State Employment: State Bargaining Unit 6.

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 the agreement entered into by the state employer and State Bargaining Unit 6. The bill would approve provisions requiring the expenditure of funds in the addendum entered into by the state employer and State Bargaining Unit 6. The bill would authorize the state employer or State Bargaining Unit 6 to reopen negotiations if funds for those provisions are not specifically appropriated by the Legislature. The bill would provide that the provisions of the addendum that require expenditure of funds become effective even if those provisions are approved by the Legislature in legislation other than the annual Budget Act. Existing law, for the 2021–22 fiscal year, continuously appropriates 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 specified memoranda of understanding, if the Budget Act for that fiscal year is not enacted by July 1, 2021. Existing law includes within this appropriation provision a memorandum of understanding for State Bargaining Unit 6, effective July 3, 2020, to July 2, 2022. This bill would revise the expiry date of the memorandum of understanding above for State Bargaining Unit 6 to July 2, 2023. Existing law, for the 2022–23 fiscal year, continuously appropriates 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 specified memoranda of understanding, if the Budget Act for that fiscal year is not enacted by July 1, 2022. Existing law includes within this appropriation provision a memorandum of understanding described above for State Bargaining Unit 6, effective July 3, 2020, to July 2, 2022. This bill would revise the expiry date of the memorandum of understanding described above for State Bargaining Unit 6 to July 2, 2023. Existing law, for the 2023–24 fiscal year, continuously appropriates 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 a memorandum of understanding entered into between the state employer and State Bargaining Unit 5, if the Budget Act of 2023 is not enacted by July 1, 2023. This bill would further include, within these continuous appropriation provisions, the amount necessary for the payment of compensation and employee benefits to state employees covered by the memorandum of understanding entered into for State Bargaining Unit 6. 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 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 requires the state and employees in specified State Bargaining Units to prefund retiree health care costs, subject to certain conditions. PEMHCA requires employees in State Bargaining Unit 6 to make contributions to prefund retiree health care and the state employer to make a matching contribution, as specified. PEMHCA suspends those employees' monthly contribution for prefunding other postemployment benefits for the 2020–21 and 2021–22 fiscal years. PEMHCA provides that the employer's monthly contribution for prefunding other postemployment benefits continues in the 2020–21 and 2021–22 fiscal years. This bill would instead only suspend the employees' monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year. The bill would also revise the employer's monthly contribution for prefunding to specify that it will continue in the 2020–21 fiscal year. The bill would appropriate the sum of $509,997,000 for State Bargaining Unit 6 for expenditure in the 2021–22 fiscal year in augmentation of, and for the purpose of, state employee compensation, as provided. This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill. This bill would incorporate additional changes to Sections 19829.9849, 19829.9850, 19829.9851, and 22944.5 of the Government Code proposed by AB 142 to be operative only if this bill and AB 142 are enacted and this bill is enacted last.