(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.
Existing law requires the Department of Human Resources to provide a memorandum of understanding to the Legislative Analyst who then has 10 calendar days from the date the tentative agreement is received to issue a fiscal analysis to the Legislature. Existing law prohibits the memorandum of understanding from being subject to legislative determination until either the Legislative Analyst has presented a fiscal analysis of the memorandum of understanding or until 10 calendar days has elapsed since the memorandum was received by the Legislative Analyst.
This bill, notwithstanding the above statutory provisions, would approve provisions of agreements entered into by the state employer and State Bargaining Units 2, 8, 9, 10, 18, and 19. The bill would provide that the provisions of the agreements 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 State Bargaining Units 2, 8, 9, 10, 18, or 19 to reopen negotiations if funds for these provisions are not specifically appropriated by the Legislature. The bill would require the provisions of the agreements that require the expenditure of funds to become effective even if the provisions are approved by the Legislature in legislation other than the annual Budget Act.
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 further include, within these continuous appropriation provisions, the amount necessary for the payment of compensation and employment benefits to state employees covered by the memoranda of understanding for State Bargaining Unit 2 (effective July 1, 2022, to June 30, 2025, inclusive) , State Bargaining Unit 8 (effective July 1, 2022, to June 30, 2024, inclusive) , State Bargaining Unit 9 (effective July 1, 2022, to June 30, 2025, inclusive) and State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive) .
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 specified memoranda of understanding 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 employment benefits to state employees covered by the memoranda of understanding for State Bargaining Unit 2 (effective July 1, 2022, to June 30, 2025, inclusive) , State Bargaining Unit 8 (effective July 1, 2022, to June 30, 2024, inclusive) , State Bargaining Unit 9 (effective July 1, 2022, to June 30, 2025, inclusive) , and State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive) .
Existing law, for the 2024–25 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 and compensation and employee benefits to state employees covered by specified memoranda of understanding if the Budget Act of 2024 is not enacted by July 1, 2024.
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, 2022, to June 30, 2025, inclusive) , State Bargaining Unit 9 (effective July 1, 2025, to June 30, 2025, inclusive) , and State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive) .
This bill, for the 2025–26 fiscal year, if the Budget Act of 2025 is not enacted by July 1, 2025, with respect to the memorandum of understanding between the state employer and State Bargaining Unit 18 (effective July 1, 2022, to July 1, 2025, inclusive) , would continuously appropriate to the Controller from the General Fund, unallocated special funds in the amount necessary for the payment of compensation and employee benefits to state employees covered by this memorandum of understanding until the Budget Act of 2025 in enacted, subject to certain conditions.
(2) Under existing law, an eligible employee is entitled to receive up to 6 weeks of benefits during a 12-month period for Nonindustrial Disability Insurance Family Care Leave, and defines "eligible employee" for purposes of those provisions.
This bill would also include in the definition of "eligible employee" an employee enrolled in a specified annual leave program who is represented by State Bargaining Unit 2 or State Bargaining Unit 9 and for which a memorandum of understanding has been agreed to by the state employer and the recognized employee organization to be subject to the Nonindustrial Disability Insurance Family Care Leave provisions.
(3) The Public Employees' Retirement Law (PERL) establishes the Public Employees' Retirement System (PERS) , which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. PERL vests the Board of Administration of PERS with management and control of the system.
This bill, for purposes of calculating retirement benefits, would include longevity pay in final compensation, as provided in a memorandum of understanding, for represented state members in State Bargaining Unit 18 and nonrepresented state members associated with State Bargaining Unit 18, as defined.
Existing law adjusts the normal rate of contribution for specified state miscellaneous or state industrial members who are represented by State Bargaining Unit 2 to 10% of the compensation in excess of $317 per month paid to a member whose service is not included in the federal system, and by 9% of compensation in excess of $513 per month paid to a member whose service has been included in the federal system. Existing law, on and after July 1, 2022, adjusts these amounts to 9.5% of compensation in excess of $317 per month and 8.5% per month in excess of $513, as specified.
This bill would revise the rate of contribution for state industrial members and state miscellaneous members whose service is not included in the federal system to 10% and 9.5%, respectively, of compensation in excess of $317 per month, and would revise the rate of contribution for state industrial members and state miscellaneous members whose service is included in the federal system to 9% and 8.5%, respectively, of compensation in excess of $513.
Existing law, effective July 1, 2023, adjusts the normal rate of contribution for state safety members represented by State Bargaining Unit 2 in accordance with specified provisions if the total normal cost rate for the category in effect for the 2021–22 fiscal year has increased or decreased by at least 1%.
This bill would instead require the normal rate of contribution to be adjusted if the total normal cost rate for the category in effect for the 2022–23 fiscal year has increased or decreased by at least 1%.
(4) 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 18 to make contributions to prefund retiree health care and requires 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 fiscal year. PEMHCA provides that the employer's monthly contribution for prefunding other postemployment benefits continues in the 2020–21 fiscal year.
This bill, with respect to State Bargaining Units 2, 8, and 18, would adjust the employer and employee contribution percentages, effective the first day of the pay period following ratification by both parties, based on the actuarially determined total normal costs, subject to specified increases or decreases, to maintain a 50% cost sharing of actuarially determined total normal costs. The bill, with respect to State Bargaining Unit 8, would also decrease the employer and employee contribution by 1%, from 4.4% to 3.4%, effective the first day of the pay period following ratification by both parties.
(5) Existing law establishes a workers' compensation system, administered by the Administrative Director of the Division of Workers' Compensation, to compensate an employee for injuries sustained in the course of employment. Existing law entitles certain law enforcement personnel, disabled by injury arising out of the course of their duties, to leave of absence while so disabled without loss of salary, for a period not exceeding one year.
This bill would entitle a member of State Bargaining Unit 8, employed by the Department of Forestry and Fire Protection, who becomes disabled by injury arising out of and in the course of their duties, regardless of their period of service with the department, to leave of absence while so disabled without loss of salary, in lieu of disability payments, for a period not exceeding one year, and in certain cases in which the injury is determined to be a severe burn, not exceeding 3 years, subject to certain exclusions. The bill would apply these provisions to injuries sustained on or after November 1, 2022. The bill also would apply these provisions to an employee related to State Bargaining Unit 8 and employed by the department who is excepted from the definition of "state employee," as specified.
(6) This bill would appropriate the sum of $298,737,000 for State Bargaining Units 2, 5, 8, 9, 10, 18, and 19, and judges, and employees excluded from collective bargaining, for the purpose of state employee compensation, as provided in specified items of the Budget Act of 2022, in accordance with a specified schedule.
(7) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Statutes affected:
06/27/21 - Amended Senate: 12099 GOV, 12099.1 GOV, 12099.2 GOV, 12099.3 GOV, 12099.4 GOV, 12099.5 GOV, 12099.6 GOV, 12099.7 GOV, 12100.61 GOV, 12100.62 GOV, 12100.63 GOV, 12100.65 GOV, 12100.67 GOV, 12100.83 GOV, 13995.44 GOV, 18410.2 RTC
08/26/22 - Amended Senate: 19829.9850 GOV, 19829.9851 GOV, 19829.9852 GOV, 19878.5 GOV, 20677.5 GOV, 20683.81.3 GOV, 22944.5 GOV
08/31/22 - Enrolled: 19829.9850 GOV, 19829.9851 GOV, 19829.9852 GOV, 19878.5 GOV, 20677.5 GOV, 20683.81.3 GOV, 22944.5 GOV
09/06/22 - Chaptered: 19829.9850 GOV, 19829.9851 GOV, 19829.9852 GOV, 19878.5 GOV, 20677.5 GOV, 20683.81.3 GOV, 22944.5 GOV