and necessary traveling expenses for travel outside the state
for officers and employees of the bureau.
   (e) Notwithstanding Section 11033, the State Auditor or officers
and employees of the bureau may be absent from the state on business
of the state upon approval of the State Auditor or Chief Deputy State
Auditor.
   (f) Sections 11040, 11042, and 11043 shall not apply to the Bureau
of State Audits. The State Auditor may employ legal counsel under
those terms that he or she deems necessary to conduct the legal
business of, or render legal counsel to, the State Auditor.
   (g) The provisions and definitions of Article 2 (commencing with
Section 11342.510) of Chapter 3.5 of Division 3 shall not be
construed to include the Bureau of State Audits. The State Auditor
may adopt regulations necessary for the operation of the bureau
pursuant to the provisions of the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Division 3), but
these regulations shall not be subject to the review or approval of
the Office of Administrative Law.
   (h) The State Auditor shall be exempt from all contract
requirements of the Public Contract Code that require oversight,
review, or approval by the Department of General Services or any
other state agency. The State Auditor may contract on behalf of the
State of California for goods and services that he or she deems
necessary for the furtherance of the purposes of the bureau.
   (i) (1) Subject to Article VII of the California Constitution, the
State Auditor is delegated the authority to establish and administer
the personnel policies and practices of the Bureau of State Audits
in conformity with Part 2.6 (commencing with Section 19815) of
Division 5 of Title 2 without oversight or approval by the Department
of Human Resources.
   (2) At the election of the State Auditor, officers and employees
of the bureau may participate in benefits programs administered by
the Department of Human Resources subject to the same conditions for
participation that apply to civil service employees in other state
agencies. For the purposes of benefits programs administration only,
the State Auditor is subject to the determinations of the department.
The Bureau of State Audits shall reimburse the Department of Human
Resources for the normal administrative costs incurred by the
Department of Human Resources and for any extraordinary costs
resulting from the inclusion of the bureau employees in these state
benefit programs.
   SEC. 45.   SEC. 43.   Section 8870.4 of
the Government Code is amended to read:
   8870.4.  (a) Except as provided in subdivision (d), the members of
the Alfred E. Alquist Seismic Safety Commission shall serve without
compensation but shall be paid per diem expenses of one hundred
dollars ($100) for each day's attendance at a meeting of the
commission, plus actual necessary travel expenses as determined by
Department of Human Resources rules.
   (b) The members of the commission who represent the California
Emergency Management Agency, the California Building Standards
Commission, and the Division of the State Architect shall be
employees in good standing of those respective entities. Any per diem
and travel expenses of those members of the commission shall be paid
by the agencies that they represent on the commission, in compliance
with applicable conditions or regulations set by the Department of
Human Resources.
   SEC. 46.   SEC. 44.   Section 8880.18 of
the Government Code is amended to read:
   8880.18.  Compensation and Expenses
   Commissioners shall be compensated at the rate of one hundred
dollars ($100) for each day they are engaged in commission business.
Commission members shall be reimbursed for actual expenses incurred
on commission business, including necessary travel expenses as
determined by the Department of Human Resources.
   SEC. 47.   SEC. 45.   Section 8903 of
the Government Code is amended to read:
   8903.  When traveling to and from a session of the Legislature, or
when traveling to and from a meeting of a committee of which he or
she is a member, or when traveling pursuant to any other legislative
function or responsibility as authorized or directed by the rules of
the house of which he or she is a member or by the joint rules, when
that travel is by a common carrier of passengers, a Member of the
Legislature shall be entitled to reimbursement for the actual costs
of travel by the common carrier. If the member travels by other means
and common carrier service is available and feasible he or she shall
be reimbursed in the amount of the fare of available common carrier
service. If common carrier service is unavailable or not feasible, a
member shall be reimbursed at a rate not to exceed the rate
established by the Department of Human Resources for the
reimbursement of officers and employees of the state pursuant to
Section 19820. No mileage shall be allowed or paid for travel in a
conveyance owned or provided by and at the expense of a public
agency. As used in this section, "common carrier" means carrier by
aircraft, railroad, bus, or vessel.
   SEC. 48.   SEC. 46.   Section 9149.4 of
the Government Code is amended to read:
   9149.4.  The members of the commission shall serve without
compensation, but shall receive reimbursement for travel and living
expenses in connection with their official duties, at rates
established by the Department of Human Resources. 
  SEC. 49.    Section 11270 of the Government Code
is amended to read:
   11270.  As used in this article, "administrative costs" means the
amounts expended by the Legislature, the Legislative Counsel Bureau,
the office of the Governor, the office of the State Chief Information
Officer, the Office of Planning and Research, the Department of
Justice, the office of the Controller, the office of the Treasurer,
the State Personnel Board, the Department of Finance, the Office of
Administrative Law, the Department of Human Resources, the Secretary
of the State and Consumer Services Agency, the Secretary of the
California Health and Human Services Agency, the Bureau of State
Audits, and the California State Library, and a proration of any
other cost to or expense of the state for services or facilities
provided for the Legislature and the above agencies, for supervision
or administration of the state government or for services to other
state agencies.  
  SEC. 50.    Section 11552 of the Government Code
is amended to read:
   11552.  (a) Effective January 1, 1988, an annual salary of
eighty-five thousand four hundred two dollars ($85,402) shall be paid
to each of the following:
   (1) Commissioner of Financial Institutions.
   (2) Commissioner of Corporations.
   (3) Director of Transportation.
   (4) Real Estate Commissioner.
   (5) Director of Social Services.
   (6) Director of Water Resources.
   (7) Chief Deputy Secretary for Adult Operations of the Department
of Corrections and Rehabilitation.
   (8) Director of General Services.
   (9) Director of Motor Vehicles.
   (10) Chief Deputy Secretary for Juvenile Justice in the Department
of Corrections and Rehabilitation.
   (11) Executive Officer of the Franchise Tax Board.
   (12) Director of Employment Development.
   (13) Director of Alcoholic Beverage Control.
   (14) Director of Housing and Community Development.
   (15) Director of Alcohol and Drug Programs.
   (16) Director of Statewide Health Planning and Development.
   (17) Director of Human Resources.
   (18) Director of Health Care Services.
   (19) Director of Mental Health.
   (20) Director of Developmental Services.
   (21) State Public Defender.
   (22) Director of the California State Lottery.
   (23) Director of Fish and Game.
   (24) Director of Parks and Recreation.
   (25) Director of Rehabilitation.
   (26) Director of the Office of Administrative Law.
   (27) Director of Consumer Affairs.
   (28) Director of Forestry and Fire Protection.
   (29) The Inspector General pursuant to Section 6125 of the Penal
Code.
   (30) Director of Child Support Services.
   (31) Director of Industrial Relations.
   (32) Chief Deputy Secretary for Adult Programs in the Department
of Corrections and Rehabilitation.
   (33) Director of Toxic Substances Control.
   (34) Director of Pesticide Regulation.
   (35) Director of Managed Health Care.
   (36) Director of Environmental Health Hazard Assessment.
   (37) Director of Technology.
   (38) Director of California Bay-Delta Authority.
   (39) Director of California Conservation Corps.
   (b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year. 
   SEC. 51.   SEC. 47.   Section 11565.5 of
the Government Code is amended to read:
   11565.5.  Notwithstanding Sections 11553, 11553.5, 11555, 11556,
11563.7, and 11564, with respect to any salary increase made after
January 1, 1997, for nonelected members of state boards and
commissions specified in Sections 11553, 11553.5, 11555, 11556,
11563.7, and 11564, the annual compensation provided by these
sections shall                                             not
automatically increase but may be increased in any fiscal year in
which there is a general increase in the salary ranges and rates for
state civil service classifications. The amount of the increase, as
determined by the Department of Human Resources and subject to the
appropriation of funds by the Legislature in the annual Budget Act,
shall not exceed the percentage of the general increase in the salary
rates and ranges for classifications provided during that fiscal
year for state employees designated as managerial.
   SEC. 52.   SEC. 48.   Section 12010.6 of
the Government Code is amended to read:
   12010.6.  (a) The purpose of this section is to increase the
Governor's managerial flexibility without increasing costs. It is the
intent of the Legislature that positions designated as exempt from
civil service by this section shall be filled by a Governor's
appointment only after they are vacated by civil service employees.
   (b) The Governor may designate as exempt from civil service
positions in the executive agencies over which he has line
responsibility and which have civil-service-exempt officers and
employees appointed pursuant to subdivision (f) or (g) of Section 4
of Article VII of the California Constitution; provided that the
designations shall be limited to positions covered by these
subdivisions and shall not cause the total number of positions
exempted under these subdivisions to exceed one-half of 1 percent of
the number of full-time equivalent positions in these agencies
collectively.
   (c) The Governor may appoint a person to a position designated as
exempt from civil service pursuant to this section only after the
position is no longer held by a civil service employee.
   (d) Positions designated by the Governor as exempt from civil
service pursuant to this section shall be limited to those designated
as managerial positions under Section 3513 by the Department of
Human Resources.
   (e) The authority to designate positions as exempt from civil
service shall not result in the displacement of civil service
employees and shall not result in hiring additional employees into
positions not authorized in the Budget Act.
   (f) The Department of Human Resources shall report to the Joint
Legislative Audit Committee by January 31 of each year the current
percentage of civil-service-exempt officers and employees in state
service.
   SEC. 53.   SEC. 49.   Section 12012.85
of the Government Code is amended to read:
   12012.85.  There is hereby created in the State Treasury a fund
called the "Indian Gaming Special Distribution Fund" for the receipt
and deposit of moneys received by the state from Indian tribes
pursuant to the terms of tribal-state gaming compacts. These moneys
shall be available for appropriation by the Legislature for the
following purposes:
   (a) Grants, including any administrative costs, for programs
designed to address gambling addiction.
   (b) Grants, including any administrative costs, for the support of
state and local government agencies impacted by tribal government
gaming.
   (c) Compensation for regulatory costs incurred by the State Gaming
Agency and the Department of Justice in connection with the
implementation and administration of tribal-state gaming compacts.
   (d) Payment of shortfalls that may occur in the Indian Gaming
Revenue Sharing Trust Fund. This shall be the priority use of moneys
in the Indian Gaming Special Distribution Fund.
   (e) Disbursements for the purpose of implementing the terms of
tribal labor relations ordinances promulgated in accordance with the
terms of tribal-state gaming compacts ratified pursuant to Chapter
874 of the Statutes of 1999. No more than 10 percent of the funds
appropriated in the Budget Act of 2000 for implementation of tribal
labor relations ordinances promulgated in accordance with those
compacts shall be expended in the selection of the Tribal Labor
Panel. The Department of Human Resources shall consult with and seek
input from the parties prior to any expenditure for purposes of
selecting the Tribal Labor Panel. Other than the cost of selecting
the Tribal Labor Panel, there shall be no further disbursements until
the Tribal Labor Panel, which is selected by mutual agreement of the
parties, is in place.
   (f) Any other purpose specified by law.
   (g) Priority for funding from the Indian Gaming Special
Distribution Fund is in the following descending order:
   (1) An appropriation to the Indian Gaming Revenue Sharing Trust
Fund in an aggregate amount sufficient to make payments of any
shortfalls that may occur in the Indian Gaming Revenue Sharing Trust
Fund.
   (2) An appropriation to the Office of Problem and Pathological
Gambling within the State Department of Alcohol and Drug Programs for
problem gambling prevention programs.
   (3) The amount appropriated in the annual Budget Act for
allocation between the Department of Justice and the California
Gambling Control Commission for regulatory functions that directly
relates to Indian gaming.
   (4) An appropriation for the support of local government agencies
impacted by tribal gaming.
   SEC. 54.   SEC. 50.   Section 13332.07
of the Government Code is amended to read:
   13332.07.  No funds shall be used to purchase furnishings for any
house, mobilehome, or apartment of three or more rooms other than a
dormitory that is rented to a state employee. This provision shall
not apply to the purchase of refrigerators, heaters, air-conditioning
equipment, stoves, linoleum, or equipment normally furnished in the
construction of a house, as may be determined by the Department of
Human Resources. It is the intent of the Legislature that furnishings
are not to be provided by the state and that no moneys shall be paid
from any appropriation for their replacement or repair, except in
connection with the disposal thereof.
   SEC. 55.   SEC. 51.   Section 14876 of
the Government Code is amended to read:
   14876.  (a) Pressmen, typographers, linotypers, compositors,
bookbinders, lithographers, engravers, apprentices and assistants and
all other employees of the Office of State Printing employed in
allied work shall be paid on an hourly wage basis. The basic wage of
those employees shall be the prevailing hourly wage paid to persons
identified by the Department of Human Resources to be in similar and
comparable employment by private printers in the major metropolitan
areas in California. The Department of Human Resources shall accept
and give validity to certified copies of agreed upon contracts
submitted by either the employer, the employer group, or the employee
organization.
   The Department of Human Resources shall survey only major
employers where there are agreed upon contracts. If any agreed upon
contract contains any provision or provisions that do not reflect the
actual practice of the employer, the Department of Human Resources
shall disregard the provision or provisions.
   If the Department of Human Resources finds that salary
relationships between surveyed classes do not accurately reflect
relationships in duties and responsibilities of employees of the
Office of State Printing, the department shall adjust those wage
rates on an equitable basis notwithstanding the survey findings.
   As used in this section, prevailing wages and prevailing benefits
means wages and benefits arrived at through negotiation between an
employer or employer organization and an employee organization that
is the bona fide representative of the employer's employees and
certified as the bona fide representative by the Director of
Industrial Relations. In order to be so certified, the employee
organization shall be free from employer influence and domination.
   (b) In addition to these wages, and the rights and privileges
afforded state employees under the provisions of the State Civil
Service Act, and other statutes, there shall be paid to each employee
of the Office of State Printing, either directly or to a health and
welfare fund on his or her behalf, an amount equal to the prevailing
individual contributions paid to health and welfare plans for
employees in similar and comparable employment by private printers in
the major metropolitan areas. Where those contracts do not disclose
the dollar value of health and welfare benefits, the state shall
provide the same or substantially the same level of benefits as
provided for in the agreed upon contracts. Any adjustments made
pursuant to subdivisions (a) and (b) of this section shall be
effective as of March 1, 1977, and each March 1, thereafter.
   (c) As an alternative to subdivision (b), a person first employed
to any position described in subdivision (a) after October 1, 1977,
may elect to become an "employee" as defined in paragraph (5) of
subdivision (a) of Section 22772 within 90 days of commencing that
employment.
   Any person who is a member of a health and welfare plan described
in subdivision (b) who loses eligibility for participation in the
plan, or if the plan of which the person is a member ceases to exist,
that person may elect to become an "employee," as defined in
paragraph (5) of subdivision (a) of Section 22772, within 90 days of
the date that eligibility is lost or the plan ceases to exist.
   (d) In no instance shall the wages and the health and welfare
contributions paid by the state to the persons covered under this
section be less than the dollar amount paid as of the effective date
of this section.
   (e) 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 may not become effective unless approved by the
Legislature in the annual Budget Act.
   SEC. 56.   SEC. 52.   Section 14998.3 of
the Government Code is amended to read:
   14998.3.  (a) The commission shall submit a list of recommended
candidates for the position of Director of the Film Commission to the
Governor for consideration. The Governor shall appoint the director.

   (b) The Director of the Film Commission shall receive a salary to
be determined by the Department of Human Resources.
   (c) The secretary, or his or her designee, shall act as the
director during the absence from the state or other temporary
absence, disability, or unavailability of the director, or during a
vacancy in that position.
   SEC. 57.   SEC. 53.   Section 16649.94
of the Government Code is amended to read:
   16649.94.  This chapter shall not apply to any Internal Revenue
Code Section 457, 401(k), or 403(b) defined contribution plan
administered by the Department of Human Resources.
   SEC. 58.   SEC. 54.   Section 18000.5 of
the Government Code is amended to read:
   18000.5.  (a) Notwithstanding Sections 18000 and 19990, any
officer or employee of the state may receive for his or her personal
use compensation from any nonprofit corporation formed exclusively to
aid and assist an entity described in subdivision (b) for services
rendered to the nonprofit corporation and for his or her expenses of
performing these services, provided that the nonprofit corporation
obtains the prior written approval of the Department of Human
Resources to provide the compensation to any officer or employee and
files with the Controller and the Department of Human Resources by
September 30 of each year a statement disclosing the names of state
officers and employees compensated and their respective amounts of
compensation for the preceding fiscal year, and the giving or receipt
of the compensation is not in violation of any state or federal law.
Any subsequent changes to the compensation for any officer or
employee provided under this section must be approved by the
Department of Human Resources.
   The board of directors of the entities described in subdivision
(b) shall determine whether the services are incompatible with the
state responsibilities of the officer or employee and whether the
services rendered to the nonprofit corporation interfere with the
officer's or employee's full-time obligation to the state. The board
of directors of the entities described in subdivision (b) also shall
review any issues of compliance of the nonprofit corporation with the
terms of any contractual arrangements with the state independently
of the officer's or employee's receiving compensation from the
nonprofit corporation.
   (b) Any officer or employee of the state may be compensated, as
described in subdivision (a), by a nonprofit corporation formed to
aid and assist any of the following entities:
   (1) A state museum.
   (2) A district agricultural association, as provided for in
Section 3951 of the Food and Agricultural Code.
   SEC. 59.   SEC. 55.   Section 18573 of
the Government Code is amended to read:
   18573.  Each appointing power shall report promptly to the board
and the Department of Human Resources such information as the board
may require in connection with each appointment, separation from
service, or other change in position or salary, or other matter
affecting the status of positions or the performance of duties of
employees in the state civil service. The reports shall be prepared
in the manner and form prescribed by the board.
   Information given to the board and the Department of Human
Resources by any person shall not be open to public inspection except
under conditions prescribed by board rule, except that a person may
inspect any record relating to his or her own services.
   SEC. 60.   SEC. 56.   Section 18574 of
the Government Code is amended to read:
   18574.  All officers and employees of the state and any county,
city, district, or other subdivision of the state recognized by law
shall aid in all proper ways in carrying this part and the board
rules into effect, allow the reasonable use of public buildings, and
heat and light them for the purpose of making examinations of
applicants and holding hearings and investigations under this part.
Officers and employees shall afford to the board and the Department
of Human Resources, or the board's or department's authorized
representatives, all reasonable facilities, permit inspection of all
books and papers applying or in any way appertaining to all offices
subject to the authority of the state, produce the books or papers,
and attend and testify when required so to do.
   SEC. 61.   SEC. 57.   Section 18706 of
the Government Code is amended to read:
   18706.  The board may make agreements with personnel agencies in
other jurisdictions, political subdivisions, and state agencies
excepted from the state civil service.
   SEC. 62.   SEC. 58.   Section 18707 of
the Government Code is amended to read:
   18707.  The board and the Department of Human Resources may enter
into agreements to make available their services and facilities, upon
request, to any county, city, district or other subdivision of the
state recognized by law, and to state agencies excepted from the
state civil service, and they may enter into agreements for the
exchange of personnel services or the utilization of the services and
facilities. The agreements shall be approved by the Director of
General Services.
   SEC. 63.   SEC. 59.   Section 18708 of
the Government Code is amended to read:
   18708.  The board shall cooperate with the Director of Finance,
the Department of Human Resources, the California Victim Compensation
and Government Claims Board, the Controller, and other state
agencies, in matters not covered by this part, and not inconsistent
with this part, to promote the efficient and economical
administration of the state's business.
   SEC. 64.   SEC. 60.   Section 18711 of
the Government Code is amended to read:
   18711.  The board and the Department of Human Resources may join
associations of personnel agencies having as their purpose the
interchanging or supplying of information relating to the technique
of personnel administration.
   SEC. 65.  SEC. 61.   Section 18714 of
the Government Code is amended to read:
   18714.  (a) Nothing in this part shall preclude the Department of
Human Resources from providing by rule for a system of adjusting
employee grievances which shall be administered within the
departments before recourse to any remedy provided in this part.
   (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 such provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
   SEC. 66.   SEC. 62.   Section 18717 of
the Government Code is amended to read:
   18717.  (a) The board shall develop objective criteria for
determining the application of the state safety category of
membership in the Public Employees' Retirement System to positions in
the state civil service. Upon the request of the Department of Human
Resources or an employee organization, the board shall then
determine which classes of positions meet all or part of the elements
of the criteria and shall list the positions in order based upon the
degree in which their duties meet the criteria. An employee
organization that requests a determination with respect to a class of
position previously determined not to meet the criteria shall submit
a written argument supporting the assertion that the class of
position meets the criteria. The board, if it finds the written
argument to be unpersuasive, may refuse to commence determination
proceedings unless and until either the Department of Human Resources
requests a determination with respect to that class of position or
the employee organization submits to the board a supporting argument
which the board finds persuasive. The board shall indicate to the
department whether the classes qualify for state safety membership.
The Public Employees' Retirement System and employing agencies shall
assist and cooperate with the board in preparation of the report.
   (b) The board shall transmit the report directly to the
department, which shall make a copy available to the exclusive
representative of any employee organization upon its written request.

   (c) The department may use the results of the study in subsequent
negotiations with the exclusive employee representatives; however,
the report shall in no way obligate the department to take any action
or make any recommendations as it relates to state safety
membership.
   (d) The department shall not recommend safety membership for any
class of employees who have not been determined by the board to meet
the established criteria.
   (e) For classes of employees recommended for state safety
membership by a memorandum of understanding reached pursuant to
Section 3517.5, a copy of the report authorized under this section
shall be submitted to the Legislature with the signed memorandum of
understanding.
   (f) This section does not apply to state employees who are subject
to Sections 19816.20 and 20405.1.
   SEC. 67.   SEC. 63.   Section 18801.1 of
the Government Code is amended to read:
   18801.1.  The Department of Human Resources shall designate
managerial positions, as defined in subdivision (e) of Section 3513,
and shall report those designations to the board annually. Any
disputes as to the managerial classification or position designations
may be appealed to the State Personnel Board.
   SEC. 68.   SEC. 64.   Section 18802 of
the Government Code is amended to read:
   18802.  From time to time as it deems necessary, the board may
establish additional classes and divide, combine, alter, or abolish
existing classes. In establishing, altering, or abolishing classes,
the board shall consider the recommendations of the Department of
Human Resources. When those actions are taken the board shall
determine in each instance whether positions affected are to be
reallocated to another class or classes after taking into account the
duties and responsibilities, qualifications, performance standards,
and other related criteria before and after the change, and shall
determine the status of the probationary and permanent employees
affected.
   SEC. 69.   SEC. 65.   Section 18904 of
the Government Code is amended to read:
   18904.  For each class there shall be maintained a separate
departmental reemployment list within a given state agency, which
shall consist of the names of persons on the general reemployment
list but employed in that state agency at the time of separation.
There shall also be maintained a separate subdivisional reemployment
list within a given state agency which shall consist of the names of
persons employed in a subdivision of a state agency at the time of
separation if subdivisions for that state agency have been set up
with the approval of the Department of Human Resources for layoff
purposes.
   SEC. 70.   SEC. 66.   Section 18905 of
the Government Code is amended to read:
   18905.  The order in which names appear on reemployment lists
shall be determined by the relative order of the scores determined as
for layoff in accordance with Section 19997.3 and Department of
Human Resources rules.
   SEC. 71.   SEC. 67.   Section 19134 of
the Government Code is amended to read:
   19134.  (a) Personal services contracts entered into by a state
agency in accordance with Section 19130 for persons providing
janitorial and housekeeping services, custodians, food service
workers, laundry workers, window cleaners, and security guard
services shall include provisions for employee wages and benefits
that are valued at least 85 percent of the state employer cost of
wages and benefits provided to state employees for performing similar
duties.
   (b) For purposes of this section, "benefits" includes "health,
dental, retirement, and vision benefits, and holiday, sick, and
vacation pay."
   (c) (1) The Department of Human Resources shall establish annually
the state employer wage and benefit costs for workers covered
pursuant to this section.
   (2) Benefit costs shall be established using rates based on single
employee, employee plus one dependent, and employee plus two or more
dependents, or the costs may be based on a blended rate, subject to
the determination of the Department of Human Resources.
   (d) In lieu of providing actual benefits, contractors may comply
with this section by a cash payment to employees equal to the
applicable determination under subdivision (c).
   (e) Failure to provide benefits or cash in lieu to employees as
required under this section shall be deemed to be a material breach
for any contract for personal services covered by this section.
   (f) The Department of General Services and the Department of Human
Resources may adopt guidelines and regulations to implement the
requirements of this section.
   (g) This section applies to all contracts exceeding 90 days.
   (h) Holiday pay shall be provided to employees of contractors
providing services specified in subdivision (a) on any state holiday
that the state facility in which the services are being provided is
closed.
   (i) This section also applies to wages and benefits of employees
of subcontractors providing services specified in subdivision (a) in
state-leased facilities where the facility is at least 50,000 square
feet in area and the state leases all of the occupied floorspace of
the facility.
   (j) With the exception of subdivision (h), this section does not
apply to personal services contracts for the services described in
subdivision (a) performed by employees of nonprofit organizations
that are employed in accordance with any of the following:
   (1) A special license issued pursuant to Section 1191.5 of the
Labor Code.
   (2) A special certificate issued pursuant to Section 214 of Title
29 of the United States Code.
   (3) A community rehabilitation plan described in Sections 19152
and 19404 of the Welfare and Institutions Code.
   (4) A habilitation services program as described in Sections 19352
and 19356.6 of the Welfare and Institutions Code.
   SEC. 72.   SEC. 68.   Section 19172 of
the Government Code is amended to read:
   19172.  During the probationary period the appointing power or his
or her officially delegated representative shall evaluate the work
and efficiency of a probationer in the manner and at such periods as
the Department of Human Resources rules may require.
   SEC. 73.   SEC. 69.   Section 19253.5 of
the Government Code is amended to read:
   19253.5.  (a) In accordance with board rule, the appointing power
may require an employee to submit to a medical examination by a
physician or physicians designated by the appointing power to
evaluate the capacity of the employee to perform the work of his or
her position.
   (b) Fees for the examination and for the services of medical
specialists or technicians, if necessary, shall be paid by the state
agency. The employee may submit medical or other evidence to the
examining physician or to the appointing power. The examining
physician shall make a written report of the examination to the
appointing power. The appointing power shall provide a copy to the
physician designated by the employee.
   (c) When the appointing power, after considering the conclusions
of the medical examination and other pertinent information, concludes
that the employee is unable to perform the work of his or her
present position, but is able to perform the work of another position
including one of less than full time, the appointing power may
demote or transfer the employee to such a position.
   Except as authorized by the Department of Human Resources under
Section 19837, the employee demoted or transferred pursuant to this
section shall receive the maximum of the salary range of the class to
which he or she is demoted or transferred, provided that the salary
is not greater than the salary he or she received at the time of his
or her demotion or transfer.
   (d) When the appointing power after considering the conclusions of
the medical examination provided for by this section or medical
reports from the employee's physician, and other pertinent
information, concludes that the employee is unable to perform the
work of his or her present position, or any other position in the
agency, and the employee is not eligible or waives the right to
retire for disability and elects to withdraw his or her retirement
contributions or to permit his or her contributions to remain in the
retirement fund with rights to service retirement, the appointing
power may terminate the appointment of the employee.
        (e) The appointing power may demote, transfer, or terminate
an employee under this section without requiring the employee to
submit to a medical examination when the appointing power relies upon
a written statement submitted to the appointing power by the
employee as to the employee's condition or upon medical reports
submitted to the appointing power by the employee.
   (f) The employee shall be given written notice of any demotion,
transfer, or termination under this section at least 15 days prior to
the effective date thereof. No later than 15 days after service of
the notice, the employee may appeal the action of the appointing
power to the board. The board, in accordance with its rules, shall
hold a hearing. The board may sustain, disapprove, or modify the
demotion, transfer, or termination.
   (g) Whenever the board revokes or modifies a demotion, transfer,
or termination, the board shall direct the payment of salary to the
employee calculated on the same basis and using the same standards as
provided in Section 19584.
   (h) Upon the request of an appointing authority or the petition of
the employee who was terminated, demoted, or transferred in
accordance with this section, the employee shall be reinstated to an
appropriate vacant position in the same class, in a comparable class
or in a lower related class if it is determined by the board that the
employee is no longer incapacitated for duty. Such a reinstatement
to a position in a different agency may be made only with the
concurrence of that agency. In approving or ordering the
reinstatements, the board may require the satisfactory completion of
a new probationary period. When the board finds the employee who was
terminated, demoted, or transferred is no longer incapacitated for
duty but there is no vacant position to which the employee
appropriately can be appointed, the name of the employee shall be
placed upon those reemployment lists that are determined to be
appropriate by the board.
   (i) (1) If the appointing power, after considering the conclusions
of the medical examination provided for by this section or medical
reports from the employee's physician and other pertinent
information, concludes that the employee is unable to perform the
work of his or her present position or any other position in the
agency and the employee is eligible and does not waive the right to
retire for disability, the appointing power shall file an application
for disability retirement on the employee's behalf. The appointing
power shall give the employee 15 days written notice of its intention
to file such an application and a reasonable opportunity to respond
to the appointing power prior to the appointing power's filing of the
application. However, the appointing power's decision to file the
application is final and is not appealable to the State Personnel
Board.
   (2) Notwithstanding Section 21153, upon filing the application for
disability retirement, the appointing power may remove the employee
from the job and place the employee on involuntary leave status. The
employee may use any accrued leave eligible during the period of the
involuntary leave. If the employee's leave credits and programs are
exhausted or if they do not provide benefits at least equal to the
estimated retirement allowance, the appointing power shall pay the
employee an additional temporary disability allowance so that the
employee receives payment equal to the retirement allowance. The
appointing power shall continue to make all employer contributions to
the employee's health plans during the period of the involuntary
leave.
   (3) If the application for disability retirement is subsequently
granted, the retirement system shall reimburse the appointing power
for the temporary disability allowance which shall be deducted from
any back disability retirement benefits otherwise payable to the
employee. If the application is denied, the appointing power shall
reinstate the employee to his or her position with back salary and
benefits pursuant to subdivision (g), less any temporary disability
allowance paid by the appointing power. The appointing power shall
also restore any leave credits the employee used during the period of
the involuntary leave.
   SEC. 74.   SEC. 70.   Section 19261 of
the Government Code is amended to read:
   19261.  (a) The Department of Human Resources may establish
standards of health and safety in state agencies and may develop a
comprehensive health and safety program designed to improve the
efficiency and raise the morale of state employees.
   Nothing in this section or in the standards established thereunder
shall discriminate against treatment by prayer or spiritual means
nor require physical examination of any employee who files with the
board an affidavit setting forth that he or she depends exclusively
upon prayer for healing in accordance with the teachings of a bona
fide religious sect, denomination or organization and that he or she
is to the best of his or her knowledge and belief in good health and
that he or she claims exemption on such grounds, except that when
there is probable cause to believe that such employee is not
physically able to perform the duties of his or her employment, the
board may require a physical examination of the employee sufficient
to indicate whether or not he or she is able to perform the duties of
his or her employment.
   (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 such provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
   SEC. 75.   SEC. 71.   Section 19573 is
added to the Government Code, to read:
   19573.  The Department of Human Resources may establish
disciplinary criteria applicable to adverse actions taken by
appointing bodies pursuant to the causes of discipline set forth in
Section 19572.
   SEC. 76.   SEC. 72.   Section 19576.1 of
the Government Code is amended to read:
   19576.1.  Effective January 1, 1996, notwithstanding Section
19576, this section shall apply only to state employees in State
Bargaining Unit 5.
   Whenever an answer is filed by an employee who has been suspended
without pay for five days or less or who has received a formal
reprimand or up to a five percent reduction in pay for five months or
less, the Department of Human Resources or its authorized
representative shall make an investigation, with or without a
hearing, as it deems necessary. However, if he or she receives one of
the cited actions in more than three instances in any 12-month
period, he or she, upon each additional action within the same
12-month period, shall be afforded a hearing before the State
Personnel Board if he or she files an answer to the action.
   The Department of Human Resources shall not have the above
authority with regard to formal reprimands. Formal reprimands shall
not be appealable by the receiving employee by any means, except that
the State Personnel Board, pursuant to its constitutional authority,
shall maintain its right to review all formal reprimands. Formal
reprimands shall remain available for use by the appointing
authorities for the purpose of progressive discipline.
   Disciplinary action taken pursuant to this section is not subject
to Sections 19180, 19574.1, 19574.2, 19575, 19575.5, 19579, 19580,
19581, 19581.5, 19582, 19583, and 19587, or to State Personnel Board
Rules 51.1 to 51.9, inclusive, 52, and 52.1 to 52.5, inclusive.
   Notwithstanding any other law or rule, if the provisions of this
section are in conflict with the provisions of the 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 approved by the Legislature in the annual
Budget Act.
   SEC. 77.   SEC. 73.   Section 19582 of
the Government Code is amended to read:
   19582.  (a) Hearings may be held by the board, or by any
authorized representative, but the board shall render the decision
that in its judgment is just and proper.
   During a hearing, after the appointing authority has completed the
opening statement or the presentation of evidence, the employee,
without waiving his or her right to offer evidence in the event the
motion is not granted, may move for a dismissal of the charges.
   If it appears that the evidence presented supports the granting of
the motion as to some but not all of the issues involved in the
action, the board or the authorized representative shall grant the
motion as to those issues and the action shall proceed as to the
issues remaining. Despite the granting of the motion, no judgment
shall be entered prior to a final determination of the action on the
remaining issues, and shall be subject to final review and approval
by the board.
   (b) If a contested case is heard by an authorized representative,
he or she shall prepare a proposed decision in a form that may be
adopted as the decision in the case. A copy of the proposed decision
shall be filed by the board as a public record and furnished to each
party within 10 days after the proposed decision is filed with the
board. The board itself may adopt the proposed decision in its
entirety, may remand the proposed decision, or may reduce the adverse
action set forth therein and adopt the balance of the proposed
decision.
   (c) If the proposed decision is not remanded or adopted as
provided in subdivision (b), each party shall be notified of the
action, and the board itself may decide the case upon the record,
including the transcript, with or without taking any additional
evidence, or may refer the case to the same or another authorized
representative to take additional evidence. If the case is so
assigned to an authorized representative, he or she shall prepare a
proposed decision as provided in subdivision (b) upon the additional
evidence and the transcript and other papers that are part of the
record of the prior hearing. A copy of the proposed decision shall be
furnished to each party. The board itself shall decide no case
provided for in this subdivision without affording the parties the
opportunity to present oral and written argument before the board
itself. If additional oral evidence is introduced before the board
itself, no board member may vote unless he or she heard the
additional oral evidence.
   (d) In arriving at a decision or a proposed decision, the board or
its authorized representative may consider any prior suspension or
suspensions of the appellant by authority of any appointing power, or
any prior proceedings under this article.
   (e) In arriving at a decision or a proposed decision, the board,
in exercising its discretion consistent with its authority under
Section 3 of Article VII of the California Constitution, shall give
consideration and respect to any applicable disciplinary criteria
established pursuant to Section 19573, and the extent to which the
employee's conduct resulted in, or if repeated is likely to result
in, harm to the public service, the circumstances surrounding the
offense or misconduct, and the likelihood of recurrence.
   (f) The decision shall be in writing and contain findings of fact
and the adverse action, if any. The findings may be stated in the
language of the pleadings or by reference thereto. Copies of the
decision shall be served on the parties personally or by mail.
   SEC. 78.   SEC. 74.   Section 19583 of
the Government Code is amended to read:
   19583.  The board shall render a decision within a reasonable time
after the hearing or investigation. The adverse action taken by the
appointing power shall stand unless modified or revoked by the board.
If the board finds that the cause or causes for which the adverse
action was imposed were insufficient or not sustained, or that the
employee was justified in the course of conduct upon which the causes
were based, it may modify or revoke the adverse action and it may
order the employee returned to his or her position with appropriate
restoration of backpay and lost benefits either as of the date of the
adverse action or as of such later date as it may specify. The
decision of the board shall be entered upon the minutes of the board
and the official roster. In arriving at a decision, the board, in
exercising its discretion consistent with its authority under Section
3 of Article VII of the California Constitution, shall give
consideration and respect to any applicable disciplinary criteria
established pursuant to Section 19573.
   SEC. 79.   SEC. 75.   Section 19592 of
the Government Code is amended to read:
   19592.  When action is taken under this article, the provisions of
this article and related board and Department of Human Resources
rules shall constitute the entire disciplinary action and review
process, except that the provisions of Sections 19574.1, 19583.5, and
19584 shall also apply in a manner consistent with the provisions of
this article.
   SEC. 80.   SEC. 76.   Section 19608 of
the Government Code, as added by Section 24 of Chapter 88 of the
Statutes of 1998, is repealed.
   SEC. 81.   SEC. 77.   Section 19608 of
the Government Code, as added by Section 24 of Chapter 91 of the
Statutes of 1998, is amended to read:
   19608.  Any demonstration project implemented under this chapter
shall not include the adoption or waiver of regulations or statutes
that are administered or enforced by the Department of Human
Resources without the express approval of the Department of Human
Resources.
   SEC. 82.   SEC. 78.   Section 19702 of
the Government Code is repealed.
   SEC. 83.   SEC. 79.   Section 19770 of
the Government Code is amended to read:
   19770.  (a) With the exception of Chapter 7.5 (commencing with
Section 400) of Part 1 of Division 2 of the Military and Veterans
Code, this part, rather than provisions of the Military and Veterans
Code, governs leave for military service, rights and benefits accrued
during that service, and reinstatement after that service, for
executive branch employees. Both the State Personnel Board and the
Department of Human Resources have responsibilities for carrying out
certain provisions of this chapter as provided in subdivision (b).
   (b) The State Personnel Board is responsible for the provisions of
this chapter pertaining to civil service examinations, list
eligibility, appointments, reinstatements, probationary periods, and
status. The Department of Human Resources is responsible for the
provisions of this chapter on eligibility for military leave and the
effect of these leaves on the employee's salary, vacation, sick
leave, and seniority.
   (c) For the purposes of this chapter:
   (1) "Employee" means that term as defined by subdivision (d) of
Section 19815.
   (2) "Civil service employee" means an employee legally holding a
position in the state civil service.
   (3) "Exempt employee" means an employee who is exempt from the
state civil service by Section 4 of Article VII of the California
Constitution.
   SEC. 84.   SEC. 80.   Section 19775 of
the Government Code is amended to read:
   19775.  An employee who is granted a long-term military leave of
absence and who for a period of not less than one year immediately
prior to the effective date active duty begins has had continuous
state service as defined by Department of Human Resources rule which
is not broken by a permanent separation shall be entitled to receive
his or her salary or compensation for the first 30 calendar days of
active duty served during the absence.
   SEC. 85.   SEC. 81.   Section 19775.1 of
the Government Code is amended to read:
   19775.1.  An employee who is granted a short-term military leave
of absence for active military duty, but not for inactive duty,
including, but not limited to, scheduled reserve drill periods, and
who for a period of not less than one year immediately prior to the
effective date of active duty has had continuous state service as
defined by Department of Human Resources rule that is not broken by a
permanent separation, or who has had continuous state service
immediately prior to the effective date of active duty not broken by
a permanent separation and sufficient recognized military service
that need not be contiguous to equal one year shall be entitled to
receive his or her salary or compensation for the first 30 calendar
days of active duty served during the absence.
   An employee who is granted emergency military leave under Section
19773, shall receive his or her salary or compensation as a state
employee while going to, engaging in, and returning from the duty.
The employee shall not receive his or her salary or compensation for
more than 30 days each time he or she is granted the emergency
military leave.
   SEC. 86.   SEC. 82.   Section 19775.15
of the Government Code is amended to read:
   19775.15.  (a) In addition to the benefits provided pursuant to
Sections 19775 and 19775.1, an employee who, as a member of the
California National Guard or a United States military reserve
organization, is called into active duty as a result of the
Iraq-Kuwait crisis on or after August 2, 1990, shall have the
benefits provided for in subdivision (b).
   (b) Any employee to which subdivision (a) applies, while on active
duty, shall, with respect to active duty served on or after August
2, 1990, receive from the state, for a period not to exceed 180
calendar days, as part of his or her compensation both of the
following:
   (1) The difference between the amount of his or her military pay
and allowances and the amount the employee would have received as a
state employee as determined by the Department of Human Resources,
including any merit raises which would otherwise have been granted
during the time the individual was on active duty.
   (2) All benefits which he or she would have received had he or she
not been called to active duty unless the benefits are prohibited or
limited by vendor contracts.
   (c) Any individual receiving compensation pursuant to subdivision
(b) who does not return to state service within 60 days of being
released from active duty shall have that compensation treated as a
loan payable with interest at the rate earned on the Pooled Money
Investment Account. This subdivision shall not apply to compensation
received pursuant to Section 19775.
   (d) This section shall not apply to any active duty served
voluntarily after the close of the Iraq-Kuwait crisis.
   SEC. 87.   SEC. 83.   Section 19775.16
of the Government Code is amended to read:
   19775.16.  (a) In addition to the benefits provided pursuant to
Sections 19775 and 19775.1, an employee who, as a member of the
California National Guard or a United States military reserve
organization, is called into active duty as a result of the Bosnia
crisis on or after November 21, 1995, shall have the benefits
provided for in subdivision (b).
   (b) Any employee to which subdivision (a) applies, while on active
duty, shall, with respect to active duty served on or after November
21, 1995, as a result of the Bosnia crisis, receive from the state,
for a period not to exceed 180 calendar days, as part of his or her
compensation both of the following:
   (1) The difference between the amount of his or her military pay
and allowances and the amount the employee would have received as a
state employee as determined by the Department of Human Resources,
including any merit raises that would otherwise have been granted
during the time the individual was on active duty.
   (2) All benefits that he or she would have received had he or she
not been called to active duty unless the benefits are prohibited or
limited by vendor contracts.
   (c) Any individual receiving compensation pursuant to subdivision
(b) who does not return to state service within 60 days of being
released from active duty shall have that compensation treated as a
loan payable with interest at the rate earned on the Pooled Money
Investment Account. This subdivision shall not apply to compensation
received pursuant to Section 19775.
   (d) This section shall not apply to any active duty served
voluntarily after the close of the Bosnia crisis.
   (e) Benefits provided under paragraph (1) of subdivision (b) shall
only be provided to an employee who was not eligible to participate
in the federal Ready Reserve Mobilization Income Insurance Program
(10 U.S.C. Sec. 12521 et seq.) or a successor federal program that,
in the determination of the Director of Human Resources, is
substantively similar to the federal Ready Reserve Mobilization
Income Insurance Program. For an employee eligible to participate in
the federal Ready Reserve Mobilization Income Insurance Program or a
successor program, and whose monthly salary as a state employee was
higher than the sum of his or her military pay and allowances and the
maximum allowable benefit under the federal Ready Reserve
Mobilization Income Insurance Program or a successor program, the
employee shall receive the amount payable under paragraph (1) of
subdivision (b), but that amount shall be reduced by the maximum
allowable benefit under the federal Ready Reserve Mobilization Income
Insurance Program or a successor program. For individuals who
elected the federal Ready Reserve Mobilization Income Insurance
Program, the state shall reimburse for the cost of the insurance
premium for the period of time on active duty, not to exceed 180
calendar days.
   SEC. 88.   SEC. 84.   Section 19775.17
of the Government Code is amended to read:
   19775.17.  (a) In addition to the benefits provided pursuant to
Sections 19775 and 19775.1, a state employee who, as a member of the
California National Guard or a United States military reserve
organization, is ordered to active duty by Presidential determination
that it is necessary to augment the active forces for any
operational mission, or when in time of national emergency declared
by the President or otherwise authorized by law, shall have the
benefits provided for in subdivision (b).
   (b) Any state employee to which subdivision (a) applies, while on
active duty, shall receive from the state, for the duration of the
event as authorized pursuant to Sections 12302 and 12304 of Title 10
of the United States Code, but not for more than 180 calendar days,
as part of his or her compensation both of the following:
   (1) The difference between the amount of his or her military pay
and allowances and the amount the employee would have received as a
state employee, including any merit raises that would otherwise have
been granted during the time the individual was on active duty. The
amount an employee, as defined in Section 18526, would have received
as a state employee, including any merit raises that would otherwise
have been granted during the time the individual was on active duty,
shall be determined by the Department of Human Resources.
   (2) All benefits that he or she would have received had he or she
not served on active duty unless the benefits are prohibited or
limited by vendor contracts.
   (c) Any individual receiving compensation pursuant to subdivision
(b) who does not reinstate to state service following active duty,
shall have that compensation treated as a loan payable with interest
at the rate earned on the Pooled Money Investment Account. This
subdivision shall not apply to compensation received pursuant to
Section 19775.
   (d) Benefits provided under paragraph (1) of subdivision (b) shall
only be provided to a state employee who was not eligible to
participate in a federally sponsored income protection program for
National Guard personnel or military reserve personnel, or both,
called into active duty, as determined by the Department of Human
Resources. For a state employee eligible to participate in a
federally sponsored income protection program, and whose monthly
salary as a state employee was higher than the sum of his or her
military pay and allowances and the maximum allowable benefit under
the federally sponsored income protection program, the state employee
shall receive the amount payable under paragraph (1) of subdivision
(b), but that amount shall be reduced by the maximum allowable
benefit under the federally sponsored income protection program. For
individuals who elected the federally sponsored income protection
program, the state shall reimburse for the cost of the insurance
premium for the period of time on active duty, not to exceed 180
calendar days.
   (e) For purposes of this section, "state employee" means an
employee as defined in Section 18526 or an officer or employee of the
legislative, executive, or judicial department of the state.
   (f) This section shall not apply to any state employee entitled to
additional compensation or benefits pursuant to Section 19775.16 or
19775.18 of this code, or Section 395.08 of the Military and Veterans
Code.
   SEC. 89.  SEC. 85.   Section 19775.18 of
the Government Code is amended to read:
   19775.18.  (a) In addition to the benefits provided pursuant to
Sections 19775 and 19775.1, a state employee who, as a member of the
California National Guard or a United States military reserve
organization, is ordered to active duty on and after September 11,
2001, as a result of the War on Terrorism, shall have the benefits
provided for in subdivision (b).
   (b) Any state employee to which subdivision (a) applies, while on
active duty, shall receive from the state, for the duration of the
event known as the War on Terrorism, as authorized pursuant to
Sections 12302 and 12304 of Title 10 of the United States Code, but
not for more than 365 calendar days, as part of his or her
compensation both of the following:
   (1) The difference between the amount of his or her military pay
and allowances and the amount the employee would have received as a
state employee, including any merit raises that would otherwise have
been granted during the time the individual was on active duty. The
amount an employee, as defined in Section 18526, would have received
as a state employee, including any merit raises that would otherwise
have been granted during the time the individual was on active duty,
shall be determined by the Department of Human Resources.
   (2) All benefits that he or she would have received had he or she
not served on active duty unless the benefits are prohibited or
limited by vendor contracts.
   (c) Any individual receiving compensation pursuant to subdivision
(b) who does not reinstate to state service following active
                                     duty, shall have that
compensation treated as a loan payable with interest at the rate
earned on the Pooled Money Investment Account. This subdivision does
not apply to compensation received pursuant to Section 19775.
   (d) Benefits provided under paragraph (1) of subdivision (b) shall
only be provided to a state employee who was not eligible to
participate in a federally sponsored income protection program for
National Guard personnel or military reserve personnel, or both,
called into active duty, as determined by the Department of Human
Resources. For a state employee eligible to participate in a
federally sponsored income protection program, and whose monthly
salary as a state employee was higher than the sum of his or her
military pay and allowances and the maximum allowable benefit under
the federally sponsored income protection program, the state employee
shall receive the amount payable under paragraph (1) of subdivision
(b), but that amount shall be reduced by the maximum allowable
benefit under the federally sponsored income protection program. For
individuals who elected the federally sponsored income protection
program, the state shall reimburse for the cost of the insurance
premium for the period of time on active duty, not to exceed 365
calendar days.
   (e) The Governor may, by executive order, extend the period of
time for the receipt of benefits provided pursuant to this section by
no more than an additional 1,460 calendar days.
   (f) (1) "Military pay and allowances" for the purposes of this
section does not include hazardous duty pay, hostile fire pay, or
imminent danger pay. A state employee is entitled to retain these and
any other special and incentive pay provided by the federal
government.
   (2) "State employee" for the purposes of this section means an
employee as defined in Section 18526 or an officer or employee of the
legislative, executive, or judicial department of the state.
   (g) This section does not apply to any state employee entitled to
additional compensation or benefits pursuant to Section 19775.16 or
19775.17 of this code, or Section 395.08 of the Military and Veterans
Code.
   (h) This section does not apply to any active duty served after
the close of the War on Terrorism.
   SEC. 90.   SEC. 86.   The heading of
Chapter 1 (commencing with Section 19815) of Part 2.6 of Division 5
of Title 2 of the Government Code is amended to read:
      CHAPTER 1.  DEPARTMENT OF HUMAN RESOURCES


  SEC. 91.    Section 19815 of the Government Code
is amended to read:
   19815.  As used in this part:
   (a) "Department" means the Department of Human Resources.
   (b) "Director" means the Director of Human Resources.
   (c) "Division" means the Division of Labor Relations.
   (d) "Employee" or "state employee," except where otherwise
indicated, means employees subject to the Ralph C. Dills Act (Chapter
10.3 (commencing with Section 3512), Division 4, Title 1),
supervisory employees as defined in subdivision (g) of Section 3513,
managerial employees as defined in subdivision (e) of Section 3513,
confidential employees as defined in subdivision (f) of Section 3513,
employees of the Legislative Counsel Bureau, employees of the Bureau
of State Audits, employees of the office of the Inspector General,
employees of the Public Employment Relations Board, conciliators
employed by the State Conciliation Service within the Department of
Industrial Relations, employees of the Department of Human Resources,
professional employees of the Department of Finance engaged in
technical or analytical state budget preparation other than audit
staff, intermittent athletic inspectors who are employees of the
State Athletic Commission, professional employees in the
Personnel/Payroll Services Division of the Controller's office and
all employees of the executive branch of government who are not
elected to office. 
   SEC. 92.   SEC. 87.   Section 19815.2 of
the Government Code is repealed.
   SEC. 93.   SEC. 88.   Section 19815.2 is
added to the Government Code, to read:
   19815.2.  (a) The Department of Human Resources (CalHR) is hereby
created following reorganization of state department, agencies, and
boards in an effort to better serve the human resources and personnel
needs of the state.
   (b) Subject to Article VII of the California Constitution, the
Department of Human Resources succeeds to and is vested with the
duties, purposes, responsibilities, and jurisdiction exercised by the
State Personnel Board as its designee with respect to the State
Personnel Board's administrative and ministerial functions.
   SEC. 94.   SEC. 89.   Section 19815.41
of the Government Code is amended to read:
   19815.41.  (a) Notwithstanding subdivision (e) of Section 19815.4,
this section shall apply to state employees in State Bargaining Unit
5, 6, or 8.
   (b) The director shall hold nonmerit statutory appeal hearings,
subpoena witnesses, administer oaths, and conduct investigations in
accordance with Department of Human Resources Rule 599.859 (b)(2).
   (c) The director may, at his or her discretion, hold hearings,
subpoena witnesses, administer oaths, or conduct investigations or
appeals concerning other matters relating to the department's
jurisdiction.
   (d) 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 approved by the
Legislature in the annual Budget Act.
   SEC. 95.   SEC. 90.   Section 19815.8 of
the Government Code is amended to read:
   19815.8.  (a) No action or proceeding shall be brought by any
person having or claiming to have a cause of action or complaint or
ground for issuance of any complaint or legal remedy for wrongs or
grievances based on or related to any law administered by the
Department of Human Resources unless the action or proceeding is
commenced and served within one year after the cause of action or
complaint or ground for issuance of any writ or legal remedy first
arose. Such a person shall not be compensated for the time subsequent
to the date when the cause or ground arose unless the action or
proceeding is filed and served within 90 days after the cause or
ground arose. Where an appeal is taken from a decision of the
department, the cause of action does not arise until the final
decision of the department.
   (b) Process directed to any officer or employee, or the Department
of Human Resources, in any action or proceeding arising under this
part, may be served upon the director or chief counsel.
   SEC. 96.   SEC. 91.   Section 19816.21
of the Government Code is amended to read:
   19816.21.  (a) Notwithstanding Sections 18717 and 19816.20,
effective July 1, 2004, the following officers and employees, who are
in the following classifications or positions on or after July 1,
2004, shall be state safety members of the Public Employees'
Retirement System:
   (1) State employees in State Bargaining Unit 7 (Protective
Services and Public Services) whose job classifications are subject
to state miscellaneous membership in the Public Employees' Retirement
System, unless otherwise excluded by a memorandum of understanding.
   (2) State employees in managerial, supervisory, or confidential
positions that are related to the job classifications described in
paragraph (1) and that are subject to state miscellaneous membership
in the Public Employees' Retirement System, provided that the
Department of Human Resources has approved their inclusion.
   (3) Officers and employees of the executive branch of state
government who are not members of the civil service and who are in
positions that are related to the job classifications described in
paragraph (1) and that are subject to state miscellaneous membership
in the Public Employees' Retirement System, provided that the
Department of Human Resources has approved their inclusion.
   (b) The department shall notify the Public Employees' Retirement
System of the classes or positions that become subject to state
safety membership under this section, as prescribed in Section
20405.1.
   SEC. 97.   SEC. 92.   Section 19816.22
of the Government Code is amended to read:
   19816.22.  (a) It is the intent of the Legislature in providing
funds for the Human Resources Modernization Project, within the
Department of Human Resources' budget, to provide every state agency
with the tools necessary to recruit and retain its personnel. The
Human Resources Modernization Project integrates the competencies,
skills, and abilities of each employee across all human resource
programs. State agencies will use the services developed by the Human
Resources Modernization Project to recruit, assess, select, and
develop their personnel, as well as to plan for the future, with
performance management and succession applications.
   (b) Authority is hereby granted, to the extent otherwise permitted
by law, to the Department of Human Resources to assess special
funds, bond funds, and nongovernmental cost funds in sufficient
amounts to support the cost of the Human Resources Modernization
Project described in subdivision (a). The Director of Finance shall
determine the amount of the total assessment for each fund
periodically. Upon order of the Director of Finance, the moneys
authorized pursuant to this act shall be transferred by the
Controller, as needed, from each fund for a total amount not to
exceed the amounts authorized in the annual Budget Act.
   SEC. 98.   SEC. 93.   Section 19819.5 of
the Government Code is amended to read:
   19819.5.  There is in the Department of Human Resources, the
Division of Labor Relations.
   SEC. 99.   SEC. 94.   Section 19822.6 of
the Government Code is amended to read:
   19822.6.  There is hereby established a Child Care Fund to which
funds shall be allocated from the amount appropriated in the annual
Budget Act for employee compensation. The Child Care Fund shall be
used to encourage development of child care programs for dependent
children of state employees. These programs may include financial
assistance to aid in the development of child care centers
administered by either nonprofit corporations formed by state
employees or other child care providers.
   The Child Care Fund shall be administered by the Department of
Human Resources.
   Upon the determination of the department, the funding shall
include, but not be limited to, cash grants.
   The amount to be allocated and expended annually, from the funds
available for compensation increases, shall be determined by the
department. Notwithstanding Section 13340, the Child Care Fund shall
be available for expenditure without regard to fiscal years through
June 30, 1991, unless otherwise extended by statute enacted prior to
that date.
   SEC. 100.   SEC. 95.   Section 19827.3
of the Government Code is amended to read:
   19827.3.  In order for the state to recruit skilled firefighters
for the California Department of Forestry and Fire Protection, it is
the policy of the state to consider prevailing salaries and benefits
prior to making salary recommendations. In order to provide
comparability in pay, the Department of Human Resources shall take
into consideration the salary and benefits of other jurisdictions
employing 75 or more full-time firefighters who work in California.
   SEC. 101.   SEC. 96.   Section 19829.5
of the Government Code is amended to read:
   19829.5.  (a) The Department of Human Resources shall provide a
memorandum of understanding pursuant to Section 3517.5 to the
Legislative Analyst who shall have 10 calendar days from the date the
tentative agreement is received to issue a fiscal analysis to the
Legislature. The Legislative Analyst may prioritize the preparation
of a fiscal analysis or report under this subdivision among other
workload, including the submission of multiple memoranda of
understanding. The memorandum of understanding shall not be 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.
   (b) Each memorandum of understanding submitted by the department
to the Legislative Analyst shall include the department's analysis of
costs and savings.
   SEC. 102.   SEC. 97.   Section 19829.6
of the Government Code is amended to read:
   19829.6.  The Department of Human Resources shall post, in a clear
and conspicuous manner on the department's Web site, each memorandum
of understanding that has been submitted to the Legislature for
determination pursuant to Section 3517.5 and that has been ratified
by the affected union membership. The memorandum of understanding of
the agreement reached between the Governor and the recognized
employee organization shall be posted on the department's Web site in
its entirety, with a declaration that the memorandum has been
submitted to the office of the Legislative Analyst and the
Legislature, including the date of that submission. The department
shall include on its Web site posting a summary of the memorandum of
understanding that is the same summary provided to the Legislature by
the department.
   SEC. 103.   SEC. 98.   Section 19844.7
of the Government Code is amended to read:
   19844.7.  (a) Pursuant to regulations adopted by the Department of
Human Resources, and subject to the collective bargaining agreement
between the state and the employee's exclusive representative, a
state employee who has been appointed as a member of a precinct board
and takes time off from state employment to serve as a member of
that precinct board on election day shall receive payment of his or
her regular wages or salary for that election day, without forfeiting
any compensation received for his or her service as a precinct board
member. As used in this section, "state employee" does not include
any officer or employee appointed or employed by the Legislature, or
any officer, deputy, or employee selected or appointed by an elected
state officer.
   (b) The eligibility of a state employee to receive time off for
the purposes of subdivision (a) shall be subject to approval of the
employee's manager or supervisor and pursuant to the terms of the
collective bargaining agreement, when applicable.
   (c) The Department of Human Resources shall adopt regulations to
implement this section. The regulations shall include, among other
things, consideration of such items as the impact of the employee's
absence on state services and operations and the documentation
necessary for a state employee to establish that he or she has taken
time off from state employment to serve as a member of a precinct
board and is therefore eligible to receive his or her regular wages
or salary as provided in subdivision (a). The regulations required by
this section shall be drafted and adopted as soon as practicable.
   SEC. 104.   SEC. 99.   Section 19849.11
of the Government Code is amended to read:
   19849.11.  The Department of Human Resources, subject to such
conditions as it may establish, subject to existing statutes
governing health benefits and group term life insurance offered
through the Public Employees' Retirement System, and subject to all
other applicable provisions of state law, may enter into contracts
for the purchase of employee benefits with respect to managerial and
confidential employees as defined by subdivisions (e) and (f) of
Section 3513, and employees excluded from the definition of state
employee in subdivision (c) of Section 3513, and officers or
employees of the executive branch of government who are not members
of the civil service, and supervisory employees as defined in
subdivision (g) of Section 3513. Benefits shall include, but not be
limited to, group life insurance, group disability insurance,
long-term disability insurance, group automobile liability and
physical damage insurance, and homeowners' and renters' insurance.
   The department may self-insure the long-term disability insurance
program if it is cost effective to do so.
   If it is determined that a self-insured long-term disability
insurance program will be established, the department shall provide
its cost analysis to the Joint Legislative Budget Committee at least
30 days prior to initiating the establishment of the program.
   SEC. 105.   SEC. 100.   Section 19849.13
of the Government Code is amended to read:
   19849.13.  Notwithstanding Sections 19839, 19858.1, 19858.3,
19858.4, 19859, and 19859.3, the Department of Human Resources may
provide for vacation, sick leave, annual leave, and bereavement leave
benefits, including the lump-sum payment of any amount of
accumulated leave, with respect to each state officer and employee
who either is excluded from the definition of state employee in
subdivision (c) of Section 3513, or is a nonelected officer or
employee of the executive branch of government who is not a member of
the civil service.
   SEC. 106.   SEC. 101.   Section 19849.14
of the Government Code is amended to read:
   19849.14.  Effective July 1, 1987, there is hereby established in
the State Treasury the Nonrepresented State Employee Long-Term
Disability Insurance Fund for the purpose of funding nonrepresented
state employee long-term disability insurance benefits. Premiums
derived from contributions by the employer or employee shall be
credited to the fund. Income of whatever nature, earned on the
Nonrepresented State Employee Long-Term Disability Insurance Fund
during any fiscal year, shall be credited to the fund. Moneys in this
fund are continuously appropriated without regard to fiscal year,
notwithstanding Section 13340. The fund shall be used by the
Department of Human Resources to pay long-term disability claims and
administrative costs.
   SEC. 107.   SEC. 102.   Section 19849.16
of the Government Code is amended to read:
   19849.16.  Notwithstanding Section 18000, the Department of Human
Resources may provide by rule for the accumulation and use of paid
leave, including a lump-sum payment for accumulated leave, with
respect to nonelected members of state boards and commissions whose
annual salaries are fixed by law. Any rules adopted pursuant to this
section shall provide for the reduction of the salary fixed by law of
those nonelected members of state boards and commissions when their
absences exceed their paid leave. The Department of Human Resources
shall not provide paid leave benefits greater than the maximum
benefits provided the employees designated as managerial by the
Department of Human Resources. Rules adopted pursuant to this section
shall take effect after July 1, 1991.
   SEC. 108.   SEC. 103.   Section 19853 of
the Government Code is amended to read:
   19853.  (a) All state employees shall be entitled to the following
holidays: January 1, the third Monday in January, the third Monday
in February, March 31, the last Monday in May, July 4, the first
Monday in September, November 11, Thanksgiving Day, the day after
Thanksgiving, December 25, the day chosen by an employee pursuant to
Section 19854, and every day appointed by the Governor of this state
for a public fast, thanksgiving, or holiday.
   (b) If a day listed in this subdivision falls on a Sunday, the
following Monday shall be deemed to be the holiday in lieu of the day
observed. If November 11 falls upon a Saturday, the preceding Friday
shall be deemed to be the holiday in lieu of the day observed.
   (c) Any state employee who may be required to work on any of the
holidays included in this section, and who does work on any of these
holidays, shall be entitled to receive straight-time pay and eight
hours of holiday credit.
   (d) For the purpose of computing the number of hours worked, time
when an employee is excused from work because of holidays, sick
leave, vacation, annual leave, compensating time off, or any other
leave shall not be considered as time worked by the employee for the
purpose of computing cash compensation for overtime or compensating
time off for overtime.
   (e) Any state employee, as defined in subdivision (c) of Section
3513, may elect to receive eight hours of holiday credit for the
fourth Friday in September, known as "Native American Day," in lieu
of receiving eight hours of personal holiday credit in accordance
with Section 19854.
   (f) Persons employed on less than a full-time basis shall receive
holidays in accordance with the Department of Human Resources rules.
   (g) If subdivision (a), (c), or (d) is in conflict with the
provisions of a memorandum of understanding executed or amended
pursuant to Section 3517.5 on or after February 1, 2009, or the date
that the act adding this section takes effect, whichever is later,
the memorandum of understanding shall be controlling without further
legislative action, except that if those provisions of the memorandum
of understanding require the expenditure of funds, the provisions
shall not become effective unless approved by the Legislature in the
annual Budget Act.
   (h) This section shall become operative on February 1, 2009, or
the date that the act adding this section takes effect, whichever is
later.
   SEC. 109.   SEC. 104.   Section 19853.1
of the Government Code is amended to read:
   19853.1.  (a) Notwithstanding Section 19853, this section shall
apply to state employees in State Bargaining Unit 5.
   (b) Except as provided in subdivision (c), all employees shall be
entitled to the following holidays: January 1, the third Monday in
January, the third Monday in February, March 31, the last Monday in
May, July 4, the first Monday in September, November 11, the day
after Thanksgiving, December 25, and every day appointed by the
Governor of this state for a public fast, thanksgiving, or holiday.
   If a day listed in this subdivision falls on a Sunday, the
following Monday shall be deemed to be the holiday in lieu of the day
observed. If November 11 falls upon a Saturday, the preceding Friday
shall be deemed to be the holiday in lieu of the day observed. Any
employee who may be required to work on any of the holidays included
in this section and who does work on any of these holidays shall be
entitled to be paid compensation or given compensating time off for
that work in accordance with his or her classification's assigned
workweek group.
   (c) If the provisions of subdivision (b) 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 approved by the
Legislature in the annual Budget Act.
   (d) Any employee who either is excluded from the definition of
state employee in subdivision (c) of Section 3513, or is a nonelected
officer or employee of the executive branch of government who is not
a member of the civil service, is entitled to the following
holidays, with pay, in addition to any official state holiday
appointed by the Governor:
   (1) January 1, the third Monday in January, the third Monday in
February, March 31, the last Monday in May, July 4, the first Monday
in September, November 11, Thanksgiving Day, the day after
Thanksgiving, and December 25.
   (2) When November 11 falls on a Saturday, employees shall be
entitled to the preceding Friday as a holiday with pay.
   (3) When a holiday, other than a personal holiday, falls on a
Saturday, an employee shall, regardless of whether he or she works on
the holiday, accrue only an additional eight hours of personal
holiday credit per fiscal year for the holiday. The holiday credit
shall be accrued on the actual date of the holiday and shall be used
within the same fiscal year.
   (4) When a holiday other than a personal holiday falls on Sunday,
employees shall be entitled to the following Monday as a holiday with
pay.
   (5) Employees who are required to work on a holiday shall be
entitled to pay or compensating time off for this work in accordance
with their classification's assigned workweek group.
   (6) Persons employed on less than a full-time basis shall receive
holidays in accordance with the Department of Human Resources rules.
   (e) Any employee, as defined in subdivision (c) of Section 3513,
may elect to use eight hours of vacation, annual leave, or
compensating time off consistent with departmental operational needs
and collective bargaining agreements for the fourth Friday in
September, known as "Native American Day."
   (f) This section shall become effective with regard to the March
31 holiday only when the Department of Human Resources notifies the
Legislature that the language contained in this section has been
agreed to by all exclusive representatives, and the Department of
Human Resources authorizes this holiday to be applied to employees
designated as excluded from the Ralph C. Dills Act (Chapter 10.3
(commencing with Section 3512), Division 4, Title 1), and the
necessary statutes are amended to reflect this change.
   SEC. 110.   SEC. 105.   Section 19867 of
the Government Code is amended to read:
   19867.  (a) The Legislature finds and declares that the interests
of the state would be served by the Department of Human Resources
meeting and conferring with the exclusive representatives of the
various bargaining units to discuss the establishment of long-term
care benefits for state employees.
   (b) If long-term care insurance plans are not available to state
employees within one year following the date on which any long-term
care plan is first offered for enrollment by the Board of
Administration of the Public Employees' Retirement System, state
employees may enroll in the long-term care insurance plans offered by
the Board of Administration of the Public Employees' Retirement
System.
   (c) If subdivision (b) is in conflict with a memorandum of
understanding entered into pursuant to Section 3517.5, the memorandum
of understanding shall prevail and control without further
legislative action, except that if the prevailing provisions of a
memorandum of understanding require the expenditure of funds, these
provisions may not become effective unless approved by the
Legislature in the annual Budget Act.
                                                                 (d)
The Department of Human Resources may enter into contracts with the
Board of Administration of the Public Employees' Retirement System to
allow active eligible state employees, and their spouses and
parents, to enroll in any long-term care insurance plans offered by
the board of administration.
   SEC. 111.   SEC. 106.   Section 19999.1
of the Government Code is amended to read:
   19999.1.  The Department of Human Resources, in conjunction with
the Board of Administration of the Public Employees' Retirement
System, shall develop legislation which will implement a two-tiered
retirement system.
   SEC. 112.   SEC. 107.   Section 19999.3
of the Government Code is amended to read:
   19999.3.  (a) The Legislature finds and declares that this chapter
is intended to provide an alternate retirement program for new state
employees who are members of the Public Employees' Retirement System
pursuant to Section 20281.5 and who, during the 24 months of
employment following the date they qualify for membership in the
system pursuant to that section, do not make contributions into the
defined benefit retirement program.
   (b) The Legislature hereby authorizes the development of a
retirement program under the Deferred Compensation Plan, the
tax-deferred savings plan, or any other acceptable defined
contribution plan.
   (c) The state employees described in subdivision (a) who are
employed in positions that are subject to the federal system, as
defined in Section 20033, shall contribute to the retirement program
5 percent of compensation, as set forth in Part 3 (commencing with
Section 20000), in excess of five hundred thirteen dollars ($513) per
month paid to that member for service rendered. The state employer
shall pick up the contribution, as authorized by Section 414(h) of
the Internal Revenue Code, and shall deduct the contribution from the
employee's compensation. The contributions required by this
subdivision shall cease when the state employee begins making
contributions to the defined benefit retirement program.
   (d) State employees hired on or after July 1, 2006, who are
represented by State Bargaining Unit 2 and are employed in positions
that are subject to the federal system, as defined in Section 20033,
shall contribute to the retirement program 6 percent of compensation,
as set forth in Part 3 (commencing with Section 20000), in excess of
five hundred thirteen dollars ($513) per month paid to that member
for service rendered. The state employer shall pick up the
contribution, as authorized by Section 414(h) of the Internal Revenue
Code, and shall deduct the contribution from the employee's
compensation. The contributions required by this subdivision shall
cease when the state employee begins making contributions to the
defined benefit retirement program.
   (e) Beginning with the first pay period following the effective
date of this subdivision, all state employees who are subject to this
section shall make contributions required by this section in the
same amount as contributions made by employees in the same employment
classifications and state bargaining units who are members subject
to Part 3 (commencing with Section 20000) of Division 5 of Title 2.
Consistent with the normal rate of contribution for all members
identified in this subdivision, the Director of Human Resources may
exercise his or her discretion to establish the normal rate of
contribution for a related 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.
   (f) (1) "State employees," as used in this section, include
employees, as defined in Section 19815.
   (2) This section shall not apply to employees of the California
State University, the University of California, or the legislative or
judicial branch.
   (g) If the retirement program authorized by this section is
inconsistent with federal laws or rules or becomes unnecessary under
state or federal law, this section shall become inoperative.
   SEC. 113.   SEC. 108.   Section 19999.21
of the Government Code is amended to read:
   19999.21.  The Department of Human Resources shall administer the
retirement program established by this chapter. The department shall
provide by rule for the regulation of the retirement program and the
method by which the benefit payments would be made to eligible
recipients. The department shall by rule establish the level of
employee deferrals to the plan, cessation of, or transfer of
membership to the Public Employees' Retirement System upon
qualification, continued participation in the plan, and other
provisions necessary for the implementation of this retirement
program. The department may assess each state agency a fee for the
costs associated with administration of this program.
   The regulations shall not be subject to the review and approval of
the Office of Administrative Law, pursuant to Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2.
The regulations shall become effective immediately upon filing with
the Secretary of State.
   SEC. 114.   SEC. 109.   Section 19999.31
of the Government Code is amended to read:
   19999.31.  The Department of Human Resources shall administer the
retirement program established by this chapter. The department shall
provide the method by which benefit payments shall be made to
eligible recipients. The department shall establish the program, the
transfer of contributions to the Public Employees' Retirement System
upon qualification and election by the member, continued
participation in the program, and other provisions necessary for the
implementation of the retirement program. The department may assess
each state agency a fee for the costs associated with administration
of this program.
   SEC. 115.   SEC. 110.   Section 20068 of
the Government Code is amended to read:
   20068.  (a) "State safety service" means service rendered as a
state safety member only while receiving compensation for that
service, except as provided in Article 4 (commencing with Section
20990) of Chapter 11. It also includes service rendered in an
employment in which persons have since become state safety members
and service rendered prior to April 1, 1973, and falling within the
definition of warden, forestry, and law enforcement service under
this chapter prior to April 1, 1973. "State safety service" pursuant
to this subdivision does not include service as an investigator prior
to April 1, 1973, within the Department of Justice of persons who
prior to April 1, 1973, were classed as miscellaneous members.
   (b) "State safety service" with respect to a member who becomes a
state safety member pursuant to Section 20405 shall also include
service prior to the date on which he or she becomes a state safety
member as an officer or employee of the Department of Corrections and
Rehabilitation.
   (c) "State safety service" with respect to a member who becomes a
state safety member pursuant to Sections 20409 and 20410 shall also
include service in a class specified in these sections or service
pursuant to subdivision (a), prior to September 27, 1982.
   (d) "State safety service," with respect to a member who becomes a
state safety member pursuant to Sections 20414 and 20415, shall also
include service prior to September 22, 1982, as an officer or
employee of the Department of Parks and Recreation or the Military
Department.
   (e) "State safety service" does not include service in classes
specified in Section 20407 prior to January 1, 1989.
   (f) "State safety service" does not include service in classes
specified in Section 20408 prior to January 1, 1990.
   (g) "State safety service," with respect to a member who becomes a
state safety member pursuant to subdivision (b) of Section 20405.1,
shall also include service rendered in an employment in which persons
have since become state safety members, as determined by the
Department of Human Resources pursuant to that section.
   SEC. 116.   SEC. 111.   Section 20090 of
the Government Code is amended to read:
   20090.  The Board of Administration of the Public Employees'
Retirement System is continued in existence. It consists of:
   (a) One member of the State Personnel Board, selected by and
serving at the pleasure of the State Personnel Board.
   (b) The Director of Human Resources.
   (c) The Controller.
   (d) The Treasurer.
   (e) An official of a life insurer and an elected official of a
contracting agency, appointed by the Governor.
   (f) One person representing the public, appointed jointly by the
Speaker of the Assembly and the Senate Committee on Rules.
   (g) Six members elected under the supervision of the board as
follows:
   (1) Two members elected by the members of this system from the
membership thereof.
   (2) A member elected by the active state members of this system
from the state membership thereof.
   (3) A member elected by and from the active local members of this
system who are employees of a school district or a county
superintendent of schools.
   (4) A member elected by and from the active local members of this
system other than those who are employees of a school district or a
county superintendent of schools.
   (5) A member elected by and from the retired members of this
system.
   SEC. 117.   SEC. 112.   Section 20090.1
of the Government Code is amended to read:
   20090.1.  (a) Notwithstanding any other provision of law to the
contrary, the member of the board who is an elected official of a
contracting agency appointed by the Governor, pursuant to subdivision
(e) of Section 20090, may designate a deputy, who is employed under
the official's authority, to act in his or her place and stead on the
board or any of its committees. The deputy, while sitting on the
board or any of its committees, may exercise the same powers that the
elected official could exercise if he or she were personally
present. The elected official shall be responsible for the acts of
the deputy acting under this designation.
   (b) Notwithstanding any other provision of law to the contrary,
the Director of Human Resources may designate a deputy, who is
employed under the director's authority, to act in his or her place
and stead on the board or any of its committees. The deputy, while
sitting on the board or any of its committees, may exercise the same
powers that the director could exercise if he or she were personally
present. The director shall be responsible for the acts of the deputy
acting under this designation.
   SEC. 118.   SEC. 113.   Section 20398 of
the Government Code is amended to read:
   20398.  "State peace officer/firefighter member" also includes:
   (a) (1) State officers and employees designated as peace officers
as defined in Sections 830.1, 830.2, 830.3, 830.38, 830.4, and 830.5
of the Penal Code, or a firefighter whose principal duties consist of
active firefighting/fire suppression, who is either excluded from
the definition of state employee in subdivision (c) of Section 3513
or is a nonelected officer or employee of the executive branch of
government who is not a member of the civil service, if the majority
of his or her duties consists of one of the following:
   (A) Responsibility for the direct supervision of state peace
officer/firefighter personnel specified in Sections 20391, 20392,
20393, and 20395.
   (B) Conducting investigations or audits of investigatory practices
and other audits of, or in, the Department of Corrections and
Rehabilitation.
   (C) Administration of programs of an agency, department, or other
organizational unit that is primarily responsible for active law
enforcement or active firefighting/fire suppression.
   (2) For purposes of this subdivision, "administration" means the
actions of the employee designated as a peace officer/firefighter
member in a position that is in the direct chain of command over an
agency, department, or organizational unit in which the majority of
employees are state peace officer/firefighter members as described in
Section 20391, 20392, 20393, or 20395.
   (b) "State peace officer/firefighter member" shall not include
persons whose primary responsibilities are limited to personnel
administration, budgeting, public affairs, data processing or
information technology, governmental relations, or legal support, or
administration or oversight of these responsibilities.
   (c) "State peace officer/firefighter member" shall include
individuals hired prior to January 1, 2009, who do not meet the
criteria in subdivision (a) if those individuals have been
continuously employed in positions that were deemed to come within
the "state peace officer/firefighter member" classification pursuant
to this section prior to January 1, 2009.
   (d) "State peace officer/firefighter member" shall include
individuals hired prior to April 1, 2011, or the first day of the
first pay period following the enactment of the act that added this
subdivision if that act is enacted after April 1, 2011, who do not
meet the criteria in subdivision (a) if those individuals have been
continuously employed in positions in the Office of the Inspector
General that were deemed to come within the "state peace
officer/firefighter member" classification pursuant to this section
prior to April 1, 2011, or prior to the first day of the first pay
period following the enactment of the act that added this subdivision
if that act is enacted after April 1, 2011.
   (e) The Department of Human Resources shall annually determine
which classes meet the conditions described in this section and are
not classes specified in Sections 20391, 20392, 20393, and 20395, and
report its findings to the Legislature and to this system, to be
effective July 1 of each year. An agency or department shall not
designate a classification as a "state peace officer/firefighter
member" classification pursuant to this section without prior
approval from the Department of Human Resources.
   (f) Members who are reclassified pursuant to this section may file
an irrevocable election to remain subject to their prior retirement
formula and the corresponding rate of contributions. The Secretary of
the Department of Corrections and Rehabilitation may, upon
appointment to that office on or after January 1, 1999, file an
irrevocable election to be subject to the industrial formula and the
corresponding rate of contributions. The elections shall be filed
within 90 days of notification by the board. Members who so elect
shall be subject to the reduced benefit factors specified in Section
21353 or 21354.1, as applicable, only for the service included in the
federal system.
   SEC. 119.   SEC. 114.   Section 20405 of
the Government Code is amended to read:
   20405.  (a) "State safety member" shall also include officers and
employees of the Department of Corrections and Rehabilitation in the
following classifications:
Classification
Code        Classification
0683      Assistant Dairy Operator
2156      Assistant Food Manager (Correctional
           Facility)
4302      Assistant General Manager, Operations
2080      Assistant Seamer (Correctional Facility)
           Assistant Warden, Psychiatric Services,
5447
           Correctional Facility
6868      Automobile Mechanic (Correctional
           Facility)
           Automotive Equipment Operator I
6394      (Correctional
           Facility)
           Automotive Equipment Operator II
6392      (Correctional
           Facility)
6893      Automotive Pool Manager I (Correctional
           Facility)
2224      Baker I (Correctional Facility)
2221      Baker II (Correctional Facility)
2086      Barber (Correctional Facility)
2084      Barbershop Manager (Correctional
           Facility)
           Building Maintenance Worker
6216      (Correctional
           Facility)
2245      Butcher-Meat Cutter II (Correctional
           Facility)
6483      Carpenter I (Correctional Facility)
6474      Carpenter II (Correctional Facility)
6471      Carpenter III (Correctional Facility)
2015      Chief Assistant General Manager, Prison
           Industries
4110      Chief, Day Labor Programs (Correctional
           Facility)
9344      Chief Dentist, Correctional Facility
           Chief Deputy, Clinical Services,
2578      Correctional
           Facility
6699      Chief Engineer I (Correctional Facility)
7547      Chief Medical Officer, Correctional
           Facility
6754      Chief of Plant Operation I
           (Correctional Facility)
6751      Chief of Plant Operation II
           (Correctional Facility)
           Chief of Plant Operation III
6748      (Correctional
           Facility)
9267      Chief Physician and Surgeon,
           Correctional Facility
7612      Chief Psychiatrist, Correctional
           Facility
9859      Chief Psychologist, Correctional
           Facility
7146      Chief, Quality Assurance, Prison
           Industries
9279      Clinical Dietician, Correctional
           Facility
           Clinical Laboratory Technologist,
9293      Correctional
           Facility
4132      Construction Supervisor (Correctional
           Facility)
4107      Construction Supervisor I (Correctional
           Facility)
4108      Construction Supervisor II
           (Correctional Facility)
4109      Construction Supervisor III
           (Correctional Facility)
2187      Cook I (Correctional Facility)
2186      Cook II (Correctional Facility)
           Correctional Business Manager I,
7208      Department of
           Corrections
           Correctional Business Manager II,
4744      Department of
           Corrections
           Correctional Health Services
4910      Administrator I,
           Correctional Facility
           Correctional Health Services
4912      Administrator II,
           Correctional Facility
           Correctional       Plant Manager I,
6304      Department of
           Corrections
           Correctional Plant Manager II,
6305      Department of
           Corrections
           Correctional Plant Supervisor,
6303      Department of
           Corrections
9296      Dental Assistant, Correctional Facility
9298      Dental Hygienist, Correctional Facility
           Dental Laboratory Technician,
9299      Correctional
           Facility
9268      Dentist, Correctional Facility
7200      Dry Cleaning Plant Supervisor
6544      Electrician I (Correctional Facility)
6538      Electrician II (Correctional Facility)
6534      Electrician III (Correctional Facility)
6916      Electronics Technician (Correctional
           Facility)
           Equipment Maintenance Supervisor
6865      (Correctional
           Facility)
2153      Food Administrator I (Correctional
           Facility)
2147      Food Administrator II (Correctional
           Facility)
2150      Food Manager (Correctional Facility)
2196      Food Service Worker I (Correctional
           Facility)
2195      Food Service Worker II (Correctional
           Facility)
6955      Fusion Welder (Correctional Facility)
6628      Glazier (Correctional Facility)
0743      Groundskeeper (Correctional Facility)
           Heavy Equipment Mechanic (Correctional
6826
           Facility)
6379      Heavy Truck Driver (Correctional
           Facility)
9307      Hospital Aid, Correctional Facility
7218      Industrial Supervisor, Prison
           Industries (Bindery)
           Industrial Supervisor, Prison
0648      Industries (Crop
           Farm)
0682      Industrial Supervisor, Prison
           Industries (Dairy)
           Industrial Supervisor, Prison
7204      Industries
           (Dental
           Laboratory)
           Industrial Supervisor, Prison
7198      Industries
           (Fabric
           Products)
           Industrial Supervisor, Prison
7211      Industries (Knit
           Goods Finishing)
           Industrial Supervisor, Prison
7210      Industries
           (Knitting Mill)
2109      Industrial Supervisor, Prison
           Industries       (Laundry)
           Industrial Supervisor, Prison
7215      Industries
           (Maintenance and Repair)
           Industrial Supervisor, Prison
7197      Industries (Mattress
           and Bedding)
           Industrial Supervisor, Prison
7191      Industries
           (Metal
           Fabrication)
7216      Industrial Supervisor, Prison
           Industries (Printing)
           Industrial Supervisor, Prison
7207      Industries
           (Shoe
           Manufacturing)
           Industrial Supervisor, Prison
7206      Industries (Shoes
           and Boots, Lasting to Packing)
           Industrial Supervisor, Prison
7321      Industries
           (Silkscreen)
           Industrial Supervisor, Prison
7192      Industries (Tool
           and Die)
           Industrial Supervisor, Prison
7179      Industries
           (Upholstery)
           Industrial Supervisor, Prison
7178      Industries
           (Wood
           Products)
2006      Janitor (Correctional Facility)
2005      Janitor Supervisor I (Correctional
           Facility)
2004      Janitor Supervisor II (Correctional
           Facility)
2000      Janitor Supervisor III (Correctional
           Facility)
9265      Laboratory Assistant, Correctional
           Facility
2727      Language, Speech and Hearing Specialist
2114      Laundry Supervisor I (Correctional
           Facility)
2111      Laundry Supervisor II (Correctional
           Facility)
2117      Laundry Worker (Correctional Facility)
6867      Lead Automobile Mechanic (Correctional
           Facility)
0720      Lead Groundskeeper (Correctional
           Facility)
0718      Lead Groundskeeper I (Correctional
           Facility)
2952      Librarian (Correctional Facility)
6643      Locksmith I (Correctional Facility)
6801      Machinist (Correctional Facility)
6941      Maintenance Mechanic (Correctional
           Facility)
6617      Mason (Correctional Facility)
           Materials and Stores Supervisor I
1508      (Correctional
           Facility)
           Materials and Stores Supervisor II
1505      (Correctional
           Facility)
           Medical Technical Assistant,
8217      Correctional
           Facility
           Nurse Anesthetist,
9273      Correctional
           Facility
9353      Nurse Instructor, Correctional Facility
9278      Nurse Practitioner, Correctional
           Facility
9280      Occupational Therapist, Correctional
           Facility
7971      Optometrist, Correctional Facility
6528      Painter I (Correctional Facility)
6524      Painter II (Correctional Facility)
6521      Painter III (Correctional Facility)
           Pest Control Technician
7199      (Correctional
           Facility)
9281      Physical Therapist I, Correctional
           Facility
9342      Physical Therapist II, Correctional
           Facility
9269      Physician and Surgeon, Correctional
           Facility
6550      Plumber I (Correctional Facility)
6594      Plumber II (Correctional Facility)
6545      Plumber III (Correctional Facility)
7972      Podiatrist (Correctional Facility)
1575      Prison Canteen Manager I
1576      Prison Canteen Manager II
7158      Prison Industries Administrator
7157      Prison Industries Manager (General)
7164      Prison Industries Manager (Metal
           Products)
7165      Prison Industries Manager (Textile
           Products)
7163      Prison Industries Manager (Wood
           Products)
0679      Prison Industries Superintendent I
           (Agriculture)
0617      Prison Industries Superintendent II
           (Agriculture)
7217      Prison Industries Superintendent II
           (Bindery)
           Prison Industries Superintendent I
7109      (Coffee
           Roasting and Grinding)
           Prison Industries Superintendent I
7203      (Dental
           Laboratory)
           Prison Industries Superintendent II
7202      (Dental
           Laboratory)
7170      Prison Industries Superintendent II
           (Detergent)
           Prison Industries Superintendent I (Egg
7350
           Production)
           Prison Industries Superintendent I
7194      (Fabric
           Products)
           Prison Industries       Superintendent
7195      II
           (Fabric
           Products)
           Prison Industries Superintendent I
7351      (Fiberglass
           Products)
           Prison Industries Superintendent I
7352      (Furniture
           Refurbishing)
7209      Prison Industries Superintendent II
           (Knitting Mill)
2108      Prison Industries Superintendent II
           (Laundry)
           Prison Industries Superintendent II
7154      (Maintenance
           and Repair)
           Prison Industries Superintendent II
7196      (Mattress and
           Bedding)
           Prison Industries Superintendent I
7189      (Metal
           Products)
           Prison Industries Superintendent II
7190      (Metal
           Products)
7214      Prison Industries Superintendent II
           (Printing)
           Prison Industries Superintendent II
7205      (Shoe
           Manufacturing)
7320      Prison Industries Superintendent I
           (Silkscreen)
7319      Prison Industries Superintendent II
           (Silkscreen)
           Prison Industries Superintendent I
7175      (Wood
           Products)
           Prison Industries Superintendent II
7172      (Wood
           Products)
           Procurement and Services Officer I
4760      (Correctional
           Facility)
           Procurement and Services Officer II
4761      (Correctional
           Facility)
7162      Product Engineering Technician, Prison
           Industries
7156      Production Manager I, Prison Industries
1793      Property Controller I (Correctional
           Facility)
1794      Property Controller II (Correctional
           Facility)
9282      Psychiatric Social Worker, Correctional
           Facility
           Psychologist-Clinical,
9283      Correctional
           Facility
9284      Psychology Associate, Correctional
           Facility
           Psychology Internship Director,
9354      Correctional
           Facility
9285      Psychometrist, Correctional Facility
9274      Public Health Nurse I, Correctional
           Facility
9345      Public Health Nurse II, Correctional
           Facility
7145      Quality Assurance Manager, Prison
           Industries
           Quality Control Technician, Prison
3080      Industries
           (Cleaning Products)
9315      Radiologic Technologist, Correctional
           Facility

          9286      Recreation Therapist, Correctional
           Facility
6715      Refrigeration Engineer (Correctional
           Facility)
9275      Registered Nurse, Correctional Facility
2734      Resource Specialist, Special Education
           Respiratory Care Practitioner,
9316      Correctional
           Facility
9854      School Psychologist
2077      Seamer (Correctional Facility)
           Senior Clinical Laboratory
9348      Technologist,
           Correctional Facility
9266      Senior Laboratory Assistant,
           Correctional Facility
2945      Senior Librarian (Correctional Facility)
8215      Senior Medical Technical Assistant
           Senior Occupational Therapist,
9346      Correctional
           Facility
           Senior Psychiatrist, Correctional
9270      Facility
           (Specialist)
           Senior Psychiatrist, Correctional
9271      Facility
           (Supervisor)
9289      Senior Psychologist, Correctional
           Facility
           Senior Psychologist, Correctional
9287      Facility
           (Specialist)
           Senior Psychologist, Correctional
9288      Facility
           (Supervisor)
           Senior Radiologic Technologist,
9350      Correctional
           Facility (Specialist)
           Senior Radiologic Technologist,
9351      Correctional
           Facility (Supervisor)
7562      Sheet Metal Worker (Correctional
           Facility)
6211      Skilled Laborer (Correctional Facility)
9911      Social Worker, Youth Authority
9272      Staff Psychiatrist, Correctional
           Facility
9290      Staff Psychologist-Clinical,
           Correctional Facility
6713      Stationary Engineer (Correctional
           Facility)
           Stationary Engineer Apprentice (Four-
6718      Year
           Program) (Correctional Facility)
6557      Steamfitter Supervisor (Correctional
           Facility)
           Substitute Academic Teacher
3082      (Correctional
           Facility)
           Supervising Clinical Laboratory
9349      Technologist,
           Correctional Facility
2183      Supervising Cook I (Correctional
           Facility)
2182      Supervising Cook II (Correctional
           Facility)
           Supervising Groundskeeper II
0716      (Correctional
           Facility)
2044      Supervising Housekeeper I (Correctional
           Facility)
2940      Supervising Librarian (Correctional
           Facility)
           Supervising Psychiatric Nurse,
9276      Correctional
           Facility
           Supervising Psychiatric Social Worker
9291      I,
           Correctional Facility
           Supervising Psychiatric Social Worker
9292      II,
           Correctional Facility
           Supervising Registered Nurse I,
9317      Correctional
           Facility
           Supervising Registered Nurse II,
9318      Correctional
           Facility
           Supervising Registered Nurse III,
9319      Correctional
           Facility
9910      Supervising Social Worker I, Youth
           Authority
9908      Supervising Social Worker II, Youth
           Authority
           Supervisor of Academic Instruction
2305      (Correctional
           Facility)
           Supervisor of Building Trades
6763      (Correctional
           Facility)
2384      Supervisor of Commercial Diver Training
2303      Supervisor of Correctional Education
           Programs
2370      Supervisor of Vocational Instruction
9277      Surgical Nurse I, Correctional Facility
9329      Surgical Nurse II, Correctional Facility
           Teacher (Adaptive Physical Education)
3073
           (Correctional Facility)
           Teacher (Cerebral Palsied Children)
2286
           (Correctional Facility)
           Teacher (Elementary-Multiple Subjects)
2287
           (Correctional Facility)
           Teacher (Emotionally/Learning
2288      Handicapped)
           (Correctional Facility)
           Teacher (English Language Development)
3075
           (Correctional Facility)
2297      Teacher       (Ethnic Studies)
           (Correctional Facility)
           Teacher (Family Life Education)
2289      (Correctional
           Facility)
           Teacher (Hearing Impaired)
2373      (Correctional
           Facility)
           Teacher (High School-Arts and Crafts)
2284
           (Correctional Facility)
           Teacher (High School-Business
2285      Education)
           (Correctional Facility)
           Teacher (High School-English/Language
3074      Arts)
           (Correctional Facility)
           Teacher (High School-Foreign Language)
3076
           (Correctional Facility)
           Teacher (High School-General Education)
2290
           (Correctional Facility)
           Teacher (High School-Home Economics)
2291
           (Correctional Facility)
           Teacher (High School-Mathematics)
3077      (Correctional
           Facility)
           Teacher (High School-Music)
2294      (Correctional
           Facility)
           Teacher (High School-Physical
2295      Education)
           (Correctional Facility)
           Teacher (High School-Science)
3078      (Correctional
           Facility)
           Teacher (High School-Social Science)
3079
           (Correctional Facility)
2298      Teacher (Librarian) (Correctional
           Facility)
           Teacher       (Mentally Retarded
2292      Children)
           (Correctional Facility)
           Teacher (Speech Development and
2371      Correction)
           (Correctional Facility)
6400      Teaching Assistant (Correctional
           Facility)
7201      Tobacco Factory Superintendent
7560      Tractor Operator-Laborer (Correctional
           Facility)
6382      Truck Driver (Correctional Facility)
6772      Utility Shops Supervisor (Correctional
           Facility)
           Vocational Instructor (Airframe
2387      Mechanics)
           (Correctional Facility)
           Vocational Instructor (Animal
2853      Husbandry)
           (Correctional Facility)
           Vocational Instructor (Auto Body and
2396      Fender
           Repair) (Correctional Facility)
           Vocational Instructor (Auto Mechanics)
2398
           (Correctional Facility)
           Vocational Instructor (Baking)
2399      (Correctional
           Facility)
           Vocational Instructor (Bookbinding)
2400      (Correctional
           Facility)
           Vocational Instructor (Building
2854      Maintenance)
           (Correctional Facility)
           Vocational Instructor (Carpentry)
2417
           (Correctional Facility)
           Vocational Instructor       (Commercial
2419      Diver
           Training) (Correctional Facility)
           Vocational Instructor (Computer and
2855      Related
           Technologies) (Correctional Facility)
           Vocational Instructor (Cosmetology)
2420      (Correctional
           Facility)
           Vocational Instructor (Culinary Arts)
2422
           (Correctional Facility)
           Vocational Instructor (Dental
2869      Technology)
           (Correctional Facility)
           Vocational Instructor (Diesel
2856      Mechanics)
           (Correctional Facility)
           Vocational Instructor (Dog Grooming and
2423
           Handling) (Correctional Facility)
           Vocational Instructor (Drycleaning
2425      Works)
           (Correctional Facility)
           Vocational Instructor (Drywall
2857      Installer/Taper)
           (Correctional Facility)
           Vocational Instructor (Electrical Work)
2426
           (Correctional Facility)
           Vocational Instructor (Electronics)
2428      (Correctional
           Facility)
           Vocational       Instructor (Eyewear
2688      Manufacturing)
           (Correctional Facility)
           Vocational Instructor (Fire Science)
2429      (Correctional
           Facility)
           Vocational Instructor (Floor Cover
2858      Layer)
           (Correctional Facility)
           Vocational Instructor (Furniture
2431      Refinishing and
           Repair) (Correctional Facility)
           Vocational Instructor (Garment Making)
2432
           (Correctional Facility)
           Vocational Instructor (Heavy Equipment
2433      Repair)
           (Correctional Facility)
           Vocational Instructor (Household
2597      Appliance
           Repair) (Correctional Facility)
           Vocational Instructor (Industrial Arts)
2598
           (Correctional Facility)
           Vocational Instructor (Instrument
2599      Repair)
           (Correctional Facility)
           Vocational Instructor (Janitorial
2600      Service)
           (Correctional Facility)
           Vocational Instructor (Landscape
2601      Gardening)
           (Correctional Facility)
           Vocational       Instructor (Laundry
2611      Work)
           (Correctional Facility)
           Vocational Instructor (Machine Shop
2614
           Practice) (Correctional Facility)
           Vocational Instructor (Masonry)
2615      (Correctional
           Facility)
           Vocational Instructor (Meat Cutting)
2619
           (Correctional Facility)
           Vocational Instructor (Mechanical
2627      Drawing)
           (Correctional Facility)
           Vocational Instructor (Merchandising)
2628
           (Correctional Facility)
           Vocational Instructor (Mill and Cabinet
2630      Work)
           (Correctional Facility)
           Vocational Instructor (Office Machine
2674      Repair)
           (Correctional Facility)
           Vocational Instructor (Office Services
2849      and Related
           Technologies) (Correctional Facility)
           Vocational Instructor (Offset Printing)
2640
           (Correctional Facility)
           Vocational Instructor (Painting)
2644      (Correctional
           Facility)
           Vocational Instructor (Plastering)
2645      (Correctional
           Facility)
           Vocational Instructor (Plumbing)
2661      (Correctional
           Facility)
           Vocational Instructor (Powerplant
2665      Mechanics)
           (Correctional Facility)
           Vocational Instructor (Printing)
2666      (Correctional
           Facility)
           Vocational Instructor (Radiologic
2667      Technology)
           (Correctional Facility)
           Vocational Instructor (Refrigeration
           and
2668
           Air-conditioning Repair) (Correctional
           Facility)
           Vocational Instructor (Roofer)
2850      (Correctional
           Facility)
           Vocational Instructor (Sewing Machine
2669      Repair)
           (Correctional Facility)
           Vocational Instructor (Sheet Metal
2670      Work)
           (Correctional Facility)
           Vocational Instructor (Shoemaking)
2671      (Correctional
           Facility)
           Vocational Instructor (Silk Screening
2672      Process)
           (Correctional Facility)
           Vocational Instructor (Small Engine
2851      Repair)
           (Correctional Facility)
           Vocational Instructor (Storekeeping and
2673
           Warehousing) (Correctional Facility)
           Vocational Instructor
5415      (Telemarketing/Customer
           Service) (Correctional Facility)
           Vocational Instructor (Upholstering)
2675      (Correctional
           Facility)
           Vocational Instructor (Vocational
2676      Nursing)
           (Correctional Facility)
           Vocational Instructor (Welding)
2677
           (Correctional Facility)
1504      Warehouse Manager I (Correctional
           Facility)
1502      Warehouse Manager II (Correctional
           Facility)
6221      Warehouse Worker (Correctional Facility)
           Water and Sewage Plant Supervisor
6724
           (Correctional Facility)
2311      Youth Authority Teacher


   (b) In addition, "state safety member" shall also include officers
and employees of the Department of Corrections and Rehabilitation in
any classification of Vocational Instructor, Industrial Supervisor,
Industrial Superintendent, Assistant Industrial Superintendent, or
Production Manager II (Prison Industries) that is established on or
after January 1, 1984, if the Department of Human Resources and the
State Personnel Board approve the inclusion of the classification.
   (c) "State safety member" shall also include officers and
employees in parenthetical specialty classes when the core class has
already been expressly included in the state safety membership
category if the Department of Human Resources and the State Personnel
Board approve the inclusion of the classifications. The inclusion
shall not be effective until notice of the inclusion has been
received by the board.
   (d) Any of these officers or employees in employment on the
operative date of an amendment to this section and who becomes a
state safety member as a result of that amendment, may elect by a
writing filed with the board prior to 90 days after notification by
the board, to be restored to his or her previous status as a state
industrial member. Upon the filing of the election the member shall
cease to be a state safety member, and his or her rights and
obligations shall be restored prospectively and retroactively to the
operative date of that amendment.
   SEC. 120.   SEC. 115.   Section 20405.1
of the Government Code is amended to read:
   20405.1.  Notwithstanding Section 20405, this section shall apply
to state employees in state bargaining units that have agreed to
these provisions in a memorandum of understanding between the state
employer and the recognized employee organization, as defined in
Section 3513, state employees who are excluded from the definition of
"state employee" by subdivision (c) of Section 3513, and officers or
employees of the executive branch of state government who are not
members of the civil service.
   (a) On and after the effective date of this section, state safety
members shall also include officers and employees whose
classifications or positions are found to meet the state safety
criteria prescribed in Section 19816.20, provided the Department of
Human Resources agrees to their inclusion, and officers and employees
whose classifications or positions have been designated as subject
to state safety membership pursuant to Section 19816.21. For
employees covered by a collective bargaining agreement, the effective
date of safety membership shall be the date on which the department
and the employees' exclusive representative reach agreement by
memorandum of understanding pursuant to Section 3517.5 or any later
date specified in the memorandum of understanding. For employees not
covered by a collective bargaining agreement, the Department of Human
Resources shall determine the effective date of safety membership.
   (b) The department shall notify the board as new classes or
positions become eligible for state safety membership, as specified
in subdivision (a), and specify how service prior to the effective
date shall be credited.
   (c) The department shall prepare and submit to the Legislature an
annual report that contains the classes or positions that are
eligible for state safety membership under this section.
   (d) Any person designated as a state safety member pursuant to
this section may elect, within 90 days of notification by the board,
to remain subject to the miscellaneous or industrial service
retirement benefit and contribution rate by filing an irrevocable
election with the board. A member who so elects shall be subject to
the reduced benefit factors specified in Section 21076, 21353, or
21354.1, as applicable, only for service also included in the federal
system.
   SEC. 121.   SEC. 116.   Section 20405.2
of the Government Code is amended to read:
   20405.2.  A member who made the election to remain under the
miscellaneous or industrial retirement benefit, as provided in
Section 20405.1, may elect to be subject to the state safety formula
within 90 days of notification by the board. The election, which
shall be provided by the board on and after January 1, 2000, shall be
filed with the board. Past service that would have been credited as
a safety member, but for the member's election to remain under the
miscellaneous or industrial formula, shall be credited under the
safety formula. This section shall apply to state employees in state
bargaining units that have agreed to this provision in a memorandum
of understanding, or authorized by the Director of Human Resources
for classifications of state employees that are excluded from the
definition of state employee by paragraph (c) of Section 3513.
   SEC. 122.   SEC. 117.   Section 20405.3
of the Government Code is amended to read:
   20405.3.  (a) A member who is an employee of the Department of
Corrections and Rehabilitation, who made the election to remain under
the state industrial membership classification, as provided in
subdivision (d) of Section 20405, may elect to be subject to state
safety membership within 90 days of notification by the board, if the
employee is in any of the following classifications:
   (1) Dentist, Correctional Facility.
   (2) Physician and Surgeon, Correctional Facility.
   (3) Staff Psychiatrist, Correctional Facility.
   (4) Podiatrist, Correctional Facility.
   (b) The election, which shall be provided by the board on and
after January 1, 2002, shall be filed with the board. Past service
that would have been credited as a state safety member, but for the
member's election to remain under the state industrial formula, shall
be credited as safety service.
   (c) This section shall apply to state employees in State
Bargaining Unit 16 and, if authorized by the Director of Human
Resources, state employees that are excluded from the definition of
"state employee" by paragraph (c) of Section 3513.
   SEC. 123.   SEC. 118.   Section 20407 of
the Government Code is amended to read:
   20407.  "State safety member" also includes officers and employees
with the State Department of Mental Health and the Department of
Corrections and Rehabilitation in the following classifications:
Classification
   Code               Classification Title
   8254          Prelicensed Psychiatric
               Technician
                  (forensic facility)
   8253          Psychiatric Technician
                  (forensic facility)
   8252          Senior Psychiatric Technician
                  (forensic facility)
   8212          Nurse Practitioner
                  (forensic facility)
   8160          Health Services Specialist
                  (forensic facility)
   7601          Program Director-Medical
                  (forensic facility)


   "State safety member" also includes an officer or employee of the
State Department of Mental Health at Patton State Hospital or
Atascadero State Hospital, the State Department of Mental Health
Psychiatric Program of California Medical Facility at Vacaville, or
any other state hospital that is deemed a forensic facility, who
either is excluded from the definition of state employee in
subdivision (c) of Section 3513 or is a nonelected officer or
employee of the executive branch of government who is not a member of
the civil service. An officer or employee may be a state safety
member under this paragraph only if the person has responsibility for
the direct supervision of state safety personnel specified in the
classifications listed in this section and if the State Personnel
Board determines that these officers and employees meet the state
safety membership criteria established pursuant to Section 18717. The
Department of Human Resources shall determine which classes meet the
above conditions and report its findings to the Public Employees'
Retirement System, whereupon the change in membership categories
shall take effect.
   Any person so designated pursuant to this section may elect,
within 90 days of notification by the board, to remain subject to the
miscellaneous service retirement benefit and contribution rate by
filing an irrevocable notice of election with the board. A member who
so elects shall be subject to the reduced benefit factors specified
in Section 21353 or 21354.1, as applicable, only for service also
included in the federal system.
   SEC. 124.   SEC. 119.   Section 20408 of
the Government Code is amended to read:
   20408.  "State safety member" also includes officers and employees
with the State Department of Mental Health or the Department of
Forestry and Fire Protection in the following classifications:
Classification
Code                     Classification Title
                      Audio Visual
2860                 Assistant
                      (Correctional
                      Facility)
                      Audio Visual Specialist
2861                 (Correctional
                      Facility)
8094                 Registered Nurse (Forensic
                      Facility)


   "State safety member" also includes an officer or employee of the
State Department of Mental Health at Patton State Hospital or
Atascadero State Hospital, who either is excluded from the definition
of state employee in subdivision (c) of Section 3513, or is a
nonelected officer or employee of the executive branch of government
who is not a member of the civil service. An officer or employee may
be a state safety member under this paragraph only if the person has
responsibility for the supervision of state safety personnel
specified in the classifications listed in this section and if the
State Personnel Board determines that these officers and employees
meet the state safety membership criteria established pursuant to
Section 18717. The Department of Human Resources shall determine
which classes meet the above conditions and report its findings to
this system, whereupon the change in membership categories shall take
effect.
   SEC. 125.   SEC. 120.   Section 20632 of
the Government Code is amended to read:
   20632.  For state employees in classifications designated by the
Director of Human Resources who are also excluded from, or otherwise
not subject to, collective bargaining, and for employees in
bargaining units for which a memorandum of understanding has been
agreed to by the state employer and the recognized employee
organization to become subject to this section, compensation for
uniforms shall not constitute "compensation" for the purposes of the
computation of retirement contributions by employees and the state or
for the purposes of the calculation of retirement benefits.
   SEC. 126.   SEC. 121.   Section 20636 of
the Government Code is amended to read:
   20636.  (a) "Compensation earnable" by a member means the payrate
and special compensation of the member, as defined by subdivisions
(b), (c), and (g), and as limited by Section 21752.5.
   (b) (1) "Payrate" means the normal monthly rate of pay or base pay
of the member paid in cash to similarly situated members of the same
group or class of employment for services rendered on a full-time
basis during normal working hours, pursuant to publicly available pay
schedules. "Payrate," for a member who is not in a group or class,
means the monthly rate of pay or base pay of the member, paid in cash
and pursuant to publicly available pay schedules, for services
rendered on a full-time basis during normal working hours, subject to
the limitations of paragraph (2) of subdivision (e).
   (2) "Payrate" shall include an amount deducted from a member's
salary for any of the following:
   (A) Participation in a deferred compensation plan.
   (B) Payment for participation in a retirement plan that meets the
requirements of Section 401(k) of Title 26 of the United States Code.

   (C) Payment into a money purchase pension plan and trust that
meets the requirements of Section 401(a) of Title 26 of the United
States Code.
   (D) Participation in a flexible benefits program.
   (3) The computation for a leave without pay of a member shall be
based on the compensation earnable by him or her at the beginning of
the absence.
   (4) The computation for time prior to entering state service shall
be based on the compensation earnable by him or her in the position
first held by him or her in state service.
   (c) (1) Special compensation of a member includes a payment
received for special skills, knowledge, abilities, work assignment,
workdays or hours, or other work conditions.
   (2) Special compensation shall be limited to that which is
received by a member pursuant to a labor policy or agreement or as
otherwise required by state or federal law, to similarly situated
members of a group or class of employment that is in addition to
payrate. If an individual is not part of a group or class, special
compensation shall be limited to that which the board determines is
received by similarly situated members in the closest related group
or class that is in addition to payrate, subject to the limitations
of paragraph (2) of subdivision (e).
   (3) Special compensation shall be for services rendered during
normal working hours and, when reported to the board, the employer
shall identify the pay period in which the special compensation was
earned.
   (4) Special compensation may include the full monetary value of
normal contributions paid to the board by the employer, on behalf of
the member and pursuant to Section 20691, if the employer's labor
policy or agreement specifically provides for the inclusion of the
normal contribution payment in compensation earnable.
   (5) The monetary value of a service or noncash advantage furnished
by the employer to the member, except as expressly and specifically
provided in this part, is not special compensation unless regulations
promulgated by the board specifically determine that value to be
"special compensation."
   (6) The board shall promulgate regulations that delineate more
specifically and exclusively what constitutes "special compensation"
as used in this section. A uniform allowance, the monetary value of
employer-provided uniforms, holiday pay, and premium pay for hours
worked within the normally scheduled or regular working hours that
are in excess of the statutory maximum workweek or work period
applicable to the employee under Section 201 et seq. of Title 29 of
the United States Code shall be included as special compensation and
appropriately defined in those regulations.
   (7) Special compensation does not include any of the following:
   (A) Final settlement pay.
   (B) Payments made for additional services rendered outside of
normal working hours, whether paid in lump sum or otherwise.
   (C) Other payments the board has not affirmatively determined to
be special compensation.
   (d) Notwithstanding any other provision of law, payrate and
special compensation schedules, ordinances, or similar documents
shall                                                be public
records available for public scrutiny.
   (e) (1) As used in this part, "group or class of employment" means
a number of employees considered together because they share
similarities in job duties, work location, collective bargaining
unit, or other logical work-related grouping. One employee may not be
considered a group or class.
   (2) Increases in compensation earnable granted to an employee who
is not in a group or class shall be limited during the final
compensation period applicable to the employees, as well as the two
years immediately preceding the final compensation period, to the
average increase in compensation earnable during the same period
reported by the employer for all employees who are in the same
membership classification, except as may otherwise be determined
pursuant to regulations adopted by the board that establish
reasonable standards for granting exceptions.
   (f) As used in this part, "final settlement pay" means pay or cash
conversions of employee benefits that are in excess of compensation
earnable, that are granted or awarded to a member in connection with,
or in anticipation of, a separation from employment. The board shall
promulgate regulations that delineate more specifically what
constitutes final settlement pay.
   (g) (1) Notwithstanding subdivision (a), "compensation earnable"
for state members means the average monthly compensation, as
determined by the board, upon the basis of the average time put in by
members in the same group or class of employment and at the same
rate of pay, and is composed of the payrate and special compensation
of the member. The computation for an absence of a member shall be
based on the compensation earnable by him or her at the beginning of
the absence and for time prior to entering state service shall be
based on the compensation earnable by him or her in the position
first held by him or her in that state service.
   (2) Notwithstanding subdivision (b), "payrate" for state members
means the average monthly remuneration paid in cash out of funds paid
by the employer to similarly situated members of the same group or
class of employment, in payment for the member's services or for time
during which the member is excused from work because of holidays,
sick leave, vacation, compensating time off, or leave of absence.
"Payrate" for state members shall include:
   (A) An amount deducted from a member's salary for any of the
following:
   (i) Participation in a deferred compensation plan established
pursuant to Chapter 4 (commencing with Section 19993) of Part 2.6.
   (ii) Payment for participation in a retirement plan that meets the
requirements of Section 401(k) of Title 26 of the United States
Code.
   (iii) Payment into a money purchase pension plan and trust that
meets the requirements of Section 401(a) of Title 26 of the United
States Code.
   (iv) Participation in a flexible benefits program.
   (B) A payment in cash by the member's employer to one other than
an employee for the purpose of purchasing an annuity contract for a
member under an annuity plan that meets the requirements of Section
403(b) of Title 26 of the United States Code.
   (C) Employer "pick up" of member contributions that meets the
requirements of Section 414(h)(2) of Title 26 of the United States
Code.
   (D) Disability or workers' compensation payments to safety members
in accordance with Section 4800 of the Labor Code.
   (E) Temporary industrial disability payments pursuant to Article 4
(commencing with Section 19869) of Chapter 2.5 of Part 2.6.
   (F) Other payments the board may determine to be within "payrate."

   (3) Notwithstanding subdivision (c), "special compensation" for
state members shall mean all of the following:
   (A) The monetary value, as determined by the board, of living
quarters, board, lodging, fuel, laundry, and other advantages of any
nature furnished to a member by his or her employer in payment for
the member's services.
   (B) Compensation for performing normally required duties, such as
holiday pay, bonuses (for duties performed on regular work shift),
educational incentive pay, maintenance and noncash payments,
out-of-class pay, marksmanship pay, hazard pay, motorcycle pay,
paramedic pay, emergency medical technician pay, Peace Officer
Standards and Training (POST) certificate pay, and split shift
differential.
   (C) Compensation for uniforms, except as provided in Section
20632.
   (D) Other payments the board may determine to be within "special
compensation."
   (4) "Payrate" and "special compensation" for state members do not
include any of the following:
   (A) The provision by the state employer of a medical or hospital
service or care plan or insurance plan for its employees (other than
the purchase of annuity contracts as described below in this
subdivision), a contribution by the employer to meet the premium or
charge for that plan, or a payment into a private fund to provide
health and welfare benefits for employees.
   (B) A payment by the state employer of the employee portion of
taxes imposed by the Federal Insurance Contribution Act.
   (C) Amounts not available for payment of salaries and that are
applied by the employer for the purchase of annuity contracts
including those that meet the requirements of Section 403(b) of Title
26 of the United States Code.
   (D) Benefits paid pursuant to Article 5 (commencing with Section
19878) of Chapter 2.5 of Part 2.6.
   (E) Employer payments that are to be credited as employee
contributions for benefits provided by this system, or employer
payments that are to be credited to employee accounts in deferred
compensation plans. The amounts deducted from a member's wages for
participation in a deferred compensation plan may not be considered
to be "employer payments."
   (F) Payments for unused vacation, annual leave, personal leave,
sick leave, or compensating time off, whether paid in lump sum or
otherwise.
   (G) Final settlement pay.
   (H) Payments for overtime, including pay in lieu of vacation or
holiday.
   (I) Compensation for additional services outside regular duties,
such as standby pay, callback pay, court duty, allowance for
automobiles, and bonuses for duties performed after the member's
regular work shift.
   (J) Amounts not available for payment of salaries and that are
applied by the employer for any of the following:
   (i) The purchase of a retirement plan that meets the requirements
of Section 401(k) of Title 26 of the United States Code.
   (ii) Payment into a money purchase pension plan and trust that
meets the requirements of Section 401(a) of Title 26 of the United
States Code.
   (K) Payments made by the employer to or on behalf of its employees
who have elected to be covered by a flexible benefits program, where
those payments reflect amounts that exceed the employee's salary.
   (L) Other payments the board may determine are not "payrate" or
"special compensation."
   (5) If the provisions of this subdivision, including the board's
determinations pursuant to subparagraph (F) of paragraph (2) and
subparagraph (D) of paragraph (3), are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or 3560, 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, those provisions may not become effective unless approved
by the Legislature in the annual Budget Act. No memorandum of
understanding reached pursuant to Section 3517.5 or 3560 may exclude
from the definition of either "payrate" or "special compensation" a
member's base salary payments or payments for time during which the
member is excused from work because of holidays, sick leave,
vacation, compensating time off, or leave of absence. If items of
compensation earnable are included by memorandum of understanding as
"payrate" or "special compensation" for retirement purposes for
represented and higher education employees pursuant to this
paragraph, the Department of Human Resources or the Trustees of the
California State University shall obtain approval from the board for
that inclusion.
   (6) (A) Subparagraph (B) of paragraph (3) prescribes that
compensation earnable includes compensation for performing normally
required duties, such as holiday pay, bonuses (for duties performed
on regular work shift), educational incentive pay, maintenance and
noncash payments, out-of-class pay, marksmanship pay, hazard pay,
motorcycle pay, paramedic pay, emergency medical technician pay, POST
certificate pay, and split shift differential; and includes
compensation for uniforms, except as provided in Section 20632; and
subparagraph (I) of paragraph (4) excludes from compensation earnable
compensation for additional services outside regular duties, such as
standby pay, callback pay, court duty, allowance for automobile, and
bonuses for duties performed after regular work shift.
   (B) Notwithstanding subparagraph (A), the Department of Human
Resources shall determine which payments and allowances that are paid
by the state employer shall be considered compensation for
retirement purposes for an employee who either is excluded from the
definition of state employee in Section 3513, or is a nonelected
officer or employee of the executive branch of government who is not
a member of the civil service.
   (C) Notwithstanding subparagraph (A), the Trustees of the
California State University shall determine which payments and
allowances that are paid by the trustees shall be considered
compensation for retirement purposes for a managerial employee, as
defined in Section 3562, or supervisory employee as defined in
Section 3580.3.
   SEC. 127.   SEC. 122.   Section 20672.5
of the Government Code is amended to read:
   20672.5.  Whenever a member's contribution rate is temporarily
reduced by statute, a memorandum of understanding, or the Director of
Human Resources, those reductions shall be limited to the payment of
member contributions during the reduction period and do not apply to
the purchase of service credit or the redeposit of member
contributions. The purchase of service credit and the redeposit of
member contributions shall be subject to the normal rate of
contribution for the member in effect immediately prior to the
temporary rate reduction.
   SEC. 128.   SEC. 123.   Section 20677.4
of the Government Code is amended to read:
   20677.4.  (a) (1) The normal rate of contribution for a state
miscellaneous or state industrial member whose service is not
included in the federal system shall be 6 percent of the compensation
in excess of three hundred seventeen dollars ($317) per month paid
to that member for service rendered on or after July 1, 1976.
   (2) The normal rate of contribution for a state miscellaneous or
state industrial member, who has elected to be subject to Section
21353.5 and whose service is not included in the federal system,
shall be 6 percent of the member's compensation.
   (3) The normal rate of contribution as established under this
subdivision for a member whose service is included in the federal
system, and whose service retirement allowance is reduced under
Section 21354.1, because of that inclusion, shall be reduced by
one-third as applied to compensation not exceeding four hundred
dollars ($400) per month for service after the date of execution of
the agreement including service in the federal system and prior to
termination of the agreement with respect to the coverage group to
which he or she belongs.
   (b) The normal rate of contribution for a state miscellaneous or
state industrial member whose service has been included in the
federal system shall be 5 percent of compensation in excess of five
hundred thirteen dollars ($513) per month paid that member for
service rendered on or after July 1, 1976.
   (c) The normal rate of contribution for a state miscellaneous or
state industrial member who is subject to Section 21076 or 21077
shall be 0 percent.
   (d) A member who elected to become subject to Section 21353 solely
for service rendered on or after the effective date of the election,
as authorized by subdivision (c) of Section 21070 during the period
between November 1, 1988, and October 31, 1989, is not required to
make the contributions specified in Section 21073.
   (e) A member who elects to become subject to Section 21354.1, as
applicable, shall contribute at the rate specified in paragraph (1)
of subdivision (a) or paragraph (1) of subdivision (b), as determined
by the member's status with the federal system, and the rate shall
be applied from the first of the month following the date of the
election. A member who makes the election shall also contribute for
service prior to the date the contribution rate was applied, in the
manner specified in Section 21073 or 21073.1, as applicable.
   (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.
   (g) The Director 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 Human Resources but
shall be no earlier than the beginning of the pay period following
the date the board receives notification.
   SEC. 129.   SEC. 124.   Section 20683 of
the Government Code is amended to read:
   20683.  (a) For each state member subject to Section 21369 or
21369.1, the normal rate of contribution shall be 6 percent of
compensation in excess of three hundred seventeen dollars ($317) per
month paid to a member whose service is not included in the federal
system or in excess of five hundred thirteen dollars ($513) for one
whose service is included in the federal system. 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 those provisions of the memorandum of
understanding require the expenditure of funds, those provisions
shall not become effective unless approved by the Legislature in the
annual Budget Act.
   (b) The Director 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 Human Resources but
shall be no earlier than the beginning of the pay period following
the date the board receives notification.
   (c) For each local safety member subject to Section 21369, the
normal rate of contribution shall be 7 percent of compensation.
   (d) The normal rate of contribution as established under this
section for a local member whose service is included in the federal
system and whose retirement allowance is reduced because of that
inclusion shall be reduced by one-third as applied to compensation
not exceeding four hundred dollars ($400) per month for service
rendered after the date of execution of the modification of the
federal-state agreement including those services in the federal
system and prior to termination of his or her coverage under the
federal system.
   (e) The operative date of this section with respect to a local
safety member shall be the date upon which he or she becomes subject
to Section 21369.
   SEC. 130.   SEC. 125.   Section 20683.1
of the Government Code is amended to read:
   20683.1.  (a) For each state safety member subject to Section
21369 or 21369.1 who is represented by State Bargaining Unit 2, the
normal rate of contribution shall be 10 percent of compensation in
excess of three hundred seventeen dollars ($317) per month paid to a
member whose service is not included in the federal system beginning
with the pay period following the operative date of the amendments to
this section made by Senate Bill 151 of the 2011-12 Regular Session.
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 those provisions
of the memorandum of understanding require the expenditure of funds,
those provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
   (b) The Director 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 Human Resources but
shall be no earlier than the beginning of the pay period following
the date the board receives notification.
   SEC. 131.   SEC. 126.   Section 20687 of
the Government Code is amended to read:
   20687.  (a) The normal rate of contribution for state peace
officer/firefighter members subject to Section 21363, 21363.1,
21363.3, 21363.4, or 21363.8 shall be 8 percent of the compensation
in excess of two hundred thirty-eight dollars ($238) per month paid
to those members.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5 or pursuant to Chapter 12 (commencing with Section
3560) of Division 4 of Title 1, the memorandum of understanding shall
be controlling without further legislative action, except that if
those provisions of a memorandum of understanding require the
expenditure of funds, those provisions shall not become effective
unless approved by the Legislature in the annual Budget Act.
   (c) The Director 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 Human Resources but
shall be no earlier than the beginning of the pay period following
the date the board receives notification.
   SEC. 132.   SEC. 127.   Section 20963.1
of the Government Code is amended to read:
   20963.1.  (a) A state member whose effective date of retirement is
within four months of separation from employment of the state, shall
be credited at his or her retirement with 0.004 year of service for
each unused day of educational leave credit, as certified to the
board by the employer. The provisions of this section shall be
effective for eligible state members who retire directly from state
employment on and after January 1, 2000.
   (b) This section shall apply to eligible state members in state
bargaining units that have agreed to this section in a memorandum of
understanding, or as authorized by the Director of Human Resources
for classifications of state employees that are excluded from the
definition of "state employee" by paragraph (c) of Section 3513 of
the Government Code.
   SEC. 133.   SEC. 128.   Section 21159 of
the Government Code is amended to read:
   21159.  (a) Notwithstanding any other provision of law, a state
member shall not be retired for industrial disability for an illness
or injury that occurs on or after January 1, 1993, unless the member
is incapacitated for the performance of duty in any employment with
the state employer and the disability is of permanent or extended and
uncertain duration, as determined by the Department of Human
Resources. This section shall only apply to state safety, state
industrial, and state miscellaneous members employed in any state
bargaining units for which a memorandum of understanding has been
agreed to by the state employer and the recognized employee
organization to become subject to this section. The Director of Human
Resources may adopt rules regarding job placement and other related
activities necessary for the administration of this section and
Section 21195.
   (b) A state member who, because of the enactment of this section
is no longer eligible to retire for industrial disability and accepts
alternate employment with the state in which the compensation is
less than that received in the position held at the time of the
illness or injury, shall, upon certification of the Department of
Human Resources to the board, become entitled to benefits under the
partial disability retirement program set forth in Section 21160.
   (c) The employee shall have the right of appeal to the Department
of Human Resources regarding: (1) the requirement to participate or
(2) the exclusion from participating in the program described in this
section and Section 21160.
   (d) For all other disputes relative to this section and Section
21160, the employee shall seek administrative remedy from his or her
appointing power through the departmental complaint process.
   (e) The appointing power of the affected employee shall reimburse
the Department of Human Resources for any costs associated with the
administration of this provision.
   (f) This section shall not apply to any job-related or
job-incurred illness or injury that occurs on or after January 1,
2000.
   SEC. 134.   SEC. 129.   Section 21160 of
the Government Code is amended to read:
   21160.  (a) Any state member who is subject to Section 21159 and
does not qualify for industrial disability retirement under this
part, or is reinstated from industrial disability retirement pursuant
to Section 21195, and accepts another job in state service, shall be
paid a partial disability retirement program benefit payment from
this system in an amount, to be calculated by the Department of Human
Resources and certified to the board, that, when added to the salary
earned by the employee in the current state position, would be equal
to the state salary earned by the member at the time of becoming
unable to perform the duties of his or her previous position. This
supplemental payment shall not result in the member being deemed to
be retired.
   (b) The partial disability retirement program benefit payments
made under this section shall be paid for by the state employer in
the same manner as all other state retirement benefits are funded.
   (c) This section shall not apply to any job-related or
job-incurred illness or injury that occurs on or after January 1,
2000.
   SEC. 135.   SEC. 130.   Section 21195 of
the Government Code is amended to read:
   21195.  (a) Notwithstanding any other section in Article 6
(commencing with Section 21150) or in this article, the Department of
Human Resources may reinstate a person who has retired for
industrial disability pursuant to Section 21410, within 12 months
after the effective date of retirement, if it has identified an
available position with duties that the employee is able to perform.
Upon reinstatement, the person shall become entitled to benefits
under the partial disability retirement program pursuant to Section
21160.
   (b) This section shall not apply to any job-related or
job-incurred illness or injury that occurs on or after January 1,
2000.
   SEC. 136.   SEC. 131.   Section 21223 of
the Government Code is amended to read:
   21223.  A retired person may serve without reinstatement from
retirement or loss or interruption of benefits provided under this
system upon approval of the Director of Human Resources or the
governing body of a contracting agency, as the case may be, under
employment by any state or contracting agency in which he or she
previously served while a member of this system, where by reason of
actual litigation, or a proceeding before the California Victim
Compensation and Government Claims Board or the governing body of a
contracting agency, as the case may be, or where the state or
contracting agency desires to perpetuate testimony in connection with
any anticipated litigation involving the state or contracting
agency, and adverse interests, the services of the person are or may
be necessary in preparing for trial or in testifying as to matters
within or based upon his or her knowledge acquired while employed. He
or she may be paid a per diem and actual and necessary traveling
expenses, but he or she shall not be paid at a greater rate of
compensation per diem than the rate ordinarily paid other persons by
state agencies or the contracting agency for similar services.
However, there shall be deducted from the per diem compensation sums
equal to the retirement annuity allocable to the days of actual
employment under this section.
   SEC. 137.   SEC. 132.   Section 21251.13
of the Government Code is amended to read:
   21251.13.  (a) Notwithstanding any other provision of law,
Sections 21070.5, 21070.6, 21073.1, 21073.7, 21354.1, 21362.2,
21363.1, and 21369.1 and the amendments to Sections 21070, 21071,
21072, 21073, 21073.5, and 21353.5, enacted during the first year of
the 1999-2000 Regular Session:
   (1) Shall not become operative unless the board adopts a
resolution that does both of the following: (A) employs, for the June
30, 1998, valuation, 95 percent of the market value of assets of the
state employer as the actuarial value of the assets; and (B)
amortizes the June 30, 1998, excess assets over a period of 20 years,
beginning July 1, 1999.
   (2) Shall not apply to a state employee, as defined in subdivision
(c) of Section 3513, in a bargaining unit unless and until
incorporated in a memorandum of understanding, pursuant to Section
3517.5, applicable to that
         bargaining unit.
   (3) Shall not apply to excluded employees, as defined in Section
3527, unless the Department of Human Resources has approved the
application of those provisions to those employees. Notwithstanding
any provision of law to the contrary, any approval by the Department
of Human Resources for the application of these provisions to those
excluded employees is irrevocable.
   (b) Notwithstanding anything in a memorandum of understanding to
the contrary, (1) the benefits provided under the provisions of those
sections described in subdivision (a), as added or amended during
the first year of the 1999-2000 Regular Session, shall not terminate
upon the expiration or termination of the memorandum of
understanding, and (2) the only conditions to the operation of the
provisions of those sections described in subdivision (a), as added
or amended during the first year of the 1999-2000 Regular Session,
are contained in this section.
   (c) Notwithstanding Section 3517.8 or any provision of a
memorandum of understanding that has been continued in effect on and
after January 15, 2011, pursuant to Section 3517.8 to the contrary,
the retirement formulas in Sections 21354.1, 21363.3, 21363.4,
21363.8, and 21369.1 shall only apply to state employees who were
first employed and subject to those sections before January 15, 2011.
Those sections shall not apply to any state employee member first
employed on and after January 15, 2011.
   (d) Upon request by the state employer or other entity, or on its
own volition, the board may change the amortization period, or take
any other action the board deems necessary or appropriate, to
mitigate the impact of unforeseen factors that may cause an increase
in the employer contribution by the state. Nothing in this section
shall be construed to limit the board's authority under Section 17 of
Article 16 of the California Constitution.
   SEC. 138.  SEC. 133.   Section 21353 of
the Government Code is amended to read:
   21353.  (a) The combined current and prior service pensions for a
local miscellaneous member, a school member, a state miscellaneous or
state industrial member, or a university member is a pension derived
from the contributions of the employer sufficient, when added to the
service retirement annuity that is derived from the accumulated
normal contributions of the member at the date of retirement, to
equal the fraction of one-fiftieth of the member's final compensation
set forth opposite the member's age at retirement, taken to the
preceding completed quarter year, in the following table, multiplied
by the number of years of current and prior service except service in
a category of membership other than that of state or state
industrial member, local miscellaneous member, school member, or a
university member, or service covered under this First Tier
retirement formula, with which the member is entitled to be credited
at retirement:
  Age of
Retirement                            Fraction
50 ...............................       .546
50 1/4 ...........................       .554
50 1/2 ...........................       .562
50 3/4 ...........................       .570
51 ...............................       .578
51 1/4 ...........................       .586
51 1/2 ...........................       .595
51 3/4 ...........................       .603
52 ...............................       .612
52 1/4 ...........................       .621
52 1/2 ...........................       .630
52 3/4 ...........................       .639
53 ...............................       .648
53 1/4 ...........................       .658
53 1/2 ...........................       .668
53 3/4 ...........................       .678
54 ...............................       .688
54 1/4 ...........................       .698
54 1/2 ...........................       .709
54 3/4 ...........................       .719
55 ...............................       .730
55 1/4 ...........................       .741
55 1/2 ...........................       .753
55 3/4 ...........................       .764
56 ...............................       .776
56 1/4 ...........................       .788
56 1/2 ...........................       .800
56 3/4 ...........................       .813
57 ...............................       .825
57 1/4 ...........................       .839
57 1/2 ...........................       .852
57 3/4 ...........................       .865
58 ...............................       .879
58 1/4 ...........................       .893
58 1/2 ...........................       .908
58 3/4 ...........................       .923
59 ...............................       .937
59 1/4 ...........................       .953
59 1/2 ...........................       .969
59 3/4 ...........................       .985
60 ...............................      1.000
60 1/4 ...........................      1.017
60 1/2 ...........................      1.034
60 3/4 ...........................      1.050
61 ...............................      1.067
61 1/4 ...........................      1.084
61 1/2 ...........................      1.101
61 3/4 ...........................      1.119
62 ...............................      1.136
62 1/4 ...........................      1.154
62 1/2 ...........................      1.173
62 3/4 ...........................      1.191
63 and over ......................      1.209


   (b) The fractions specified in the above table shall be reduced by
one-third as applied to that part of final compensation that does
not exceed four hundred dollars ($400) per month for all service of a
member any of whose service has been included in the federal system.
This reduction shall not apply to a member employed by a contracting
agency that enters into a contract after July 1, 1971, and elects
not to be subject to this paragraph or with respect to service
rendered after the termination of coverage under the federal system
with respect to the coverage group to which the member belongs.
   (c) The improved retirement allowance provided by this section is
granted subject to future reduction prior to a member's retirement,
by offset of federal system benefits or otherwise, as the Legislature
may from time to time deem appropriate because of changes in the
federal system benefits.
   (d) With the exception of state miscellaneous members for service
rendered for the California State University or the legislative or
judicial branch of government, this section shall apply to state
miscellaneous and state industrial members who are not employed by
the state on or after January 1, 2000.
   (e) (1) This section shall apply to a state miscellaneous or
industrial member who is employed by the state for the first time and
becomes a state miscellaneous or industrial member of the system on
or after the first day of the pay period following the effective date
of the act adding this subdivision, and is represented by State
Bargaining Unit 12, 16, 18, or 19. With respect to related state
miscellaneous or industrial members in managerial, supervisory, or
confidential positions and officers or employees of the executive
branch of state government who are not members of the civil service,
the Director of Human Resources may exercise his or her discretion
whether to approve their status in writing to the board.
   (2) This subdivision does not apply to:
   (A) Former state employees previously employed before the first
day of the pay period following the effective date of this
subdivision, who return to state employment on or after the first day
of the pay period following the effective date of this subdivision.
   (B) State employees hired prior to the first day of the pay period
following the effective date of this subdivision, who were subject
to Section 20281.5 during the first 24 months of state employment.
   (C) State employees hired prior to the first day of the pay period
following the effective date of this subdivision, who become subject
to representation by State Bargaining Unit 12, 16, 18, or 19 on or
after the first day of the pay period following the effective date of
the act adding this subdivision.
   (D) State employees on an approved leave of absence employed
before the first day of the pay period following the effective date
of this subdivision, who return to active employment on or after the
first day of the pay period following the effective date of the act
adding this subdivision.
   (f) (1) This section shall apply to a state miscellaneous or
industrial member who is employed by the state for the first time and
becomes a state miscellaneous or industrial member of the system on
or after October 31, 2010, and is represented by State Bargaining
Unit 5 or 8. With respect to related state miscellaneous or
industrial members in managerial, supervisory, or confidential
positions and officers or employees of the executive branch of state
government who are not members of the civil service, the Director of
Human Resources may exercise his or her discretion whether to approve
their status in writing to the board.
   (2) This subdivision does not apply to:
   (A) Former state employees previously employed before October 31,
2010, who return to state employment on or after October 31, 2010.
   (B) State employees hired prior to October 31, 2010, who were
subject to Section 20281.5 during the first 24 months of state
employment.
   (C) State employees hired prior to October 31, 2010, who become
subject to representation by State Bargaining Unit 5 or 8 on or after
October 31, 2010.
   (D) State employees on an approved leave of absence employed
before October 1, 2010, who return to active employment on or after
October 31, 2010.
   (g) (1) Notwithstanding Section 3517.8 or any provision of an
expired memorandum of understanding, this section shall also apply to
a state miscellaneous or industrial member who is employed by the
state, the Legislature, the judicial branch, or the California State
University for the first time and becomes a member of the system on
or after January 15, 2011.
   (2) If this subdivision is in conflict with a memorandum of
understanding that is current and in effect on January 15, 2011, the
memorandum of understanding shall be controlling while it remains in
effect. Upon expiration of the memorandum of understanding that is in
effect and current on January 15, 2011, this section shall be
controlling and may not be superseded by a subsequent memorandum of
understanding.
   (3) This subdivision does not apply to:
   (A) Former state, legislative, judicial branch, or university
employees previously employed before January 15, 2011, who return to
employment on or after January 15, 2011, and who were not previously
subject to this section.
   (B) State employees hired prior to January 15, 2011, who were
subject to Section 20281.5 during the first 24 months of state
employment, and who were not previously subject to this section.
   (C) State, legislative, judicial branch, or university employees
on an approved leave of absence employed before January 15, 2011, who
return to active employment on or after January 15, 2011, and who
were not previously subject to this section.
   SEC. 139.   SEC. 134.   Section 21354.1
of the Government Code is amended to read:
   21354.1.  (a) The combined current and prior service pensions for
school members, state miscellaneous or state industrial members, or
university members who are subject to the provisions of this section
is a pension derived from the contributions of the employer
sufficient, when added to the service retirement annuity that is
derived from the accumulated normal contributions of the member at
the date of retirement, to equal the fraction of one-fiftieth of the
member's final compensation set forth opposite the member's age at
retirement, taken to the preceding completed quarter year, in the
following table, multiplied by the number of years of current and
prior service, except service in a category of membership other than
that of a school member, state miscellaneous or state industrial
member, or university member or service covered under this retirement
formula with which the member is entitled to be credited at
retirement:
   Age at
  retirement                            Fraction
50 ...............................       0.550
50 1/4 ...........................       0.573
50 1/2 ...........................       0.595
50 3/4 ...........................       0.618
51 ...............................       0.640
51 1/4 ...........................       0.663
51 1/2 ...........................       0.685
51 3/4 ...........................       0.708
52 ...............................       0.730
52 1/4 ...........................       0.753
52 1/2 ...........................       0.775
52 3/4 ...........................       0.798
53 ...............................       0.820
53 1/4 ...........................       0.843
53 1/2 ...........................       0.865
53 3/4 ...........................       0.888
54 ...............................       0.910
54 1/4 ...........................       0.933
54 1/2 ...........................       0.955
54 3/4 ...........................       0.978
55 ...............................       1.000
55 1/4 ...........................       1.008
55 1/2 ...........................       1.016
55 3/4 ...........................       1.024
56 ...............................       1.032
56 1/4 ...........................       1.040
56 1/2 ...........................       1.048
56 3/4 ...........................       1.055
57 ...............................       1.063
57 1/4 ...........................       1.071
57 1/2 ...........................       1.079
57 3/4 ...........................       1.086
58 ...............................       1.094
58 1/4 ...........................       1.102
58 1/2 ...........................       1.110
58 3/4 ...........................       1.118
59 ...............................       1.125
59 1/4 ...........................       1.134
59 1/2 ...........................       1.141
59 3/4 ...........................       1.149
60 ...............................       1.157
60 1/4 ...........................       1.165
60 1/2 ...........................       1.173
60 3/4 ...........................       1.180
61 ...............................       1.188
61 1/4 ...........................       1.196
61 1/2 ...........................       1.203
61 3/4 ...........................       1.211
62 ...............................       1.219
62 1/4 ...........................       1.227
62 1/2 ...........................       1.235
62 3/4 ...........................       1.243
63 and over ......................       1.250


   (b) The fraction specified in the above table shall be reduced by
one-third as applied to that part of final compensation that does not
exceed four hundred dollars ($400) per month for all service of a
member any of whose service has been included in the federal system.
This subdivision shall not apply to school members whose service is
included in the federal system with respect to service performed on
or after January 1, 2001.
   (c) This section shall supersede Section 21353 for all school
members, all university members, and all state miscellaneous members,
with respect to service rendered for the California State University
or the legislative or judicial branch of government, who retire on
or after January 1, 2000.
   (d) This section shall also supersede Section 21353 for state
miscellaneous or state industrial members, for service not subject to
subdivision (c), who are employed by the state on or after January
1, 2000, and who do not elect under Section 21070.5 to be subject to
Second Tier benefits.
   (e) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
   (f) Notwithstanding any other provision of this section, this
section shall not apply to a state miscellaneous or industrial member
who is employed by the state for the first time and becomes a state
miscellaneous or industrial member of the system on or after the
first day of the pay period following the effective date of the act
adding this subdivision, and is represented by State Bargaining Unit
12, 16, 18, or 19. With respect to related state miscellaneous or
industrial members in managerial, supervisory, or confidential
positions and officers or employees of the executive branch of state
government who are not members of the civil service, the Director of
Human Resources may exercise his or her discretion whether to approve
their status in writing to the board.
   (g) Notwithstanding any other provision of this section, this
section shall not apply to a state miscellaneous or industrial member
who is employed by the state for the first time and becomes a state
miscellaneous or industrial member of the system on or after October
31, 2010, and is represented by State Bargaining Unit 5 or 8. With
respect to related state miscellaneous or industrial members in
managerial, supervisory, or confidential positions and officers or
employees of the executive branch of state government who are not
members of the civil service, the Director of Human Resources may
exercise his or her discretion whether to approve their status in
writing to the board.
   (h) (1) Notwithstanding Section 3517.8 or any provision of an
expired memorandum of understanding, or any other provision of this
section, this section shall not apply to a state miscellaneous or
industrial member who is employed by the state, the Legislature, the
judicial branch, or the California State University for the first
time and becomes a member of the system on or after January 15, 2011.

   (2) If this subdivision is in conflict with a memorandum of
understanding that is current and in effect on January 15, 2011, the
memorandum of understanding shall be controlling while it remains in
effect. Upon expiration of the memorandum of understanding that is in
effect and current on January 15, 2011, this section shall be
controlling and may not be superseded by a subsequent memorandum of
understanding.
   SEC. 140.   SEC. 135.   Section 21362.2
of the Government Code is amended to read:
   21362.2.  (a) Upon attaining the age of 50 years or more, the
combined current and prior service pension for state patrol members
and for local safety members with respect to local safety service
rendered to a contracting agency that is subject to the provisions of
this section is a pension derived from the contributions of the
employer sufficient when added to the service retirement annuity that
is derived from the accumulated normal contributions of the member
at the date of his or her retirement to equal 3 percent of his or her
final compensation at retirement, multiplied by the number of years
of patrol service or local safety service subject to this section
with which he or she is credited at retirement.
   (b) In no event shall the current service pension and the combined
current and prior service pensions under this section for all
service to all employers exceed an amount that, when added to the
service retirement annuity related to that service, equals 85 percent
of final compensation. For state patrol members with respect to
service for all state employers under this section, the benefit shall
not exceed 90 percent of final compensation. If the pension relates
to service to more than one employer and would otherwise exceed that
maximum, the pension payable with respect to each employer shall be
reduced in the same proportion as the allowance based on service to
that employer bears to the total allowance computed as though there
were no limit, so that the total of the pensions shall equal the
maximum. Where a state or local member has service under this section
with both state and local agency employers, the higher maximum shall
apply and the additional benefit shall be funded by increasing the
member's pension payable with respect to the employer for whom the
member performed the service subject to the higher maximum.
   (c) For patrol members employed by the state on or after January
1, 2000, this section shall supersede Section 21362.
   (d) This section shall not apply to state safety or state peace
officer/firefighter members.
   (e) This section shall not apply to any contracting agency nor its
employees unless and until the agency elects to be subject to the
provisions of this section by amendment to its contract made in the
manner prescribed for approval of contracts or, in the case of
contracts made after the date this section becomes operative, by
express provision in the contract making the contracting agency
subject to this section. The operative date of this section for a
local safety member shall be the effective date of the amendment to
his or her employer's contract electing to be subject to this
section.
   (f) This section shall supersede Section 21362, 21363, 21363.1,
21366, 21368, 21369, or 21370, whichever is then applicable, with
respect to local safety members who retire after the date this
section becomes applicable to their respective employers.
   (g) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier ages of service retirement made possible by
the benefits under this section.
   (h) Operation and application of this section is subject to the
limitations set forth in Section 21251.13.
   (i) Notwithstanding any other provision of this section, this
section shall not apply to a state patrol member who is employed by
the state for the first time and becomes a state patrol member of the
system on or after October 31, 2010, and is represented by State
Bargaining Unit 5. With respect to related state patrol members in
managerial, supervisory, or confidential positions and officers or
employees of the executive branch of state government who are not
members of the civil service, the Director of Human Resources may
exercise his or her discretion whether to approve their status in
writing to the board.
   SEC. 141.   SEC. 136.   Section 21363 of
the Government Code is amended to read:
   21363.  (a) The combined current and prior service pensions for
state peace officer/firefighter members subject to this section with
respect to state peace officer/firefighter service and the combined
current and prior service pensions for local safety members with
respect to local safety service rendered to a contracting agency that
is subject to this section is a pension derived from the
contributions of the employer sufficient when added to the service
retirement annuity that is derived from the accumulated normal
contributions of the state peace officer/firefighter or local safety
member at the date of his or her retirement to equal the fraction of
one-fiftieth of his or her final compensation set forth opposite his
or her age at retirement taken to the preceding completed quarter
year, in the following table, multiplied by the number of years of
state peace officer/firefighter service or local safety service
subject to this section with which he or she is credited at
retirement:
   Age at
  Retirement                         Fraction
   50 ..........................      1.0000
   50 1/4.......................      1.0125
   50 1/2.......................      1.0250
   50 3/4.......................      1.0375
   51 ..........................      1.0500
   51 1/4.......................      1.0625
   51 1/2.......................      1.0750
   51 3/4.......................      1.0875
   52 ..........................      1.1000
   52 1/4.......................      1.1125
   52 1/2.......................      1.1250
   52 3/4.......................      1.1375
   53 ..........................      1.1500
   53 1/4.......................      1.1625
   53 1/2.......................      1.1750
   53 3/4.......................      1.1875
   54 ..........................      1.2000
   54 1/4.......................      1.2125
   54 1/2.......................      1.2250
   54 3/4.......................      1.2375
   55 and over..................      1.2500


   (b) (1) In no event shall the current service pension and the
combined current and prior service pensions under this section for
all service to all employers exceed an amount that, when added to the
service retirement annuity related to that service, equals 75
percent of final compensation.
   (2) For state members, with respect to service for all state
employers under this section, the benefit shall not exceed:
   (A) Eighty percent of final compensation for state members who
retire on or after January 1, 1995.
   (B) Eighty-five percent of final compensation for state peace
officer/firefighter members in State Bargaining Units 6 and 8 who
retire on or after January 1, 1999, and prior to January 1, 2000.
   (C) Ninety percent of final compensation for state peace
officer/firefighter members who retire on or after January 1, 2000.
   (3) For local safety members who retire on or after January 1,
2000, the benefit shall not exceed 85 percent of final compensation.
If the pension relates to service to more than one employer, or this
section and Section 21369, and would otherwise exceed that maximum,
the pension payable with respect to each section or employer shall be
reduced in the same proportion as the allowance bears to the total
allowance computed as though there were no limit, so that the total
of the pensions shall equal the maximum. Where a state or local
member retiring on or after January 1, 1995, has service under this
section with both state and local agency employers, the higher
maximum shall apply and the additional benefit, if any, shall be
funded by increasing the member's pension payable with respect to the
employer for whom the member performed the service subject to the
higher maximum.
   (c) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier age of service retirement made possible by the
benefits under this section.
   (d) This section may be applied to related supervisory classes or
confidential positions for the respective bargaining units specified
in this                                             section.
   (e) (1) This section shall be operative with respect to state
peace officer/firefighter members in Corrections Bargaining Unit No.
6, Protective Services and Public Safety Bargaining Unit No. 7, or
Firefighters Bargaining Unit No. 8, in accordance with a memorandum
of understanding reached between the state and the exclusive
bargaining agent in the respective unit pursuant to Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1.
   (2) This section also shall be operative with respect to the state
peace officer/firefighter members employed by a California State
University police department who are in Public Safety Unit No. 8 in
accordance with a memorandum of understanding reached between the
Trustees of the California State University and the recognized
employee organization pursuant to Chapter 12 (commencing with Section
3560) of Division 4 of Title 1.
   (3) This section shall also be operative with respect to a "state
peace officer/firefighter member" defined in subdivision (a) of
Section 20396 if authorized by, and in accordance with, a memorandum
of understanding reached between the Trustees of the California State
University and the recognized employee organization pursuant to
Chapter 12 (commencing with Section 3560) of Division 4 of Title 1.
   (4) Nothing in this section or in any other provision of law
affected by Chapter 1320 of the Statutes of 1984 or Chapter 234 of
the Statutes of 1986 shall be construed as authorizing any future
negotiation with respect to whether or not any bargaining unit
specified in this section whose memorandum of understanding was
previously approved by the Legislature pursuant to law and this
section, shall continue to remain within the state peace
officer/firefighter membership category.
   (5) The operative date of this section with respect to members in
each of the bargaining units specified in this section shall be as
provided for in the memorandum of understanding.
   (6) With the exception of state peace officer/firefighter members
for service rendered for the California State University or the
legislative or judicial branch of government, this section shall
apply to state peace officer/firefighter members who are not employed
by the state on or after January 1, 2000.
   (f) This section shall be known as, and may be cited as, the State
Peace Officers' and Fire Fighters' Retirement Act.
   (g) The Legislature reserves the right to subsequently modify or
amend this part in order to completely effectuate the intent and
purposes of this section and the right to not provide any new
comparable advantages if disadvantages to employees result from any
modification or amendment.
   (h) This section shall not apply to a contracting agency nor its
employees until, first, it is agreed to in a written memorandum of
understanding entered into by an employer and representatives of
employees and, second, the contracting agency elects to be subject to
it by amendment to its contract made in the manner prescribed for
approval of contracts or in the case of a new contract, by express
provision of the contract. The operative date of this section with
respect to a local safety member shall be the effective date of the
amendment to his or her employer's contract electing to be subject to
this section. However, this section shall not apply to any local
safety member in the employ of an employer not subject to this
section on January 1, 2000.
   (i) Notwithstanding Section 3517.8 or any provision of an expired
memorandum of understanding, this section shall apply to a state
peace officer/firefighter member who is employed by the state for the
first time and becomes a state peace officer/firefighter member of
the system on or after January 15, 2011, and is represented by State
Bargaining Unit 6 or 7. With respect to related state peace
officer/firefighter members in managerial, supervisory, or
confidential positions and officers or employees of the executive
branch of state government who are not members of the civil service,
the Director of Human Resources may exercise his or her discretion
whether to approve their status in writing to the board.
   (j) (1) This section shall also apply to a state peace
officer/firefighter member who is employed by the California State
University or judicial branch of government or the Legislature for
the first time and becomes a state peace officer/firefighter member
on or after January 15, 2011.
   (2) If this subdivision is in conflict with a memorandum of
understanding that is current and in effect on January 15, 2011, the
memorandum of understanding shall be controlling while it remains in
effect. Upon expiration of the memorandum of understanding that is in
effect and current on January 15, 2011, this section shall be
controlling and may not be superseded by a subsequent memorandum of
understanding.
   (k) Subdivisions (i) and (j) do not apply to:
   (1) Former state, legislative, judicial branch, or California
State University employees employed before January 15, 2011, who
return to state or university employment on or after January 15,
2011, and who were not previously subject to this section.
   (2) State employees hired prior to January 15, 2011, who were
subject to Section 20281.5 during the first 24 months of state
employment and who were not previously subject to this section.
   (3) State employees hired prior to January 15, 2011, who become
subject to representation by State Bargaining Unit 6 or 7 on or after
January 15, 2011, and who were not previously subject to this
section.
   (4) State, legislative, judicial branch, or California State
University employees on an approved leave of absence before January
15, 2011, who return to active employment on or after January 15,
2011, and who were not previously subject to this section.
   SEC. 142.   SEC. 137.   Section 21363.1
of the Government Code is amended to read:
   21363.1.  (a) The combined current and prior service pensions for
state peace officer/firefighter members subject to this section with
respect to state peace officer/firefighter service, and for local
safety members with respect to local safety service rendered to a
contracting agency that is subject to this section, is a pension
derived from the contributions of the employer sufficient when added
to the service retirement annuity that is derived from the
accumulated normal contributions of the state peace
officer/firefighter member or local safety member at the date of his
or her retirement to equal the fraction of 3 percent of his or her
final compensation set forth opposite his or her age at retirement
taken to the preceding completed quarter year, in the following
table, multiplied by the number of years of state peace
officer/firefighter service or local safety service subject to this
section with which he or she is credited at retirement:
  Age at
Retirement                  Fraction
50 ........................ .800
50 1/4 .................... .810
50 1/2 .................... .820
50 3/4 .................... .830
51  ....................... .840
51 1/4 .................... .850
51 1/2 .................... .860
51 3/4 .................... .870
52  ....................... .880
52 1/4 .................... .890
52 1/2 .................... .900
52 3/4 .................... .910
53  ....................... .920
53 1/4 .................... .930
53 1/2 .................... .940
53 3/4 .................... .950
54  ....................... .960
54 1/4 .................... .970
54 1/2 .................... .980
54 3/4 .................... .990
55 and over  .............. 1.000


   (b) In no event shall the current service pension and the combined
current and prior service pensions under this section for all
service to all employers exceed an amount that, when added to the
service retirement annuity related to that service, equals 85 percent
of final compensation. For state peace officer/firefighter members
with respect to service for all state employers under this section,
the benefit shall not exceed 90 percent of final compensation. If the
pension relates to service to more than one employer and would
otherwise exceed that maximum, the pension payable with respect to
each employer shall be reduced in the same proportion as the
allowance based on service to that employer bears to the total
allowance computed as though there were no limit, so that the total
of the pensions shall equal the maximum. Where a state or local
member has service under this section with both state and local
agency employers, the higher maximum shall apply and the additional
benefit shall be funded by increasing the member's pension payable
with respect to the employer for whom the member performed the
service subject to the higher maximum.
   (c) This section shall supersede Section 21363 for state peace
officer/firefighter members with respect to service rendered for the
California State University or the legislative or judicial branch of
government.
   (d) This section shall also supersede Section 21363 for state
peace officer/firefighter members, for service not subject to
subdivision (c), who are employed by the state on or after January 1,
2000.
   (e) This section shall not apply to any contracting agency nor its
employees unless and until the agency elects to be subject to the
provisions of this section by amendment to its contract made in the
manner prescribed for approval of contracts or, in the case of
contracts made after the date this section becomes operative, by
express provision in the contract making the contracting agency
subject to this section. The operative date of this section for a
local safety member shall be the effective date of the amendment to
his or her employer's contract electing to be subject to this
section.
   (f) This section shall supersede Section 21363, 21366, 21368,
21369, or 21370, whichever is then applicable, with respect to local
safety members who retire after the date this section becomes
applicable to their respective employers.
   (g) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier age of service retirement made possible by the
benefits under this section.
   (h) The Legislature reserves the right to subsequently modify or
amend this part in order to completely effectuate the intent and
purposes of this section and the right to not provide any new
comparable advantages if disadvantages to employees result from any
modification or amendment.
   (i) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
   (j) This section shall apply to a state patrol member who is
employed by the state for the first time and becomes a state patrol
member of the system on or after October 31, 2010, and is represented
by State Bargaining Unit 5. With respect to related state patrol
members in managerial, supervisory, or confidential positions and
officers or employees of the executive branch of state government who
are not members of the civil service, the Director of Human
Resources may exercise his or her discretion whether to approve their
status in writing to the board.
   (k) This section shall apply to a state peace officer/firefighter
member who is employed by the state for the first time and becomes a
state peace officer/firefighter member of the system on or after
October 31, 2010, and is represented by State Bargaining Unit 8. With
respect to related state peace officer/firefighter members in
managerial, supervisory, or confidential positions and officers or
employees of the executive branch of state government who are not
members of the civil service, the Director of Human Resources may
exercise his or her discretion whether to approve their status in
writing to the board.
   (l) Subdivisions (j) and (k) do not apply to:
   (1) Former state employees previously employed before October 31,
2010, who return to state employment on or after October 31, 2010.
   (2) State employees hired prior to October 31, 2010, who were
subject to Section 20281.5 during the first 24 months of state
employment.
   (3) State employees hired prior to October 31, 2010, who become
subject to representation by State Bargaining Unit 5 or 8 on or after
October 31, 2010.
   (4) State employees on an approved leave of absence employed
before October 31, 2010, who return to active employment on or after
October 31, 2010.
   (m) (1) Notwithstanding any other provision of this section, this
section shall not apply to a peace officer/firefighter member who is
employed for the first time by the California State University or the
legislative or judicial branch and becomes a state peace
officer/firefighter member of the system on or after January 15,
2011.
   (2) If this subdivision is in conflict with a memorandum of
understanding that is current and in effect on January 15, 2011, the
memorandum of understanding shall be controlling while it remains in
effect. Upon expiration of the memorandum of understanding that is in
effect and current on January 15, 2011, this section shall be
controlling and may not be superseded by a subsequent memorandum of
understanding.
   (n) Notwithstanding Section 3517.8, or any provision of an expired
memorandum of understanding, or any other provision of this section,
this section shall not apply to those peace officer/firefighter
members in State Bargaining Units 6 and 7 first employed by the state
on or after January 15, 2011.
   SEC. 143.   SEC. 138.   Section 21363.4
of the Government Code is amended to read:
   21363.4.  (a) Upon attaining the age of 50 years or more, the
combined current and prior service pension for a state peace
officer/firefighter member described in subdivision (c) who retires
or dies on or after January 1, 2006, is a pension derived from the
contributions of the employer sufficient when added to the service
retirement annuity that is derived from the accumulated normal
contributions of the member at the date of his or her retirement to
equal 3 percent of his or her final compensation at retirement,
multiplied by the number of years of state peace officer/firefighter
service, as defined in subdivision (d), subject to this section with
which he or she is credited at retirement.
   (b) For state peace officer/firefighter members, with respect to
service for all state employers under this section, the current
service pension and the combined current and prior service pension
under this section shall not exceed an amount that, when added to the
service retirement annuity related to that service, equals 90
percent of final compensation. If the pension relates to service to
more than one employer and would otherwise exceed that maximum, the
pension payable with respect to each employer shall be reduced in the
same proportion as the allowance based on service to that employer
bears to the total allowance computed as though there were no limit,
so that the total of the pensions shall equal the maximum.
   (c) For purposes of this section, "state peace officer/firefighter
member" means state peace officer/firefighter members under this
part who, on or after January 1, 2006, are employed by the state and
are members of State Bargaining Unit 6 or State Bargaining Unit 8,
and may include state peace officer/firefighter members in related
managerial, supervisory, or confidential positions and officers or
employees of the executive branch of state government who are not
members of the civil service, provided the Department of Human
Resources has approved their inclusion in writing to the board.
   (d) For purposes of this section, "state peace officer/firefighter
service" means service performed by a state peace
officer/firefighter member while a member of State Bargaining Unit 6
or State Bargaining Unit 8, and may include state peace
officer/firefighter service in related managerial, supervisory, or
confidential positions or as officers or employees of the executive
branch of state government who are not members of the civil service,
provided the Department of Human Resources has approved their
inclusion in writing to the board.
   (e) This section shall supersede Section 21363 or 21363.1,
whichever is applicable, with respect to state peace
officer/firefighter members and service as defined herein.
   (f) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier ages of service retirement made possible by
the benefits under this section.
   (g) Notwithstanding any other provision of this section, this
section shall not apply to a state peace officer/firefighter member
who is employed by the state for the first time and becomes a state
peace officer/firefighter member of the system on or after October
31, 2010, and is represented by State Bargaining Unit 8. With respect
to related state peace officer/firefighter members in managerial,
supervisory, or confidential positions and officers or employees of
the executive branch of state government who are not members of the
civil service, the Director of Human Resources may exercise his or
her discretion whether to approve their status in writing to the
board.
   (h) Notwithstanding Section 3517.8, or any provision of an expired
memorandum of understanding, or any other provision of this section,
this section shall not apply to a state peace officer/firefighter
member who is employed by the state for the first time and becomes a
state peace officer/firefighter member of the system on or after
January 15, 2011, and is represented by State Bargaining Unit 6. With
respect to related state peace officer/firefighter members in
managerial, supervisory, or confidential positions and officers or
employees of the executive branch of state government who are not
members of the civil service, the Director of Human Resources may
exercise his or her discretion whether to approve their status in
writing to the board.
   SEC. 144.   SEC. 139.   Section 21363.8
of the Government Code is amended to read:
   21363.8.  (a) Upon attaining the age of 50 years or more, the
combined current and prior service pension for a state peace
officer/firefighter member described in subdivision (c) who retires
or dies on or after January 1, 2004, is a pension derived from the
contributions of the employer sufficient when added to the service
retirement annuity that is derived from the accumulated normal
contributions of the member at the date of his or her retirement to
equal 3 percent of his or her final compensation at retirement,
multiplied by the number of years of state peace officer/firefighter
service, as defined in subdivision (d), subject to this section with
which he or she is credited at retirement.
   (b) For state peace officer/firefighter members, with respect to
service for all state employers under this section, the current
service pension and the combined current and prior service pension
under this section may not exceed an amount that, when added to the
service retirement annuity related to that service, equals 90 percent
of final compensation. If the pension relates to service to more
than one employer and would otherwise exceed that maximum, the
pension payable with respect to each employer shall be reduced in the
same proportion as the allowance based on service to that employer
bears to the total allowance computed as though there were no limit,
so that the total of the pensions shall equal the maximum.
   (c) (1) This section shall apply to state peace
officer/firefighter members under this part who, on or after January
1, 2004, are employed by the state and are members of State
Bargaining Unit 7.
   (2) This section may also apply to state peace officer/firefighter
members in managerial, supervisory, or confidential positions that
are related to the members described in paragraph (1) and to officers
or employees of the executive branch of state government who are not
members of the civil service and who are in positions that are
related to the members described in paragraph (1), if the Department
of Human Resources has approved their inclusion in writing to the
board.
   (d) (1) For purposes of this section, "state peace
officer/firefighter service" means service performed by a state peace
officer/firefighter member while a member of State Bargaining Unit
7.
   (2) That service may include state peace officer/firefighter
service in managerial, supervisory, or confidential positions that
are related to the members described in paragraph (1) or as officers
or employees of the executive branch of state government who are not
members of the civil service and who are in positions that are
related to the members described in paragraph (1), provided the
Department of Human Resources has approved their inclusion in writing
to the board.
   (e) This section shall supersede Section 21363 or 21363.1,
whichever is applicable, with respect to state peace
officer/firefighter members subject to this section and state peace
officer/firefighter service as defined herein.
   (f) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier ages of service retirement made possible by
the benefits under this section.
   (g) Notwithstanding Section 3517.8, or any provision of an expired
memorandum of understanding, or any other provision of this section,
this section shall not apply to a state peace officer/firefighter
member who is employed by the state for the first time and becomes a
state peace officer/firefighter member of the system on or after
January 15, 2011, and is represented by State Bargaining Unit 7. With
respect to related state peace officer/firefighter members in
managerial, supervisory, or confidential positions and officers or
employees of the executive branch of state government who are not
members of the civil service, the Director of Human Resources may
exercise his or her discretion whether to approve their status in
writing to the board.
   SEC. 145.   SEC. 140.   Section 21369 of
the Government Code is amended to read:
   21369.  (a) The combined prior and current service pension for a
state safety member, and a local safety member with respect to
service to a contracting agency subject to this section, upon
retirement after attaining the age of 55 years, is a pension derived
from contributions of an employer sufficient, when added to that
portion of the service retirement annuity that is derived from the
accumulated normal contributions of the member at the date of his or
her retirement, to equal one-fiftieth of his or her final
compensation multiplied by the number of years of state safety,
police, fire, or county peace officer service that is credited to him
or her as a state safety member or a local safety member subject to
this section at retirement. Notwithstanding the preceding sentence,
this section shall apply to the current and prior service pension for
any other state safety member based on service to which it would
have applied had the member, on July 1, 1971, been in employment
described in Section 20403 or 20404.
   (b) Upon retirement for service prior to attaining the age of 55
years, the percentage of final compensation payable for each year of
credited service that is subject to this section shall be the product
of 2 percent multiplied by the factor set forth in the following
table for his or her actual age at retirement:
                                   The percent for
                                      each year
                                         of
                                      credited
                                       service
If the retirement age occurs at:        is:
   50 ...........................       0.713
   50 1/4........................       0.725
   50 1/2........................       0.737
   50 3/4........................       0.749
   51 ...........................       0.761
   51 1/4........................       0.775
   51 1/2........................       0.788
   51 3/4........................       0.801
   52 ...........................       0.814
   52 1/4........................       0.828
   52 1/2........................       0.843
   52 3/4........................       0.857
   53 ...........................       0.871
   53 1/4........................       0.886
   53 1/2........................       0.902
   53 3/4........................       0.917
   54 ...........................       0.933
   54 1/4........................       0.950
   54 1/2........................       0.966
   54 3/4........................       0.983


   (c) In no event shall the total pension for all service under this
section exceed an amount that, when added to the service retirement
annuity related to that service, equals 75 percent of final
compensation. For state members who retire on or after January 1,
1995, and with respect to service for all state employers under this
section, the benefit shall not exceed 80 percent of final
compensation. For local members who retire on or after January 1,
2000, the benefit shall not exceed 85 percent of final compensation.
If the pension relates to service to more than one employer and would
otherwise exceed that maximum, the pension payable with respect to
each employer shall be reduced in the same proportion as the
allowance based on service to that employer bears to the total
allowance computed as though there were no limit, so that the total
of those pensions shall equal the maximum. Where a state or local
member retiring on or after January 1, 1995, has service under this
section with both state and local agency employers, the higher
maximum shall apply and the additional benefit shall be funded by
increasing the member's pension payable with respect to the employer
for whom the member performed the service subject to the higher
maximum.
   (d) This section shall not apply to a person whose effective date
of retirement is prior to July 1, 1971.
   (e) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability
retirement allowances because of earnings of a retired person and
modification of the conditions and qualifications required for
retirement for disability as it may find appropriate because of the
earlier age of service retirement made possible by the benefits under
this section.
   (f) The percentage of final compensation provided in this section
shall be reduced by one-third as applied to that part of the member's
final compensation that does not exceed four hundred dollars ($400)
per month for service after the effective date of coverage of a
member under the federal system. This subdivision shall not apply to
a member who retires after the date upon which coverage under the
federal system of persons in his or her employment terminates. It
shall not apply to a local safety member employed by a contracting
agency electing to be subject to this section after March 7, 1973,
unless the agency elects to be subject to this paragraph by amendment
to its contract or by appropriate provision of a contract entered
into after this provision is effective and as to any member, the
reduction in the percentage of final compensation shall apply to all
local safety service to the agency, if any of the local safety
service has been included in the federal system.
   (g) With the exception of state safety members for service
rendered for the California State University, this section shall
apply to state safety members who are not employed by the state on or
after January 1, 2000.
   (h) This section shall not apply to a contracting agency nor its
employees until the agency elects to be subject to it by amendment to
its contract made in the manner prescribed for approval of contracts
or in the case of a new contract, by express provision of the
contract. The operative date of this section with respect to a local
safety member shall be the effective date of the amendment to his or
her employer's contract electing to be subject to this section.
   (i) (1) Notwithstanding Section 3517.8 or any provision of an
expired memorandum of understanding, this section shall also apply to
a state safety member who is employed by the state or the California
State University for the first time and becomes a state safety
member of the system on or after January 15, 2011. With respect to
related state safety members in managerial, supervisory, or
confidential positions and officers or employees of the executive
branch of state government who are not members of the civil service,
the Director of Human Resources may exercise his or her discretion
whether to approve their status in writing to the board.
   (2) If this subdivision is in conflict with a memorandum of
understanding that is current and in effect on January 15, 2011, the
memorandum of understanding shall be controlling while it remains in
effect. Upon expiration of the memorandum of understanding that is in
effect and current on January 15, 2011, this section shall be
controlling and may not be superseded by a subsequent memorandum of
understanding.
   (j) This section does not apply to:
   (1) Former state or California State University employees employed
before January 15, 2011, who return to state or university
employment on or after January 15, 2011, and who were not previously
subject to this section.
   (2) State employees hired prior to January 15, 2011, who were
subject to Section 20281.5 during the first 24 months of state
employment, and who were not previously subject to this section.
   (3) State or California State University employees on an approved
leave of absence before January 15, 2011, who return to active
employment on or after January 15, 2011, and who were not previously
subject to this section.
   (4) State employees who are subject to Section 21369.2 so long as
their memorandum of understanding is in effect. Upon expiration of
the memorandum of understanding, notwithstanding Section 3517.8, this
section shall be controlling and may not be superseded by a
subsequent memorandum of understanding.
   SEC. 146.   SEC. 141.   Section 21369.1
of the Government Code is amended to read:
   21369.1.  (a) The combined current and prior service pensions for
state safety members subject to this section with respect to state
safety service that is subject to this section is a pension derived
from the contributions of the employer sufficient when added to the
service retirement annuity that is derived from the accumulated
normal contributions of the state safety member at the date of his or
her retirement to equal the fraction of one-fiftieth of his or her
final compensation set forth opposite his or her age at retirement
taken to the preceding completed quarter year, in the following
table, multiplied by the number of years of state safety service
subject to this section with which he or she is credited at
retirement.
   Age at
  Retirement                         Fraction
50 ............................      0.8500
50 1/4 ........................      0.8625
50 1/2 ........................      0.8750
50 3/4 ........................      0.8875
51 ............................      0.9000
51 1/4 ........................      0.9125
51 1/2 ........................      0.9250
51 3/4 ........................      0.9375
52 ............................      0.9500
52 1/4 ........................      0.9625
52 1/2 ........................      0.9750
52 3/4 ........................      0.9875
53 ............................      1.0000
53 1/4 ........................      1.0320
53 1/2 ........................      1.0630
53 3/4 ........................      1.0940
54 ............................      1.1250
54 1/4 ........................      1.1570
54 1/2 ........................      1.1880
54 3/4 ........................      1.2190
55 and over ...................      1.2500


   (b) For state safety members with respect to service for all state
employers under this section, the benefit shall not exceed 80
percent of final compensation. If the pension relates to service to
more than one employer, and would otherwise exceed that maximum, the
pension payable with respect to each employer shall be reduced in the
same proportion as the allowance based on service to that employer
bears to the total allowance computed as though there were no limit,
so that the total of the pensions shall equal the maximum.
   (c) This section shall supersede Section 21369 for state safety
members with respect to service rendered for the California State
University.
   (d) This section shall also supersede Section 21369 for state
safety members, for service not subject to subdivision (c), who are
employed by the state on or after January 1, 2000.
   (e) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier age of service retirement made possible by the
benefits under this section.
   (f) The Legislature reserves the right to subsequently modify or
amend this part in order to completely effectuate the intent and
purposes of this section and the right to not provide any new
comparable advantages if disadvantages to employees result from any
modification or amendment.
   (g) Operation and application of this section are subject to the
limitations set forth in Section 21251.13.
   (h) Notwithstanding any other provision of this section, this
section shall not apply to a state safety member who is employed by
the state for the first time and becomes a state safety member of the
system on or after the first day of the pay period following the
effective date of the act adding this subdivision, and is represented
by State Bargaining Unit 12, 16, 18, or 19. With respect to related
state safety members in managerial, supervisory, or confidential
positions and officers or employees of the executive branch of state
government who are not members of the civil service, the Director of
Human Resources may exercise his or her discretion whether to approve
their status in writing to the board.
   (i) (1) Notwithstanding Section 3517.8, or any provision of an
expired memorandum of understanding, or any other provision of this
section, this section shall not apply to a state safety member who is
employed by the state or the California State University for the
first time and becomes a state safety member of the system on or
after January 15, 2011. With respect to related state safety members
in managerial, supervisory, or confidential positions and officers or
employees of the executive branch of state government who are not
members of the civil service, the Director of Human Resources may
exercise his or her discretion whether to approve their status in
writing to the board.
   (2) If this subdivision is in conflict with a memorandum of
understanding that is current and in effect on January 15, 2011, the
memorandum of understanding shall be controlling while it remains in
effect. Upon expiration of the memorandum of understanding that is in
effect and current on January 15, 2011, this section shall be
controlling and may not be superseded by a subsequent memorandum of
understanding.
   SEC. 147.   SEC. 142.   Section 21369.2
of the Government Code, as amended by Section 128 of Chapter 296 of
the Statutes of 2011, is repealed.
   SEC. 148.   SEC. 143.   Section 21369.2
of the Government Code, as amended by Section 129 of Chapter 296 of
the Statutes of 2011, is amended to read:
   21369.2.  (a) The combined prior and current service pension for a
state safety member, upon retirement after attaining the age of 55
years, is a pension derived from contributions of an employer
sufficient, when added to that portion of the service retirement
annuity that is derived from the accumulated normal contributions of
the member at the date of his or her retirement, to equal
one-fiftieth of his or her final compensation multiplied by the
number of years of state safety service, that is credited to him or
her as a state safety member subject to this section at retirement.
   (b) Upon retirement for service prior to attaining the age of 55
years, the percentage of final compensation payable for each year of
credited service that is subject to this section shall be the product
of 2 percent multiplied by the factor set forth in the following
table for his or her actual age at retirement:
   Age at
  Retirement                         Fraction
   50 ..........................      0.713
   50 1/4.......................      0.725
   50 1/2.......................      0.737
   50 3/4.......................      0.749
   51 ..........................      0.761
   51 1/4.......................      0.775
   51 1/2.......................      0.788
   51 3/4.......................      0.801
   52 ..........................      0.814
   52 1/4.......................      0.828
   52 1/2.......................      0.843
   52 3/4.......................      0.857
   53 ..........................      0.871
   53 1/4.......................      0.886
   53 1/2.......................      0.902
   53 3/4.......................      0.917
   54 ..........................      0.933
   54 1/4.......................      0.950
   54 1/2.......................      0.966
   54 3/4.......................      0.983
   55 ..........................      1.0000
   55 1/4.......................      1.0125
   55 1/2.......................      1.0250
   55 3/4.......................      1.0375
   56 ..........................      1.0500
   56 1/4.......................      1.0625
   56 1/2.......................      1.0750
   56 3/4.......................      1.0875
   57 ..........................      1.1000
   57 1/4.......................      1.1125
   57 1/2.......................      1.1250
   57 3/4.......................      1.1375
   58 ..........................      1.1500
   58 1/4.......................      1.1625
   58 1/2.......................      1.1750
   58 3/4.......................      1.1875
   59 ..........................      1.2000
   59 1/4.......................      1.2125
   59 1/2.......................      1.2250
   59 3/4.......................      1.2375
   60 and over .................      1.2500


   (c) In no event shall the total pension for all service under this
section exceed an amount that, when added to the service retirement
annuity related to that service, equals 80 percent of final
compensation. If the pension relates to service to more than one
employer and would otherwise exceed that maximum, the pension payable
with respect to each employer shall be reduced in the same
proportion as the allowance based on service to that employer bears
to the total allowance computed as though there were no limit, so
that the total of those pensions shall equal the maximum. Where a
state member has service under this section with both state and local
agency employers, the higher maximum shall apply and the additional
benefit shall be funded by increasing the member's pension payable
with respect to the employer for whom the member performed the
service subject to the higher maximum.
   (d) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier age of service retirement made possible by the
benefits under this section.
   (e) This section shall apply to a state safety member who is
employed by the state for the first time and becomes a state safety
member of the system on or after the first day of the pay period
following the effective date of this section, and is represented by
State Bargaining Unit 12, 16, 18, or 19. With respect to related
state safety members in managerial, supervisory, or confidential
positions and officers or employees of the executive branch of state
government who are not members of the civil service, the Director of
Human Resources may exercise his or her discretion whether to approve
their status in writing to the board.
   (f) This section does not apply to:
   (1) Former state employees previously employed before the first
day of the pay period following the effective date of this
subdivision, who return to state employment on or after the first day
of the pay period following the effective date of this subdivision.
   (2) State employees hired prior to the first day of the pay period
following the effective date of this subdivision, who were subject
to Section 20281.5 during the first 24 months of state employment.
   (3) State employees hired prior to the first day of the pay period
following the effective date of this subdivision, who become subject
to representation by State Bargaining Unit 12, 16, 18, or 19 on or
after the first day of the pay period following the effective date of
this subdivision.
   (4) State employees on an approved leave of absence employed
before the first day of the pay period following the effective date
of this subdivision, who return to active employment on or after the
first day of the pay period following the effective date of this
subdivision.
   SEC. 149.   SEC. 144.   Section 21410 of
the Government Code is amended to read:
   21410.  Notwithstanding Sections 21406, 21407, 21408, 21409, and
21411, any state member who becomes subject to Section 21159 on or
after January 1, 1993, and retires for industrial disability because
of incapacity for the performance of duties in any employment with
the state employer, as determined by the Department of Human
Resources, shall receive a disability retirement allowance of 60
percent of the member's final compensation plus an annuity purchased
with the member's accumulated additional contributions, if any, or,
if qualified for service retirement, the member shall receive the
service retirement allowance if the allowance, after deducting the
annuity, is greater.
   Benefits payable under this section are payable solely to state
members employed in state bargaining units subject to Section 21159.
   SEC. 150.   SEC. 145.   Section 21465 of
the Government Code is amended to read:
   21465.  (a) Optional settlement 5 consists of a partial
distribution of the actuarial present value of the portion, as
specified in this section, of the member's unmodified monthly
allowance, as prescribed in Section 21362, 21362.2, 21363, 21363.1,
21363.4, or 21423, when a service retirement allowance is payable.
The actuarial present value shall be based upon the investment return
and postretirement mortality assumptions adopted by the board for
that purpose. The member may elect to receive the actuarial present
value of no less than 20 percent and no more than 50 percent of his
or her unmodified allowance. The member may elect to receive the
remaining portion of the unmodified allowance, not distributed as a
lump-sum payment, under one of the settlements specified in this
article for the remainder of his or her lifetime and thereafter to
his or her designated beneficiary, unless this amount is solely
limited to the survivor continuance portion. The portion of the
unmodified allowance equivalent to the survivor continuance pursuant
to Section 21624 may not be distributed as a lump-sum payment. The
benefits provided under this section may not exceed the benefits that
would have otherwise been provided under any other section in this
article.
   (b) This section shall only apply to the following members who
retire on or after January 1, 1999:
   (1) State peace officer/firefighter members in State Bargaining
Unit 6.
   (2) State peace officer/firefighter members in State Bargaining
Unit 8 and state patrol members in State Bargaining Unit 5, if a
memorandum of understanding has been agreed upon by the state and the
recognized employee organization to become subject to this section.
   (3) This section shall also apply to state peace
officer/firefighter members and state patrol members in related
supervisory and confidential positions, if the Department of Human
Resources has approved their inclusion.
   SEC. 151.   SEC. 146.   Section 21672 of
the Government Code is amended to read:
   21672.  A tax-preferred retirement savings program may include one
or more of the following components:
   (a) Investment fund options for participants, as part of the
deferred compensation program administered for state employees by the
Department of Human Resources.
   (b) Investment fund options for other participants.
   (c) Annuity contracts on behalf of all participants.
   (d) Asset management, administrative, or related services.
   SEC. 152.   SEC. 147.   Section 21674 of
the Government Code is amended to read:
   21674.  (a) Investment fund options under subdivision (a) of
Section 21672 shall be provided through a written interagency
agreement between the board and the Department of Human Resources.
   (b) Except for investments made pursuant to subdivision (a),
participating employers shall enter into a written contractual
agreement with the board.
   (c) Participants shall enter into contractual agreements that are
required to effectuate participation in a tax-preferred retirement
savings program, including employees participating under a program
described in subdivision (a) or (b) of Section 21671, or any other
program that provides for the deferral of compensation program or
written salary reduction agreements with their employers, for the
purpose of making deferrals or for annuity contracts.
   SEC. 153.   SEC. 148.   Section 22808 of
the Government Code is amended to read:
   22808.  An employee enrolled in a health benefit plan under this
part shall be entitled to have his or her coverage and the coverage
of any family members continued for the duration of a leave of
absence, upon his or her application and upon assuming payments of
the contributions otherwise required of the employer, if any of the
following apply:
   (a) A leave of absence is granted to the employee without pay
under the State Civil Service Act and the rules or regulations of the
Department of Human Resources, or other comparable leave.
   (b) The employee is laid off and has not yet obtained other
employment, for a period of up to one year.
   (c) The employee is employed by the California State University
and is granted a leave of absence for more than half-time.
   SEC. 154.   SEC. 149.   Section 22811 of
the Government Code is amended to read:
   22811.  Notwithstanding any other provision of this part, a former
Member of the Legislature who has served six or more years as a
Member of the Legislature may elect, within 60 days after permanent
separation from state service, to enroll or continue enrollment in a
health benefit plan and dental care plan provided to annuitants. Upon
that election, the former member shall pay the total premiums
related to that coverage and an additional 2 percent thereof for the
administrative costs incurred by the board and the Department of
Human Resources in administering this section.
   The health and dental benefits shall be provided without
discrimination as to premium rates or benefits coverage. A person who
subsequently terminates his or her coverage under this section may
not reenroll pursuant to this section.
   SEC. 155.   SEC. 150.   Section 22814 of
the Government Code is amended to read:
   22814.  (a) A judge who retires pursuant to Chapter 11 (commencing
with Section 75000) of Title 8, but is not yet receiving a pension,
may continue his or her coverage and the coverage of any family
members for the duration of the leave of absence, upon his or her
application and upon assuming payment of the contributions otherwise
required of the employer.
   (b) (1) A judge who leaves judicial office pursuant to subdivision
(b) of Section 75521 and has not attained 65 years of age may
continue his or her coverage and the coverage of any family members
upon assuming payment of the contributions otherwise required of the
employer. The judge shall also pay an additional 2 percent of the
premium amount to cover administrative expenses incurred by the
system or the Department of Human Resources.
   (2) An election to continue coverage under this subdivision shall
be made within 60 days of permanent separation. A retired judge who
cancels that coverage may not reenroll.
   (3) Upon attaining 65 years of age, a retired judge who has
continuous and uninterrupted coverage pursuant to this subdivision
shall be entitled to the applicable employer contribution.
   SEC. 156.   SEC. 151.   Section 22815 of
the Government Code is amended to read:
   22815.  (a) The following persons are eligible for enrollment as
provided in this section:
   (1) A Member of the Legislature or an elective officer of the
state whose office is provided by the California Constitution who
meets all of the following conditions:
   (A) Has at least eight years of credited service.
   (B) Permanently separates from state service on or after January
1, 1988, and more than 10 years before his or her minimum age for
service retirement, or is an inactive member of the Legislators'
Retirement System pursuant to Section 9355.2.
   (C) Elects to remain a member of a state retirement system
supported in whole or in part by state funds, other than the
University of California Retirement System.
   (2) An exempt employee who meets all of the following conditions:
   (A) Has at least 10 years of credited state service that includes
at least two years of credited service while an exempt employee.
   (B) Permanently separates from state service on or after January
1, 1988, and more than 10 years before his or her minimum age for
service retirement.
   (C) Elects to remain a member of a state retirement system
supported in whole or in part by state funds, other than the
University of California Retirement System.
   (b) During the period he or she is not yet receiving a retirement
allowance, a person described by subdivision (a) may continue
enrollment in a health benefit plan or dental care plan without
discrimination as to premium rates or benefit coverage, upon assuming
payment of the contributions otherwise required of the former
employer on account of his or her enrollment and the employee
contribution. The person shall also pay an additional 2 percent of
the premium amount to cover administrative expenses incurred by the
system or the Department of Human Resources. An election to continue
coverage under this section shall be made within 60 days of permanent
separation.
   (c) A person who receives coverage pursuant to this subdivision,
and subsequently terminates that coverage, may not be allowed to
reenroll and may not enroll as an annuitant pursuant to subdivision
(d).
   (d) Upon retirement and receipt of a retirement allowance, a
person described in subdivision (b) may elect to continue enrollment
in a health benefit plan or dental care plan without discrimination
as to premium rates or benefit coverage, at which time the state
shall assume payment of the employer contribution and the person
shall thereafter be deemed an annuitant.
   (e) The board has no duty to locate or notify any person who may
be eligible to enroll pursuant to this section.
   SEC. 157.   SEC. 152.   Section 22816 of
the Government Code is amended to read:
   22816.  (a) A person who meets all of the criteria of an
annuitant, as defined in subdivision (f) or (g) of Section 22760,
other than the condition of receiving a retirement allowance under a
retirement system supported in whole or in part by state funds, may
continue enrollment in a health benefit plan or dental care plan
provided to annuitants without discrimination as to premium rates or
benefits coverage, upon assuming payment of the contributions
otherwise required of the former employer on account of his or her
enrollment and the employee contribution. The person shall also pay
an additional 2 percent of the premium amount to cover administrative
expenses incurred by the system or the Department of Human
Resources. An election to continue coverage under this section shall
be made within 60 days of permanent separation.
   (b) A person who receives coverage pursuant to this subdivision
who subsequently terminates that coverage may not reenroll. However,
termination under this subdivision does not affect an annuitant's
rights under Section 22817. The benefits authorized by Section 22817
and this section are separate and distinct benefits.
                                      (c) The board has no duty to
locate or notify any person who may be eligible to enroll pursuant to
this section.
   SEC. 158.   SEC. 153.   Section 22850 of
the Government Code is amended to read:
   22850.  (a) The board may, without compliance with any provision
of law relating to competitive bidding, enter into contracts with
carriers offering health benefit plans or with entities offering
services relating to the administration of health benefit plans.
   (b) The board may contract with carriers for health benefit plans
or approve health benefit plans offered by employee organizations,
provided that the carriers have operated successfully in the hospital
and medical care fields prior to the contracting for or approval
thereof. The plans may include hospital benefits, surgical benefits,
inpatient medical benefits, outpatient benefits, obstetrical
benefits, and benefits offered by a bona fide church, sect,
denomination, or organization whose principles include healing
entirely by prayer or spiritual means.
   (c) Notwithstanding any other provision of this part, the board
may contract with health benefit plans offering unique or specialized
health services.
   (d) The board may administer self-funded or minimum premium health
benefit plans.
   (e) The board may contract for or implement employee cost
containment and cost reduction incentive programs that involve the
employee, the annuitant, and family members as active participants,
along with the carrier and the provider, in a joint effort toward
containing and reducing the cost of providing medical and hospital
health care services to public employees. In developing these plans,
the board, in cooperation with the Department of Human Resources, may
request proposals from carriers and certified public employee
representatives.
   (f) Notwithstanding any other provision of this part, the board
may do any of the following:
   (1) Contract for, or approve, health benefit plans that charge a
contracting agency and its employees and annuitants rates based on
regional variations in the costs of health care services.
   (2) Contract for, or approve, health benefit plans exclusively for
the employees and annuitants of contracting agencies. State
employees and annuitants may not enroll in these plans. The board may
offer health benefit plans exclusively for employees and annuitants
of contracting agencies in addition to or in lieu of other health
benefit plans offered under this part. The governing body of a
contracting agency may elect, upon filing a resolution with the
board, to provide those health benefit plans to its employees and
annuitants. The resolution shall be subject to mutual agreement
between the contracting agency and the recognized employee
organization, if any.
   (g) The board shall approve any employee association health
benefit plan that was approved by the board in the 1987-88 contract
year or prior, provided the plan continues to meet the minimum
standards prescribed by the board. The trustees of an employee
association health benefit plan are responsible for providing health
benefit plan administration and services to its enrollees.
Notwithstanding any other provision of this part, the California
Correctional Peace Officer Association Health Benefits Trust may
offer different health benefit plan designs with varying premiums in
different areas of the state.
   (h) Irrespective of any other provision of law, the sponsors of a
health benefit plan approved under this section may reinsure the
operation of the plan with an admitted insurer authorized to write
disability insurance, if the premium includes the entire prepayment
fee.
   SEC. 159.   SEC. 154.   Section 22865 of
the Government Code is amended to read:
   22865.  Prior to the approval of proposed benefits and premium
readjustments authorized under Section 22864, the board shall notify
the Legislature, the Trustees of the California State University, and
the Department of Human Resources of the proposed changes in
writing.
   SEC. 160.   SEC. 155.   Section 22871.5
of the Government Code is amended to read:
   22871.5.  (a) Notwithstanding Section 22871, the employer
contribution with respect to each excluded employee, as defined by
subdivision (b) of Section 3527, who is otherwise eligible shall be
determined by the Department of Human Resources subject to the
appropriation of funds by the Legislature.
   (b) Notwithstanding Section 22871, the employer contribution with
respect to each state employee, as defined by subdivision (c) of
Section 3513, who is otherwise eligible shall be determined through
the collective bargaining process subject to the appropriation of
funds by the Legislature.
   SEC. 161.   SEC. 156.   Section 22944.3
of the Government Code is amended to read:
   22944.3.  (a) Any amount that would otherwise be used to
permanently increase compensation pursuant to Section 19827,
effective on July 1, 2009, and on July 1, 2010, shall instead be used
to permanently prefund postemployment health care benefits for
patrol members. The amount used to prefund benefits relative to any
increases under the survey methodology effective July 1, 2010, shall
not exceed 2 percent. The state shall take credit for these
prefunding contributions in the survey methodology established in
Section 19827 in the same manner as it would for an increase to the
base salary for patrol members.
   (b) Patrol members shall contribute an additional 0.5 percent of
base pay toward prefunding retiree health benefit obligations
effective on the first day of the pay period following the effective
date of the act adding this section and the ratification of the
addendum by the members of State Bargaining Unit 5. This contribution
shall not reduce the base salary of patrol members under the survey
methodology established by Section 19827.
   (c) Effective July 1, 2012, the state shall contribute toward
prefunding retiree health benefits, on a prospective basis, an amount
at least equal to the combined contribution rate established
pursuant to subdivisions (a) and (b). These contributions may be used
in the survey methodology established by Section 19827 if mutually
agreed in a memorandum of understanding.
   (d) Contributions paid pursuant to this section shall be used
exclusively for the cost of providing postemployment health care to
eligible enrolled patrol member annuitants and their eligible
enrolled dependents, beneficiaries, and survivors.
   (e) Contributions paid pursuant to this section shall not be
refundable under any circumstances to a patrol member or his or her
beneficiary or survivor.
   (f) Any amount used to prefund postemployment health care for
patrol members pursuant to subdivision (a) shall not be included in
any calculation for benefits using final compensation.
   (g) 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 those provisions
of a memorandum of understanding require the expenditure of funds,
the provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
   (h) For purposes of this section, "patrol member" has the same
meaning as in Section 20390. This section shall not apply to an
employee of a county.
   (i) The Director of Human Resources may exercise his or her
discretion to apply the provisions of this section to patrol members
who are 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.
   SEC. 162.   SEC. 157.   Section 22953 of
the Government Code is amended to read:
   22953.  (a) The state, through the Department of Human Resources,
the Trustees of the California State University, or the Regents of
the University of California may contract, upon negotiations with
employee organizations, with carriers for dental care plans for
employees, annuitants, and eligible family members, provided the
carriers have operated successfully in the area of dental care
benefits for a reasonable period or have a contract to provide a
health benefit plan pursuant to Section 22850. The dental care plans
may include a portion of the monthly premium to be paid by the
employee or annuitant. Dental care plans provided under this
authority may be self-funded by the employer if it is determined to
be cost effective.
   (b) An employee or annuitant may enroll in a dental care plan
provided by a carrier that also provides a health benefit plan
pursuant to Section 22850 if the employee or annuitant is also
enrolled in the health benefit plan provided by that carrier.
However, nothing in this section may be construed to require an
employee or annuitant to enroll in a dental care plan and a health
benefit plan provided by the same carrier.
   (c) No contract for a dental care plan may be entered into unless
funds are appropriated by the Legislature in a subsequently enacted
statute. If a dental care plan is self-funded, funds used for that
plan shall be considered continuously appropriated, notwithstanding
Section 13340.
   SEC. 163.   SEC. 158.   Section 22954 of
the Government Code is amended to read:
   22954.  Funds appropriated for self-funded dental care plans for
state employees, other than employees of the California State
University, shall be maintained in the State Employees' Dental Care
Fund which is hereby created in the State Treasury. Moneys in this
fund shall be used by the Department of Human Resources to pay dental
claims and other administrative costs. Income earned on the moneys
in the State Employees' Dental Care Fund shall be credited to the
fund. Moneys in this fund are continuously appropriated in accordance
with this section and Section 22953.
   SEC. 164.   SEC. 159.   Section 22959 of
the Government Code is amended to read:
   22959.  The Department of Human Resources shall administer the
benefits provided by this part for civil service employees and
annuitants. The Trustees of the California State University shall
administer the benefits provided by this part for employees and
annuitants of the California State University.
   SEC. 165.   SEC. 160.   Section 22959.2
of the Government Code is amended to read:
   22959.2.  The Vision Care Program for State Annuitants shall be
administered by the Department of Human Resources.
   SEC. 166.   SEC. 161.   Section 22959.4
of the Government Code is amended to read:
   22959.4.  (a) An annuitant who retires from the state may enroll
in a vision care plan offered under this part, if any of the
following apply:
   (1) The annuitant was enrolled in a health benefit plan, a dental
care plan, or vision care plan at the time of separation for
retirement, and retired within 120 days of the date of separation.
   (2) The annuitant was not enrolled in a health benefit plan, a
dental care plan, or vision care plan at the time of separation for
retirement, but was eligible for enrollment as an employee at the
time of separation for retirement, and retired within 120 days of the
date of separation.
   (3) The annuitant is part of the Legislators' Retirement System
receiving an allowance pursuant to Article 6 (commencing with Section
9359) of Chapter 3.5 of Part 1 of Division 2.
   (b) The Department of Human Resources has no duty to locate or
notify any annuitant who may be eligible to enroll, or to provide
names or addresses to any person, agency, or entity for the purpose
of notifying those annuitants.
   SEC. 167.   SEC. 162.   Section 22959.6
of the Government Code is amended to read:
   22959.6.  (a) The Department of Human Resources may contract with
one or more vision care plans for annuitants and eligible family
members, provided the carrier or carriers have operated successfully
in the area of vision care benefits for a reasonable period, as
determined by the Department of Human Resources.
   (b) The Department of Human Resources, as the program
administrator, has full administrative authority over this program
and associated funds and shall require the monthly premium to be paid
by the annuitant for the vision care plan. The premium to be paid by
the annuitant shall be deducted from his or her monthly allowance.
If there are insufficient funds in an annuitant's allowance to pay
the premium, the plan provider shall directly bill the annuitant. A
vision care plan or plans provided under this authority shall be
funded by the annuitants' premium. All premiums received from
annuitants shall be deposited in the Vision Care Program for State
Annuitants Fund, which is hereby created in the State Treasury. Any
income earned on the moneys in the Vision Care Program for State
Annuitants Fund shall be credited to the fund. Notwithstanding
Section 13340, moneys in the fund are continuously appropriated for
the purposes specified in subdivision (d).
   (c) An annuitant may enroll in a vision care plan provided by a
carrier that also provides a health benefit plan pursuant to Section
22850 if the employee or annuitant is also enrolled in the health
benefit plan provided by that carrier. However, nothing in this
section may be construed to require an annuitant to enroll in a
vision care plan and a health benefit plan provided by the same
carrier. An annuitant enrolled in this program shall only enroll into
a vision plan or vision plans contracted for by the Department of
Human Resources.
   (d) No contract for a vision care plan may be entered into unless
the Department of Human Resources determines it is reasonable to do
so. Notwithstanding any other provision of law, any premium moneys
paid into this program by annuitants for the purposes of the
annuitant vision care plan that is contracted for shall be used for
the cost of providing vision care benefits to eligible, enrolled
annuitants and their eligible and enrolled dependents, the payment of
claims for those vision benefits, and the cost of administration of
the vision care plan or plans under this vision care program, those
costs being determined by the Department of Human Resources.
   (e) If the Director of Human Resources determines that it is not
economically feasible to continue this program anytime after its
commencement, the director may, upon written notice to enrollees and
to the contracting plan or plans, terminate this program within a
reasonable time. The notice of termination to the plan or plans shall
be determined by the Department of Human Resources. The notice to
enrollees of the termination of the program shall commence no later
than three months prior to the actual date of termination of the
program.
   (f) Premium rates for this program shall be determined by the
Department of Human Resources in conjunction with the contracted plan
or plans and shall be considered separate and apart from active
employee premium rates.
   (g) The director shall report to the Legislature, prior to the end
of the second quarter of the third plan year, on the continued
economic sustainability of the Vision Care Program for State
Annuitants.
   SEC. 168.   SEC. 163.   Section 22960 of
the Government Code is amended to read:
   22960.  (a) The State Peace Officers' and Firefighters' Defined
Contribution Plan is hereby established for state peace officer and
firefighter members in Bargaining Unit 6 who have become subject to
this part by memorandum of understanding, as provided by Section
3517.5.
   (b) The plan may also be provided to state peace officers or
firefighters who are either excluded from the definition of state
employee in subdivision (c) of Section 3513, or are nonelected
officers or employees of the executive branch of government and are
not members of the civil service, and who supervise employees in a
bargaining unit that is subject to this part, provided that the
Department of Human Resources has approved their inclusion for
coverage under this part.
   SEC. 169.   SEC. 164.   Section 22960.35
of the Government Code is amended to read:
   22960.35.  (a) Except as provided in this part, the plan shall be
administered by the board in conformity with its powers and duties
for administration of the system as set forth in Part 3 (commencing
with Section 20000). The board shall, to the extent that it
determines feasible, follow the procedures set forth in Article 7
(commencing with Section 20220) of Chapter 2 of Part 3.
   (b) The board may retain a third-party administrator to perform
recordkeeping, customer service or other plan administration
services.
   (c) The board shall notify the Department of Human Resources when
it is prepared to implement the plan.
   SEC. 170.   SEC. 165.   Section 22960.60
of the Government Code is amended to read:
   22960.60.  (a) Employer and employee contribution rates may be
determined by the terms of the memorandum of understanding applicable
to each plan participant and the employer in accordance with the
requirements of this section.
   (b) Through the Department of Human Resources, the employer shall
provide the board with a true and correct copy of each memorandum of
understanding applicable to plan participants. The board may
prescribe procedures for the orderly transmittal and receipt of these
documents.
   (c) Except as provided in subdivision (e), after receipt of an
applicable memorandum of understanding that sets forth an employer
contribution rate and any employee contribution rate, the board
shall, in accordance with Section 22960.36, amend the plan to provide
for the employer contribution rate and any employee contribution
rate set forth in the memorandum of understanding.
   (d) The employer contribution rate and any employee contribution
rate for state peace officers and firefighters who have become
subject to this part pursuant to the provisions of subdivision (b) of
Section 22960 shall be the contribution rate or rates set forth in
the memorandum of understanding for state peace officers and
firefighter members in Bargaining Unit 6.
   (e) The board may refuse to amend the plan under this section if,
in the board's considered judgment, the proposed amendment would
violate any applicable provision of Title 26 of the United States
Code.
   (f) The initial employer contribution rate shall be prescribed in
the memorandum of understanding. In the event an MOU expires and no
new memorandums of understanding takes effect, the last memorandums
of understanding in place shall control.
   SEC. 171.   SEC. 166.   Section
22960.100 of the Government Code is amended to read:
   22960.100.  (a) Notwithstanding any other provision of law, the
plan established by this part shall also apply to state peace officer
and firefighter members in State Bargaining Unit 8 who have become
subject to this part by a memorandum of understanding, as provided in
Section 3517.5.
   (b) The plan may also be provided to state peace officers or
firefighters who are either excluded from the definition of state
employee in subdivision (c) of Section 3513, or are nonelected
officers or employees of the executive branch of government and are
not members of the civil service, and who supervise employees in a
bargaining unit that is subject to this part, provided that the
Department of Human Resources has approved their inclusion for
coverage under this part.
   SEC. 172.   SEC. 167.   Section 68203 of
the Government Code is amended to read:
   68203.  (a) On July 1, 1980, and on July 1 of each year
thereafter, the salary of each justice and judge named in Sections
68200 to 68202, inclusive, and 68203.1 shall be increased by the
amount that is produced by multiplying the then current salary of
each justice or judge by the average percentage salary increase for
the current fiscal year for California state employees; provided,
that in any fiscal year in which the Legislature places a dollar
limitation on salary increases for state employees the same
limitation shall apply to judges in the same manner applicable to
state employees in comparable wage categories.
   (b) For the purposes of this section, salary increases for state
employees shall be those increases as reported by the Department of
Human Resources.
   (c) The salary increase for judges and justices made on July 1,
1980, for the 1980-81 fiscal year, shall in no case exceed 5 percent.

   (d) On January 1, 2001, the salary of the justices and judges
named in Sections 68200 to 68202, inclusive, shall be increased by
the amount that is produced by multiplying the salary of each justice
and judge as of December 31, 2000, by 81/2 percent.
   (e) On January 1, 2007, the salary of the justices and judges
identified in Sections 68200 to 68202, inclusive, and 68203.1 shall
also be increased by the amount that is produced by multiplying the
salary of each justice and judge as of December 31, 2006, by 8.5
percent.
   SEC. 173.   SEC. 168.   Section 77601 of
the Government Code is amended to read:
   77601.  The task force shall be comprised of the following
members:
   (a) Four representatives of trial courts, appointed by the Chief
Justice, representing two urban, one suburban, and one rural courts.
   (b) Four representatives of counties, appointed by the Governor
from a list of nominees submitted by the California State Association
of Counties, representing urban, suburban, and rural counties.
   (c) Three representatives appointed by the Senate Rules Committee,
at least two of whom shall represent trial court employee
organizations.
   (d) Three representatives appointed by the Speaker of the
Assembly, at least two of whom shall represent trial court employee
organizations.
   (e) The Director of Human Resources or his or her representative.
   (f) The Chief Executive Officer of PERS or his or her
representative.
   (g) The Director of Finance or his or her representative.
   (h) The Chief Justice shall designate a justice of the court of
appeal as nonvoting chairperson.
   SEC. 174.   SEC. 169.   Section 77602 of
the Government Code is amended to read:
   77602.  The Judicial Council shall provide staff support for the
task force and shall develop guidelines for procedures and practices
for the task force, which shall include input from and approval of
the task force. The Department of Human Resources, the Department of
Finance, and the Legislative Analyst shall provide additional
support, at the request of the Judicial Council. The California State
Association of Counties is encouraged to provide additional staff
support.
   SEC. 175.   SEC. 170.   Section 100503
of the Government Code is amended to read:
   100503.  In addition to meeting the minimum requirements of
Section 1311 of the federal act, the board shall do all of the
following:
   (a) Determine the criteria and process for eligibility,
enrollment, and disenrollment of enrollees and potential enrollees in
the Exchange and coordinate that process with the state and local
government entities administering other health care coverage
programs, including the State Department of Health Care Services, the
Managed Risk Medical Insurance Board, and California counties, in
order to ensure consistent eligibility and enrollment processes and
seamless transitions between coverage.
   (b) Develop processes to coordinate with the county entities that
administer eligibility for the Medi-Cal program and the entity that
determines eligibility for the Healthy Families Program, including,
but not limited to, processes for case transfer, referral, and
enrollment in the Exchange of individuals applying for assistance to
those entities, if allowed or required by federal law.
   (c) Determine the minimum requirements a carrier must meet to be
considered for participation in the Exchange, and the standards and
criteria for selecting qualified health plans to be offered through
the Exchange that are in the best interests of qualified individuals
and qualified small employers. The board shall consistently and
uniformly apply these requirements, standards, and criteria to all
carriers. In the course of selectively contracting for health care
coverage offered to qualified individuals and qualified small
employers through the Exchange, the board shall seek to contract with
carriers so as to provide health care coverage choices that offer
the optimal combination of choice, value, quality, and service.
   (d) Provide, in each region of the state, a choice of qualified
health plans at each of the five levels of coverage contained in
subdivisions (d) and (e) of Section 1302 of the federal act.
   (e) Require, as a condition of participation in the Exchange,
carriers to fairly and affirmatively offer, market, and sell in the
Exchange at least one product within each of the five levels of
coverage contained in subdivisions (d) and (e) of Section 1302 of the
federal act. The board may require carriers to offer additional
products within each of those five levels of coverage. This
subdivision shall not apply to a carrier that solely offers
supplemental coverage in the Exchange under paragraph (10) of
subdivision (a) of Section 100504.
   (f) (1) Require, as a condition of participation in the Exchange,
carriers that sell any products outside the Exchange to do both of
the following:
   (A) Fairly and affirmatively offer, market, and sell all products
made available to individuals in the Exchange to individuals
purchasing coverage outside the Exchange.
   (B) Fairly and affirmatively offer, market, and sell all products
made available to small employers in the Exchange to small employers
purchasing coverage outside the Exchange.
   (2) For purposes of this subdivision, "product" does not include
contracts entered into pursuant to Part 6.2 (commencing with Section
12693) of Division 2 of the Insurance Code between the Managed Risk
Medical Insurance Board and carriers for enrolled Healthy Families
beneficiaries or contracts entered into pursuant to Chapter 7
(commencing with Section 14000) of, or Chapter 8 (commencing with
Section 14200) of, Part 3 of Division 9 of the Welfare and
Institutions Code between the State Department of Health Care
Services and carriers for enrolled Medi-Cal beneficiaries.
   (g) Determine when an enrollee's coverage commences and the extent
and scope of coverage.
   (h) Provide for the processing of applications and the enrollment
and disenrollment of enrollees.
   (i) Determine and approve cost-sharing provisions for qualified
health plans.
   (j) Establish uniform billing and payment policies for qualified
health plans offered in the Exchange to ensure consistent enrollment
and disenrollment activities for individuals enrolled in the
Exchange.

   (k) Undertake activities necessary to market and publicize the
availability of health care coverage and federal subsidies through
the Exchange. The board shall also undertake outreach and enrollment
activities that seek to assist enrollees and potential enrollees with
enrolling and reenrolling in the Exchange in the least burdensome
manner, including populations that may experience barriers to
enrollment, such as the disabled and those with limited English
language proficiency.
   (l) Select and set performance standards and compensation for
navigators selected under subdivision (l) of Section 100502.
   (m) Employ necessary staff.
   (1) The board shall hire a chief fiscal officer, a chief
operations officer, a director for the SHOP Exchange, a director of
Health Plan Contracting, a chief technology and information officer,
a general counsel, and other key executive positions, as determined
by the board, who shall be exempt from civil service.
   (2) (A) The board shall set the salaries for the exempt positions
described in paragraph (1) and subdivision (i) of Section 100500 in
amounts that are reasonably necessary to attract and retain
individuals of superior qualifications. The salaries shall be
published by the board in the board's annual budget. The board's
annual budget shall be posted on the Internet Web site of the
Exchange. To determine the compensation for these positions, the
board shall cause to be conducted, through the use of independent
outside advisors, salary surveys of both of the following:
   (i) Other state and federal health insurance exchanges that are
most comparable to the Exchange.
   (ii) Other relevant labor pools.
   (B) The salaries established by the board under subparagraph (A)
shall not exceed the highest comparable salary for a position of that
type, as determined by the surveys conducted pursuant to
subparagraph (A).
   (C) The Department of Human Resources shall review the methodology
used in the surveys conducted pursuant to subparagraph (A).
   (3) The positions described in paragraph (1) and subdivision (i)
of Section 100500 shall not be subject to otherwise applicable
provisions of the Government Code or the Public Contract Code and,
for those purposes, the Exchange shall not be considered a state
agency or public entity.
   (n) Assess a charge on the qualified health plans offered by
carriers that is reasonable and necessary to support the development,
operations, and prudent cash management of the Exchange. This charge
shall not affect the requirement under Section 1301 of the federal
act that carriers charge the same premium rate for each qualified
health plan whether offered inside or outside the Exchange.
   (o) Authorize expenditures, as necessary, from the California
Health Trust Fund to pay program expenses to administer the Exchange.

   (p) Keep an accurate accounting of all activities, receipts, and
expenditures, and annually submit to the United States Secretary of
Health and Human Services a report concerning that accounting.
Commencing January 1, 2016, the board shall conduct an annual audit.
   (q) (1) Annually prepare a written report on the implementation
and performance of the Exchange functions during the preceding fiscal
year, including, at a minimum, the manner in which funds were
expended and the progress toward, and the achievement of, the
requirements of this title. This report shall be transmitted to the
Legislature and the Governor and shall be made available to the
public on the Internet Web site of the Exchange. A report made to the
Legislature pursuant to this subdivision shall be submitted pursuant
to Section 9795.
   (2) In addition to the report described in paragraph (1), the
board shall be responsive to requests for additional information from
the Legislature, including providing testimony and commenting on
proposed state legislation or policy issues. The Legislature finds
and declares that activities including, but not limited to,
responding to legislative or executive inquiries, tracking and
commenting on legislation and regulatory activities, and preparing
reports on the implementation of this title and the performance of
the Exchange, are necessary state requirements and are distinct from
the promotion of legislative or regulatory modifications referred to
in subdivision (d) of Section 100520.
   (r) Maintain enrollment and expenditures to ensure that
expenditures do not exceed the amount of revenue in the fund, and if
sufficient revenue is not available to pay estimated expenditures,
institute appropriate measures to ensure fiscal solvency.
   (s) Exercise all powers reasonably necessary to carry out and
comply with the duties, responsibilities, and requirements of this
act and the federal act.
   (t) Consult with stakeholders relevant to carrying out the
activities under this title, including, but not limited to, all of
the following:
   (1) Health care consumers who are enrolled in health plans.
   (2) Individuals and entities with experience in facilitating
enrollment in health plans.
   (3) Representatives of small businesses and self-employed
individuals.
   (4) The State Medi-Cal Director.
   (5) Advocates for enrolling hard-to-reach populations.
   (u) Facilitate the purchase of qualified health plans in the
Exchange by qualified individuals and qualified small employers no
later than January 1, 2014.
   (v) Report, or contract with an independent entity to report, to
the Legislature by December 1, 2018, on whether to adopt the option
in paragraph (3) of subdivision (c) of Section 1312 of the federal
act to merge the individual and small employer markets. In its
report, the board shall provide information, based on at least two
years of data from the Exchange, on the potential impact on rates
paid by individuals and by small employers in a merged individual and
small employer market, as compared to the rates paid by individuals
and small employers if a separate individual and small employer
market is maintained. A report made pursuant to this subdivision
shall be submitted pursuant to Section 9795.
   (w) With respect to the SHOP Program, collect premiums and
administer all other necessary and related tasks, including, but not
limited to, enrollment and plan payment, in order to make the
offering of employee plan choice as simple as possible for qualified
small employers.
   (x) Require carriers participating in the Exchange to immediately
notify the Exchange, under the terms and conditions established by
the board when an individual is or will be enrolled in or disenrolled
from any qualified health plan offered by the carrier.
   (y) Ensure that the Exchange provides oral interpretation services
in any language for individuals seeking coverage through the
Exchange and makes available a toll-free telephone number for the
hearing and speech impaired. The board shall ensure that written
information made available by the Exchange is presented in a plainly
worded, easily understandable format and made available in prevalent
languages. 
  SEC. 176.    Section 11755 of the Health and
Safety Code is amended to read:
   11755.  The department shall do all of the following:
   (a) Adopt regulations pursuant to Section 11152 of the Government
Code.
   (b) Employ administrative, technical, and other personnel as may
be necessary for the performance of its powers and duties.
   (c) Do or perform any of the acts that may be necessary,
desirable, or proper to carry out the purpose of this division.
   (d) Provide funds to counties for the planning and implementation
of local programs to alleviate problems related to alcohol and other
drug use.
   (e) Review and execute negotiated net amount contracts and Drug
Medi-Cal contracts, and approve or disapprove county plans submitted
for state and federal funds allocated by the department.
   (f) Provide for technical assistance and training to local alcohol
and other drug programs to assist in the planning and implementation
of quality services. The department may charge a fee to cover the
cost of providing technical assistance to these alcohol and other
drug programs.
   (g) Review research in, and serve as a resource to provide
information relating to, alcohol and other drug programs.
   (h) In cooperation with the Department of Human Resources,
encourage training in other state agencies to assist the agencies to
recognize employee problems relating to alcohol and other drug use
that affects job performance and encourage the employees to seek
appropriate services.
   (i) Assist and cooperate with the Office of Statewide Health
Planning and Development and the California Health Policy and Data
Advisory Commission in the drafting and adoption of the state health
plan to assure inclusion of appropriate provisions relating to
alcohol and other drug problems.
   (j) In the same manner and subject to the same conditions as other
state agencies, develop and submit annually to the Department of
Finance a program budget for the state-funded alcohol and other drug
program, which budget shall include expenditures proposed to be made
under this division, and may include expenditures proposed to be made
by any other state agency relating to alcohol and other drug
problems, pursuant to an interagency agreement with the department.
   (k) Review and certify alcohol and other drug programs meeting
state standards pursuant to Chapter 7 (commencing with Section 11830)
and Chapter 13 (commencing with Section 11847) of Part 2.
   (  l  ) Develop standards for assuring minimal
statewide levels of service quality provided by alcohol and other
drug programs.
   (m) Review and license narcotic treatment programs.
   (n) Develop and implement, in partnership with the counties,
alcohol and other drug prevention strategies especially designed for
youth.
   (o) Develop and maintain a centralized alcohol and drug abuse
indicator data collection system that shall gather and obtain
information on the status of the alcohol and other drug abuse
problems in the State of California. This information shall include,
but not be limited to, all of the following:
   (1) The number and characteristics of persons receiving recovery
or treatment services from alcohol and other drug programs providing
publicly funded services or services licensed by the department.
   (2) The location and types of services offered by these programs.
   (3) The number of admissions to hospitals on both an emergency
room and inpatient basis for treatment related to alcohol and other
drugs.
   (4) The number of arrests for alcohol and other drug violations.
   (5) The number of the Department of Corrections and
Rehabilitation, Division of Juvenile Justice, commitments for drug
violations.
   (6) The number of Department of Corrections and Rehabilitation
commitments for drug violations.
   (7) The number or percentage of persons having alcohol or other
drug problems as determined by survey information.
   (8) The amounts of illicit drugs confiscated by law enforcement in
the state.
   (9) The statewide alcohol and other drug program distribution and
the fiscal impact of alcohol and other drug problems upon the state.
   Providers of publicly funded services or services licensed by the
department to clients-participants shall report data in a manner, in
a format, and under a schedule prescribed by the department.
   (p) Issue an annual report that portrays the drugs abused,
populations affected, user characteristics, crime-related costs,
socioeconomic costs, and other related information deemed necessary
in providing a problem profile of alcohol and other drug abuse in the
state.
   (q) (1) Require any individual, public or private organization, or
government agency, receiving federal grant funds, to comply with all
federal statutes, regulations, guidelines, and terms and conditions
of the grants. The failure of the individual, public or private
organization, or government agency, to comply with the statutes,
regulations, guidelines, and terms and conditions of grants received
may result in the department's disallowing noncompliant costs, or the
suspension or termination of the contract or grant award allocating
the grant funds.
   (2) Adopt regulations implementing this subdivision in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code. For the purposes of the
Administrative Procedure Act, the adoption of the regulations shall
be deemed necessary for the preservation of the public peace, health
and safety, or general welfare. Subsequent amendments to the adoption
of emergency regulations shall be deemed an emergency only if those
amendments are adopted in direct response to a change in federal
statutes, regulations, guidelines, or the terms and conditions of
federal grants. Nothing in this paragraph shall be interpreted as
prohibiting the department from adopting subsequent amendments on a
nonemergency basis or as emergency regulations in accordance with the
standards set forth in Section 11346.1 of the Government Code.
   SEC. 177.   SEC. 171.   Section 50909 of
the Health and Safety Code is amended to read:
   50909.  (a) Notwithstanding Sections 19816 and 19825 of the
Government Code, the compensation of key exempt management, including
the executive director, the chief deputy director, the general
counsel, the director of financing, the director of homeownership
programs, the director of multifamily programs, the director of
insurance and the financial risk management director shall be
established by the board in the agency's annual budget, in amounts
which are reasonably necessary, in the discretion of the board, to
attract and hold a person of superior qualifications.
   (b) (1)  To determine the compensation for the positions described
in this section, the board shall cause to be conducted, through the
use of independent outside advisors, salary surveys of both of the
following:
   (A) Other state and local housing finance agencies that are most
comparable to CalHFA.
   (B) Other relevant labor pools.
   (2) The salaries so set by the board shall not exceed the highest
comparable salary for a position of that type, as determined by the
survey.
   (c) The Department of Human Resources shall review the methodology
used in these salary surveys.
   (d) Members of the board shall not receive a salary but shall be
entitled to a per diem allowance of one hundred dollars ($100) for
each day's attendance at a meeting of the board or a meeting of a
committee of the board, not to exceed three hundred dollars ($300) in
any month, and reimbursement for expenses incurred in the
performance of their duties under this part, including travel and
other necessary expenses.
   SEC. 178.   SEC. 172.   Section 10203.2
of the Insurance Code is amended to read:
   10203.2.  Life insurance conforming to all the following
conditions is another form of group life insurance:
   (a) Written under a policy covering, when issued, not less than 25
employees in eligible classes or positions as designated by the
Department of Human Resources pursuant to Section 19849.11 of the
Government Code.
   (b) Written under a policy issued to the State of California
through the Department of Human Resources or its designee pursuant to
Sections 19849.10 to 19849.12, inclusive, of the Government Code.
   (c) The premium on the policy is to be paid by the employees
alone, by the state alone, or in part by the state with the remainder
to be paid by the employees.
   (d) Insuring only managerial and confidential employees as defined
by subdivisions (e) and (f) of Section 3513 of the Government Code,
and employees excluded from the definition of state employees in
subdivision (c) of Section 3513 of the Government Code.
   (e) Insuring for amounts of insurance based upon some plan which
will preclude individual selection.
   (f) Insuring for the benefit of persons other than the Department
of Human Resources or its designee.
   (g) Written under a policy insuring, when issued, not less than 75
percent of all employees eligible for insurance under the policy, or
75 percent of the employees of any class or position thereof
reasonably determined by conditions pertaining to employment or of
any established unit thereof not formed for the purpose of procuring
insurance. If a group policy is intended to insure several classes,
positions, or units, it may be issued as respects the classes,
positions, or units of which 75 percent are covered and extended to
those other units, classes, or positions of which 75 percent express
the desire to be covered. In this case, when the employees apply and
pay for additional amounts of insurance, a smaller percentage of
employees may be insured for the additional amounts of insurance. If
any employee fails to become insured under an existing policy when he
or she becomes eligible and later wishes to become insured
thereunder, the insurer may require satisfactory evidence of
insurability before insurance is granted on the employee.
   SEC. 179.   SEC. 173.   Section 11871 of
the Insurance Code is amended to read:
   11871.  The State Compensation Insurance Fund may enter into a
master agreement with the Department of Human Resources to render
services in the adjustment and disposition of claims for workers'
compensation to any state agencies, including any officer,
department, division, bureau, commission, board or authority, not
insured with the fund.
   The master agreement shall provide for rendition of services at a
uniform rate to all agencies, except that the rate for the Department
of the California Highway Patrol may be fixed independently of the
uniform rate.
   The fund may, in accordance with the agreement, adjust and dispose
of claims for workers' compensation made by an officer or employee
of any state agency not insured with the fund.
   The fund may make all expenditures, including payment to claimants
for medical care or for adjustment or settlement of claims,
necessary to the adjustment and final disposition of claims. The
agreement shall provide that the state agency whose officer or
employee is a claimant shall reimburse the fund for the expenditures
and for the actual cost of services rendered.
   The fund may in its own name, or in the name of the state agency
for which the services are performed, do any and all things necessary
to recover on behalf of the state agency for which it renders
service any and all amounts which an employer might recover from
third persons under Chapter 5 (commencing with Section 3850) of Part
1 of Division 4 of the Labor Code, or which an insurer might recover
pursuant to Section 11662 including the right to commence and
prosecute actions, to file, pursuant to Chapter 5 (commencing with
Section 3850) of Part 1 of Division 4 of the Labor Code, liens for
whatever sums would be recoverable by suit against a third person, to
intervene in other court proceedings, and to compromise claims and
actions before or after commencement of suit or after entry of
judgment when in the opinion of the fund full collection cannot be
enforced.
   SEC. 180.   SEC. 174.   Section 12693.65
of the Insurance Code is amended to read:
   12693.65.  (a) Vision benefits shall be provided to subscribers
and shall meet the federal coverage requirements in Section 2103 of
Title XXI of the Social Security Act.
   (b) The covered benefits shall be equivalent to those provided to
state employees through the Department of Human Resources, except for
tinted lenses and also photochromatic lenses, unless otherwise
deemed medically necessary.
   (c) The board shall establish the required subscriber copayment
levels for vision benefits consistent with the limitations of Section
2103 of Title XXI of the Social Security Act. The copayment levels
established by the board shall, to the extent possible, reflect the
copayment levels provided to state employees through the Department
of Human Resources.
   (d) From March 1, 2011, to June 30, 2012, inclusive, the adoption
and readoption, by the board, of regulations to modify vision
benefits pursuant to this section, including, but not limited to,
restriction of providers through which covered vision benefits may be
obtained, restriction of benefits for services from nonparticipating
providers, or restriction of products and materials provided as
benefits pursuant to this section, shall be deemed to be an emergency
and necessary to avoid serious harm to the public peace, health,
safety, or general welfare for purposes of Sections 11346.1 and
11349.6 of the Government Code, and the board is hereby exempted from
the requirement that it describe facts showing the need for
immediate action and from review by the Office of Administrative Law.

   SEC. 181.  SEC. 175.   Section 12710 of
the Insurance Code is amended to read:
   12710.  The California Major Risk Medical Insurance Program is
hereby created in the Health and Welfare Agency. The program shall be
managed by the Major Risk Medical Insurance Board. The board shall
consist of seven members, five of whom shall be appointed as follows:

   The Governor shall appoint three members, subject to confirmation
by the Senate, and shall designate one of these appointees as chair
of the board. The Senate Committee on Rules shall appoint one member.
The Speaker of the Assembly shall appoint one member. The terms of
appointment shall be four years.
   The Secretary of Business, Transportation and Housing, or his or
her designee, and the Secretary of Health and Welfare, or his or her
designee, shall serve on the board as ex officio, nonvoting members.
   The board shall appoint an executive director for the board, who
shall serve at the pleasure of the board. The executive director
shall receive the salary established by the Department of Human
Resources for exempt officials. The executive director shall
administer the affairs of the board as directed by the board, and
shall direct the staff of the board. The executive director may
appoint, with the approval of the board, staff necessary to carry out
the provisions of this part.
   SEC. 182.   SEC. 176.   Section 122 of
the Labor Code is amended to read:
   122.  The administrative director shall appoint a medical director
who shall possess a physician's and surgeon's certificate granted
under Chapter 5 (commencing with Section 2000) of Division 2 of the
Business and Professions Code. The medical director shall employ
medical assistants who shall also possess physicians' and surgeons'
certificates and other staff necessary to the performance of his or
her duties. The salaries for the medical director and his or her
assistants shall be fixed by the Department of Human Resources,
commensurate with the salaries paid by private industry to medical
directors and assistant medical directors.
   SEC. 183.   SEC. 177.   Section 123 of
the Labor Code is amended to read:
   123.  The administrative director may employ necessary assistants,
officers, experts, statisticians, actuaries, accountants, workers'
compensation administrative law judges, stenographic shorthand
reporters, legal secretaries, disability evaluation raters, program
technicians, and other employees to implement new, efficient court
management systems. The salaries of the workers' compensation
administrative law judges shall be fixed by the Department of Human
Resources for a class of positions which perform judicial functions.
   SEC. 184.   SEC. 178.   Section 3352 of
the Labor Code is amended to read:
   3352.  "Employee" excludes the following:
   (a) Any person defined in subdivision (d) of Section 3351 who is
employed by his or her parent, spouse, or child.
   (b) Any person performing services in return for aid or sustenance
only, received from any religious, charitable, or relief
organization.
   (c) Any person holding an appointment as deputy clerk or deputy
sheriff appointed for his or her own convenience, and who receives no
compensation from the county or municipal corporation or from the
citizens thereof for his or her services as the deputy. This
exclusion is operative only as to employment by the county or
municipal corporation and does not deprive any person so deputized
from recourse against a private person employing him or her for
injury occurring in the course of and arising out of the employment.
   (d) Any person performing voluntary services at or for a
recreational camp, hut, or lodge operated by a nonprofit
organization, exempt from federal income tax under Section 101(6) of
the Internal Revenue Code, of which he or she or a member of his or
her family is a member and who receives no compensation for those
services other than meals, lodging, or transportation.
   (e) Any person performing voluntary service as a ski patrolman who
receives no compensation for those services other than meals or
lodging or the use of ski tow or ski lift facilities.
   (f) Any person employed by a ski lift operator to work at a snow
ski area who is relieved of and not performing any prescribed duties,
while participating in recreational activities on his or her own
initiative.
   (g) Any person, other than a regular employee, participating in
sports or athletics who receives no compensation for the
participation other than the use of athletic equipment, uniforms,
transportation, travel, meals, lodgings, or other expenses incidental
thereto.
   (h) Any person defined in subdivision (d) of Section 3351 who was
employed by the employer to be held liable for less than 52 hours
during the 90 calendar days immediately preceding the date of the
injury for injuries, as defined in Section 5411, or during the 90
calendar days immediately preceding the date of the last employment
in an occupation exposing the employee to the hazards of the disease
or injury for injuries, as defined in Section 5412, or who earned
less than one hundred dollars ($100) in wages from the employer
during the 90 calendar days immediately preceding the date of the
injury for injuries, as defined in Section 5411, or during the 90
calendar days immediately preceding the date of the last employment
in an occupation exposing the employee to the hazards of the disease
or injury for injuries, as defined in Section 5412.
   (i) Any person performing voluntary service for a public agency or
a private, nonprofit organization who receives no remuneration for
the services other than meals, transportation, lodging, or
reimbursement                                             for
incidental expenses.
   (j) Any person, other than a regular employee, performing
officiating services relating to amateur sporting events sponsored by
any public agency or private, nonprofit organization, who receives
no remuneration for these services other than a stipend for each day
of service no greater than the amount established by the Department
of Human Resources as a per diem expense for employees or officers of
the state. The stipend shall be presumed to cover incidental
expenses involved in officiating, including, but not limited to,
meals, transportation, lodging, rule books and courses, uniforms, and
appropriate equipment.
   (k) Any student participating as an athlete in amateur sporting
events sponsored by any public agency, public or private nonprofit
college, university or school, who receives no remuneration for the
participation other than the use of athletic equipment, uniforms,
transportation, travel, meals, lodgings, scholarships, grants-in-aid,
or other expenses incidental thereto.
   (  l  ) Any law enforcement officer who is regularly
employed by a local or state law enforcement agency in an adjoining
state and who is deputized to work under the supervision of a
California peace officer pursuant to paragraph (4) of subdivision (a)
of Section 832.6 of the Penal Code.
   (m) Any law enforcement officer who is regularly employed by the
Oregon State Police, the Nevada Department of Motor Vehicles and
Public Safety, or the Arizona Department of Public Safety and who is
acting as a peace officer in this state pursuant to subdivision (a)
of Section 830.32 of the Penal Code.
   (n) Any person, other than a regular employee, performing services
as a sports official for an entity sponsoring an intercollegiate or
interscholastic sports event, or any person performing services as a
sports official for a public agency, public entity, or a private
nonprofit organization, which public agency, public entity, or
private nonprofit organization sponsors an amateur sports event. For
purposes of this subdivision, "sports official" includes an umpire,
referee, judge, scorekeeper, timekeeper, or other person who is a
neutral participant in a sports event.
   (o) Any person who is an owner-builder, as defined in subdivision
(a) of Section 50692 of the Health and Safety Code, who is
participating in a mutual self-help housing program, as defined in
Section 50087 of the Health and Safety Code, sponsored by a nonprofit
corporation.
   SEC. 185.   SEC. 179.   Section 4600 of
the Labor Code is amended to read:
   4600.  (a) Medical, surgical, chiropractic, acupuncture, and
hospital treatment, including nursing, medicines, medical and
surgical supplies, crutches, and apparatuses, including orthotic and
prosthetic devices and services, that is reasonably required to cure
or relieve the injured worker from the effects of his or her injury
shall be provided by the employer. In the case of his or her neglect
or refusal reasonably to do so, the employer is liable for the
reasonable expense incurred by or on behalf of the employee in
providing treatment.
   (b) As used in this division and notwithstanding any other
provision of law, medical treatment that is reasonably required to
cure or relieve the injured worker from the effects of his or her
injury means treatment that is based upon the guidelines adopted by
the administrative director pursuant to Section 5307.27 or, prior to
the adoption of those guidelines, the updated American College of
Occupational and Environmental Medicine's Occupational Medicine
Practice Guidelines.
   (c) Unless the employer or the employer's insurer has established
a medical provider network as provided for in Section 4616, after 30
days from the date the injury is reported, the employee may be
treated by a physician of his or her own choice or at a facility of
his or her own choice within a reasonable geographic area.
   (d) (1) If an employee has notified his or her employer in writing
prior to the date of injury that he or she has a personal physician,
the employee shall have the right to be treated by that physician
from the date of injury if either of the following conditions exist:
   (A) The employer provides nonoccupational group health coverage in
a health care service plan, licensed pursuant to Chapter 2.2
(commencing with Section 1340) of Division 2 of the Health and Safety
Code.
   (B) The employer provides nonoccupational health coverage in a
group health plan or a group health insurance policy as described in
Section 4616.7.
   (2) For purposes of paragraph (1), a personal physician shall meet
all of the following conditions:
   (A) Be the employee's regular physician and surgeon, licensed
pursuant to Chapter 5 (commencing with Section 2000) of Division 2 of
the Business and Professions Code.
   (B) Be the employee's primary care physician and has previously
directed the medical treatment of the employee, and who retains the
employee's medical records, including his or her medical history.
"Personal physician" includes a medical group, if the medical group
is a single corporation or partnership composed of licensed doctors
of medicine or osteopathy, which operates an integrated
multispecialty medical group providing comprehensive medical services
predominantly for nonoccupational illnesses and injuries.
   (C) The physician agrees to be predesignated.
   (3) If the employer provides nonoccupational health care pursuant
to Chapter 2.2 (commencing with Section 1340) of Division 2 of the
Health and Safety Code, and the employer is notified pursuant to
paragraph (1), all medical treatment, utilization review of medical
treatment, access to medical treatment, and other medical treatment
issues shall be governed by Chapter 2.2 (commencing with Section
1340) of Division 2 of the Health and Safety Code. Disputes regarding
the provision of medical treatment shall be resolved pursuant to
Article 5.55 (commencing with Section 1374.30) of Chapter 2.2 of
Division 2 of the Health and Safety Code.
   (4) If the employer provides nonoccupational health care, as
described in Section 4616.7, all medical treatment, utilization
review of medical treatment, access to medical treatment, and other
medical treatment issues shall be governed by the applicable
provisions of the Insurance Code.
   (5) The insurer may require prior authorization of any
nonemergency treatment or diagnostic service and may conduct
reasonably necessary utilization review pursuant to Section 4610.
   (6) An employee shall be entitled to all medically appropriate
referrals by the personal physician to other physicians or medical
providers within the nonoccupational health care plan. An employee
shall be entitled to treatment by physicians or other medical
providers outside of the nonoccupational health care plan pursuant to
standards established in Article 5 (commencing with Section 1367) of
Chapter 2.2 of Division 2 of the Health and Safety Code.
   (e) (1) When at the request of the employer, the employer's
insurer, the administrative director, the appeals board, or a workers'
compensation administrative law judge, the employee submits to
examination by a physician, he or she shall be entitled to receive,
in addition to all other benefits herein provided, all reasonable
expenses of transportation, meals, and lodging incident to reporting
for the examination, together with one day of temporary disability
indemnity for each day of wages lost in submitting to the
examination.
   (2) Regardless of the date of injury, "reasonable expenses of
transportation" includes mileage fees from the employee's home to the
place of the examination and back at the rate of twenty-one cents
($0.21) a mile or the mileage rate adopted by the Director of Human
Resources pursuant to Section 19820 of the Government Code, whichever
is higher, plus any bridge tolls. The mileage and tolls shall be
paid to the employee at the time he or she is given notification of
the time and place of the examination.
   (f) When at the request of the employer, the employer's insurer,
the administrative director, the appeals board, or a workers'
compensation administrative law judge, an employee submits to
examination by a physician and the employee does not proficiently
speak or understand the English language, he or she shall be entitled
to the services of a qualified interpreter in accordance with
conditions and a fee schedule prescribed by the administrative
director. These services shall be provided by the employer. For
purposes of this section, "qualified interpreter" means a language
interpreter certified, or deemed certified, pursuant to Article 8
(commencing with Section 11435.05) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of, or Section 68566 of, the Government Code.
   SEC. 186.   SEC. 180.   Section 322 of
the Military and Veterans Code is amended to read:
   322.  Officers, warrant officers, and enlisted men and women on
active duty in the service of the state, except in situations
described in Section 188, shall be reimbursed for their necessary
traveling and other expenses in accordance with the rules and
regulations adopted by the Department of Human Resources.
   SEC. 187.   SEC. 181.   Section 1011 of
the Military and Veterans Code is amended to read:
   1011.  (a) There is in the department a Veterans' Home of
California, Yountville, situated at Veterans' Home, Napa County.
   (b) (1) The department may establish and construct a second home
that shall be situated in the County of Imperial, Los Angeles,
Orange, Riverside, San Bernardino, San Diego, or Ventura. The home
may be located on one or more sites. The department shall operate the
second home concurrently with the first home.
   (2) The initial site is the Veterans' Home of California, Barstow,
situated in Barstow, San Bernardino County. That site may provide
skilled nursing care for up to 250 residents.
   (3) When completed, the second site shall be the Veterans' Home of
California, Chula Vista, situated in Chula Vista, San Diego County,
pursuant to the recommendations made by the commission established
pursuant to former Section 1011.5.
   (4) When completed, the third site shall be the Veterans' Home of
California, Lancaster, situated in Lancaster, Los Angeles County,
pursuant to the recommendations made by the commission established
pursuant to former Section 1011.5.
   (5) When completed, the fourth site shall be the Veterans' Home of
California, Ventura, situated in the community of Saticoy, Ventura
County.
   (6) There shall be an administrator for, and located at, each site
of the southern California home.
   (7) The department may complete any preapplication process
necessary with the United States Department of Veterans Affairs for
construction of the second home.
   (c) The Legislature hereby finds and declares that the second home
is a new state function. The department may perform any or all work
in operating the second home by independent contractors, except the
overall administration and management of the home. Any and all
actions of the department taken before September 17, 1996, that are
consistent with this subdivision are hereby ratified and confirmed,
it having at all times been the intent of the Legislature that the
department be so authorized.
   (d) There shall be an administrator for each home or homesite, who
shall be recommended by the Secretary of Veterans Affairs and
appointed by the Governor, and shall be located at that home or
homesite. The salary for each administrator shall be subject to the
approval of the Department of Human Resources.
   SEC. 188.   SEC. 182.   Section 832.9 of
the Penal Code is amended to read:
   832.9.  (a) A governmental entity employing a peace officer, as
defined in Section 830, judge, court commissioner, or an attorney
employed by the Department of Justice, the State Public Defender, or
a county office of a district attorney or public defender shall
reimburse the moving and relocation expenses of those employees, or
any member of his or her immediate family residing with the officer
in the same household or on the same property when it is necessary to
move because the officer has received a credible threat that a life
threatening action may be taken against the officer, judge, court
commissioner, or an attorney employed by the Department of Justice,
the State Public Defender, or a county office of the district
attorney or public defender or his or her immediate family as a
result of his or her employment.
   (b) The person relocated shall receive actual and necessary moving
and relocation expenses incurred both before and after the change of
residence, including reimbursement for the costs of moving household
effects either by a commercial household goods carrier or by the
employee.
   (1) Actual and necessary moving costs shall be those costs that
are set forth in the Department of Human Resources rules governing
promotional relocations while in the state service. The department
shall not be required to administer this section.
   (2) The public entity shall not be liable for any loss in value to
a residence or for the decrease in value due to a forced sale.
   (3) Except as provided in subdivision (c), peace officers, judges,
court commissioners, and attorneys employed by the Department of
Justice, the State Public Defender, or a county office of a district
attorney or public defender shall receive approval of the appointing
authority prior to incurring any cost covered by this section.
   (4) Peace officers, judges, court commissioners, and attorneys
employed by the Department of Justice, the State Public Defender, or
a county office of a district attorney or public defender shall not
be considered to be on duty while moving unless approved by the
appointing authority.
   (5) For a relocation to be covered by this section, the appointing
authority shall be notified as soon as a credible threat has been
received.
   (6) Temporary relocation housing shall not exceed 60 days.
   (7) The public entity ceases to be liable for relocation costs
after 120 days of the original notification of a viable threat if the
peace officer, judge, court commissioner, or attorney employed by
the Department of Justice, the State Public Defender, or a county
office of a district attorney or public defender has failed to
relocate.
   (c) (1) For purposes of the right to reimbursement of moving and
relocation expenses pursuant to this section, judges shall be deemed
to be employees of the State of California and a court commissioner
is an employee of the court by which he or she is employed.
   (2) For purposes of paragraph (3) of subdivision (b), a court
commissioner shall receive approval by the presiding judge of the
superior court in the county in which he or she is located.
   (3) For purposes of paragraph (3) of subdivision (b), judges,
including justices of the Supreme Court and the Courts of Appeal,
shall receive approval from the Chief Justice, or his or her
designee.
   (d) As used in this section, "credible threat" means a verbal or
written statement or a threat implied by a pattern of conduct or a
combination of verbal or written statements and conduct made with the
intent and the apparent ability to carry out the threat so as to
cause the person who is the target of the threat to reasonably fear
for his or her safety or the safety of his or her immediate family.
   (e) As used in this section, "immediate family" means the spouse,
parents, siblings, and children residing with the peace officer,
judge, court commissioner, or attorney employed by the Department of
Justice, the State Public Defender, or a county office of a district
attorney or public defender.
   SEC. 189.   SEC. 183.   Section 6050 of
the Penal Code is amended to read:
   6050.  (a) The Governor, upon recommendation of the secretary,
shall appoint the wardens of the various state prisons. Each warden
shall be subject to removal by the secretary. If the secretary
removes him or her, the secretary's action shall be final. The
wardens shall be exempt from civil service.
   (b) The Department of Human Resources shall fix the compensation
of the wardens of the state prisons.
   SEC. 190.   SEC. 184.   Section 10295 of
the Public Contract Code is amended to read:
   10295.  (a) All contracts entered into by any state agency for (1)
the acquisition of goods or elementary school textbooks, (2)
services, whether or not the services involve the furnishing or use
of goods or are performed by an independent contractor, (3) the
construction, alteration, improvement, repair, or maintenance of
property, real or personal, or (4) the performance of work or
services by the state agency for or in cooperation with any person,
or public body, are void unless and until approved by the department.
Every contract shall be transmitted with all papers, estimates, and
recommendations concerning it to the department and, if approved by
the department, shall be effective from the date of the approval.
   (b) This section applies to any state agency that by general or
specific statute is expressly or impliedly authorized to enter into
transactions referred to in this section.
   (c) This section does not apply to the following:
   (1) Any transaction entered into by the Trustees of the California
State University, by the Board of Governors of the California
Community Colleges, or by a department under the State Contract Act
or the California State University Contract Law.
   (2) Any contract of a type specifically mentioned and authorized
to be entered into by the Department of Transportation under Section
14035 or 14035.5 of the Government Code, Sections 99316 to 99319,
inclusive, of the Public Utilities Code, or the Streets and Highways
Code.
   (3) Any contract entered into by the Department of Transportation
that is not funded by money derived by state tax sources but, rather,
is funded by money derived from federal or local tax sources.
   (4) Any contract entered into by the Department of Human Resources
for state employee benefits, occupational health and safety,
training services, or combination thereof.
   (5) Any contract let by the Legislature.
   (6) Any contract entered into under the authority of Chapter 4
(commencing with Section 11770) of Part 3 of Division 2 of the
Insurance Code.
   SEC. 191.   SEC. 185.   Section 10344.1
of the Public Contract Code is amended to read:
   10344.1.  The Department of Human Resources, with respect to
contracts it enters into for state employees for employee benefits,
occupational health and safety, training services, or any combination
thereof, shall provide all qualified bidders with a fair opportunity
to enter the bidding process, therefore stimulating competition in a
manner conducive to sound fiscal practices. The Department of Human
Resources shall make available to any member of the public its
guidelines for awarding these contracts, and to the extent feasible,
implement the objectives set forth in Section 10351.
   SEC. 192.   SEC. 186.   Section 10349 of
the Public Contract Code is amended to read:
   10349.  The Department of Human Resources shall establish a
program for training state agency contracting personnel in contract
administration and contract management. The cost of training state
agency contracting personnel shall be paid by state agencies out of
their appropriations for personnel training. The Department of Human
Resources shall, prior to establishing the training program required
by this section, consult with the department concerning the training
curriculum and the development of a training manual on contract
administration.
   SEC. 193.   SEC. 187.   Section 309.1 of
the Public Utilities Code is amended to read:
   309.1.  The Governor may appoint one adviser for each member of
the commission upon the request of the commission member. Each
adviser shall receive a salary fixed by the commission with the
approval of the Department of Human Resources. The total number of
advisers exempt from civil service may not exceed five.
   SEC. 194.   SEC. 188.   Section 185024
of the Public Utilities Code is amended to read:
   185024.  (a) The authority shall appoint an executive director,
exempt from civil service, who shall serve at the pleasure of the
authority, to administer the affairs of the authority as directed by
the authority.
   (b) For purposes of managing and administering the ongoing work of
the authority in implementing the high-speed train project, the
Governor, upon the recommendation of the executive director, may
appoint up to six additional individuals, exempt from civil service,
who shall serve at the pleasure of the executive director. Pursuant
to this subdivision, the Governor may appoint persons only for the
following positions:
   (1) Chief program manager.
   (2) Up to three regional directors.
   (3) Chief financial officer.
   (4) Director of risk management and project controls.
   (c) The compensation of the executive director and the additional
persons authorized by subdivision (b) shall be established by the
authority, and approved by the Department of Human Resources, in an
amount that is reasonably necessary, in the discretion of the
authority, to attract and hold a person of superior qualifications.
The authority shall cause to be conducted, through the use of
independent outside advisers, a salary survey to determine the
compensation for the positions under this subdivision. The Department
of Human Resources may, in its discretion, accept a previously
completed salary survey that meets the requirements of this
subdivision, and shall review the methodology used in the survey. The
salary survey shall consider both of the following:
   (1) Other state, regional, and local transportation agencies that
are most comparable to the authority and its responsibilities.
   (2) Other relevant labor pools.
   The compensation set by the authority shall not exceed the highest
comparable compensation for a position of that type, as determined
by the salary survey. Based on the salary survey, these positions
shall be paid a salary established by the authority and approved by
the Department of Human Resources.
   (d) The executive director may, as authorized by the authority,
appoint necessary staff to carry out the provisions of this part.
   SEC. 195.   SEC. 189.   Section 19270 of
the Revenue and Taxation Code is amended to read:
   19270.  (a) Consistent with the development and implementation of
the California Child Support Automation System (CCSAS), the Franchise
Tax Board and the Department of Child Support Services shall enter
into a letter of agreement and an interagency agreement whereby the
Department of Child Support Services shall assume responsibility for
collection of child support delinquencies and the Financial
Institution Data Match System as set forth in this article. The
letter of agreement and the interagency agreement shall, at a
minimum, set forth all of the following:
   (1) Contingent upon the enactment of the Budget Act, and staffing
authorization from the Department of Finance and the Department of
Human Resources, the Department of Child Support Services shall
assume responsibility for leadership and staff of collection of child
support delinquencies and the Financial Institution Data Match
System.
   (2) All employees and other personnel who staff or provide support
for the collection of child support delinquencies and the Financial
Institution Data Match System at the Franchise Tax Board shall become
the employees of the Department of Child Support Services at their
existing or equivalent classification, salaries, and benefits.
   (3) Any other provisions necessary to ensure continuity of
function and meet or exceed existing levels of service, including,
but not limited to, agreements for continued use of automated systems
used by the Franchise Tax Board to locate child support obligors and
their assets.
   (b) It is the intent of the Legislature that any provision of
income tax return information by the Franchise Tax Board to the
Department of Child Support Services pursuant to this article shall
be done in accordance with the privacy and confidential information
laws of this state and the United States, and to the satisfaction of
the Franchise Tax Board.
   SEC. 196.   SEC. 190.   Section 2266 of
the Vehicle Code is amended to read:
   2266.  (a) The Legislature finds and declares all of the
following:
   (1) The communications operators of the Department of the
California Highway Patrol are among the lowest paid when compared to
operators employed by other law enforcement agencies in the state.
The department's communication centers suffer from significant staff
shortages and high turnover rates. Increasing the wages paid to these
communications operators will increase their professionalism while
reducing their rate of turnover.
   (2) The recruitment and retention problem is especially evident in
the classifications of Communications Operator I and II.
   (3) In order for the state to recruit and retain the highest
qualified and capable communications operators, those employees
should be compensated in an amount equal to the estimated average
total compensation for the classifications corresponding to
Communications Operator I and II within the police departments in the
Cities of Los Angeles, Oakland, San Diego, and San Jose and the City
and County of San Francisco.
   (4) According to the Department of the California Highway Patrol,
it costs the department thirty-six thousand one hundred ninety-eight
dollars ($36,198) to train a Communications Operator I and sixty-five
thousand two hundred two dollars ($65,202) to train a Communications
Operator II to their respective classifications. After the
department has trained an operator, all too often the new, fully
trained operator will move to a local agency to a higher wage.
   (5) This section is not in violation of the Ralph C. Dills Act
(Chapter 10.3 (commencing with Section 3512) of Division 4 of Title 1
of the Government Code), which requires that changes for salaries
and benefits be collectively bargained between representatives of the
state and the employee's union. This section does not circumvent
that process. This section simply authorizes the Department of Human
Resources, when determining compensation for communications operators
in the Department of the California Highway Patrol, to consider the
total compensation for communications operators in other
jurisdictions.
   (b) When determining compensation for communications operators in
the Department of the California Highway Patrol, the Department of
Human Resources may consider the total compensation for
communications operators in comparable positions in the police
departments specified in paragraph (3) of subdivision (a).
                                                  SEC. 197.
  SEC. 191.   Section 80122 of the Water Code is
amended to read:
   80122.  The department may do any of the following as may be, in
the determination of the department, necessary for the purposes of
this division:
   (a) Hire and appoint employees as required, at salary levels
determined by the director to be competitive to attract and retain
persons with the necessary expertise and skills. Prior to hiring or
appointing an employee at a salary in excess of a salary approved by
the Department of Human Resources, the director shall submit the
proposed salary to the Director of Finance who shall submit it to the
Legislature in accordance with Section 27.00 of the annual Budget
Act. No excess salary authorized under this section may be paid on or
after January 1, 2003. The excess portion of a salary authorized
under this section may not be considered salary in the calculation of
final compensation for purposes of benefits under the Public
Employees' Retirement System.
   (b) Engage the services of private parties to render professional
and technical assistance and advice and other services in carrying
out the purposes of this division.
   (c) Contract for the services of other public agencies.
   (d) The State Personnel Board and the Department of Human
Resources shall assist the department in expediting the hiring of
personnel necessary and desirable for the timely and successful
implementation and administration of the department's duties and
responsibilities pursuant to this division.
   SEC. 192.    Any section of any act enacted by the
Legislature during the 2012 calendar year that takes effect on or
before January 1, 2013, and that amends, amends and renumbers, adds,
repeals and adds, or repeals a section that is amend   ed,
amended and renumbered, added, repealed and added, or repealed by
this act, shall prevail over this act, whether that act is enacted
prior to, or subsequent to, the enactment of this act. The repeal, or
repeal and addition, of any article, chapter, part, title, or
division of any code by this act shall not become operative if any
section of any other act that is enacted by the Legislature 
 during the 2012 calendar year and takes effect on or before
January 1, 2013, amends, amends and renumbers, adds, repeals and
adds, or repeals any section contained in that article, chapter,
part, title, or division.