State employment: State Bargaining Units.

(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 the provisions of the memoranda of understanding or addenda, or both, entered into by the state employer and State Bargaining Units 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, and 21. The bill would provide that provisions of the memoranda of understanding or addenda, or both, described above that require the expenditure of funds will not take effect unless funds for these provisions are specifically appropriated by the Legislature. The bill would authorize the state employer or these state bargaining units to reopen negotiations if funds for those provisions are not specifically appropriated. This bill would require the provisions of these memoranda of understanding or addenda, or both, 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. 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 covered by specified memoranda of understanding, if the Budget Act is not enacted by July 1, 2021. 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 memoranda of understanding for State Bargaining Unit 2 (effective July 1, 2021, to June 30, 2022, inclusive) , State Bargaining Unit 8 (effective January 1, 2017, to July 1, 2021, inclusive) , State Bargaining Unit 12 (effective July 1, 2021, to June 30, 2023, inclusive) , and State Bargaining Unit 19 (effective July 2, 2020, to July 1, 2023, inclusive) . The bill would also change the expiry date of the memorandum of understanding for State Bargaining Unit 16 to July 1, 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 of 2022 is not enacted by July 1, 2022. This bill would also include, within these continuous appropriation provisions, the amount necessary for the payment of compensation and employee benefits to state employees covered by the memoranda of understanding for State Bargaining Unit 12 (effective July 1, 2021, to June 30, 2023, inclusive) and State Bargaining Unit 19 (effective July 2, 2020, to July 1, 2023, inclusive) . The bill would also change the expiry date of the memorandum of understanding for State Bargaining Unit 16 to July 1, 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 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 for State Bargaining Unit 16 (effective July 1, 2020, to July 1, 2023, inclusive) and State Bargaining Unit 19 (effective July 2, 2020, to July 1, 2023, inclusive) . (2) The Public Employees' Retirement Law (PERL) creates the Public Employees' Retirement System for the purpose of providing public employees pension and other benefits, which are funded by employee and employer contributions and investment returns. Contributions and investment returns are deposited in the Public Employees' Retirement Fund, which is continuously appropriated for the payment of benefits and administration of the system. PERL and labor agreements prescribe different normal rates of contribution for employees depending on bargaining unit, employer, and inclusion of service in the federal social security system, among other factors. Existing law adjusts the normal rate of contribution for specified state miscellaneous, industrial, and safety members who are represented by State Bargaining Unit 9, as prescribed. Existing law provides that on July 1, 2022, or a later date as determined by the provisions of the memorandum of understanding for that bargaining unit, the normal rate of contribution shall return to the normal rate that was in place on July 1, 2019, for a period of one year. Existing law also adjusts the normal contribution rate for specified patrol and state miscellaneous members who are represented by Bargaining Unit 5, as prescribed. This bill, with respect to the above members represented by State Bargaining Unit 9, would instead specify that on July 1, 2021, the normal rate of contribution shall return to the normal contribution rate that was in place on July 1, 2019, for a period of one year. The bill, with respect to patrol and state miscellaneous members represented by State Bargaining Unit 5, would also adjust the normal rate of contribution effective July 1, 2021, based on specified criteria. The bill would make conforming changes to the normal rate of contribution for related employees. (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 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 and other postemployment benefits, subject to certain conditions. PEMHCA suspends those employees' monthly contribution for prefunding other postemployment benefits for the 2020–21 and 2021–22 fiscal years beginning on the first day of the pay period following ratification and ending on June 30, 2022. This bill would instead suspend the above employees' monthly contribution for prefunding other postemployment benefits for the 2020–21 fiscal year only. The bill would specify that the employer's monthly contribution for prefunding other post employment benefits continues in the 2020–21 fiscal year. PEMHCA requires employees in State Bargaining Unit 12 to prefund retiree health care and the state to make a matching contribution. PEMHCA suspends the employees' monthly contribution for prefunding postemployment benefits for the 2020–21 fiscal year. This bill would increase or decrease the employer and employee contribution percentages, as specified, to maintain a 50% cost sharing of the actuarially determined total normal costs, subject to certain timeframes and limits. PEMHCA requires the state and employees in State Bargaining Unit 5 to prefund retiree health care, based on a specified schedule. The bill would adjust the cost-sharing amounts applicable to the state and employees in State Bargaining Unit 5 for prefunding retiree health care, as specified. The bill would make related and conforming changes to these prefunding provisions. (4) The bill would appropriate the sum of $1,287,279,000 for State Bargaining Units 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, and 21 for expenditure in the 2021–22 fiscal year in augmentation of, and for the purpose of, state employee compensation, in accordance with a specified schedule. 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 SB 159 to be operative only if this bill and SB 159 are enacted and this bill is enacted last.