California 2009-2010 Regular Session Status: To Executive

SB 846 — State employees: memoranda of understanding.

Last action — Chaptered by Secretary of State. Chapter 162, Statutes of 2010.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2009-2010 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

(1) Existing law provides that if any provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees requires the expenditure of funds, those provisions of the memorandum of understanding shall not become effective unless approved by the Legislature in the annual Budget Act. This bill would approve provisions that require the expenditure of funds for memoranda of understanding entered into between the state employer and State Bargaining Units 5, 12, and 18 and would provide that the provisions of any memorandum of understanding that require the expenditure of funds shall become effective even if the provisions of the memorandum of understanding are approved by the Legislature in legislation other than the annual Budget Act. The bill would provide that provisions of the memoranda of understanding approved by this bill that require the expenditure of funds will not take effect unless funds for these provisions are specifically appropriated by the Legislature, and would authorize the state employer and the affected employee organizations to reopen negotiations on all or part of the memorandum of understanding if the memorandum of understanding that requires the expenditure of funds is not approved by the Legislature. This bill would, with respect to salaries that are continuously appropriated prior to the enactment of the annual Budget Act, require the Director of Finance to reduce the necessary items for the payment of salaries from specified funds scheduled in that Budget Act to reflect the salaries paid prior to the enactment of the annual Budget Act. (2) Existing law establishes an alternate retirement program and provides that state employees, as defined, who become new members of the Public Employees' Retirement System (PERS) during their first 24 months of employment, do not make contributions to the system or receive service credit for their service, and the state employer shall not make contributions on their behalf. These members are instead required to contribute either 5% or 6% of their monthly compensation, as specified, to the alternate retirement program, administered by the Department of Personnel Administration, and these contributions cease when the state employees begin making their own contributions to PERS. This bill would require all state employees participating in the alternate retirement system to contribute an amount equal to the same amount that employees in the same employment classifications in the same state bargaining units are required to contribute to PERS. (3) The Public Employees' Retirement Law (PERL) provides a comprehensive set of rights and benefits based upon age, service credit, and final compensation. Existing law defines final compensation variously for different member classifications and bargaining units and, in this regard, defines final compensation for a state member for the purpose of calculating retirement benefits as the highest annual average compensation earnable by the member during a designated 12-month or 36-month period, depending upon the bargaining unit and classification of that employee. Currently the final compensation for members hired on or after July 1, 2006, who are represented by State Bargaining Units 12, 16, 18, and 19, means the final compensation earnable by the member during a designated 36-month period. This bill would provide that final compensation for a person who becomes a state member, as specified, on or after October 31, 2010, and who is represented by State Bargaining Units 5 and 8, means the highest annual average compensation earnable by the member during a designated 36-month period. (4) PERL provides that the contribution rate for state miscellaneous members and specified state safety members is 5% or 6% of the compensation in excess of $513. Existing law provides that the contribution rate for specified state firefighters is 8% of compensation in excess of $238 per month. Existing law provides that the contribution rate for specified state safety patrol members is 8% of the compensation in excess of $863 per month. This bill would increase the contribution rates by 5% for state miscellaneous members of State Bargaining Units 5, 8, 12, 16, 18, and 19 and state safety members of State Bargaining Units 12, 16, 18, and 19, and by 2% for state firefighter members of State Bargaining Unit 8 and state patrol members of State Bargaining Unit 5. By increasing member contributions into a continuously appropriated fund, this bill would make an appropriation. (5) PERL establishes various retirement formulas that apply to specified membership categories. Under PERL, state miscellaneous members are generally subject to a retirement formula commonly known as 2% at 55, which, if the member retires at 55 years of age, yields a benefit equal to 2% of the member's final compensation multiplied by the member's years of service credit, as specified. Under PERL, patrol members and specified state peace officer/firefighter members are generally subject to a 3% at 50 retirement formula. Under PERL, state safety members are generally subject to a 2.5% at 55 retirement formula. This bill would provide that state miscellaneous members who are first employed on and after the date the act takes effect, are subject to a 2% at 60 retirement formula. The bill would also provide that patrol members and firefighter members in State Bargaining Units 5 and 8 who are first employed on and after October 31, 2010, are subject to a 3% at 55 retirement formula. (6) The Public Employees' Medical and Hospital Care Act (PEMHCA) , which is administered by the Board of Administration of PERS establishes percentages for levels of benefit coverage afforded under the approved health benefit plan in which the employee or annuitant is enrolled. Existing law provides that a represented state employee first hired on or after January 1, 1989, shall not be vested for the full employer contribution payable for annuitants unless he or she has 20 years of credited state service, as defined, at the time of retirement, as specified. This bill would, instead, provide that these benefits vest at 50% for state employees represented by State Bargaining Unit 12, who become members of the system on and after January 1, 2011, and would increase that percentage by 5% for each year of credited state service up to 100% after 25 years of credited state service. (7) The annual Budget Act appropriates specified amounts from the General Fund, unallocated special funds, and unallocated nongovernmental cost funds, for state employee compensation. This bill would, in the event that the annual Budget Act is not enacted prior to July 1 of each year covered by the memoranda of understanding for State Bargaining Units 5, 8, 12, 16, 18, and 19, provide for a continuous appropriation for the amount necessary for the payment of compensation and benefits to members of those bargaining units. (8) This bill would provide that its provisions would not become operative unless AB 1592 of the 2009–10 Regular Session is enacted and takes effect on or before January 1, 2011. (9) This bill would declare that it is to take effect immediately as an urgency statute.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 162, Statutes of 2010.

  2. Approved by Governor.

  3. Enrolled. To Governor at 11:15 a.m.

  4. Senate concurs in Assembly amendments. (Ayes 31. Noes 1. Page 4676.) To enrollment.

  5. Urgency clause adopted.

  6. From committee: That the Assembly amendments be concurred in. (Ayes 5. Noes 0. Page 4615.)

  7. Set for hearing August 18.

  8. From committee: Be re-referred to Com. on P.E. & R. pursuant to Senate Rule 29.10. (Ayes 4. Noes 0. Page 4565.) Re-referred to Com. on P.E. & R.

  9. Re-referred to Com. on RLS. pursuant to Senate Rule 29.10.

  10. In Senate. To unfinished business.

  11. Read third time. Urgency clause adopted. Passed. (Ayes 75. Noes 4. Page 6168.) To Senate.

  12. Read third time. Amended. (Page 6110.) To third reading.

  13. Read second time. To third reading.

  14. (Heard in committee on August 4.)

  15. From committee: Do pass. (Ayes 14. Noes 3.)

  16. (Heard in committee on August 3.)

  17. From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 4. Noes 1.) Re-referred to Com. on APPR.

  18. Joint Rule 62(a) file notice in Com. on APPR. suspended. (Page 6005.)

  19. Assembly Rule 56 suspended. (Page 6005.)

  20. Joint Rule 62(a) file notice in Com. on P.E.,R. & S.S. suspended. (Page 6005.)

  21. Re-referred to Coms. on P.E.,R. & S.S. and APPR. pursuant to Assembly Rule 77.2.

  22. Read third time. Amended.

  23. Assembly Rule 69(b) suspended. (Page 6005.)

  24. Read second time. To third reading.

  25. Placed on second reading file.

  26. In Assembly. Read first time. Held at Desk.

  27. Read third time. Passed. (Ayes 24. Noes 5. Page 3266.) To Assembly.

  28. Read second time. To third reading.

  29. Placed on second reading file.

  30. Withdrawn from committee.

  31. To Com. on RLS.

  32. From print. May be acted upon on or after February 11.

  33. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Corbett · Cosponsor
  • Correa · Primary
  • Ducheny · Cosponsor
  • Liu · Cosponsor
  • Torrico · Cosponsor

Sponsorship breakdown

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1 sponsors · 4 co-sponsors · 117 not signed on · 2 voted No

Sponsors (1)

  • Correa

Co-sponsors (4)

  • Corbett
  • Ducheny
  • Liu
  • Torrico

Not signed on (117)

117 members have not signed on to this bill.

Show all 117 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Unfinished Business SB846 Correa Urgency Clause

Passed 32 Yea · 1 Nay · 6 Other
Party YeaNayPresentNot Voting
Unaffiliated 29106
Democratic 2000
Republican 1000
Total 32106
% of votes cast 82%3%0%15%
How each member voted (39)
Member Party Vote
Yee — Yea
Cedillo — Yea
Wyland — Nay
Corbett — Yea
Florez — Yea
Ducheny — Yea
Hancock — Yea
Harman — Yea
Hollingsworth — Yea
Huff — Yea
Lowenthal — Yea
Negrete — Yea
Runner — Yea
Leno — Yea
Liu — Yea
Dutton — Yea
Oropeza — Not Voting
Alquist — Yea
Ashburn — Yea
Pavley — Yea
Price — Yea
Romero — Yea
Simitian — Yea
Walters — Not Voting
Wiggins — Not Voting
Wright — Yea
Aanestad — Yea
Kehoe — Yea
McLeod — Yea
Steinberg — Yea
Wolk — Yea
Cogdill — Not Voting
Emmerson — Not Voting
Correa — Yea
DeSaulnier — Not Voting
Denham — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

SB 846 Correa Third Reading Urgency By BUCHANAN

Passed 87 Yea · 4 Nay
Party YeaNayPresentNot Voting
Democratic 3000
Unaffiliated 81400
Republican 3000
Total 87400
% of votes cast 96%4%0%0%
How each member voted (91)
Member Party Vote
Bill — Yea
Anderson — Yea
Bass — Yea
Tom — Yea
Evans — Yea
Fuentes — Yea
Fuller — Yea
Galgiani — Yea
Charles — Yea
Garrick — Yea
Gilmore — Yea
Hagman — Yea
Hall — Yea
Hernandez — Yea
Hill — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Fletcher — Yea
Fong — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Audra — Yea
Carter — Yea
Chesbro — Yea
Conway — Yea
Cook — Yea
Coto — Yea
Davis — Yea
Huffman — Yea
Jeffries — Yea
Lieu — Yea
Logue — Yea
Mendoza — Yea
Miller — Yea
Nava — Yea
Nestande — Yea
Ruskin — Yea
Silva — Yea
Skinner — Yea
Smyth — Yea
Swanson — Yea
Torlakson — Yea
Torrico — Yea
Tran — Yea
John — Yea
A. — Yea
Perez — Yea
Yamada — Yea
Harkey — Nay
Norby — Nay
Adams — Yea
Ammiano — Yea
Beall — Yea
Blakeslee — Yea
Block — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Hayashi — Yea
Huber — Yea
Knight — Yea
Ma — Yea
Monning — Yea
Nielsen — Yea
Solorio — Yea
Torres — Yea
Villines — Yea
Eng — Yea
Feuer — Yea
DeVore — Nay
Furutani — Yea
Gatto — Yea
Beth Gaines — Nay
Bill Berryhill — Yea
Bill Berryhill — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Strickland, Tony Republican Yea

Official roll call →

Do pass.

Passed 16 Yea · 3 Nay
Party YeaNayPresentNot Voting
Unaffiliated 15300
Democratic 1000
Total 16300
% of votes cast 84%16%0%0%
How each member voted (19)
Member Party Vote
Charles — Yea
Fuentes — Yea
Gatto — Yea
De — Yea
Leon — Yea
Conway — Yea
Hall — Yea
Harkey — Nay
Miller — Nay
Norby — Nay
Coto — Yea
Davis — Yea
Skinner — Yea
Solorio — Yea
Torlakson — Yea
Bradford — Yea
Nielsen — Yea
Torrico — Yea
Calderon, Lisa Democratic Yea

Official roll call →

Senate 3rd Reading SB846 Committee on B. & F.R. (Ducheny)

Passed 25 Yea · 5 Nay · 10 Other
Party YeaNayPresentNot Voting
Unaffiliated 234010
Democratic 2000
Republican 0100
Total 255010
% of votes cast 63%13%0%25%
How each member voted (40)
Member Party Vote
Yee — Yea
Hancock — Yea
Cedillo — Yea
Corbett — Yea
Ducheny — Yea
Wyland — Nay
Lowenthal — Yea
Negrete — Yea
Runner — Not Voting
Cogdill — Not Voting
Cox — Not Voting
Hollingsworth — Not Voting
Kehoe — Yea
Leno — Yea
Dutton — Nay
McLeod — Yea
Oropeza — Yea
Pavley — Yea
Romero — Yea
Simitian — Yea
Walters — Nay
Wiggins — Not Voting
Wright — Yea
Aanestad — Not Voting
Alquist — Yea
Ashburn — Nay
Harman — Not Voting
Huff — Not Voting
Liu — Yea
Maldonado — Not Voting
Price — Yea
Steinberg — Yea
Wolk — Yea
Correa — Yea
DeSaulnier — Yea
Denham — Not Voting
Florez — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

Subjects

public-safety finance labor
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Frequently asked questions

What does SB 846 do?
(1) Existing law provides that if any provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees requires the expenditure of funds, those provisions of the memorandum of understanding shall not become effective unless approved by the Legislature in the annual Budget Act. This bill would approve provisions that require the expenditure of funds for memoranda of understanding entered into between the state employer and State Bargaining Units 5, 12, and 18 and would provide that the provisions of any memorandum of understanding that require the expenditure of funds shall become effective even if the provisions of the memorandum of understanding are approved by the Legislature in legislation other than the annual Budget Act. The bill would provide that provisions of the memoranda of understanding approved by this bill that require the expenditure of funds will not take effect unless funds for these provisions are specifically appropriated by the Legislature, and would authorize the state employer and the affected employee organizations to reopen negotiations on all or part of the memorandum of understanding if the memorandum of understanding that requires the expenditure of funds is not approved by the Legislature. This bill would, with respect to salaries that are continuously appropriated prior to the enactment of the annual Budget Act, require the Director of Finance to reduce the necessary items for the payment of salaries from specified funds scheduled in that Budget Act to reflect the salaries paid prior to the enactment of the annual Budget Act. (2) Existing law establishes an alternate retirement program and provides that state employees, as defined, who become new members of the Public Employees' Retirement System (PERS) during their first 24 months of employment, do not make contributions to the system or receive service credit for their service, and the state employer shall not make contributions on their behalf. These members are instead required to contribute either 5% or 6% of their monthly compensation, as specified, to the alternate retirement program, administered by the Department of Personnel Administration, and these contributions cease when the state employees begin making their own contributions to PERS. This bill would require all state employees participating in the alternate retirement system to contribute an amount equal to the same amount that employees in the same employment classifications in the same state bargaining units are required to contribute to PERS. (3) The Public Employees' Retirement Law (PERL) provides a comprehensive set of rights and benefits based upon age, service credit, and final compensation. Existing law defines final compensation variously for different member classifications and bargaining units and, in this regard, defines final compensation for a state member for the purpose of calculating retirement benefits as the highest annual average compensation earnable by the member during a designated 12-month or 36-month period, depending upon the bargaining unit and classification of that employee. Currently the final compensation for members hired on or after July 1, 2006, who are represented by State Bargaining Units 12, 16, 18, and 19, means the final compensation earnable by the member during a designated 36-month period. This bill would provide that final compensation for a person who becomes a state member, as specified, on or after October 31, 2010, and who is represented by State Bargaining Units 5 and 8, means the highest annual average compensation earnable by the member during a designated 36-month period. (4) PERL provides that the contribution rate for state miscellaneous members and specified state safety members is 5% or 6% of the compensation in excess of $513. Existing law provides that the contribution rate for specified state firefighters is 8% of compensation in excess of $238 per month. Existing law provides that the contribution rate for specified state safety patrol members is 8% of the compensation in excess of $863 per month. This bill would increase the contribution rates by 5% for state miscellaneous members of State Bargaining Units 5, 8, 12, 16, 18, and 19 and state safety members of State Bargaining Units 12, 16, 18, and 19, and by 2% for state firefighter members of State Bargaining Unit 8 and state patrol members of State Bargaining Unit 5. By increasing member contributions into a continuously appropriated fund, this bill would make an appropriation. (5) PERL establishes various retirement formulas that apply to specified membership categories. Under PERL, state miscellaneous members are generally subject to a retirement formula commonly known as 2% at 55, which, if the member retires at 55 years of age, yields a benefit equal to 2% of the member's final compensation multiplied by the member's years of service credit, as specified. Under PERL, patrol members and specified state peace officer/firefighter members are generally subject to a 3% at 50 retirement formula. Under PERL, state safety members are generally subject to a 2.5% at 55 retirement formula. This bill would provide that state miscellaneous members who are first employed on and after the date the act takes effect, are subject to a 2% at 60 retirement formula. The bill would also provide that patrol members and firefighter members in State Bargaining Units 5 and 8 who are first employed on and after October 31, 2010, are subject to a 3% at 55 retirement formula. (6) The Public Employees' Medical and Hospital Care Act (PEMHCA) , which is administered by the Board of Administration of PERS establishes percentages for levels of benefit coverage afforded under the approved health benefit plan in which the employee or annuitant is enrolled. Existing law provides that a represented state employee first hired on or after January 1, 1989, shall not be vested for the full employer contribution payable for annuitants unless he or she has 20 years of credited state service, as defined, at the time of retirement, as specified. This bill would, instead, provide that these benefits vest at 50% for state employees represented by State Bargaining Unit 12, who become members of the system on and after January 1, 2011, and would increase that percentage by 5% for each year of credited state service up to 100% after 25 years of credited state service. (7) The annual Budget Act appropriates specified amounts from the General Fund, unallocated special funds, and unallocated nongovernmental cost funds, for state employee compensation. This bill would, in the event that the annual Budget Act is not enacted prior to July 1 of each year covered by the memoranda of understanding for State Bargaining Units 5, 8, 12, 16, 18, and 19, provide for a continuous appropriation for the amount necessary for the payment of compensation and benefits to members of those bargaining units. (8) This bill would provide that its provisions would not become operative unless AB 1592 of the 2009–10 Regular Session is enacted and takes effect on or before January 1, 2011. (9) This bill would declare that it is to take effect immediately as an urgency statute.
Who sponsors SB 846?
SB 846 is sponsored by Corbett, Correa, Ducheny, Liu, and Torrico.
What is the current status of SB 846?
This bill died with 2009-2010 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 846?
Track SB 846 free on One Click Politics — get push/email alerts when it moves.

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