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SB-1504 Public employment: retirement savings plans, employment conditions, and training.(2017-2018)

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Date Published: 06/06/2018 09:00 PM
SB1504:v98#DOCUMENT

Amended  IN  Assembly  June 06, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 1504


Introduced by Committee on Public Employment and Retirement (Senators Pan (Chair), Leyva, Moorlach, Morrell, and Portantino)

March 14, 2018


An act to amend Section 19218 of the Food and Agricultural Code, to amend Sections 6276.14, 6276.34, 19993, 19993.05, 19995.4, 19999.5, 20677.5, 20677.6, 20677.7, 20677.71, 20677.8, 20677.9, 20677.91, 20677.95, 20681, and 22877 of the Government Code, to amend Section 12693.63 of the Insurance Code, to amend Sections 201 and 202 of the Labor Code, to amend Section 13600 of the Penal Code, and to amend Section 14021.31 of the Welfare and Institutions Code, relating to state employment.


LEGISLATIVE COUNSEL'S DIGEST


SB 1504, as amended, Committee on Public Employment and Retirement. Department of Human Resources. Public employment: retirement savings plans, employment conditions, and training.
(1) Under existing law, the Department of Human Resources succeeds to and is vested with all the powers and duties previously performed by the Department of Personnel Administration. Existing law authorizes the Department of Human Resources to establish a deferred compensation plan that permits state officers and employees, participating pursuant to written agreement, to provide for a deferral of their wages. Existing law requires the department to permit officers and employees participating in a tax-deferred retirement savings plan to invest in a range of specified investment options.
This bill would revise these provisions generally to refer to tax-advantaged retirement savings plans and would eliminate the requirement that the participation agreement be written. The bill would delete specific references to investment options that must be offered and instead require the department to offer a broad range of investments. The bill would grant the department the exclusive authority to determine the investment products provided in the core portfolio, subject to certain requirements. The bill would also require the department to offer a brokerage option. The bill would additionally update various references to the Department of Personnel Administration to instead refer to the Department of Human Resources.
(2) Existing law provides that when an employer discharges an employee, or he or she quits, as specified, the wages earned and unpaid at the time of discharge are due and payable immediately. Existing law, applicable to the state, permits an employee, when he or she is discharged, quits, or retires, to elect at least 5 workdays prior to his or her last day of employment that unused vacation and leave, as specified, be applied to the employee’s state sponsored supplemental retirement plan or received as a lump sum. Subject to certain requirements, a state employee may elect different options to defer payment into the next calendar year.
This bill would provide that the election described above be made no later than 5 days after his or her final day of employment. The bill would provide that certain options apply only to leave if the employee is terminated or leaves employment after November 1 of a calendar year, and would prescribe conditions regarding when payments would be deferred, deposited, or tendered. The bill would make various conforming changes, including to conform with federal regulation.

(1)Existing law creates the Department of Human Resources, which succeeds to and is vested with all of the powers and duties previously performed by the Department of Personnel Administration.

This bill would update various references to the Department of Personnel Administration to refer instead to the Department of Human Resources.

(2)

(3) Existing law requires the Department of Human Resources to devise plans for, and cooperate with, appointing powers in the conduct of supervisor and career executive assignment employee training programs.
This bill would extend that requirement to training of managers.

(3)

(4) Existing law requires supervisory training to be successfully completed within the term of the probationary period or within 6 months of the employee’s initial appointment, except if doing so creates additional costs or if training cannot be completed due to limited availability of training courses. Existing law specifies that, upon completion of the initial appointment training, supervisory employees are required to be provided biannually a minimum of 20 hours of leadership training and development, as prescribed by the department.
This bill would require those initial supervisory training hours to be completed no later than the term of the probationary period. The bill also would revise the requirement of 20 hours of subsequent leadership training and development, to instead make it a biennial, rather than a biannual, requirement.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 19218 of the Food and Agricultural Code is amended to read:

19218.
 (a) There is in state government a Rendering Industry Advisory Board consisting of seven persons, appointed by the secretary, six of whom are licensed under this chapter and are subject to payment of the rendering program licensing fees in accordance with this chapter, including, but not limited to, licensed renderers, dead haulers, and transporters of inedible kitchen grease. The secretary shall appoint one other member to the board who shall be a public member. Any vacancy in the office of a public member of the board shall be filled by appointment by the secretary.
(b) At least one of the six licensee members appointed by the secretary pursuant to subdivision (a) shall have experience and expertise in alternative uses of rendered products, including, but not limited to, use as energy, alternative fuels, lubricants, and other nontraditional uses.
(c) The public member appointed by the secretary pursuant to subdivision (a) shall have experience and expertise in one or more of the following:
(1) Water quality.
(2) Publicly owned treatment works and water infrastructure.
(3) Law enforcement.
(d) The members of the board shall receive no salary, but are entitled to payment of necessary traveling expenses in accordance with the Department of Human Resources rules and regulations. These expenses shall be paid out of appropriations made to the department for that purpose.

SEC. 2.

 Section 6276.14 of the Government Code is amended to read:

6276.14.
 Dairy Council of California, confidentiality of ballots, Section 64155, Food and Agricultural Code.
Death, report that physician’s or podiatrist’s negligence or incompetence may be cause, confidentiality of, Section 802.5, Business and Professions Code.
Dental hygienist drug and alcohol diversion program, confidentiality of records pertaining to treatment, Section 1966.5, Business and Professions Code.
Dentist advertising and referral contract exemption, Section 650.2, Business and Professions Code.
Dentist, alcohol or dangerous drug rehabilitation and diversion, confidentiality of records, Section 1698, Business and Professions Code.
Department of Consumer Affairs licensee exemption for alcohol or dangerous drug treatment and rehabilitation records, Section 156.1, Business and Professions Code.
Department of Human Resources, confidentiality of pay data furnished to, Section 19826.5.
Department of Motor Vehicles, confidentiality of information provided by an insurer, Section 4750.4, Vehicle Code.
Department of Motor Vehicles, confidentiality of the home address of specified persons in the records of the Department of Motor Vehicles, Section 1808.6, Vehicle Code.
Developmentally disabled conservatee confidentiality of reports and records, Sections 416.8 and 416.18, Health and Safety Code.
Developmentally disabled person, access to information provided by family member, Section 4727, Welfare and Institutions Code.
Developmentally disabled person and person with mental illness, access to and release of information about, by protection and advocacy agency, Section 4903, Welfare and Institutions Code.
Developmentally disabled person, confidentiality of patient records, state agencies, Section 4553, Welfare and Institutions Code.
Developmentally disabled person, confidentiality of records and information, Sections 4514 and 4518, Welfare and Institutions Code.
Diesel Fuel Tax information, disclosure prohibited, Section 60609, Revenue and Taxation Code.
Disability compensation, confidential medical records, Section 2714, Unemployment Insurance Code.
Disability insurance, access to registered information, Section 789.7, Insurance Code.
Discrimination complaint to Division of Labor Standards Enforcement, confidentiality of witnesses, Section 98.7, Labor Code.
Dispute resolution participants confidentiality, Section 471.5, Business and Professions Code.
Division of Workers’ Compensation, confidentiality of data obtained by the administrative director and derivative works created by the division, Sections 3201.5, 3201.7, and 3201.9, Labor Code.
Division of Workers’ Compensation, individually identifiable information and residence addresses obtained or maintained by the division on workers’ compensation claims, confidentiality of, Section 138.7, Labor Code.
Division of Workers’ Compensation, individually identifiable information of health care organization patients, confidentiality of, Section 4600.5, Labor Code.
Division of Workers’ Compensation, individual workers’ compensation claim files and auditor’s working papers, confidentiality of, Section 129, Labor Code.
Division of Workers’ Compensation, peer review proceedings and employee medical records, confidentiality of, Section 4600.6, Labor Code.
Domestic violence counselor and victim, confidentiality of communication, Sections 1037.2 and 1037.5, Evidence Code.
Driver arrested for traffic violation, notice of reexamination for evidence of incapacity, confidentiality of, Section 40313, Vehicle Code.
Driving school and driving instructor licensee records, confidentiality of, Section 11108, Vehicle Code.

SEC. 3.

 Section 6276.34 of the Government Code is amended to read:

6276.34.
 Parole revocation proceedings, confidentiality of information in reports, Section 3063.5, Penal Code.
Passenger fishing boat licenses, records, Section 7923, Fish and Game Code.
Paternity, acknowledgement, confidentiality of records, Section 102760, Health and Safety Code.
Patient-physician confidential communication, Sections 992 and 994, Evidence Code.
Patient records, confidentiality of, Section 123135, Health and Safety Code.
Payment instrument licensee records, inspection of, Section 33206, Financial Code.
Payroll records, confidentiality of, Section 1776, Labor Code.
Peace officer personnel records, confidentiality of, Sections 832.7 and 832.8, Penal Code.
Penitential communication between penitent and clergy, Sections 1032 and 1033, Evidence Code.
Personal Care Services Program, exemption from disclosure for information regarding persons paid by the state to provide personal care services, Section 6253.2.
Personal Income Tax, disclosure of information, Article 2 (commencing with Section 19542), Chapter 7, Part 10.2, Division 2, Revenue and Taxation Code.
Personal information, Information Practices Act, prohibitions against disclosure by state agencies, Sections 1798.24 and 1798.75, Civil Code.
Personal information, subpoena of records containing, Section 1985.4, Code of Civil Procedure.
Personal representative, confidentiality of personal representative’s birth date and driver’s license number, Section 8404, Probate Code.
Persons formerly classified as mentally abnormal sex offenders committed to a state hospital, confidentiality of records, Section 4135, Welfare and Institutions Code.
Persons with mental health disorders, court-ordered evaluation, confidentiality of reports, Section 5202, Welfare and Institutions Code.
Persons with mental health disorders, confidentiality of written consent to detainment, Section 5326.4, Welfare and Institutions Code.
Persons with mental health disorders voluntarily detained and receiving services, confidentiality of records and information, Sections 5328, 5328.15, 5328.2, 5328.4, 5328.8, and 5328.9, Welfare and Institutions Code.
Persons with mental health disorders, weapons restrictions, confidentiality of information about, Section 8103, Welfare and Institutions Code.
Petition signatures, Section 18650, Elections Code.
Petroleum supply and pricing, confidential information, Sections 25364 and 25366, Public Resources Code.
Pharmacist, alcohol or dangerous drug diversion and rehabilitation records, confidentiality of, Section 4372, Business and Professions Code.
Physical therapist or assistant, records of dangerous drug or alcohol diversion and rehabilitation, confidentiality of, Section 2667, Business and Professions Code.
Physical or mental condition or conviction of controlled substance offense, records in Department of Motor Vehicles, confidentiality of, Section 1808.5, Vehicle Code.
Physician and surgeon, rehabilitation and diversion records, confidentiality of, Section 2355, Business and Professions Code.
Physician assistant, alcohol or dangerous drug diversion and rehabilitation records, confidentiality of, Section 3534.7, Business and Professions Code.
Physician competency examination, confidentiality of reports, Section 2294, Business and Professions Code.
Physicians and surgeons, confidentiality of reports of patients with a lapse of consciousness disorder, Section 103900, Health and Safety Code.
Physician Services Account, confidentiality of patient names in claims, Section 16956, Welfare and Institutions Code.
Pilots, confidentiality of personal information, Section 1157.1, Harbors and Navigation Code.
Pollution Control Financing Authority, financial data submitted to, subdivision (o), Section 6254.
Postmortem or autopsy photos, Section 129, Code of Civil Procedure.

SEC. 4.

 Section 19993 of the Government Code is amended to read:

19993.
 (a) The department may establish for officers and employees a deferred compensation plan. tax-advantaged retirement savings plan in accordance with Section 457(b) of the Internal Revenue Code. Participation in such the plan shall be by written agreement between such the officers and employees and the state which shall provide for deferral deduction of a portion of such those officers’ or employees’ wages. Officers and employees may authorize deductions to be made from their wages for the purpose of participating in such deferred compensation the tax-advantaged retirement savings plan.
(b) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.

SEC. 5.

 Section 19993.05 of the Government Code is amended to read:

19993.05.
 (a) This section shall be known and may be cited as the Freedom of Financial Choice Act.
(b) The department shall permit provide officers and employees participating in a tax-deferred tax-advantaged retirement savings plan established by the department under this chapter or Chapter 9 (commencing with Section 19999.5) to invest in a range of investment options including, but not limited to, stocks and bonds listed with and traded on the New York Stock Exchange, the American Stock Exchange, or the National Market System sponsored by the National Association of Securities Dealers (NASD) and the National Association of Securities Dealers Automated Quotations system (NASDAQ), or any successor association, annuities, and shares or units of open-ended registered investment companies. However, the department may limit the number of banks, mutual fund companies, investment brokers, life insurance companies, and other financial institutions offering investments under the plans as with a broad range of investment options. The department shall have the exclusive authority to determine the investment products provided in the core portfolio under tax-advantaged savings plans and shall make these selections in a prudent manner for the exclusive benefit of plan participants, retirees, and their beneficiaries. The department shall ensure that the cost of these investment options are reasonable under the prevailing facts and circumstances and that any investment alternatives determined appropriate for the core portfolio. The investment options available under the tax-advantaged savings plans shall also be limited to the extent necessary to ensure the continued qualification of the plan plans under the Internal Revenue Code Code, applicable to state law, and the cost-efficient and timely administration of the plans. In addition to the core options, the department shall offer a brokerage option.
(c) No fiduciary of a plan established by the department under this chapter or Chapter 9 (commencing with Section 19999.5) shall be liable for any loss that results from any individual investment choice made by a participant of a plan, except that this subdivision shall not extend to any malfeasance or misfeasance by any fiduciary of a plan established by the department under this chapter or Chapter 9 (commencing with Section 19999.5).
(d) Notwithstanding any other provision of law, the Deferred Compensation Plan Fund (0915) is exempt from the application of Article 2 (commencing with Section 11270) of Chapter 3 of Part 3 of Division 3.

SEC. 4.SEC. 6.

 Section 19995.4 of the Government Code is amended to read:

19995.4.
 (a) The department shall devise plans for, and cooperate with appointing powers in the conduct of, supervisor, manager, and career executive assignment employee training programs so that the quality of leadership services rendered by persons in those positions may be continually improved and succession planning supported.
(b) Upon the initial appointment of an employee to a designated supervisory position, the employee shall be provided a minimum of 80 hours of training, as prescribed by the department. The training shall address the role of the supervisor, techniques of supervision, planning, organizing, staffing, performance standards, performance appraisals, discipline, labor relations, and all employment laws, including, but not limited to, equal employment opportunity and affirmative action for persons with disabilities. Every supervisor shall have access to a copy of each bargaining agreement covering the employees he or she supervises.
(c) The required hours of supervisory training shall be successfully completed within six months of the employee’s initial appointment, but no later than the term of the probationary period. Upon completion of the initial appointment training, supervisory employees shall be provided biennially a minimum of 20 hours of leadership training and development, as prescribed by the department.
(d) Upon the initial appointment of an employee to a management position, the employee shall be provided a minimum of 40 hours of leadership training and development, as prescribed by the department, within 12 months of appointment. Thereafter, the employee shall be provided biennially a minimum of 20 hours of leadership training and development, as prescribed by the department.
(e) Upon the initial appointment of an employee to a career executive assignment position, the employee shall be provided a minimum of 20 hours of leadership training and development as prescribed by the department within 12 months of appointment. Thereafter, the employee shall be provided biennially a minimum of 20 hours of leadership training and development as prescribed by the department.

SEC. 7.

 Section 19999.5 of the Government Code is amended to read:

19999.5.
 In order to encourage savings and increase the savings options available to state officers and employees, the department may establish and administer tax-deferred tax-advantaged retirement savings plans in accordance with Section 401(a) of the Internal Revenue Code, including cash or deferral arrangements under Section 401(k) of the Internal Revenue Code. The department may develop specifications and contract for the administration of the plans to the extent necessary to carry out this section. These plans shall be provided in addition to the retirement and deferred compensation programs savings plans currently authorized, shall offer the maximum flexibility available under current federal law, and may provide for employer as well as employee contributions.

SEC. 5.SEC. 8.

 Section 20677.5 of the Government Code is amended to read:

20677.5.
 (a) Notwithstanding any provisions of Section 20677.4 to the contrary, effective with the beginning of the pay period following the operative date of the amendments to this section made by Senate Bill 151 of the 2011–12 Regular Session, the normal rate of contribution for state miscellaneous or state industrial members who are subject to Section 21353 or 21354.1, and who are represented by State Bargaining Unit 2, shall be:
(1) Ten percent of the compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system.
(2) Nine percent of compensation in excess of five hundred thirteen dollars ($513) per month paid to that member whose service has been included in the federal system.
(b) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless and until approved by the Legislature in the annual Budget Act.
(c) The Director of the Department of Human Resources may establish the normal rate of contribution for a state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service. The normal rate of contribution shall be the same for all members identified in this subdivision. The contribution rate shall be effective the beginning of the pay period indicated by the Director of the Department of Human Resources but shall be no earlier than the beginning of the pay period following the date the board receives notification.

SEC. 6.SEC. 9.

 Section 20677.6 of the Government Code is amended to read:

20677.6.
 (a) Notwithstanding Section 20677.4, effective with the beginning of the pay period following the effective date of this section, the normal rate of contribution for state miscellaneous or state industrial members who are represented by State Bargaining Units 12, 16, 18, and 19, shall be:
(1) Eleven percent of the compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system.
(2) Ten percent of compensation in excess of five hundred thirteen dollars ($513) per month paid to that member whose service has been included in the federal system.
(b) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless and until approved by the Legislature in the annual Budget Act.
(c) Consistent with the normal rate of contribution for all members identified in this subdivision, the Director of the Department of Human Resources may exercise his or her discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.
(d) Notwithstanding Section 20677.4, effective with the beginning of the pay period following the operative date of the amendments to this section made by Senate Bill 151 of the 2011–12 Regular Session, this section shall apply to state miscellaneous or state industrial members who are represented by State Bargaining Unit 13.

SEC. 7.SEC. 10.

 Section 20677.7 of the Government Code is amended to read:

20677.7.
 (a) Notwithstanding Section 20677.4, effective with the beginning of the September 2010 pay period, the normal rate of contribution for state miscellaneous or state industrial members who are represented by State Bargaining Unit 8, shall be:
(1) Eleven percent of the compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system.
(2) Ten percent of compensation in excess of five hundred thirteen dollars ($513) per month paid to a member whose service has been included in the federal system.
(b) Notwithstanding Section 20677.4, effective with the beginning of the September 2010 pay period, the normal rate of contribution for state miscellaneous or state industrial members who are represented by State Bargaining Unit 5 shall be:
(1) Eight percent of the compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system.
(2) Seven percent of compensation in excess of five hundred thirteen dollars ($513) per month paid to a member whose service has been included in the federal system.
(c) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless and until approved by the Legislature in the annual Budget Act.
(d) Consistent with the normal rate of contribution for all members identified in this subdivision, the Director of the Department of Human Resources may exercise his or her discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.

SEC. 8.SEC. 11.

 Section 20677.71 of the Government Code is amended to read:

20677.71.
 (a) Notwithstanding Section 20677.4, effective with the beginning of the pay period following ratification by the affected union membership and enactment of this section, the normal rate of contribution for state miscellaneous or state industrial members who are represented by State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 shall be:
(1) Nine percent of the compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system.
(2) Eight percent of compensation in excess of five hundred thirteen dollars ($513) per month paid to that member whose service has been included in the federal system.
(b) Notwithstanding Section 20677.4, effective with the beginning of the pay period following the operative date of the amendments to this section made by Senate Bill 151 of the 2011–12 Regular Session, this section shall apply to state miscellaneous or state industrial members who are represented by State Bargaining Unit 6, 7, 9, or 10.
(c) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless and until approved by the Legislature in the annual Budget Act.
(d) Consistent with the normal rate of contribution for all members identified in this subdivision, the Director of the Department of Human Resources may exercise his or her discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.

SEC. 9.SEC. 12.

 Section 20677.8 of the Government Code is amended to read:

20677.8.
 (a) Notwithstanding Sections 20681 and 20694, effective with the beginning of the September 2010 pay period, the normal rate of contribution for patrol members shall be 10 percent of the compensation in excess of eight hundred sixty-three dollars ($863) per month paid to those members.
(b) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(c) Consistent with the normal rate of contribution for all members identified in this subdivision, the Director of the Department of Human Resources may exercise his or her discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.

SEC. 10.SEC. 13.

 Section 20677.9 of the Government Code is amended to read:

20677.9.
 (a) Notwithstanding Section 20683, effective with the beginning of the pay period following the effective date of this section, the normal rate of contribution for state safety members who are represented by State Bargaining Units 12, 16, 18, and 19 shall be 11 percent of compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system or in excess of five hundred thirteen dollars ($513) for one whose service is included in the federal system.
(b) Notwithstanding Section 20683, effective with the beginning of the pay period following the operative date of the amendments to this section made by Senate Bill 151 of the 2011–12 Regular Session, this section shall apply to state safety members who are represented by State Bargaining Unit 13.
(c) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if those provisions of the memorandum of understanding require the expenditure of funds, those provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(d) Consistent with the normal rate of contribution for all members identified in this subdivision, the Director of the Department of Human Resources may exercise his or her discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.

SEC. 11.SEC. 14.

 Section 20677.91 of the Government Code is amended to read:

20677.91.
 (a) Notwithstanding Section 20683, effective with the beginning of the pay period following ratification by the affected union membership and enactment of this section, the normal rate of contribution for state safety members who are represented by State Bargaining Unit 1, 3, 4, 11, 14, 15, 17, 20, or 21 shall be 9 percent of compensation in excess of three hundred seventeen dollars ($317) per month paid to a member whose service is not included in the federal system or in excess of five hundred thirteen dollars ($513) for one whose service is included in the federal system.
(b) Notwithstanding Section 20683, effective with the beginning of the pay period following the operative date of the amendments to this section made by Senate Bill 151 of the 2011–12 Regular Session, this section shall apply to state safety members who are represented by State Bargaining Unit 7, 9, or 10.
(c) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if those provisions of the memorandum of understanding require the expenditure of funds, those provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(d) Consistent with the normal rate of contribution for all members identified in this subdivision, the Director of the Department of Human Resources may exercise his or her discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.

SEC. 12.SEC. 15.

 Section 20677.95 of the Government Code is amended to read:

20677.95.
 (a) Notwithstanding Section 20687, effective with the beginning of the September 2010 pay period, the normal rate of contribution for state peace officer/firefighter members who are represented by State Bargaining Unit 8 shall be 10 percent of the compensation in excess of two hundred thirty-eight dollars ($238) per month paid to those members.
(b) Notwithstanding Section 20687, effective with the beginning of the pay period following the operative date of the amendments to this section made by Senate Bill 151 of the 2011–12 Regular Session, the normal rate of contribution for state peace officer/firefighter members who are represented by State Bargaining Unit 6 shall be 11 percent of the compensation in excess of eight hundred sixty-three dollars ($863) per month paid to those members.
(c) Notwithstanding Section 20687, effective with the beginning of the pay period following the operative date of the amendments to this section made by Senate Bill 151 of the 2011–12 Regular Session, the normal rate of contribution for state peace officer/firefighter members who are represented by State Bargaining Unit 7 shall be 10 percent of the compensation in excess of five hundred thirteen dollars ($513) per month paid to those members.
(d) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5 or pursuant to Chapter 12 (commencing with Section 3560) of Division 4 of Title 1, the memorandum of understanding shall be controlling without further legislative action, except that if those provisions of a memorandum of understanding require the expenditure of funds, those provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(e) Consistent with the normal rate of contribution for all members identified in this subdivision, the Director of the Department of Human Resources may exercise his or her discretion to establish the normal rate of contribution for a related state employee who is excepted from the definition of “state employee” in subdivision (c) of Section 3513, and an officer or employee of the executive branch of state government who is not a member of the civil service.

SEC. 13.SEC. 16.

 Section 20681 of the Government Code is amended to read:

20681.
 (a) The normal rate of contribution for patrol members shall be 8 percent of the compensation in excess of eight hundred sixty-three dollars ($863) per month paid to those members. The Legislature reserves the right to increase the rate of contribution of patrol members as it may find appropriate from time to time.
(b) If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 3517.5, the memorandum of understanding shall be controlling without further legislative action, except that if the provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(c) The provisions of a memorandum of understanding pertaining to subdivision (a) may be applied to patrol members who either are excluded from the definition of state employees in subdivision (c) of Section 3513, or are nonelected officers or employees of the executive branch of government and are not members of the civil service, provided the Department of Human Resources has approved this inclusion and has notified the board.

SEC. 14.SEC. 17.

 Section 22877 of the Government Code is amended to read:

22877.
 (a) As used in this section, the following definitions shall apply:
(1) “Coinsurance” means the provision of a health benefit plan design that requires the health benefit plan and state employee to share the cost of hospital or medical expenses at a specified ratio.
(2) “Deductible” means the annual amount of out-of-pocket medical expenses that a state employee must pay before the health benefit plan begins paying for expenses.
(3) “Program” means the Rural Health Care Equity Program.
(4) “Rural area” means an area in which there is no board-approved health maintenance organization plan available for enrollment by state employees residing in the area.
(b) (1) The Rural Health Care Equity Program is hereby established for the purpose of funding the subsidization and reimbursement of premium costs, deductibles, coinsurance, and other out-of-pocket health care expenses paid by eligible employees living in rural areas that would otherwise be covered if the state employee was enrolled in a board-approved health maintenance organization plan. The program shall be administered by the Department of Human Resources or by a third-party administrator approved by the Department of Human Resources in a manner consistent with all applicable state and federal laws. The board shall determine the rural area for each subsequent fiscal year, at the same time that premiums for health maintenance organization plans are approved.
(2) Separate accounts shall be maintained within the program for all of the following:
(A) Employees, as defined in subdivision (c) of Section 3513.
(B) Excluded employees, as defined in subdivision (b) of Section 3527.
(c) Moneys in the program shall be allocated to the respective accounts as follows:
(1) The contribution provided by the state with respect to each employee, as defined in subdivision (c) of Section 3513, who lives in a rural area and is otherwise eligible, shall be an amount determined through the collective bargaining process.
(2) The contribution provided by the state with respect to each excluded employee, as defined in subdivision (b) of Section 3527, who lives in a rural area and is otherwise eligible, shall be an amount equal to, but not to exceed, the amount contributed pursuant to paragraph (1).
(3) If an eligible employee enters or leaves service with the state during a fiscal year, contributions for the employee shall be made on a pro rata basis. A similar computation shall be used for anyone entering or leaving the bargaining unit, including a person who enters State Bargaining Unit 5 by promotion during a fiscal year.
(d) Each fund of the State Treasury, other than the General Fund, shall reimburse the General Fund for any sums allocated pursuant to subdivision (c) for employees whose compensation is paid from that fund. That reimbursement shall be accomplished using the following methodology:
(1) On or before December 1 of each year, the Department of Human Resources shall provide a list of active state employees who participated in the program during the previous fiscal year to each employing department.
(2) On or before January 15 of each year, each department that employed an active state employee identified by the Department of Human Resources as a participant in the program shall provide the Department of Human Resources with a list of the funds used to pay each employee’s salary, along with the proportion of each employee’s salary attributable to each fund.
(3) Using the information provided by the employing departments, the Department of Human Resources shall compile a list of program payments attributable to each fund. On or before February 15 of each year, the Department of Human Resources shall transmit this list to the Department of Finance.
(4) The Department of Finance shall certify to the Controller the amount to be transferred from the unencumbered balance of each fund to the General Fund.
(5) The Controller shall transfer to the General Fund from the unencumbered balance of each impacted fund the amount specified by the Department of Finance.
(6) To ensure the equitable allocation of costs, the Director of the Department of Human Resources or the Director of Finance may require an audit of departmental reports.
(e) Notwithstanding any other law and subject to the availability of funds, moneys within the program shall be disbursed for the benefit of eligible employees. The disbursements shall subsidize the preferred provider plan premiums for the employee by an amount equal to the difference between the weighted average of board-approved health maintenance organization premiums and the lowest board-approved preferred provider plan premium available under this part, and reimburse the employee for a portion or all of his or her incurred deductible, coinsurance, and other out-of-pocket health-related expenses that would otherwise be covered if the employee and his or her family members were enrolled in a board-approved health maintenance organization plan. These subsidies and reimbursements shall be provided as determined by the Department of Human Resources, which may include, but is not limited to, a supplemental insurance plan, a medical reimbursement account, or a medical spending account plan.
(f) Subject to subdivision (h), moneys remaining in an account of the program at the end of any fiscal year shall remain in the account for use in subsequent fiscal years, until the account is terminated. Moneys remaining in a program account upon termination, after payment of all expenses and claims incurred prior to the date of termination, shall be deposited in the General Fund.
(g) The Legislature finds and declares that the program shall be operated for the exclusive benefit of employees of State Bargaining Unit 5.
(h) This section shall be operative only to the extent that funding is provided in the annual Budget Act or another statute and solely for the benefit of employees of State Bargaining Unit 5.
(i) This section shall cease to be operative on July 3, 2010, or on an earlier date if the board makes a formal determination that health maintenance organization plans are no longer the most cost-effective health benefit plans offered by the board.
(j) Notwithstanding any other law, on and after July 1, 2009, the benefits of the Rural Health Care Equity Program shall be available only to employees in State Bargaining Unit 5, and shall not be available to any other employees. Pursuant to subdivision (f), any moneys that remain in the accounts of the program on July 1, 2009, other than moneys attributable to employees in State Bargaining Unit 5 on that date, shall be deposited in the General Fund. Benefits of the Rural Health Care Equity Program shall cease to be available to employees in State Bargaining Unit 5, on and after July 3, 2010, and any moneys remaining in the accounts of the program shall be deposited in the General Fund.

SEC. 15.SEC. 18.

 Section 12693.63 of the Insurance Code is amended to read:

12693.63.
 (a) The board shall determine the dental benefits to be provided to subscribers by the program. These benefits shall be consistent with those provided to state employees through the Department of Personnel Administration, the predecessor to the Department of Human Resources, on July 1, 1997, except that orthodontia shall only be a benefit when it is determined to be medically necessary.
(b) The board shall establish the required subscriber copayment levels for dental benefits. The copayment levels established by the board shall, to the extent possible, reflect the copayment levels provided to state employees through the Department of Personnel Administration, the predecessor to the Department of Human Resources, on July 1, 1997, except that no copayment shall be charged for medically necessary orthodontia services. There shall be no subscriber copayments for preventive and diagnostic services, including, but not limited to, examinations, teeth cleaning, X-rays, topical fluoride treatments, space maintainers, and sealants.
(c) No deductible shall be charged to subscribers for dental benefits.
(d) (1) The board may establish a cap on the amount of dental coverage provided to a subscriber in a given benefit year effective on and after the first day of the fifth month following enactment of the 2008–09 Budget Act. This dental coverage cap shall not be lower than one thousand five hundred dollars ($1,500) per subscriber per benefit year.
(2) The board may adopt, and may only one-time readopt, regulations to implement paragraph (1). The adoption and one-time readoption of a regulation authorized by this paragraph is deemed to address an emergency, for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the board is hereby exempted for this purpose from the requirements of subdivision (b) of Section 11346.1 of the Government Code.

SEC. 19.

 Section 201 of the Labor Code is amended to read:

201.
 (a) If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately. An employer who lays off a group of employees by reason of the termination of seasonal employment in the curing, canning, or drying of any variety of perishable fruit, fish or vegetables, shall be deemed to have made immediate payment when the wages of said employees are paid within a reasonable time as necessary for computation and payment thereof; provided, however, that the reasonable time shall not exceed 72 hours, and further provided that payment shall be made by mail to any employee who so requests and designates a mailing address therefor.
(b) Notwithstanding any other provision of law, the state employer shall be deemed to have made an immediate payment of wages under this section for any unused or accumulated vacation, annual leave, holiday leave, or time off to which the employee is entitled by reason of previous overtime work where compensating time off was given by the appointing power, provided, at least no later than five workdays prior to after the effective date of his or her final day of employment, the employee submits a written election to his or her appointing power authorizing the state employer to tender payment for any or all leave to be contributed on a pretax basis or a Roth basis, in the year of discharge, to the employee’s account in a state-sponsored supplemental retirement plan as described under Sections 401(k), 403(b), or 457 of the Internal Revenue Code provided the plan allows those contributions. The contribution shall be tendered for payment to deposited into the employee’s 401(k), 403(b), or 457 plan account no later than 45 days two and one-half months after the employee’s discharge from employment. Nothing in this This section is not intended to authorize contributions in excess of the annual deferral limits imposed under federal and state law or the provisions of the supplemental retirement plan itself.
(c) Notwithstanding any other provision of law, when the state employer discharges an employee, the employee may, at least no later than five workdays prior to after the effective date of his or her final day of employment, submit a written election to his or her appointing power authorizing the state employer to defer into the next calendar year payment of any or all of the employee’s unused or accumulated vacation, annual leave, holiday leave, or time off to which the employee is entitled by reason of previous overtime work where compensating time off was given by the appointing power. To qualify for the deferral of payment under this section, only that portion of leave that extends past the November pay period for state employees shall be deferred into the next calendar year. An employee electing to defer payment into the next calendar year under this section may do any of the following:
(1) Contribute the entire payment to his or her 401(k), 403(b), or 457 plan account.
(A) This election is only available if the employee is terminated from service on or after November 1 of the calendar year of his or her termination.
(B) The contributions shall be deposited into an applicable plan account no later than two and one-half months after the employee’s last day of employment.
(2) Contribute any portion of the deferred payment to his or her 401(k), 403(b), or 457 plan account and receive cash payment for the remaining noncontributed unused leave.
(A) An employee is eligible to defer a portion of the deferred payment into a 401(k), 403(b), or 457 plan account only if the employee’s date of termination from service was on or after November 1 of the calendar year of his or her termination.
(B) For the portion deferred into a 401(k), 403(b), or 457 plan account, the contributions shall be deposited into an applicable plan account no later than two and one-half months after the employee’s last day of employment.
(C) For the portion received as a cash payment:
(i) Only that portion of leave that extends past the November pay period for the employee shall be deferred into the next calendar year.
(ii) Payments shall be tendered under this paragraph no later than February 1 in the year following the employee’s last day of employment.
(3) Receive a lump-sum payment for all of the deferred unused leave as described above.
(A) Only that portion of leave that extends past the November pay period for the employee shall be deferred into the next calendar year.

Payments

(B) Payments shall be tendered under this section paragraph no later than February 1 in the year following the employee’s last day of employment. Nothing in this section
(d) This section is not intended to authorize contributions in excess of the annual deferral limits imposed under federal and state law or the provisions of the supplemental retirement plan itself.

SEC. 20.

 Section 202 of the Labor Code is amended to read:

202.
 (a) If an employee not having a written contract for a definite period quits his or her employment, his or her wages shall become due and payable not later than 72 hours thereafter, unless the employee has given 72 hours previous notice of his or her intention to quit, in which case the employee is entitled to his or her wages at the time of quitting. Notwithstanding any other provision of law, an employee who quits without providing a 72-hour notice shall be entitled to receive payment by mail if he or she so requests and designates a mailing address. The date of the mailing shall constitute the date of payment for purposes of the requirement to provide payment within 72 hours of the notice of quitting.
(b) Notwithstanding any other provision of law, the state employer shall be deemed to have made an immediate payment of wages under this section for any unused or accumulated vacation, annual leave, holiday leave, sick leave to which the employee is otherwise entitled due to a disability retirement, or time off to which the employee is entitled by reason of previous overtime work where compensating time off was given by the appointing power, provided at least no later than five workdays prior to after the effective date of his or her final day of employment, the employee submits a written election to his or her appointing power authorizing the state employer to tender payment for any or all leave to be contributed on a pretax basis or a Roth basis, in the year of separation, to the employee’s account in a state-sponsored supplemental retirement plan as described under Sections 401(k), 403(b), or 457 of the Internal Revenue Code provided the plan allows those contributions. The contribution shall be tendered for payment to deposited into the employee’s 401(k), 403(b), or 457 plan account no later than 45 days two and one-half months after the employee’s last final day of employment. Nothing in this This section is not intended to authorize contributions in excess of the annual deferral limits imposed under federal and state law or the provisions of the supplemental retirement plan itself.
(c) Notwithstanding any other provision of law, when a state employee quits, retires, or disability retires from his or her employment with the state, the employee may, at least no later than five workdays prior to after the effective date of his or her final day of employment, submit a written election to his or her appointing power authorizing the state employer to defer into the next calendar year payment of any or all of the employee’s unused or accumulated vacation, annual leave, holiday leave, sick leave to which the employee is otherwise entitled due to a disability, retirement, or time off to which the employee is entitled by reason of previous overtime work where compensating time off was given by the appointing power. To qualify for the deferral of payment under this section, only that portion of leave that extends past the November pay period for state employees shall be deferred into the next calendar year under this section may do The employee may elect any of the following:
(1) Contribute the entire payment to his or her 401(k), 403(b), or 457 plan account.
(A) This election is only available if the employee’s last day of employment is on or after November 1 of the calendar year of his or her last day of employment.
(B) The contributions shall be deposited into the applicable plan account no later than two and one-half months after the employee’s last day of employment.
(2) Contribute any portion of the deferred payment to his or her 401(k), 403(b), or 457 plan account and receive cash payment for the remaining noncontributed unused leave.
(A) An employee is eligible to defer a portion of the deferred payment into a 401(k), 403(b), or 457 plan account only if the employee’s last date of employment was on or after November 1 of the calendar year of his or her of his or her last day of employment.
(B) For the portion deferred into a 401(k), 403(b), or 457 plan account, the contributions shall be deposited into an applicable plan account no later than two and one-half months after the employee’s last day of employment.
(C) For the portion received as a cash payment:
(i) Only that portion of leave that extends past the November pay period for the employee shall be deferred into the next calendar year.
(ii) Payments shall be tendered under this paragraph no later than February 1 in the year following the employee’s last day of employment.
(3) Receive a lump-sum payment for all of the deferred unused leave as described above.
(A) Only that portion of leave that extends past the November pay period for the employee shall be deferred into the next calendar year.

Payments

(B) Payments shall be tendered under this section no later than February 1 in the year following the employee’s last day of employment. Nothing in this
This section is not intended to authorize contributions in excess of the annual deferral limits imposed under federal and state law or the provisions of the supplemental retirement plan itself.

SEC. 16.SEC. 21.

 Section 13600 of the Penal Code is amended to read:

13600.
 (a) (1) The Legislature finds and declares that peace officers of the state correctional system, including youth and adult correctional facilities, fulfill responsibilities that require creation and application of sound selection criteria for applicants and standards for their training prior to assuming their duties. For the purposes of this section, correctional peace officers are peace officers as defined in Section 830.5 and employed or designated by the Department of Corrections and Rehabilitation.
(2) The Legislature further finds that sound applicant selection and training are essential to public safety and in carrying out the missions of the Department of Corrections and Rehabilitation in the custody and care of the state’s offender population. The greater degree of professionalism which will result from sound screening criteria and a significant training curriculum will greatly aid the department in maintaining smooth, efficient, and safe operations and effective programs.
(b) There is within the Department of Corrections and Rehabilitation a Commission on Correctional Peace Officer Standards and Training, hereafter referred to, for purposes of this title, as the CPOST.
(c) (1) The executive board of the CPOST shall be composed of six voting members.
(A) Three members from, appointed by, and representing the management of, the Department of Corrections and Rehabilitation, one of whom shall represent the Division of Juvenile Justice or the Division of Rehabilitative Programs.
(B) Three members from, and appointed by the Governor upon recommendation by, and representing the membership of, the California Correctional Peace Officers’ Association. Two members shall be rank-and-file persons from State Bargaining Unit 6 and one member shall be supervisory.
(C) Appointments shall be for four years.
(D) Promotion of a member of the CPOST shall invalidate the appointment of that member and shall require the recommendation and appointment of a new member if the member was appointed from rank and file or from supervisory personnel and promoted out of his or her respective rank and file or supervisory position during his or her term on the CPOST.
(2) Each appointing authority shall appoint one alternate member for each regular member who it appoints pursuant to paragraph (1). Every alternate member shall possess the same qualifications as a regular member and shall substitute for, and vote in place of, a regular member who was appointed by the same appointing authority whenever a regular member is absent.
(d) The rules for voting on the executive board of the CPOST shall be as follows:
(1) Decisions shall be made by a majority vote.
(2) Proxy voting shall not be permitted.
(3) Tentative approval of a decision by the CPOST may be taken by a telephone vote. The CPOST members’ decision shall be documented in writing and submitted to the CPOST for confirmation at the next scheduled CPOST meeting so as to become a part of the permanent record.
(e) The executive board of the CPOST shall adopt rules as it deems necessary for efficient operations, including, but not limited to, the appointment of advisory members for forming whatever committees it deems necessary to conduct its business. These rules shall conform to the State Personnel Board’s rules and regulations, the Department of Human Resources’ rules and regulations, and the provisions of the State Bargaining Unit 6 memorandum of understanding.
(f) The executive board shall seek advice from national experts, including university and college institutions and correctional associations, on issues pertaining to adult corrections, juvenile justice, and the training of the Department of Corrections and Rehabilitation staff that are relevant to its mission. To this end, the executive board shall seek information from experts with the most specific knowledge concerning the subject matter.
(g) This section shall be operative on July 1, 2015.

SEC. 17.SEC. 22.

 Section 14021.31 of the Welfare and Institutions Code is amended to read:

14021.31.
 The department, in collaboration with the State Department of Alcohol and Drug Programs, shall develop an administrative and programmatic transition plan to guide the transfer of the Drug Medi-Cal program to the department effective July 1, 2012.
(a) Commencing no later than July 15, 2011, the department, together with the State Department of Alcohol and Drug Programs, shall convene stakeholders to receive input from consumers, family members, providers, counties, and representatives of the Legislature concerning the transfer of the administration of Drug Medi-Cal functions currently performed by the State Department of Alcohol and Drug Programs to the department. This consultation shall inform the creation of an administrative and programmatic transition plan that shall include, but is not limited to, the following components:
(1) Plans for how to review monthly billing from counties to monitor and prevent any disruptions of service to Drug Medi-Cal beneficiaries during and immediately after the transition, and a description of how the department intends to approach the longer-term development of measures for access and quality of service.
(2) A detailed description of the Drug Medi-Cal administrative functions currently performed by the State Department of Alcohol and Drug Programs.
(3) Explanations of the operational steps, timelines, and key milestones for determining when and how each of these functions will be transferred. These explanations shall also be developed for the transition of position and staff serving the Drug Medi-Cal program and how these will relate to and align with positions for the Medi-Cal program at the department. The department shall consult with the Department of Human Resources in developing this aspect of the transition plan.
(4) A list of any planned or proposed changes or efficiencies in how the functions will be performed, including the anticipated fiscal and programmatic impacts of the changes.
(5) A detailed organization chart that reflects the planned staffing at the department, taking into account the requirements of subparagraphs (A) to (C), inclusive, and includes focused, high-level leadership for behavioral health issues.
(6) A description of how stakeholders were included in the initial planning process to formulate the transition plan, and a description of how their feedback will be taken into consideration after transition activities are underway.
(b) The department, together with the State Department of Alcohol and Drug Programs, shall convene and consult with stakeholders at least once following production of a draft of the transition plan and before submission of that plan to the Legislature. Continued consultation with stakeholders shall occur in accordance with the requirement in subparagraph (F) of paragraph (1).