California 2017-2018 Regular Session Status: Enacted

SB 873 — State public employment: memorandum of understanding: approval: State Bargaining Units 9 and 10.

Last action — Chaptered by Secretary of State. Chapter 452, Statutes of 2018.

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

This bill has been enacted into law. Introduced January 10, 2018. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

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 memorandum of understanding entered into between the state employer and State Bargaining Unit 9, Professional Engineers, and State Bargaining Unit 10, Professional Scientific. 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 this memoranda of understanding that require the expenditure of funds 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, in 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 2019–20 fiscal year or, in the case of State Bargaining Unit 10 only, July 1 in the 2020–21 fiscal year, as specified. (2) The Public Employees' Retirement Law (PERL) creates the Public Employees' Retirement System for the purpose of providing pension and other benefits to public employees, which are funded by employee and employer contributions and investment returns. PERL prescribes different normal rates for employee contributions depending on bargaining unit, employer, and inclusion of service in the federal Social Security system, among other factors. This bill, on and after July 1, 2019, would adjust the normal rate of contribution for specified employees of State Bargaining Unit 9 and 10 to 50% of the normal cost rate rounded to the nearest quarter 1%, as specified, if certain conditions occur. The bill would authorize the Director of the Department of Human Resources to exercise his or her discretion to establish the normal rate of contribution for a related state employee or an officer or employee of the executive branch who is not a member of the civil service. The bill would revert to the normal rate of contribution on July 1, 2020, in the case of State Bargaining Unit 9, or July 1, 2021, in the case of State Bargaining Unit 10. (3) 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. 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 10 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. This bill, effective July 1, 2020, would require that the contribution percentages the state and employees of State Bargaining Unit 10 be increased or decreased to maintain a 50% cost sharing of the actuarially determined total normal costs, as provided. The bill, effective July 1, 2021, would require that the contribution percentage for employees of State Bargaining Unit 10 to prefund retiree health care, and the matching contribution of the state, be 2.8% of pensionable compensation. (4) 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, 2019, as specified, and are represented by, or related to, State Bargaining Unit 9 or 10, 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. (5) This bill would appropriate the sum of $132,786,000 for State Bargaining Units 9 and 10 for expenditure in the 2018–19 fiscal year, in augmentation of, and for the purpose of, state employee compensation, as provided. (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

Action History

  1. Chaptered by Secretary of State. Chapter 452, Statutes of 2018.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 4 p.m.

  4. Assembly amendments concurred in. (Ayes 27. Noes 11. Page 6044.) Ordered to engrossing and enrolling.

  5. In Senate. Concurrence in Assembly amendments pending.

  6. Read third time. Passed. (Ayes 60. Noes 20. Page 6786.) Ordered to the Senate.

  7. Ordered to third reading.

  8. Withdrawn from committee.

  9. Assembly Rule 96 suspended. (Ayes 54. Noes 24. Page 6705.)

  10. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

  11. Referred to Com. on BUDGET.

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

  13. Read third time. Passed. (Ayes 24. Noes 11. Page 4929.) Ordered to the Assembly.

  14. Read second time. Ordered to third reading.

  15. Ordered to second reading.

  16. Withdrawn from committee. (Ayes 25. Noes 11. Page 4865.)

  17. Referred to Com. on B. & F.R.

  18. From printer. May be acted upon on or after February 10.

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

Sponsors

  • Committee on Budget and Fiscal Review · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 9 voted No

Sponsors (1)

  • Committee on Budget and Fiscal Review

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"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 SB873 B. & F.R. (Mitchell) Concurrence

Passed 27 Yea · 11 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 231002
Democratic 4100
Total 271102
% of votes cast 68%28%0%5%
How each member voted (40)
Member Party Vote
Anderson — Nay
Bradford — Yea
Lara — Yea
Pan — Yea
Fuller — Nay
Cannella — Yea
Chang — Nay
Allen — Yea
De León — Yea
Galgiani — Yea
Delgado — Yea
Portantino — Yea
Atkins — Yea
Mitchell — Yea
Glazer — Not Voting
Hernandez — Yea
Dodd — Yea
Hertzberg — Yea
Hill — Yea
Hueso — Yea
Bates — Nay
Beall — Yea
Leyva — Yea
Monning — Yea
Moorlach — Nay
Morrell — Nay
Nielsen — Yea
Roth — Yea
Skinner — Yea
Vidak — Nay
Wieckowski — Yea
Wilk — Nay
Beth Gaines — Nay
Bill Berryhill — Not Voting
Mark Stone — Nay
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Nay
Stern, Henry I. Democratic Yea
Wiener, Scott D. Democratic Yea

Official roll call →

SB 873 B. & F. R. Senate Third Reading By TING

Passed 60 Yea · 20 Nay
Party YeaNayPresentNot Voting
Unaffiliated 421600
Democratic 16000
Republican 2400
Total 602000
% of votes cast 75%25%0%0%
How each member voted (80)
Member Party Vote
Acosta — Yea
Bigelow — Nay
Brough — Nay
Kiley — Nay
Maienschein — Nay
Mathis — Nay
Quirk — Yea
Thurmond — Yea
Ting — Yea
Cooper — Yea
Eggman — Yea
Cunningham — Nay
Daly — Yea
Frazier — Yea
Gloria — Yea
Friedman — Yea
Holden — Yea
Rivas — Yea
Rubio — Yea
Jones-Sawyer — Yea
Low — Yea
Salas — Yea
McCarty — Yea
Burke — Yea
Gray — Yea
Bloom — Yea
Chau — Yea
Chiu — Yea
Chu — Yea
Chávez — Yea
Medina — Yea
Mullin — Yea
Nazarian — Yea
O'Donnell — Yea
Rendon — Yea
Santiago — Yea
Waldron — Yea
Weber — Yea
Wood — Yea
Gonzalez Fletcher — Yea
Harper — Nay
Fong — Nay
Kamlager-Dove — Yea
Levine — Yea
Mayes — Nay
Melendez — Nay
Baker — Nay
Cooley — Yea
Obernolte — Nay
Rodriguez — Yea
Steinorth — Nay
Voepel — Nay
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Nay
Mark Stone — Yea
Travis Allen — Nay
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Berman, Marc Democratic Yea
Bonta, Mia Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Chen, Phillip Republican Nay
Choi, Steven S. Republican Nay
Dahle, Megan Republican Nay
Flora, Heath Republican Yea
Gallagher, James Republican Nay
Lackey, Tom Republican Yea

Official roll call →

3rd Reading SB873 B. & F.R.

Passed 24 Yea · 11 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 201004
Democratic 4100
Total 241104
% of votes cast 62%28%0%10%
How each member voted (39)
Member Party Vote
Bradford — Yea
Hill — Yea
Nielsen — Nay
Fuller — Nay
Cannella — Not Voting
Galgiani — Yea
Dodd — Yea
Glazer — Yea
Hernandez — Yea
Hertzberg — Yea
Hueso — Not Voting
Allen — Yea
Portantino — Yea
Atkins — Yea
Mitchell — Yea
Lara — Yea
Leyva — Yea
De León — Not Voting
Anderson — Nay
Bates — Nay
Beall — Yea
Monning — Yea
Moorlach — Nay
Morrell — Nay
Newman — Yea
Pan — Yea
Roth — Yea
Skinner — Yea
Vidak — Nay
Wieckowski — Yea
Wilk — Nay
Beth Gaines — Nay
Bill Berryhill — Not Voting
Mark Stone — Nay
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Nay
Stern, Henry I. Democratic Yea
Wiener, Scott D. Democratic Yea

Official roll call →

Subjects

finance healthcare labor
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Frequently asked questions

What does SB 873 do?
(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 memorandum of understanding entered into between the state employer and State Bargaining Unit 9, Professional Engineers, and State Bargaining Unit 10, Professional Scientific. 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 this memoranda of understanding that require the expenditure of funds 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, in 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 2019–20 fiscal year or, in the case of State Bargaining Unit 10 only, July 1 in the 2020–21 fiscal year, as specified. (2) The Public Employees' Retirement Law (PERL) creates the Public Employees' Retirement System for the purpose of providing pension and other benefits to public employees, which are funded by employee and employer contributions and investment returns. PERL prescribes different normal rates for employee contributions depending on bargaining unit, employer, and inclusion of service in the federal Social Security system, among other factors. This bill, on and after July 1, 2019, would adjust the normal rate of contribution for specified employees of State Bargaining Unit 9 and 10 to 50% of the normal cost rate rounded to the nearest quarter 1%, as specified, if certain conditions occur. The bill would authorize the Director of the Department of Human Resources to exercise his or her discretion to establish the normal rate of contribution for a related state employee or an officer or employee of the executive branch who is not a member of the civil service. The bill would revert to the normal rate of contribution on July 1, 2020, in the case of State Bargaining Unit 9, or July 1, 2021, in the case of State Bargaining Unit 10. (3) 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. 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 10 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. This bill, effective July 1, 2020, would require that the contribution percentages the state and employees of State Bargaining Unit 10 be increased or decreased to maintain a 50% cost sharing of the actuarially determined total normal costs, as provided. The bill, effective July 1, 2021, would require that the contribution percentage for employees of State Bargaining Unit 10 to prefund retiree health care, and the matching contribution of the state, be 2.8% of pensionable compensation. (4) 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, 2019, as specified, and are represented by, or related to, State Bargaining Unit 9 or 10, 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. (5) This bill would appropriate the sum of $132,786,000 for State Bargaining Units 9 and 10 for expenditure in the 2018–19 fiscal year, in augmentation of, and for the purpose of, state employee compensation, as provided. (6) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Who sponsors SB 873?
SB 873 is sponsored by Committee on Budget and Fiscal Review.
What is the current status of SB 873?
This bill has been enacted into law. Introduced January 10, 2018. Enacted.
Where can I track SB 873?
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