Bill Text: CA SB48 | 2017-2018 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: State public employee benefits.

Spectrum: Committee Bill

Status: (Passed) 2017-03-15 - Chaptered by Secretary of State. Chapter 3, Statutes of 2017. [SB48 Detail]

Download: California-2017-SB48-Amended.html

Amended  IN  Senate  January 30, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 48


Introduced by Senator De León Committee on Budget and Fiscal Review

December 05, 2016


An act relating to the Budget Act of 2016. to amend Sections 22871.3, 22874.3, 22879, and 22958.1 of the Government Code, relating to state public employee benefits, and making an appropriation therefor, to take effect immediately, bill related to the budget.


LEGISLATIVE COUNSEL'S DIGEST


SB 48, as amended, Committee on Budget and Fiscal Review. Budget Act of 2016. State public employee benefits.
(1) The Public Employees’ Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees’ Retirement System, prescribes methods for calculating the state employer contribution for postemployment health care benefits for eligible retired public employees and their families and for the vesting of these benefits. PEMHCA requires the employer contribution for an employee or annuitant who is in the employment of or retired from state service to be adjusted by the Legislature in the annual Budget Act, as specified. PEMHCA prescribes different ways of calculating the employer contributions for employees and annuitants depending on date of hire, years of service, and bargaining unit.
This bill, for state employees who are first employed and become members of the retirement system on or after January 1, 2017, as specified, and are represented by, or related to, State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, would limit the employer contribution for annuitants to 80% of the weighted average of the health benefit plan premiums for an active employee enrolled for self-alone, during the benefit year to which the formula is applied, for the 4 health benefit plans with the largest state civil service enrollment, as specified. The bill would similarly limit the employer contribution for an enrolled family member of an annuitant to 80% of the weighted average of the additional premiums required for enrollment of those family members during the benefit year to which the formula is applied and would provide the same limit on employer contributions for annuitants enrolled in Medicare health benefit plans.
This bill would prohibit state employees who are first employed and become members of the retirement system on or after January 1, 2017, as specified, and are represented by State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, from receiving any portion of the employer contribution payable for annuitants unless the person is credited with at least 15 years of state service at the time of retirement. The bill would prescribe the percentage of the employer contribution payable for postretirement health benefits for these employees based on the number of completed years of credited state service at retirement, with 50% after 15 credited years of service and 100% after 25 or more years of service.
(2) PEMHCA generally requires that an employee or annuitant who is enrolled in, or whose family member is enrolled in, a Medicare health benefit plan be paid the amount of the Medicare Part B premiums, as specified, and prohibits this payment from exceeding the difference between the maximum employer contribution and the amount contributed by the employer toward the cost of premiums for the health benefit plan in which the employee or annuitant and his or her family members are enrolled. Existing law excepts from this requirement state employees who are first employed and become members of the retirement system on or after specified dates and are represented by, or related to, specified state bargaining units.
This bill would also except from the requirement described above state employees who are first employed and become members of the retirement system on or after January 1, 2017, as specified, and are represented by, or related to, the State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21.
(3) Existing law, the State Employees’ Dental Care Act, authorizes the state to enter into contracts, upon negotiations with employee organizations, with carriers for dental care plans for employees, annuitants, and eligible family members. Existing law permits these plans to include premiums to be paid by employees and annuitants and also authorizes the plans to be self-funded if an employer determines it to be cost effective. Existing law prohibits specified employees from receiving an employer contribution for these benefits for annuitants unless the person is credited with 10 or more years of state service or for other specified employees unless the person is credited with 15 or more years of state service.
This bill would prohibit state employees, as specified, who are first employed and become members of the retirement system on or after January 1, 2017, and are represented by, or related to, State Bargaining Units 1, 3, 4, 11, 14, 15, 17, 20, and 21, from receiving an employer contribution for dental benefits, as described above, for annuitants unless the person is credited with 15 or more years of state service. The bill would prescribe the percentage of the employer contribution payable for these dental benefits for these employees based on the number of completed years of credited state service at retirement, with 50% after 15 credited years of service and 100% after 25 or more years of service.
(4) This bill would incorporate additional changes to Sections 22871.3, 22874.3, 22879, and 22958.1 of the Government Code proposed by SB 28 to be operative only if this bill and SB 28 are enacted and this bill is enacted last.
(5) This bill would appropriate $20,000 from the General Fund for expenditure in 2016–17 to the Controller for administrative costs related to these provisions.
(6) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.

Vote: MAJORITY   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 22871.3 of the Government Code is amended to read:

22871.3.
 (a) The employer contribution for each annuitant enrolled in a basic plan shall be an amount equal to 80 percent of the weighted average of the health benefit plan premiums for an employee or annuitant enrolled for self-alone, during the benefit year to which the formula is applied, for the four health benefit plans that had the largest active state civil service enrollment, excluding family members, during the previous benefit year. For each annuitant with enrolled family members, the employer contribution shall be an amount equal to 80 percent of the weighted average of the additional premiums required for enrollment of those family members, during the benefit year to which the formula is applied, in the four health benefit plans that had the largest active state civil service enrollment, excluding family members, during the previous benefit year.
(b) The employer contribution for each annuitant enrolled in a Medicare health benefit plan in accordance with Section 22844 shall be an amount equal to 80 percent of the weighted average of the health benefit plan premiums for an annuitant enrolled in a Medicare health benefit plan for self-alone, during the benefit year to which the formula is applied, for the four Medicare health benefit plans that had the largest state annuitant enrollment, excluding family members, during the previous benefit year. For each annuitant with enrolled family members, the employer contribution shall be an amount equal to 80 percent of the weighted average of the additional premiums required for enrollment of those family members, during the benefit year to which the formula is applied, in the four Medicare health benefit plans that had the largest state annuitant enrollment, excluding family members, during the previous benefit year. If the annuitant is eligible for Medicare Part A, with or without cost, and Medicare Part B, regardless of whether the annuitant is actually enrolled in Medicare Part A or Part B, the employer contribution shall not exceed the amount calculated under this subdivision.
(c) This section applies to:
(1) A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2016, and who is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and first employed by the state and becomes a state member of the system on or after January 1, 2016.
(3) A state employee represented by State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 who is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(4) A state employee related to State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and first employed by the state and becomes a state member of the system on or after January 1, 2017.
(5) A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(d) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5 or 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 require the expenditure of funds, the provisions may not become effective unless approved by the Legislature.

SEC. 1.5.

 Section 22871.3 of the Government Code is amended to read:

22871.3.
 (a) The employer contribution for each annuitant enrolled in a basic plan shall be an amount equal to 80 percent of the weighted average of the health benefit plan premiums for an employee or annuitant enrolled for self-alone, during the benefit year to which the formula is applied, for the four health benefit plans that had the largest active state civil service enrollment, excluding family members, during the previous benefit year. For each annuitant with enrolled family members, the employer contribution shall be an amount equal to 80 percent of the weighted average of the additional premiums required for enrollment of those family members, during the benefit year to which the formula is applied, in the four health benefit plans that had the largest active state civil service enrollment, excluding family members, during the previous benefit year.
(b) The employer contribution for each annuitant enrolled in a Medicare health benefit plan in accordance with Section 22844 shall be an amount equal to 80 percent of the weighted average of the health benefit plan premiums for an annuitant enrolled in a Medicare health benefit plan for self-alone, during the benefit year to which the formula is applied, for the four Medicare health benefit plans that had the largest state annuitant enrollment, excluding family members, during the previous benefit year. For each annuitant with enrolled family members, the employer contribution shall be an amount equal to 80 percent of the weighted average of the additional premiums required for enrollment of those family members, during the benefit year to which the formula is applied, in the four Medicare health benefit plans that had the largest state annuitant enrollment, excluding family members, during the previous benefit year. If the annuitant is eligible for Medicare Part A, with or without cost, and Medicare Part B, regardless of whether the annuitant is actually enrolled in Medicare Part A or Part B, the employer contribution shall not exceed the amount calculated under this subdivision.
(c) This section applies to:
(1) A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2016, and who is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and first employed by the state and becomes a state member of the system on or after January 1, 2016.
(3) A state employee represented by State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 who is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(4) A state employee related to State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and first employed by the state and becomes a state member of the system on or after January 1, 2017.
(5) A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.
(d) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5 or 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 require the expenditure of funds, the provisions may not become effective unless approved by the Legislature.

SEC. 2.

 Section 22874.3 of the Government Code is amended to read:

22874.3.
 (a) Notwithstanding Sections 22870, 22871, 22873, and 22874, a state employee, defined by subdivision (c) of Section 3513, who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and who is represented by State Bargaining Unit 2, 6, or 7 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21 shall not receive any portion of the employer contribution payable for annuitants unless the person is credited with 15 years of state service at the time of retirement.
(b) The percentage of the employer contribution payable for postretirement health benefits for an employee subject to this section shall be based on the completed years of credited state service at retirement as shown in the following table:
Credited Years
of Service
Percentage of Employer
Contribution
15 ........................
50
16 ........................
55
17 ........................
60
18 ........................
65
19 ........................
70
20 ........................
75
21 ........................
80
22 ........................
85
23 ........................
90
24 ........................
95
25 or more ........................
100
(c) This section shall apply only to state employees that retire for service. For purposes of this section, “state service” means service rendered as an employee of the state or an appointed or elected officer of the state for compensation.
(d) This section does not apply to:
(1) Former state employees previously employed before January 1, 2017, who return to state employment on or after January 1, 2017.
(2) State employees hired prior to January 1, 2017, who become subject to representation by State Bargaining Unit 2, 6, or 7 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21 on or after January 1, 2017.
(3) State employees on an approved leave of absence employed before January 1, 2017, who return to active employment on or after January 1, 2017.
(4) State employees hired after January 1, 2017, who are first represented by a State Bargaining Unit other than Bargaining Unit 2, 6, or 7, 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21 who later become represented by State Bargaining Unit 2, 6, or 7. 1, 2, 3, 4, 6, 7, 11, 14, 15, 17, 20, or 21.
(e) Notwithstanding Section 22875, this section shall also apply to a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.

SEC. 2.5.

 Section 22874.3 of the Government Code is amended to read:

22874.3.
 (a) Notwithstanding Sections 22870, 22871, 22873, and 22874, a state employee, defined by subdivision (c) of Section 3513, who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and who is represented by State Bargaining Unit 2, 6, or 7 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21 shall not receive any portion of the employer contribution payable for annuitants unless the person is credited with 15 years of state service at the time of retirement.
(b) The percentage of the employer contribution payable for postretirement health benefits for an employee subject to this section shall be based on the completed years of credited state service at retirement as shown in the following table:
Credited Years
of Service
Percentage of Employer
Contribution
15 ........................
50
16 ........................
55
17 ........................
60
18 ........................
65
19 ........................
70
20 ........................
75
21 ........................
80
22 ........................
85
23 ........................
90
24 ........................
95
25 or more ........................
100
(c) This section shall apply only to state employees that retire for service. For purposes of this section, “state service” means service rendered as an employee of the state or an appointed or elected officer of the state for compensation.
(d) This section does not apply to:
(1) Former state employees previously employed before January 1, 2017, who return to state employment on or after January 1, 2017.
(2) State employees hired prior to January 1, 2017, who become subject to representation by State Bargaining Unit 2, 6, or 7 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21 on or after January 1, 2017.
(3) State employees on an approved leave of absence employed before January 1, 2017, who return to active employment on or after January 1, 2017.
(4) State employees hired after January 1, 2017, who are first represented by a State Bargaining Unit other than Bargaining Unit 2, 6, or 7, 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21, who later become represented by State Bargaining Unit 2, 6, or 7. 1, 2, 3, 4, 6, 7, 8, 11, 13, 14, 15, 17, 18, 19, 20, or 21.
(e) Notwithstanding Section 22875, this section shall also apply to a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.

SEC. 3.

 Section 22879 of the Government Code is amended to read:

22879.
 (a) The board shall pay monthly to an employee or annuitant who is enrolled in, or whose family member is enrolled in, a Medicare health benefit plan under this part the amount of the Medicare Part B premiums, exclusive of penalties, except as provided in Section 22831. This payment may not exceed the difference between the maximum employer contribution and the amount contributed by the employer toward the cost of premiums for the health benefit plan in which the employee or annuitant and his or her family members are enrolled. No payment may be made in any month if the difference is less than one dollar ($1).
(b) This section shall be applicable only to state employees, annuitants who retired while state employees, and the family members of those persons.
(c) With respect to an annuitant, the board shall pay to the annuitant the amount required by this section from the same source from which his or her allowance is paid. Those amounts are hereby appropriated monthly from the General Fund to reimburse the board for those payments.
(d) There is hereby appropriated from the appropriate funds the amounts required by this section to be paid to active state employees.
(e) This section does not apply to:
(1) A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2016, and who is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2016.
(3) A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and who is represented by State Bargaining Unit 2, 6, 7, or 12. 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21.
(4) A state employee related to State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(5) A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.

SEC. 3.5.

 Section 22879 of the Government Code is amended to read:

22879.
 (a) The board shall pay monthly to an employee or annuitant who is enrolled in, or whose family member is enrolled in, a Medicare health benefit plan under this part the amount of the Medicare Part B premiums, exclusive of penalties, except as provided in Section 22831. This payment may not exceed the difference between the maximum employer contribution and the amount contributed by the employer toward the cost of premiums for the health benefit plan in which the employee or annuitant and his or her family members are enrolled. No payment may be made in any month if the difference is less than one dollar ($1).
(b) This section shall be applicable only to state employees, annuitants who retired while state employees, and the family members of those persons.
(c) With respect to an annuitant, the board shall pay to the annuitant the amount required by this section from the same source from which his or her allowance is paid. Those amounts are hereby appropriated monthly from the General Fund to reimburse the board for those payments.
(d) There is hereby appropriated from the appropriate funds the amounts required by this section to be paid to active state employees.
(e) This section does not apply to:
(1) A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2016, and who is represented by State Bargaining Unit 9 or 10.
(2) A state employee related to State Bargaining Unit 9 or 10 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2016.
(3) A state employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and who is represented by State Bargaining Unit 2, 6, 7, or 12. 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21.
(4) A state employee related to State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21. who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(5) A judicial branch employee who is first employed by the state and becomes a state member of the system on or after January 1, 2017. This paragraph does not apply to a judge who is subject to Chapter 11 (commencing with Section 75000) or Chapter 11.5 (commencing with Section 75500) of Title 8.

SEC. 4.

 Section 22958.1 of the Government Code is amended to read:

22958.1.
 (a) Notwithstanding Sections 22953, 22957, and 22958, the following employees shall not receive any portion of the employer contribution payable for annuitants unless the person is credited with 15 or more years of state service, as defined by this section, at the time of retirement:
(1) A state employee, as defined by subdivision (c) of Section 3513, who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and is represented by State Bargaining Unit 2, 6, 7, or 12. 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21.
(2) A state employee related to State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(b) The percentage of the employer contribution payable for postretirement dental care benefits for an employee subject to this section shall be based on the funding provision of the plan and the completed years of credited state service at retirement as shown in the following table:
Credited Years
of Service
Percentage of Employer
Contribution
15 ........................
50
16 ........................
55
17 ........................
60
18 ........................
65
19 ........................
70
20 ........................
75
21 ........................
80
22 ........................
85
23 ........................
90
24 ........................
95
25 or more ........................
100
(c) This section shall apply only to state employees that retire for service. For purposes of this section, “state service” means service rendered as an employee of the state or an appointed or elected officer of the state for compensation.
(d) This section does not apply to:
(1) Former state employees previously employed prior to January 1, 2017, who return to state employment on or after January 1, 2017.
(2) State employees hired prior to January 1, 2017, who become subject to representation by State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21 on or after January 1, 2017.
(3) State employees on an approved leave of absence employed before January 1, 2017, who return to active employment on or after January 1, 2017.
(4) State employees hired after January 1, 2017, who are first represented by a State Bargaining Unit other than Bargaining Unit 2, 6, 7, or 12, 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21, who later become represented by State Bargaining Unit 2, 6, 7, or 12. 1, 2, 3, 4, 6, 7, 11, 12, 14, 15, 17, 20, or 21.
(e) In those cases where the state has assumed from a public agency a function and the related personnel, service rendered by that personnel for compensation as employees or appointed or elected officers of that public agency may not be credited as state service for the purposes of this section unless the former employer has paid or agreed to pay the state the amount actuarially determined to equal the cost for any employee dental benefits that were vested at the time that the function and the related personnel were assumed by the state, and the Department of Finance finds that the contract contains a benefit factor sufficient to reimburse the state for the amount necessary to fully compensate for the postretirement dental benefit costs of those personnel. For noncontracting public agencies, the state agency that has assumed the function shall certify the completed years of public agency service to be credited to the employee as state service credit under this section.

SEC. 4.5.

 Section 22958.1 of the Government Code is amended to read:

22958.1.
 (a) Notwithstanding Sections 22953, 22957, and 22958, the following employees shall not receive any portion of the employer contribution payable for annuitants unless the person is credited with 15 or more years of state service, as defined by this section, at the time of retirement:
(1) A state employee, as defined by subdivision (c) of Section 3513, who is first employed by the state and becomes a state member of the system on or after January 1, 2017, and is represented by State Bargaining Unit 2, 6, 7, or 12. 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21.
(2) A state employee related to State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 who is excepted from the definition of “state employee” in subdivision (c) of Section 3513 and is first employed by the state and becomes a state member of the system on or after January 1, 2017.
(b) The percentage of the employer contribution payable for postretirement dental care benefits for an employee subject to this section shall be based on the funding provision of the plan and the completed years of credited state service at retirement as shown in the following table:
Credited Years
of Service
Percentage of Employer
Contribution
15 ........................
50
16 ........................
55
17 ........................
60
18 ........................
65
19 ........................
70
20 ........................
75
21 ........................
80
22 ........................
85
23 ........................
90
24 ........................
95
25 or more ........................
100
(c) This section shall apply only to state employees that retire for service. For purposes of this section, “state service” means service rendered as an employee of the state or an appointed or elected officer of the state for compensation.
(d) This section does not apply to:
(1) Former state employees previously employed prior to January 1, 2017, who return to state employment on or after January 1, 2017.
(2) State employees hired prior to January 1, 2017, who become subject to representation by State Bargaining Unit 2, 6, 7, or 12 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21 on or after January 1, 2017.
(3) State employees on an approved leave of absence employed before January 1, 2017, who return to active employment on or after January 1, 2017.
(4) State employees hired after January 1, 2017, who are first represented by a State Bargaining Unit other than Bargaining Unit 2, 6, 7, or 12, 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21, who later become represented by State Bargaining Unit 2, 6, 7, or 12. 1, 2, 3, 4, 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19, 20, or 21.
(e) In those cases where the state has assumed from a public agency a function and the related personnel, service rendered by that personnel for compensation as employees or appointed or elected officers of that public agency may not be credited as state service for the purposes of this section unless the former employer has paid or agreed to pay the state the amount actuarially determined to equal the cost for any employee dental benefits that were vested at the time that the function and the related personnel were assumed by the state, and the Department of Finance finds that the contract contains a benefit factor sufficient to reimburse the state for the amount necessary to fully compensate for the postretirement dental benefit costs of those personnel. For noncontracting public agencies, the state agency that has assumed the function shall certify the completed years of public agency service to be credited to the employee as state service credit under this section.

SEC. 5.

 Section 1.5 of this bill incorporates amendments to Section 22871.3 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22871.3 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22871.3 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative.

SEC. 6.

 Section 2.5 of this bill incorporates amendments to Section 22874.3 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22874.3 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22874.3 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 2.5 of this bill shall become operative, and Section 2 of this bill shall not become operative.

SEC. 7.

 Section 3.5 of this bill incorporates amendments to Section 22879 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22879 of the Government Code, and (3) this bill is enacted after Senate Bill 28, in which case Section 22879 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 3.5 of this bill shall become operative, and Section 3 of this bill shall not become operative.

SEC. 8.

 Section 4.5 of this bill incorporates amendments to Section 22958.1 of the Government Code proposed by this bill and Senate Bill 28. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 22958.1 of the Government Code, and (3) this bill is enacted after SB 28, in which case Section 22958.1 of the Government Code, as amended by Senate Bill 28, shall remain operative only until the operative date of this bill, at which time Section 4.5 of this bill shall become operative, and Section 4 of this bill shall not become operative.

SEC. 9.

 The sum of twenty thousand ($20,000) dollars is hereby appropriated from the General Fund for expenditure in 2016-17 fiscal year to the Controller for administrative costs relating to this act.

SEC. 10.

 This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.
SECTION 1.

It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2016.

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