SB 28 — State public employment: memoranda of understanding: approval.

Summary

(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 requiring the expenditure of funds in the memoranda of understanding entered into between the state employer and State Bargaining Unit 1, Professional, Administrative, Financial, and Staff Services, State Bargaining Unit 3, Professional Educators and Librarians, State Bargaining Unit 4, Office and Allied, State Bargaining Unit 8, Firefighters, State Bargaining Unit 11, Engineering and Scientific Technicians, State Bargaining Unit 12, Craft and Maintenance, State Bargaining Unit 13, Stationary Engineers, State Bargaining Unit 14, Printing and Allied Trades, State Bargaining Unit 15, Allied services, State Bargaining Unit 17, Registered Nurses, State Bargaining Unit 18, Psychiatric Technicians, State Bargaining Unit 19, Health and Social Services/Professional, State Bargaining Unit 20, Medical and Social Services, and State Bargaining Unit 21, Educational Consultant and Library. This bill would provide that provisions of the memoranda of understanding described above and approved by this bill that require the expenditure of funds will not take effect unless funds for those provisions are specifically appropriated by the Legislature. The bill would authorize 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 require that the provisions of these memoranda of understanding that require the expenditure of funds to become effective even if these provisions are approved by the Legislature in legislation other than the annual Budget Act. 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 applicable memoranda of understanding described above if the Budget Act is not enacted on or before July 1 in the 2017–18, 2018–19, 2019–20, or 2020–21 fiscal years, as specified. (2) 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 8, 13, 18, and 19, 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 8, 13, 18, and 19, 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. (3) 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, State Bargaining Units 8, 13, 18, and 19. (4) 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 health care coverage for annuitants, including administrative costs. PEMHCA defines "prefunding" for these purposes. Existing law requires the state and employees of State Bargaining Unit 2, 7, 9, 10, or 12 to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019, and prescribes schedules of contribution percentages in this regard. For the state and employees of State Bargaining Unit 6, the date for reaching the goal is July 1, 2018. This bill would require the state and employees of State Bargaining Unit 8, 13, 18, or 19, to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2019. The bill would require the state and employees of State Bargaining Units 1, 3, 4, 11, 12, 14, 15, 17, 20, or 21, to prefund retiree health care with the goal of reaching a 50% cost sharing of normal costs by July 1, 2020. The bill would prescribe a schedule of contribution percentages in this regard for each of the affected bargaining units, with the contributions to be deposited in the Annuitants' Health Care Coverage Fund. By depositing new revenue in a continuously appropriated fund, this bill would make an appropriation. (5) 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, as specified, and are represented by, or related to, State Bargaining Units 8, 13, 18, and 19, 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. (6) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Bill Text

• Chaptered 03/15/17 - Chaptered Current pdf March 15, 2017
• Enrolled 03/10/17 - Enrolled pdf March 10, 2017
• Amended 02/08/17 - Amended Senate pdf February 08, 2017
• Amended 01/30/17 - Amended Senate pdf January 30, 2017
• Introduced 12/05/16 - Introduced pdf December 05, 2016
• SB28 View text html

Action History

1. March 15, 2017

   Chaptered by Secretary of State. Chapter 1, Statutes of 2017.

2. March 15, 2017

   Approved by the Governor.

3. March 14, 2017

   Enrolled and presented to the Governor at 2:30 p.m.

4. March 09, 2017

   In Senate. Ordered to engrossing and enrolling.

5. March 09, 2017

   Read third time. Passed. (Ayes 61. Noes 14. Page 563.) Ordered to the Senate.

6. March 06, 2017

   Read second time. Ordered to third reading.

7. March 02, 2017

   From committee: Do pass. (Ayes 22. Noes 5.) (March 2).

8. February 23, 2017

   Referred to Com. on BUDGET.

9. February 17, 2017

   In Assembly. Read first time. Held at Desk.

10. February 17, 2017

    Read third time. Passed. (Ayes 26. Noes 7. Page 220.) Ordered to the Assembly.

11. February 17, 2017

    Motion by Senator Monning to lay on table amendments by Senator Stone adopted. (Ayes 25. Noes 9. Page 219.)

12. February 13, 2017

    Read second time. Ordered to third reading.

13. February 09, 2017

    From committee: Do pass. (Ayes 11. Noes 4. Page 171.) (February 9).

14. February 08, 2017

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.R.

15. February 08, 2017

    From committee: Do pass and re-refer to Com. on B. & F.R. (Ayes 3. Noes 2. Page 162.) (February 6). Re-referred to Com. on B. & F.R.

16. February 03, 2017

    Set for hearing February 9 in B. & F.R. pending receipt.

17. February 01, 2017

    Set for hearing February 6.

18. January 30, 2017

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on P.E. & R.

19. January 26, 2017

    Re-referred to Coms. on P.E. & R. and B. & F.R.

20. January 23, 2017

    Re-referred to Com. on RLS.

21. January 23, 2017

    Withdrawn from committee.

22. January 12, 2017

    Referred to Com. on P.E. & R.

23. December 06, 2016

    From printer. May be acted upon on or after January 5.

24. December 05, 2016

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

Sponsors

• Pan · Primary

Votes

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