Bill Text: CA SB99 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State public employment.

Spectrum: Unknown

Status: (Passed) 2015-09-22 - Chaptered by Secretary of State. Chapter 322, Statutes of 2015. [SB99 Detail]

Download: California-2015-SB99-Amended.html

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BILL NUMBER: SB 99	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  SEPTEMBER 10, 2015
	AMENDED IN ASSEMBLY  SEPTEMBER 4, 2015
	AMENDED IN ASSEMBLY  AUGUST 24, 2015

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 9, 2015

   An act to amend Sections 18546, 18990, 18991, 18992, 18993,
19057.1, 19057.3, 19889, 19889.2,  and 19889.3  
19889.3, and 22879  of, to add  Section 19889.4
  Sections 19829.9840, 19829.9841, 19889.4, 22871.3,
22874.2, and 22944.5  to, and to repeal Sections 19057, 19057.2,
and 19057.4 of, the Government Code, relating to state 
civil service,   public employment,  and making an
appropriation therefor, to take effect immediately, bill related to
the budget.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 99, as amended, Committee on Budget and Fiscal Review. State
 civil service.   public employment.  
   (1) Existing law provides that a provision of a memorandum of
understanding reached between the state employer and a recognized
employee organization representing state civil service employees that
requires the expenditure of funds does not become effective unless
approved by the Legislature in the annual Budget Act. 
   This bill would approve provisions of memoranda of understanding
entered into between the state employer and Professional Engineers in
California Government, State Bargaining Unit 9, and the California
Association of Professional Scientists, State Bargaining Unit 10,
that require the expenditure of funds, and would provide that these
provisions will become effective even if these provisions are
approved by the Legislature in legislation other than the annual
Budget Act. The bill would prohibit provisions of the memoranda of
understanding approved by the bill that require the expenditure of
funds from taking effect unless funds for those provisions are
specifically appropriated by the Legislature. The bill would require
the state employer and the affected employee organization to meet and
confer to renegotiate the affected provisions if funds for those
provisions are not specifically appropriated by the Legislature. The
bill would appropriate to the Controller from the General Fund,
unallocated special funds, including federal funds and unallocated
nongovernmental cost funds, and any other fund from which state
employees are compensated, the amount necessary for the payment of
compensation and employee benefits to state employees covered by the
memoranda of understanding described above if the Budget Act is not
enacted on or before July 1 in the 2016-17 or 2017-18 fiscal years,
as specified.  
   (1) 
    (2)  The California Constitution provides that the civil
service includes every officer and employee in the state except as
otherwise provided in the Constitution, and existing statutory law,
the State Civil Service Act, prescribes a comprehensive civil service
personnel system for the state. The act grants eligibility for
promotional civil service examinations and career executive
assignment examinations to persons who meet certain requirements and
minimum qualifications and who are employed by the Legislature,
persons who are retired from the United States armed forces,
honorably discharged from active military duty with a
service-connected disability, or honorably discharged from active
duty, or persons who were employees of the executive branch in exempt
positions.
   This bill would revise eligibility standards applicable to people
who were employed by the Legislature, people who retired or were
discharged from the armed forces, and people who were formerly
employed in exempt, executive branch positions, as described above,
to permit them, upon request, to obtain civil service appointment
list eligibility by taking promotional exams or career executive
exams for which they meet minimum qualifications, as specified. The
bill would eliminate the requirement that an employee or veteran, in
this context, select only one promotional examination in which to
compete when multiple examinations are given. Among other things, the
bill would also remove a time limit on this eligibility granted to
specified former employees of the Legislature and employees of the
executive branch in exempt positions. 
   (2) 
    (3)  Existing law generally requires that appointments
to vacant positions be made by lists. Existing law requires, with
specified exceptions, that an appointing power receive the names and
addresses of the three persons highest on a promotional employment
list for the class in which a position belongs, and if there are
fewer than three names, as specified, additional names are provided
from the various lists next lower in order of preference. Existing
law prescribes requirements for providing names to an appointing
power for positions designated as management and specifies a method
of ranking eligible candidates in this context. Existing law
prescribes requirements for providing names to an appointing power
for positions designated as supervisory and not professional,
scientific, or administrative, and that are not examined for on an
open basis, and specifies a method of ranking eligible candidates in
this context. Existing law requires an appointing power to fill a
position from the names of the persons provided.
   This bill would repeal these provisions and make conforming
changes. 
   (3) 
    (4)  Existing law provides for career executive
assignments to encourage the development for well-qualified
executives and requires the State Personnel Board to establish, by a
rule, a system of merit personnel administration specifically suited
to the selection and placement of executive personnel. The State
Civil Service Act defines career executive. Existing law requires the
State Personnel Board, by rule, to provide that employees whose
appointments to career executive assignments are terminated to be
reinstated to civil service positions, as specified, at their option.

   This bill would revise the definition of career executive to
eliminate the requirement that the person have permanent status in
the civil service. This bill would provide that various provisions
relating to personnel examinations don't apply to career executive
assignments unless provided for by rule, as specified. The bill would
grant reinstatement rights to employees who at the time of
appointment to a career executive assignment were not employed by the
state but who had previously worked for it and had gained permanent
civil service status. The bill would grant an employee  who
  who,  at the time of his or her appointment to a
career executive  assignment   assignment, 
was from outside civil service the right to defer examination for
any open eligible list, as specified, in existence at the time of the
termination of the career executive assignment for which he or she
meets the minimum qualifications of the class to which appointment is
sought. The bill would require, in this regard, that related
experience gained in a career executive assignment be considered
state civil service experience in a comparable class, as specified.

   (5) 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 employment 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, 2016, and are
represented by State Bargaining Unit 9 or 10, as specified, 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. The bill would similarly limit
employer contributions for annuitants enrolled in Medicare health
benefit plans.  
   (6) PEMHCA requires state employees to have a specified number of
years of state service, depending on hiring date and other factors,
before they may receive any portion of the employer contribution
payable for annuitants for postretirement health benefits and
increases the percentage they may receive based upon additional years
of service.  
   This bill would prohibit state employees who are first employed
and become members of the retirement system on or after January 1,
2016, and are represented by State Bargaining Unit 9 or 10, as
specified, 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 an employee 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.  
   (7) PEMHCA 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.  
   This bill would prohibit application of this requirement to state
employees who are first employed and become members of the retirement
system on or after January 1, 2016, and are represented by State
Bargaining Unit 9 or 10, as specified.  
   (8) PEMHCA establishes the Public Employees' Contingency Reserve
Fund for the purpose of funding health benefits and funding
administrative expenses. PEMHCA establishes the Annuitants' Health
Care Coverage Fund, which is continuously appropriated, for the
purpose of prefunding of health care coverage for annuitants,
including administrative costs. PEMHCA defines "prefunding" for these
purposes.  
   This bill would require the state and employees of State
Bargaining Unit 9 or 10 to prefund retiree health care with the goal
of reaching a 50% cost sharing of normal costs by July 1, 2019. The
bill would prescribe schedules of contribution percentages in this
regard for the state and these employees, based upon bargaining unit,
with the moneys to be deposited in the Annuitants' Health Care
Coverage Fund. By depositing new revenue in a continuously
appropriated fund, this bill makes an appropriation. 
    (9)    The bill would make an appropriation
from the General Fund of $300,000 to the Department of Finance for
the purpose of funding the posting on the department's Internet Web
site of all budget requests included as part of the Governor's
Budget.
    (10)    This bill would declare that it is to
take effect immediately as a bill providing for appropriations
related to the Budget Bill.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

   SECTION 1.    The Legislature finds and declares that
one of the purposes of this act is to approve two agreements entered
into by the state employer and State Bargaining Unit 9 and 10
pursuant to Section 3517.5 of the Government Code. 
   SEC. 2.    The provisions of the memoranda of
understanding prepared pursuant to Section 3517.5 of the Government
Code and entered into by the state employer and State Bargaining Unit
9, dated August 31, 2015, and State Bargaining Unit 10, dated
September 4, 2015, and that require the expenditure of funds, are
hereby approved for the purposes of subdivision (b) of Section 3517.6
of the Government Code. 
   SEC. 3.    The provisions of the memoranda of
understanding approved in Section 2 of this act that require the
expenditure of funds shall not take effect unless funds for these
provisions are specifically appropriated by the Legislature. If funds
for these provisions are not specifically appropriated by the
Legislature, either the state employer or the affected employee
organization may reopen negotiations on all or part of the memorandum
of understanding. 
   SEC. 4.    Notwithstanding Section 3517.6 of the
Government Code, the provisions of the memoranda of understanding
included in Section 2 that require the expenditure of funds shall
become effective even if the provisions of the memoranda of
understanding are approved by the Legislature in legislation other
than the annual Budget Act.
   SECTION 1.   SEC. 5.   Section 18546 of
the Government Code is amended to read:
   18546.  "Career executive" means an employee appointed from an
employment list established for the express purpose of providing a
list of persons who are eligible for career executive assignments, as
specified in Article 5 (commencing with Section 18990) of Chapter 4
and Article 9 (commencing with Section 19889) of Chapter 2.5 of Part
2.6, in which examination, selection, classification, salary, tenure,
and other conditions of employment may be varied from those
prevailing under Chapter 3 (commencing with Section 18800) to Chapter
7 (commencing with Section 19570), inclusive, for other employees in
the state civil service.
   SEC. 2.   SEC. 6.   Section 18990 of the
Government Code is amended to read:
   18990.  (a) Notwithstanding any other provision of law or rule,
persons employed by the Legislature for two or more consecutive years
shall be given an opportunity, upon request, to obtain civil service
appointment list eligibility by taking any promotional civil service
examination or career executive assignment examinations for which
they meet the minimum qualifications of the class for which they seek
appointment. Persons receiving passing scores shall gain list
eligibility for appointment. In evaluating minimum qualifications, a
person's legislative experience shall be considered state civil
service experience in a comparable class that has the same or
substantially similar duties and responsibilities as the person's
legislative position.
   (b) Persons who meet the requirements of this section, but who
resigned or were released from service with the Legislature, shall be
eligible to take promotional civil service examinations and career
executive assignment examinations in accordance with subdivision (a).

   SEC. 3.   SEC. 7.   Section 18991 of the
Government Code is amended to read:
   18991.  Notwithstanding any other provision of law, persons
retired from the United States military, honorably discharged from
active military duty with a service-connected disability, or
honorably discharged from active duty, shall be eligible to apply for
promotional civil service examinations and career executive
assignment examinations for which they meet the minimum
qualifications of the class to which they seek appointment. Persons
receiving passing scores shall gain list eligibility for appointment.
In evaluating minimum qualifications, the person's military
experience shall be considered state civil service experience in a
comparable class that has the same or substantially similar duties
and responsibilities as the person's position in the military.
   SEC. 4.   SEC. 8.   Section 18992 of the
Government Code is amended to read:
   18992.  (a) Notwithstanding any other provision of law or rule,
persons holding, for two or more consecutive years, nonelected exempt
positions in the executive branch of government as defined in
subdivisions (c), (e), (f), (g), (i), and (m) of Section 4 of Article
VII of the Constitution and excluding those positions for which the
salaries are set by statute, shall be given the opportunity, upon
request, to obtain civil service appointment list eligibility by
taking any promotional civil service examination or career executive
assignment examination for which they meet the minimum qualifications
of the class to which they seek appointment. Persons receiving
passing scores shall gain list eligibility for appointment. In
evaluating minimum qualifications, the person's experience in the
exempt position shall be considered state civil service experience in
a comparable class that has the same or substantially similar duties
and responsibilities as the person's exempt position.
    (b) Persons who meet the requirements of this section, but who
resigned or were released from exempt employment of the executive
branch of government, shall be eligible to take promotional civil
service examinations and career executive assignment examinations in
accordance with subdivision (a).
   SEC. 5.  SEC. 9.   Section 18993 of the
Government Code is amended to read:
   18993.  (a) Notwithstanding any other provision of law, a
legislative or nonelected exempt executive branch employee who is
appointed to a career executive assignment pursuant to Section 18990
or 18992, shall be eligible to compete in his or her appointing power'
s promotional examinations for which he or she meets the minimum
qualifications of the class to which he or she seeks appointment.
When such an employee's career executive assignment is terminated by
the appointing power, he or she shall have the right to request a
deferred examination for any promotional eligible list that his or
her appointing power has in existence at the time of the termination
of the career executive assignment and for which he or she meets the
minimum qualifications of the class to which he or she seeks
appointment.
   (b) A request for a deferred examination pursuant to subdivision
(a) shall be made no later than 10 days after the effective date of
the termination of the career executive assignment. The department
shall administer the deferred examination within 30 days of the date
of the request.
   SEC. 6.   SEC. 10.   Section 19057 of
the Government Code is repealed.
   SEC. 7.   SEC. 11.   Section 19057.1 of
the Government Code is amended to read:
   19057.1.  Except for reemployment lists, State Restriction of
Appointment lists, and Limited Examination and Appointment Program
referral lists, there shall be certified to the appointing power the
names and addresses of all those eligibles whose scores, at the time
of certification, represent the three highest ranks on the employment
list for the class, and who have indicated their willingness to
accept appointment under the conditions of employment specified.
   For purposes of ranking, scores of eligibles on employment lists
covered by this section shall be rounded to the nearest whole
percent. A rank shall consist of one or more eligibles with the same
whole percentage score.
   If the names on the list from which certification is being made
represent fewer than three ranks, then, consistent with board rules,
additional eligibles may be certified from the various lists next
lower in order of preference until names from three ranks appear. If
there are fewer than three names available for certification, and the
appointing authority does not choose to appoint from among these,
the appointing authority may demand certification of three names. In
that case, examinations shall be conducted until at least three names
may be certified by the procedure described in this section, and the
appointing authority shall fill the position by appointment of one
of the persons certified.
   Fractional examination scores shall be provided to, and used by,
the Department of the California Highway Patrol for its peace officer
classes.
   The department may, consistent with board rules, provide for
certifying less than three ranks where the size of the certified
group is disproportionate to the number of vacancies.
   SEC. 8.   SEC. 12.   Section 19057.2 of
the Government Code is repealed.
   SEC. 9.   SEC. 13.   Section 19057.3 of
the Government Code is amended to read:
   19057.3.  (a) For a position in the Department of Corrections and
Rehabilitation, there shall be certified to the appointing power the
names and addresses of all those eligibles for peace officer and
closely allied classes whose scores, at the time of certification,
represent the three highest ranks on the employment list for the
class in which the position belongs and who have indicated their
willingness to accept appointment under the conditions of employment
specified.
   (b) For purposes of ranking, scores of eligibles on employment
lists for the classes shall be rounded to the nearest whole percent.
A rank consists of one or more eligibles with the same whole
percentage score.
   (c) If fewer than three ranks of persons willing to accept
appointment are on the list from which certification is to be made,
then additional eligibles shall be certified from the various lists
next lower in order of preference until names from three ranks are
certified. If there are fewer than three names on those lists, and
the appointing power does not choose to appoint from among these, the
appointing power may demand certification of three names and
examinations shall be conducted until at least three names may be
certified. The appointing power shall fill the position by the
appointment of one of the persons certified.
   (d) The department may, consistent with board rules, provide for
certifying less than three ranks where the size of the certified
group is disproportionate to the number of vacancies.
   (e) The department may, consistent with board rules, allow for the
names of eligibles to be transferred from lists for the same class
or comparable classes where names from one list were certified under
the rule of three ranks, and names from the other list were certified
under the rule of three names.
   SEC. 10.   SEC. 14.   Section 19057.4 of
the Government Code is repealed.
   SEC. 15.    Section 19829.9840 is added to the 
 Government Code   , to read:  
   19829.9840.  (a) Notwithstanding Section 13340, for the 2016-17
fiscal year, if the Budget Act of 2016 is not enacted by July 1,
2016, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 9 (effective July 2, 2015,
to June 30, 2018, inclusive) and State Bargaining Unit 10 (effective
July 2, 2015, to July 1, 2018, inclusive), there is hereby
continuously appropriated to the Controller from the General Fund,
unallocated special funds, including, but not limited to, federal
funds and unallocated nongovernmental cost funds, and any other fund
from which state employees are compensated, the amount necessary for
the payment of compensation and employee benefits to state employees
covered by the above memoranda of understanding until the Budget Act
of 2016 is enacted. The Controller may expend an amount no greater
than necessary to enable the Controller to compensate state employees
covered by the above memoranda of understanding for work performed
between July 1, 2016, of the 2016-17 fiscal year, and the enactment
of the Budget Act of 2016.
   (b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 9 (effective July 2, 2015,
to June 30, 2018, inclusive) and State Bargaining Unit 10 (effective
July 2, 2015, to July 1, 2018, inclusive) are in effect and approved
by the Legislature, the compensation and contribution for employee
benefits for state employees represented by these bargaining units
shall be at a rate consistent with the applicable memorandum of
understanding referenced above.
   (c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the Budget Act of 2016, these
expenditures shall be subsumed by the expenditure authority approved
in the Budget Act of 2016 for each affected department.
   (d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 9 (effective July 2, 2015, to June
30, 2018, inclusive) and State Bargaining Unit 10 (effective July 2,
2015, to July 1, 2018, inclusive) memoranda of understanding.
Notwithstanding Section 3517.8, this section shall not apply after
the term of the memorandum of understanding has expired. For purposes
of this section, the memorandum of understanding for State
Bargaining Unit 9 expires on June 30, 2018, and the memorandum of
understanding for State Bargaining Unit 10 expires on July 1, 2018.

   SEC. 16.    Section 19829.9841 is added to the 
 Government Code   , to read:  
   19829.9841.  (a) Notwithstanding Section 13340, for the 2017-18
fiscal year, if the Budget Act of 2017 is not enacted by July 1,
2017, for the memoranda of understanding entered into between the
state employer and State Bargaining Unit 9 (effective July 2, 2015,
to June 30, 2018, inclusive) and State Bargaining Unit 10 (effective
July 2, 2015, to July 1, 2018, inclusive), there is hereby
continuously appropriated to the Controller from the General Fund,
unallocated special funds, including, but not limited to, federal
funds and unallocated nongovernmental cost funds, and any other fund
from which state employees are compensated, the amount necessary for
the payment of compensation and employee benefits to state employees
covered by the above memoranda of understanding until the Budget Act
of 2017 is enacted. The Controller may expend an amount no greater
than necessary to enable the Controller to compensate state employees
covered by the above memoranda of understanding for work performed
between July 1, 2017, of the 2017-18 fiscal year, and the enactment
of the Budget Act of 2017.
   (b) If the memoranda of understanding entered into between the
state employer and State Bargaining Unit 9 (effective July 2, 2015,
to June 30, 2018, inclusive) and State Bargaining Unit 10 (effective
July 2, 2015, to July 1, 2018, inclusive) is in effect and approved
by the Legislature, the compensation and contribution for employee
benefits for state employees represented by these bargaining units
shall be at a rate consistent with the applicable memorandum of
understanding referenced above.
   (c) Expenditures related to any warrant drawn pursuant to
subdivision (a) are not augmentations to the expenditure authority of
a department. Upon the enactment of the Budget Act of 2017, these
expenditures shall be subsumed by the expenditure authority approved
in the Budget Act of 2017 for each affected department.
   (d) This section shall only apply to an employee covered by the
terms of the State Bargaining Unit 9 (effective July 2, 2015, to June
30, 2018, inclusive) and State Bargaining Unit 10 (effective July 2,
2015, to July 1, 2018, inclusive) memoranda of understanding.
Notwithstanding Section 3517.8, this section shall not apply after
the terms of the memoranda of understanding have expired. For
purposes of this section, the memorandum of understanding for State
Bargaining Unit 9 expires on June 30, 2018, and the memorandum of
understanding for State Bargaining Unit 10 expires on July 1, 2018.

   SEC. 11.   SEC. 17.   Section 19889 of
the Government Code is amended to read:
   19889.  It is the purpose of this article to encourage the
development and effective use of well-qualified and carefully
selected executives. In order to carry out this purpose, the State
Personnel Board shall establish by rule a merit system specifically
suited to the selection and placement of executive personnel. The
department shall be responsible for salary administration, position
classification, and for the motivation and training of executive
personnel. For the purpose of administering this system there is
established herewith a category of civil service appointment called
"career executive assignments." The department shall designate
positions of a high administrative and policy influencing character
for inclusion in or removal from this category subject to review by
the State Personnel Board, except that the department shall not so
designate a position in which there is an incumbent already appointed
under the provisions of this part governing employees other than
career executives.
   SEC. 12.   SEC. 18.   Section 19889.2 of
the Government Code is amended to read:
   19889.2.  The provisions of this part governing the examination,
selection, classification, and tenure of employees in the regular
civil service shall not apply to "career executive assignments"
unless provided for by State Personnel Board rule. The provisions of
this part relating to punitive actions shall apply to all employees
serving in career executive assignments, except that termination of a
career executive assignment as provided for in Section 19889.3 is
not a punitive action. State Personnel Board rules shall, at a
minimum, afford all employees whose career executive assignments are
terminated by the appointing power a right of appeal to the State
Personnel Board for restoration of his or her assignment when he or
she alleges that the termination was for reasons prohibited in
Chapter 10 (commencing with Section 19680) of Part 2.
   SEC. 13.   SEC. 19.   Section 19889.3 of
the Government Code is amended to read:
   19889.3.  (a) Eligibility for appointment to positions in the
career executive assignment category shall be established as a result
of competitive examinations. All candidates shall meet such minimum
qualifications as the State Personnel Board may determine are
requisite to the performance of high administrative and policy
influencing functions.
   (b) No person employed in a career executive assignment shall be
deemed to acquire as a result of such service any rights to or status
in positions governed by the provisions of this part relating to the
civil service other than the category of career executive
assignment, except as provided by State Personnel Board rule.
   SEC. 14.   SEC. 20.   Section 19889.4 is
added to the Government Code, to read:
   19889.4.  In accordance with State Personnel Board rules, the
following shall apply when an appointing power terminates a career
executive assignment:
   (a) An employee who at the time of his or her appointment to a
career executive assignment was employed by the state and had
permanent civil service status shall, if he or she so desires, be
reinstated to a civil service position that is (1) not a career
executive assignment and (2) that is at least at the same salary
level as the last position that he or she held as a permanent or
probationary employee. If the employee had completed a minimum of
five years of state service, he or she may return to a position that
is (1) at substantially the same salary level as the last position in
which he or she had permanent or probationary status or (2) at a
salary level that is at least two steps lower than that of the career
executive position from which the employee is being terminated.
   (b) Article 5 (commencing with Section 19140) of Chapter 5 of Part
2 shall apply to an employee who at the time of his or her
appointment to a career executive assignment was not employed by the
state but who had previously worked for the state and gained
permanent civil service status.
   (c) (1) An employee who at the time of his or her appointment to a
career executive assignment was from outside civil service shall
have the right to request a deferred examination for any open
eligible list that his or her appointing power or the department has
in existence at the time of the termination of the career executive
assignment and for which he or she meets the minimum qualifications
of the class to which he or she seeks appointment. Whether the
employee takes a deferred examination or other open civil service
examination, for purposes of evaluating whether he or she meets the
minimum qualifications of the class to which he or she seeks
appointment, related experience gained in a career executive
assignment shall be considered as state civil service experience in a
comparable class.
   (2) A request for a deferred examination pursuant to paragraph (1)
shall not be made later than 10 days after the effective date of the
termination of the career executive assignment. The department or
its designee shall administer the deferred examination within 30 days
of the date of the request.
   SEC. 21.    Section 22871.3 is added to the 
 Government Code   , 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 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.
   (d) This section shall also apply to 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.
   (e) 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. 22.    Section 22874.2 is added to the 
 Government Code   , to read:  
   22874.2.  (a) Notwithstanding Sections 22870, 22871, 22873, and
22874, 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, 2016, and is represented by
State Bargaining Unit 9 or 10 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 
 Years of Service             Percentage 
 Contribution 
                               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,
2016, who return to state employment on or after January 1, 2016.
   (2) State employees hired prior to January 1, 2016, who become
subject to representation by State Bargaining Unit 9 or 10 on or
after January 1, 2016.
   (3) State employees on an approved leave of absence employed
before January 1, 2016, who return to active employment on or after
January 1, 2016.
   (4) State employees hired after January 1, 2016, who are first
represented by a state bargaining unit other than Bargaining Unit 9
or 10, who later become represented by State Bargaining Unit 9 or 10.

   (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, 2016. 
   SEC. 23.    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. 
   SEC. 24.    Section 22944.5 is added to the 
 Government Code   , to read:  
   22944.5.  (a) The state and employees in State Bargaining Unit 9
or 10 shall prefund retiree health care, with the goal of reaching a
50-percent cost sharing of actuarially determined normal costs for
both employer and employees by July 1, 2019.
   (b) (1) The employees in State Bargaining Unit 9 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
   (A) Effective July 1, 2017, 0.5 percent of pensionable
compensation.
   (B) Effective July 1, 2018, an additional 0.5 percent for a total
employee contribution of 1.0 percent of pensionable compensation.
   (C) Effective July 1, 2019, an additional 1.0 percent for a total
employee contribution of 2.0 percent of pensionable compensation.
   (2) The employees in State Bargaining Unit 10 shall make
contributions to prefund retiree health care based on the following
schedule, and the state shall make a matching contribution:
   (A) Effective July 1, 2017, 0.7 percent of pensionable
compensation.
   (B) Effective July 1, 2018, an additional 0.7 percent for a total
employee contribution of 1.4 percent of pensionable compensation.
   (C) Effective July 1, 2019, an additional 1.4 percent for a total
employee contribution of 2.8 percent of pensionable compensation.
   (c) This section only applies to employees in State Bargaining
Unit 9 or 10 who are eligible for health benefits, including
permanent intermittent employees.
   (d) Contributions paid pursuant to this section shall be deposited
in the Annuitants' Health Care Coverage Fund and shall not be
refundable under any circumstances to an employee in State Bargaining
Unit 9 or 10 or his or her beneficiary or survivor.
   (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 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.
   (f) This section shall also apply to 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. 
   SEC. 15.   SEC. 25.   The sum of three
hundred thousand dollars ($300,000) is hereby appropriated from the
General Fund to the Department of Finance for the purpose of funding
the posting on the department's Internet Web site of all budget
requests included as part of the Governor's Budget.
  SEC. 16.   SEC. 26.   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.