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SB-1501 Public employees: state employees.(1997-1998)



Current Version: 07/03/98 - Chaptered

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SB1501:v96#DOCUMENT

Senate Bill No. 1501
CHAPTER 91

An act to add Section 1094.7 to the Code of Civil Procedure, to amend Sections 20677, 20963, 21071, and 21423 of, and to add Sections 3517.65, 18523.3, 18670.2, 18717.2, 18903.2, 19056.6, 19141.3, 19142.2, 19170.3, 19173.3, 19175.6, 19570.3, 19572.3, 19574.6, 19576.4, 19582.2, 19582.3, 19582.7, 19608, 19702.7, 19786.2, 19798.2, 19815.42, 19816.22, 19816.23, 19817.8, 19818.9, 19818.15, 19826.3, 19828.2, 19829.2, 19832.2, 19834.2, 19835.2, 19836.3, 19841.2, 19853.3, 19854.2, 19994.6, 19994.7, 19994.8, 19997.40, 19997.43, 19997.44, 19997.45, 19997.46, 19997.47, 19997.48, 19997.51, 19997.53, 20037.5, 20068.2, 20405.3, 21073.5, 21073.6, 21353.5, 22013.82, 22754.2, 22754.11, and 22955.2 to, the Government Code, and to add Sections 10295.3 and 10344.3 to, the Public Contract Code, relating to state employees, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

[ Filed with Secretary of State  July 03, 1998. Approved by Governor  July 03, 1998. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 1501, Knight. Public employees: state employees.
(1)  Existing law provides that if any provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees requires the expenditure of funds or requires legislative action to permit its implementation, those provisions of the memorandum of understanding shall not become effective unless approved by the Legislature in the annual Budget Act.
This bill would approve provisions of a memorandum of understanding that require the expenditure of funds or legislative action to permit their implementation, entered into between the state employer and State Bargaining Unit 19, the American Federation of State, County, and Municipal Employees, and would provide that the provisions of any memorandum of understanding that require the expenditure of funds shall become effective even if the provisions of the memorandum of understanding are approved by the Legislature in legislation other than the annual Budget Act.
(2)  Existing law generally requires state agencies to adopt regulations pursuant to procedures set forth in the Administrative Procedure Act, but exempts the Department of Personnel Administration from that act with respect to regulations that apply to state employees in State Bargaining Unit 5 or 6.
This bill would also exempt the Department of Personnel Administration from the Administrative Procedure Act with respect to regulations that would apply to state employees in State Bargaining Unit 19. This bill would make applicable to state employees in State Bargaining Unit 19 the same alternative procedures for the department to use in the adoption, amendment, or repeal of a regulation that apply to state employees in State Bargaining Unit 5 or 6, including, among other things, a public comment period, preparation of specified information relative to the proposed rule action, public notice, a public hearing, and publication in the California Code of Regulations.
(3)  Existing law contains various provisions relating to civil service and employer-employee relations between the state and its employees, and contains comparable provisions that apply to state employees in State Bargaining Unit 5 or 6.
This bill would enact comparable provisions, with respect to appointments from a general reemployment list, reinstatements, probationary periods, layoffs, demotions, minor discipline, nonmerit statutory appeal hearings, performance appraisals, salary adjustments, holidays, the state safety category of membership in the Public Employees’ Retirement System, the use of broadband classifications, and demonstration projects on classification, compensation, and related projects that would apply to state employees in State Bargaining Unit 19.
(4)  Existing law, with specified exceptions, provides that all contracts entered into by any state agency for the hiring or purchase of a variety of goods and services, including equipment, supplies, textbooks, and repair or maintenance, are void unless approved by the Department of General Services. Existing law exempts contracts entered into by the Department of Personnel Administration for employee benefits, training services, or both, for state employees in State Bargaining Unit 6 from the requirement of Department of General Services approval.
This bill would exempt contracts entered into by the Department of Personnel Administration for employee benefits, occupational health and safety, training services, or any combination thereof, for state employees in State Bargaining Unit 19 from the requirement of Department of General Services approval. This bill would exempt these contracts from provisions of the Public Contract Code that relate to the state procurement of materials, supplies, equipment, and services.
(5)  Existing law, the Public Employees’ Retirement Law, establishes the Public Employees’ Retirement System, and sets forth the provisions for its administration and the delivery of benefits to its members. The state’s employer contributions to the Public Employees’ Retirement Fund are continuously appropriated from the General Fund and other funds in the State Treasury.
This bill would prescribe a service retirement formula pursuant to which a state miscellaneous or industrial member may elect to be subject, as an alternative to Second Tier retirement membership, and would adjust the rate of contribution for those state miscellaneous or industrial members who have elected to be subject to this formula, thereby making an appropriation. The bill would also include officers and employees whose classifications or positions are found to meet specified state safety criteria within the classification of state safety officers, provided that the Department of Personnel Administration has agreed to their inclusion. Because the bill would enlarge the class of persons eligible for state safety membership, it would make an appropriation by increasing the state’s contribution to the Public Employees’ Retirement Fund.
(6)  Existing law, the Public Employees’ Medical and Hospital Care Act, provides health benefits plan coverage to public employees and annuitants meeting the eligibility requirements prescribed by the Board of Administration of the Public Employees’ Retirement System.
This bill would revise the definition of “eligible employees” for the purposes of the act as it applies to state employees in State Bargaining Unit 19.
(7)  Existing law, the State Employees’ Dental Care Act, provides dental care plan coverage to public employees and annuitants meeting the eligibility requirements prescribed by the Board of Administration of the Public Employees’ Retirement System. Existing law provides that notwithstanding particular provisions of the act, state employees in State Bargaining Unit 6 may receive a percentage of the employer’s contribution payable for annuitants if the employees are credited with 10 years of state service.
This bill would also provide that state employees in State Bargaining Unit 19 may receive a percentage of the employer’s contribution payable for annuitants if the employees are credited with 10 or more years of state service. (8)  This bill would declare that it is to take effect immediately as an urgency statute.
Appropriation: YES  

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


SECTION 1.

 The Legislature finds and declares that the purpose of Section 2 is to adopt an agreement pursuant to Section 3517 of the Government Code entered into by the state employer and a recognized employee organization to make any necessary statutory changes in health, retirement, salary, or other benefits.

SEC. 2.

 The provisions of the memorandum of understanding, prepared pursuant to Section 3517.5 of the Government Code, and entered into by the state employer and State Bargaining Unit 19, the American Federation of State, County and Municipal Employees, and that requires the expenditure of funds or legislative action to permit their implementation, are hereby approved for the purposes of Section 3517.6 of the Government Code.

SEC. 3.

 Any provision in a memorandum of understanding approved by Section 2 that is scheduled to take effect on or after July 1, 1998, and that requires the expenditure of funds shall not take effect unless funds for these provisions are specifically appropriated by the Legislature. In the event that funds for these provisions are not specifically appropriated by the Legislature, the state employer and the affected employee organization shall meet and confer to renegotiate over the affected provisions.

SEC. 4.

 Notwithstanding Section 3517.6 of the Government Code, the provisions of any memorandum of understanding that requires the expenditure of funds shall become effective even if the provisions of the memorandum of understanding are approved by the Legislature in legislation other than the annual Budget Act.

SEC. 5.

 Section 1094.7 is added to the Code of Civil Procedure, to read:

1094.7.
 Effective June 1, 1998, notwithstanding Section 1094.5, this section shall apply only to state employees in State Bargaining Unit 19. For purposes of this section, the court is not authorized to review any minor disciplinary decisions reached pursuant to Section 19576.1 or 19576.4 of the Government Code.

SEC. 6.

 Section 3517.65 is added to the Government Code, to read:

3517.65.
 (a)  Notwithstanding Section 3517.6, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  In any case where the provisions of Section 70031 of the Education Code, or subdivision (i) of Section 3513, or Section 14876, 18714, 19080.5, 19100, 19143, 19261, 19576.1, 19582.3, 19175.5, 19818.16, 19819.1, 19820, 19822, 19824, 19826, 19827, 19828, 19829, 19830, 19831, 19832, 19833, 19834, 19835, 19836, 19837, 19838, 19839, 19840, 19841, 19842, 19843, 19844, 19845, 19846, 19847, 19848, 19849, 19849.1, 19849.4, 19850.1, 19850.2, 19850.3, 19850.4, 19850.5, 19850.6, 19851, 19853, 19854, 19856, 19856.1, 19858.1, 19858.2, 19859, 19860, 19861, 19862, 19862.1, 19863, 19863.1, 19864, 19866, 19869, 19870, 19871, 19871.1, 19872, 19873, 19874, 19875, 19876, 19877, 19877.1, 19878, 19879, 19880, 19880.1, 19881, 19882, 19883, 19884, 19885, 19887, 19887.1, 19887.2, 19888, 19990, 19991, 19991.1, 19991.2, 19991.3, 19991.4, 19991.5, 19991.6, 19991.7, 19992, 19992.1, 19992.2, 19992.3, 19992.4, 19993, 19994.1, 19994.2, 19994.3, 19994.4, 19995, 19995.1, 19995.2, 19995.3, 19996.1, 19996.2, 19998, 19998.1, 20750.11, 21400, 21402, 21404, 21405, 22825, or 22825.1 are in conflict with the provisions of a memorandum of understanding, the memorandum of understanding shall be controlling without further legislative action.
(c)  In any case where the provisions of Section 19997.2, 19997.9, 19997.10, 19997.12, or 19997.14 19997.43, 19997.48, 19997.51, 19997.53, are in conflict with the provisions of a memorandum of understanding, the terms of the memorandum of understanding shall be controlling unless the State Personnel Board finds those terms to be inconsistent with merit employment principles as provided for by Article VII of the California Constitution. Where this finding is made, the provisions of the Government Code shall prevail until those affected sections of the memorandum of understanding are renegotiated to resolve the inconsistency. If any provision of the memorandum of understanding requires the expenditure of funds, those provisions of the memorandum of understanding shall not become effective unless approved by the Legislature in the annual Budget Act. If any provision of the memorandum of understanding requires legislative action to permit its implementation by amendment of any section not cited above, those provisions of the memorandum of understanding shall not become effective unless approved by the Legislature.

SEC. 7.

 Section 18523.3 is added to the Government Code, to read:

18523.3.
 (a)  Notwithstanding Section 18523, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  “Class” means a group of positions sufficiently similar with respect to duties and responsibilities that the same title may reasonably and fairly be used to designate each position allocated to the class and that substantially the same tests of fitness may be used and that substantially the same minimum qualifications may be required and that the same schedule of compensation may be made to apply with equity.
(c)  The board may also establish “broadband” classes for which the same general title may be used to designate each position allocated to the class and which may include more than one level or more than one specialty area within the same general field or work. In addition to the minimum qualifications for each broadband class, other job-related qualifications may be required for particular positions within the class. When the board establishes a broadband class, these levels and specialty areas shall be described in the class specification, and the board shall specify any instances in which these levels and speciality areas are to be treated as separate classes for purposes of applying other provisions of law.

SEC. 8.

 Section 18670.2 is added to the Government Code, to read:

18670.2.
 Notwithstanding Section 18670, effective June 1, 1998, this section shall apply only to state employees in State Bargaining Unit 19. Any minor discipline, as defined by Section 19576.4, is not subject to either a board investigation or hearing.

SEC. 9.

 Section 18717.2 is added to the Government Code, to read:

18717.2.
 Section 18717 does not apply to state employees in State Bargaining Unit 19.

SEC. 10.

 Section 18903.2 is added to the Government Code, to read:

18903.2.
 (a)  Notwithstanding Section 18903, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  For each entry level class there shall be maintained a general reemployment list consisting of the names of all persons who have occupied positions with probationary or permanent status in the class and who have been legally laid off, demoted in lieu of layoff, or transferred in lieu of layoff.
(c)  Within one year from the date of his or her resignation in good standing, or his or her voluntary demotion, the name of an employee who had probationary or permanent status may be placed on the general reemployment list with the consent of the appointing power and the board. The general reemployment list may also contain the names of persons placed thereon by the board in accordance with other provisions of this part.

SEC. 11.

 Section 19056.6 is added to the Government Code, to read:

19056.6.
 Notwithstanding Section 19056.5, this section shall apply only to state employees in State Bargaining Unit 19. If the appointment is to be made from a general reemployment list, the name of the person with the highest standing on the list shall be certified to the appointing power.

SEC. 12.

 Section 19141.3 is added to the Government Code, to read:

19141.3.
 (a)  Notwithstanding Section 19141, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  This section applies only to a permanent employee, or an employee who previously had permanent status and who, since that permanent status, has had no break in the continuity of his or her state service due to a permanent separation. As used in this section, “former position” is defined as in Section 18522, or, if the appointing power to which reinstatement is to be made and the employee agree, a vacant position in any department, commission, or state agency for which he or she is qualified at substantially the same level.
(c)  Within the periods of time specified below, an employee who vacates a civil service position to accept an appointment to an exempt position shall be reinstated to his or her former position at the termination either by the employee or appointing power of the exempt appointment, provided he or she (1) accepted the appointment without a break in the continuity of state service, and (2) requests in writing reinstatement of the appointing power of his or her former position within 10 working days after the effective date of the termination.
(d)  The reinstatement may be requested by the employee only within the following periods of time:
(1)  At any time after the effective date of the exempt appointment if the employee was appointed under one of the following:
(A)  Subdivision (a), (b), (c), (d), (e), (f), (g), or (m) of Section 4 of Article VII of the California Constitution.
(B)  Section 2.1 of Article IX of the California Constitution.
(C)  Section 22 of Article XX of the California Constitution.
(D)  To an exempt position under the same appointing power as the former position even though a shorter period of time may be otherwise specified for that appointment.
(2)  Within six months after the effective date of the exempt appointment if appointed under subdivision (h), (i), (k), or ( l) of Section 4 of Article VII of the California Constitution.
(3)  (1)  Within four years after the effective date of an exempt appointment if appointed under any other authority.
(e)  An employee who vacates his or her civil service position to accept an assignment as a member, inmate, or patient helper under subdivision (j) of Section 4 of Article VII of the California Constitution shall not have a right to reinstatement.
(f)  An employee who is serving under an exempt appointment retains a right of reinstatement when he or she accepts an extension of that exempt appointment or accepts a new exempt appointment, provided the extension or new appointment is made within the specified reinstatement time limit and there is no break in the continuity of state service. The period for which that right is retained is for the period applicable to the extended or new exempt appointment as if that appointment had been made on the date of the initial exempt appointment.
(g)  When an employee exercises his or her right of reinstatement and returns to his or her former position, the service while under an exempt appointment shall be deemed to be time served in the former position for the purpose of determining his or her eligibility for merit salary increases.
(h)  If the termination of an exempt appointment is for a reason contained in Section 19997 and the employee does not have a right to reinstatement, he or she shall have his or her name placed on the departmental and general reemployment lists for the class of his or her former position.

SEC. 13.

 Section 19142.2 is added to the Government Code, to read:

19142.2.
 (a)  Notwithstanding Section 19142, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  Every person accepts and holds a position in the state civil service subject to mandatory reinstatement of another person.
(c)  Upon reinstatement of a person, any necessary separations are effected under Section 19997.43 governing layoff and demotion except that an employee who is not to be separated from state service need not receive advance notification as provided in Section 19997.53.

SEC. 14.

 Section 19170.3 is added to the Government Code, to read:

19170.3.
 (a)  Notwithstanding Section 19170, for state employees in State Bargaining Unit 19, the board shall establish for each class the length of the probationary period. The probationary period that shall be served upon appointment shall be not less than six months nor more than two years.
(b)  The board may provide by rule: (1) for increasing the length of an individual probationary period by adding thereto periods of time during which an employee, while serving as a probationer, is absent from his or her position; or (2) for requiring an additional period not to exceed the length of the original probationary period when a probationary employee returns after an extended period of absence and the remainder of the probationary period is insufficient to evaluate his or her current performance.

SEC. 15.

 Section 19173.3 is added to the Government Code, to read:

19173.3.
 (a)  Effective June 1, 1998, notwithstanding Section 19173, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  Any probationer may be rejected by the appointing power during the probationary period for reasons relating to the probationer’s qualifications, the good of the service, or failure to demonstrate merit, efficiency, and fitness.
(c)  A rejection during probationary period is effected by the service upon the probationer of a written notice of rejection that shall include: (1) an effective date for the rejection that shall not be later than the last day of the probationary period; and (2) a statement of the reasons for the rejection. Service of the notice shall be made prior to the effective date of the rejection. Notice of rejection shall be served prior to the conclusion of the prescribed probationary period. The probationary period may be extended when necessary to provide the full notice period required by board rule. Within 15 days after the effective date of the rejection, a copy thereof shall be filed with the board.

SEC. 16.

 Section 19175.6 is added to the Government Code, to read:

19175.6.
 (a)  Notwithstanding Section 19175, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  The board at the written request of a rejected probationer, filed within 15 calendar days of the effective date of rejection, shall only review allegations that the rejection was made for reasons of discrimination as defined for the purposes of subdivision (a) of Section 19702, fraud, or political patronage. If the board determines that the rejected probationer has stated a prima face case of discrimination, fraud, or political patronage, the board may investigate the case with or without a hearing and do any one of the following:
(1)  Affirm the action of the appointing power.
(2)  Modify the action of the appointing power.
(3)  Restore the name of the rejected probationer to the employment list for certification to any position within the class, provided that his or her name shall not be certified to the agency by which he or she was rejected, except with the concurrence of the appointing power thereof.
(4)  Restore the rejected probationer to the position from which he or she was rejected, but this shall be done only if the board determines that there is substantial evidence to support that the rejection was made for reasons of discrimination as defined for the purposes of subdivision (a) of Section 19702, fraud, or political patronage. At any such investigation or hearing the rejected probationer shall have the burden of proof; subject to rebuttal by him or her, it shall be presumed that the rejection was free from discrimination, fraud, and political patronage, and that the statement of reasons therefor in the notice of rejection is true.

SEC. 17.

 Section 19570.3 is added to the Government Code, to read:

19570.3.
 Notwithstanding Section 19570, this section shall apply only to state employees in State Bargaining Unit 19. As used in this article, “disciplinary action” means dismissal, demotion, suspension, or other disciplinary action. “Disciplinary action” does not include a written or oral reprimand taken against an employee. Reprimands may be considered for the purpose of progressive discipline. This article shall not apply to any disciplinary action affecting managerial employees subject to Article 2 (commencing with Section 19590), except as provided in Sections 19590.5, 19592, and 19592.2.

SEC. 18.

 Section 19572.3 is added to the Government Code, to read:

19572.3.
 (a)  Notwithstanding Section 19572, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  Disciplinary actions pursuant to Section 19576.4 shall be for just cause or one or more of the following causes for discipline:
(1)  Fraud in securing appointment.
(2)  Incompetency.
(3)  Inefficiency.
(4)  Inexcusable neglect of duty.
(5)  Insubordination.
(6)  Dishonesty.
(7)  Drunkenness on duty.
(8)  Intemperance.
(9)  Addiction to the use of controlled substances.
(10)  Inexcusable absence without leave.
(11)  Conviction of a felony or conviction of a misdemeanor involving moral turpitude. A plea or verdict of guilty, or a conviction following a plea of nolo contendere, to a charge of a felony of any offense involving moral turpitude is deemed to be a conviction within the meaning of this section.
(12)  Immorality.
(13)  Discourteous treatment of the public or other employees.
(14)  Improper political activity.
(15)  Willful disobedience.
(16)  Misuse of state property.
(17)  Violation of this part or board rule.
(18)  Violation of the prohibitions set forth in accordance with Section 19990.
(19)  Refusal to take and subscribe any oath or affirmation that is required by law in connection with the employment.
(20)  Other failure of good behavior either during or outside of duty hours that is of such a nature that it causes discredit to the appointing authority of the person’s employment.
(21)  Any negligence, recklessness, or intentional act that results in the death of a patient of a state hospital serving the mentally disabled or the developmentally disabled.
(22)  The use during duty hours, for training or target practice, of any material that is not authorized therefor by the appointing power.
(23)  Unlawful discrimination, including harassment, on the basis of race, religious creed, color, national origin, ancestry, disability, marital status, sex, or age, against the public or other employees while acting in the capacity of a state employee.
(24)  Unlawful retaliation against any other state officer or employee or member of the public who in good faith reports, discloses, divulges, or otherwise brings to the attention of, the Attorney General, or any other appropriate authority, any facts or information relative to actual or suspected violation of any law of this state or the United States occurring on the job or directly related thereto.
(c)  If 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 a memorandum of understanding require the expenditure of funds, the provision shall not become effective unless approved by the Legislature in the annual Budget Act.

SEC. 19.

 Section 19574.6 is added to the Government Code, to read:

19574.6.
 Notwithstanding Section 19574, effective June 1, 1998, this section shall apply only to state employees in State Bargaining Unit 19. This section shall not apply to minor discipline as defined by Section 19576.4.

SEC. 20.

 Section 19576.4 is added to the Government Code, to read:

19576.4.
 (a)  Notwithstanding Section 19576, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  Minor discipline is a suspension without pay for five days or less or up to a 5-percent reduction in pay for five months or less. Whenever an answer is filed by an employee who is subject to minor discipline, and the memorandum of understanding for state employees in State Bargaining Unit 19 has expired, the State Personnel Board shall follow the minor discipline appeal procedures contained in Article 15A, Section 15.13A, paragraphs 1 to 16, inclusive, of the expired memorandum of understanding for state employees in State Bargaining Unit 19 until a successor agreement is negotiated between Department of Personnel Administration and the exclusive representative. However, if an employee receives one of the cited actions in more than three instances in any 12-month period, he or she shall, upon each additional action within the same 12-month period, be afforded a hearing before the State Personnel Board if he or she files an answer to the action.
(c)  The State Personnel Board shall not have the authority as stated in subdivision (b) with regard to written or oral reprimands. Reprimands shall not be grievable or appealable by the receiving employee by any means. Rejections on probation shall not be grievable or appealable by the receiving employee by any means except as provided in Section 19175.1.
(d)  The appointing power shall not impose any discipline in a manner that is inconsistent with “salary basis test” against an employee employed in an executive, administrative, or professional capacity and whose duties exempt him or her from the wage and hour provisions of the federal Fair Labor Standards Act as set forth pursuant to Section 13(a)(1) of the Fair Labor Standards Act of 1938, as amended, (Title 29, Section 213(a)(1), United States Code) and in Part 54 of Title 29 of the Code of Federal Regulations, as defined and delimited on the effective date of this section, and as those provisions may be amended in the future by the Administrator of the Wage and Hour Division of the United States Department of Labor.
(e)  Disciplinary action taken pursuant to this section shall not be subject to the following provisions: 19180, 19574.1, 19574.2, 19575, 19575.5, 19579, 19580, 19581, 19581.5, 19582, 19583, and 19587, and State Personnel Board Rules 51.1 to 51.9, inclusive, 52, and 52.1 to 52.5, inclusive.
(f)  Notwithstanding any other law or rule, if the provisions of this section are in conflict with the provisions of the 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.
(g)  If the State Personnel Board establishes regulations to implement this section, the regulations shall be consistent with the expired memorandum of understanding for state employees in State Bargaining Unit 19 and the Ralph C. Dills Act (Part 10.3 (commencing with Section 3512) of Division 4 of Title 1).

SEC. 21.

 Section 19582.2 is added to the Government Code, to read:

19582.2.
 Section 19582 shall not apply to minor discipline, as defined in a memorandum of understanding or by Section 19576.4, for state employees in State Bargaining Unit 19.

SEC. 22.

 Section 19582.3 is added to the Government Code, to read:

19582.3.
 (a)  Notwithstanding Section 19582, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  The board’s review of decisions of minor discipline, as defined by a memorandum of understanding or by Section 19576.4, shall be limited to either adopting the penalty of the proposed decision or revoking the disciplinary action in its entirety.
(c)  The board’s review of decisions of discipline, including minor discipline, shall not impose any discipline against an employee that would jeopardize the employee’s status under the federal Fair Labor Standards Act, as set forth pursuant to Section 13(a)(1) of The Fair Labor Standards Act of 1938, as amended (Title 29, Section 213(a)(1), United States Code) and in Part 54 of Title 29 of the Code of Federal Regulations, as defined and delimited on the effective date of this section and as those provisions maybe amended in the future.
(d)  If 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 provision shall not become effective unless approved by the Legislature in the annual Budget Act.

SEC. 23.

 Section 19582.7 is added to the Government Code, to read:

19582.7.
 (a)  Effective June 1, 1998, notwithstanding Section 19582.5, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  The board may designate certain of its decisions as precedents. Precedential decisions shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3. The board may provide by rule for the reconsideration of a previously issued decision to determine whether or not it shall be designated as a precedent decision. All decisions designated as precedents shall be published in a manner determined by the board.
(c)  For the purpose of this section, a decision reached pursuant to Section 19576.4 is not subject to board precedential decision, and the board may not adopt that decision as a precedential decision.

SEC. 24.

 Section 19608 is added to the Government Code, to read:

19608.
 Any demonstration project implemented under this chapter shall not include the adoption or waiver of regulations or statutes that are administered or enforced by the Department of Personnel Administration without the express approval of the Department of Personnel Administration.

SEC. 25.

 Section 19702.7 is added to the Government Code, to read:

19702.7.
 (a)  Effective June 1, 1998, notwithstanding Section 19702, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  A person shall not be discriminated against under this part because of sex, race, religious creed, color, national origin, ancestry, marital status, physical disability, or mental disability. A person shall not be retaliated against because he or she has opposed any practice made an unlawful employment practice, or made a charge, testified, assisted, or participated in any manner in an investigation, proceeding, or hearing under this part. For purposes of this article, “discrimination” includes harassment. This subdivision is declaratory of existing law.
(c)  As used in this section, “physical disability” includes, but is not limited to, impairment of sight, hearing, or speech, or impairment of physical ability because of amputation or loss of function or coordination, or any other health impairment that requires special education or related services.
(d)  As used in this section, “mental disability” includes, but is not limited to, any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness, and specific learning disabilities.
(e)  Notwithstanding subdivisions (c) and (d), if the definition of disability used in the Americans with Disabilities Act of 1990 (Public Law 101-336) would result in broader protection of the civil rights of individuals with a mental disability or physical disability, as defined in subdivision (c) or (d), then that broader protection shall be deemed incorporated by reference into, and shall prevail over conflicting provisions of, the definitions in subdivisions (c) and (d). The definitions of subdivisions (c) and (d) shall not be deemed to refer to or include conditions excluded from the federal definition of “disability” pursuant to Section 511 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12211).
(f)  If the board finds that a person has engaged in discrimination under this part, and it appears that this practice consisted of acts described in Section 243.4, 261, 262, 286, 288, 288a, or 289 of the Penal Code, the board, with the consent of the complainant, shall provide the local district attorney’s office with a copy of its decision and order.
(g)  If the board finds that discrimination has occurred in violation of this part, the board shall issue and cause to be served on the appointing authority an order requiring the appointing authority to cause the discrimination to cease and desist and to take any action, including, but not limited to, hiring, reinstatement, or upgrading of employees, with or without backpay, adding additional seniority, and compensatory damages, which, in the judgment of the board, will effectuate the purposes of this part. Consistent with this authority, the board may establish rules governing the award of compensatory damages. The order shall include a requirement of reporting the manner of compliance.
(h)  Any person claiming discrimination within the state civil service may submit a complaint that shall be in writing and set forth the particulars of the alleged discrimination, the name of the appointing authority, the persons alleged to have committed the unlawful discrimination, and any other information that may be required by the board. The complaint shall be filed with the appointing authority or, in accordance with board rules, with the board itself.
(i)  Complaints shall be filed within one year of the alleged unlawful discrimination or the refusal to act in accordance with this section, except that this period may be extended for not to exceed 90 days following the expiration of that year, if a person allegedly aggrieved by unlawful discrimination first obtained knowledge of the facts of the alleged unlawful discrimination after the expiration of one year from the date of its occurrence. Complaints of discrimination in minor disciplinary actions defined in Section 19576.4 shall be filed in accordance with that section. Complaints of discrimination in all other disciplinary actions shall be filed in accordance with Section 19575. Complaints of discrimination in rejections on probation shall be filed in accordance with Section 19175.5.
(j)  (1)  When an employee of the appointing authority refuses, or threatens to refuse, to cooperate in the investigation of a complaint of discrimination, the appointing authority may seek assistance from the board. The board may provide for direct investigation or hearing of the complaint, the use of subpoenas, or any other action which will effect the purposes of this section.
(2)  This subdivision shall not apply to complaints of discrimination filed in accordance with Section 19576.4.

SEC. 26.

 Section 19786.2 is added to the Government Code, to read:

19786.2.
 (a)  Notwithstanding Section 19786, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  When a civil service employee has been reinstated after military service in accordance with Section 19780, and any question arises relative to his or her ability or inability for any reason arising out of the military service to perform the duties of the position to which he or she has been reinstated, the board shall, upon the request of the appointing power or of the employee, hear the matter and may on its own motion or at the request of either party take any and all necessary testimony of every nature necessary to a decision on the question.
(c)  If the board finds that the employee is not able for any reason arising out of the military service to carry out the usual duties of the position he or she then holds, it shall order the employee placed in a position in which the board finds he or she is capable of performing the duties in the same class or a comparable class in the same or any other state department, bureau, board, commission, or office under this part and the rules of the board covering transfer of an employee from a position under the jurisdiction of one appointing power to a position under the jurisdiction of another appointing power, without the consent of the appointing powers, where a vacancy may be made available to him or her under this part and the rules of the board, but in no event shall the transfer constitute a promotion within the meaning of this part and the rules of the board.
(d)  If a layoff is made necessary to place a civil service employee in a position in the same class or a comparable class in accordance with this section, the layoff shall be made under Section 19997.43.
(e)  The board may order the civil service employee reinstated to the department, bureau, board, commission, or office from which he or she was transferred either upon request of the employee or the appointing power from which transferred. The reinstatement may be made after a hearing as provided in this section if the board finds that the employee is at the time of the hearing able to perform the duties of the position.

SEC. 27.

 Section 19798.2 is added to the Government Code, to read:

19798.2.
 Section 19798 does not apply to state employees in State Bargaining Unit 19.

SEC. 28.

 Section 19815.42 is added to the Government Code, to read:

19815.42.
 (a)  Notwithstanding subdivision (e) of Section 19815.4, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  The director shall hold nonmerit statutory appeal hearings, subpoena witnesses, administer oaths, and conduct investigations in accordance with Department of Personnel Administration Rule 599.859 (b)(2).
(c)  The director may, at his or her discretion, hold hearings, subpoena witnesses, administer oaths, or conduct investigations or appeals concerning other matters relating to the department’s jurisdiction.
(d)  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.

SEC. 29.

 Section 19816.22 is added to the Government Code, to read:

19816.22.
 Section 19816.2 does not apply to state employees in State Bargaining Unit 19.

SEC. 30.

 Section 19816.23 is added to the Government Code, to read:

19816.23.
 (a)  Notwithstanding Section 18717, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  The department shall determine which classes or positions meet the elements of the criteria for the state safety category of membership in the Public Employees’ Retirement System. An employee organization or employing agency requesting a determination from the department shall provide the department with information and written argument supporting the request.
(c)  The department may use the determination findings in subsequent negotiations with the exclusive representatives.
(d)  The department shall not approve safety membership for any class or position that has not been determined to meet all of the following criteria:
(1)  In addition to the defined scope of duties assigned to the class or position, the member’s ongoing responsibility includes:
(A)  The protection and safeguarding of the public and of property.
(B)  The control or supervision of, or a regular, substantial contact with one of the following:
(i)  Inmates or youthful offenders in adult or youth correctional facilities.
(ii)  Patients in state mental facilities that house Penal Code offenders.
(iii)  Clients charged with a felony who are in a locked and controlled treatment facility of a developmental center.
(2)  The conditions of employment require that the member be capable of responding to emergency situations and provide a level of service to the public such that the safety of the public and of property is not jeopardized.
(e)  For classes or positions that are found to meet this criteria, the department may agree to provide safety membership by a memorandum of understanding reached pursuant to Section 3517.5 if the affected employees are subject to collective bargaining. The department shall notify the retirement system of its determination, as prescribed in Section 20405.3.
(f)  Notwithstanding Section 7550.5, the department shall prepare and submit an annual report to the Legislature that lists the classes or positions which were found to be eligible for safety membership under this section.

SEC. 31.

 Section 19817.8 is added to the Government Code, to read:

19817.8.
 This article applies only with respect to regulations that apply to state employees in State Bargaining Unit 19.

SEC. 32.

 Section 19818.9 is added to the Government Code, to read:

19818.9.
 (a)  Notwithstanding Section 19818.6, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  The department shall administer the Personnel Classification Plan of the State of California including the allocation of every position to the appropriate class in the classification plan. The allocation of a position to a class shall derive from and be determined by the ascertainment of the duties and responsibilities of the position and shall be based on the principle that all positions that meet the definition of a class pursuant to Section 18523.3 shall be included in the same class.
(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 the memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(d)  A broadband project may not change the terms and conditions of employment covered by a memorandum of understanding entered into pursuant to the Ralph C. Dills Act (Chapter 10.3 (commencing with Section 3512) of Division 4 of Title 1), unless there is a written agreement with respect to the project between the department and the recognized employee organization representing the affected employees.

SEC. 33.

 Section 19818.15 is added to the Government Code, to read:

19818.15.
 (a)  This section shall apply only to state employees in State Bargaining Unit 19.
(b)  The department may, directly or through agreement or contract with one or more agencies, conduct demonstration classification, compensation, and related projects. “Demonstration project”, for the purposes of this section, means a project that uses alternative classification, compensation, and other personnel management policies and procedures to determine if a change would result in cost savings, improved efficiency, or both cost savings and improved efficiency in the existing personnel management system.
(c)  Nothing in this section shall infringe upon or conflict with the merit principles as embodied in Article VII of the California Constitution.
(d)  The establishment of a demonstration project shall not be limited by the lack of specific authority in this division or by the existence of any statute or regulation that is inconsistent with actions to be taken in the demonstration project.
(e)  Prior to implementation of a demonstration project, the department shall adopt regulations specifying the impact of the project on employee status, compensation, benefits, and rights with regard to transfer, layoff, promotion, and demotion. These regulations are not subject to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340), Chapter 4 (commencing with Section 11370), Chapter 4.5 (commencing with Section 11400), and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3), and shall automatically expire after five years from the date of adoption or at the end of the demonstration project, whichever is earlier. Nothing in this section shall affect the rights of employees included within demonstration projects, except those rights directly pertaining to the subject matter of the demonstration project.
(f)  The department shall notify each house of the Legislature when a demonstration project is undertaken. The department shall also evaluate each project at its conclusion and notwithstanding Section 7550.5, shall prepare and submit a summary of the evaluation to each house of the Legislature that includes a discussion of the following:
(1)  The purpose of the demonstration project that specifically states the goals or objectives of the project.
(2)  The cost projections and methods by which savings, if any, may be calculated.
(3)  A definitive mechanism by which the value and success, if any, of the demonstration project may be quantified as feasible. This mechanism shall include specific numerical objectives that must be met or exceeded if a demonstration project is to be judged successful.
(g)  A demonstration project may not change the terms and conditions of employment covered by a memorandum of understanding entered into pursuant to the Ralph C. Dills Act (Chapter 10.3 (commencing with Section 3512) of Division 4 of Title 1), unless there is a written agreement with respect to the project between the department and the recognized employee organization representing the affected employees.
(h)  Any demonstration project implemented under this section shall not include the adoption or waiver of regulations or statutes that are administered or enforced by the State Personnel Board without the express approval of the State Personnel Board.

SEC. 34.

 Section 19826.3 is added to the Government Code, to read:

19826.3.
 (a)  Notwithstanding Section 19826, effective June 1, 1998, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  The department shall establish and adjust salary ranges or rates for each class of position in the state civil service subject to any merit limits contained in Article VII of the California Constitution. The salary range or rate shall be based on the principle that like salaries shall be paid for comparable duties and responsibilities. In establishing or changing these ranges or rates, consideration shall be given to the prevailing rates for comparable service in other public employment and in private business. The department shall make no adjustments that require expenditures in excess of existing appropriations that may be used for salary increase purposes. The department may make a change in salary range or rate retroactive to the date of application for the change.
(c)  Notwithstanding any other provision of law, the department shall not establish, adjust, or recommend a salary range or rate for any employees in an appropriate unit where an employee organization has been chosen as the exclusive representative pursuant to Section 3520.5.
(d)  Notwithstanding Section 7550.5, on or before January 10 of each year, the department shall prepare and submit to the parties meeting and conferring pursuant to Section 3517 and to the Legislature, a report containing the department’s findings relating to the salaries of employees in comparable occupations in private industry and other governmental agencies.
(e)  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.

SEC. 35.

 Section 19828.2 is added to the Government Code, to read:

19828.2.
 Effective June 1, 1998, Section 19828 does not apply to state employees in State Bargaining Unit 19.

SEC. 36.

 Section 19829.2 is added to the Government Code, to read:

19829.2.
 (a)  Effective June 1, 1998, notwithstanding Section 19829, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  Salary ranges shall consist of minimum and maximum salary limits. Except where otherwise provided by law, the appointing power or designee, consistent with the regulations of the department, shall determine the employee’s salary rate upon appointment and may authorize subsequent increases in these rates based on considerations including, but not limited to, recruitment and retention, extraordinary qualifications, and successful job performance or promotion. Only those employees who are performing successfully as determined by the appointing power or designee shall receive periodic performance salary adjustments until the maximum of the salary range is reached to recognize continuous successful performance or value to the organization. Adjustments within the salary range authorized in this section may be either temporary or permanent. The department may establish more than one salary range or rate or method of compensation within a class.
(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 approved by the Legislature in the annual Budget Act.

SEC. 37.

 Section 19832.2 is added to the Government Code, to read:

19832.2.
 (a)  Effective June 1, 1998, notwithstanding Section 19832, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  Employees whose salary is not at the maximum of the salary range shall be considered for a performance salary adjustment at least annually. Only those employees who are performing successfully as determined by the appointing power shall receive performance salary adjustments until the maximum of the salary range is reached to recognize continuous successful performance. The employee’s salary rate may not exceed the maximum of the salary range or fall below the minimum of the salary range except where otherwise provided by law or department rules.
(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 approved by the Legislature in the annual Budget Act.

SEC. 38.

 Section 19834.2 is added to the Government Code, to read:

19834.2.
 Effective June 1, 1998, Section 19834 does not apply to state employees in State Bargaining Unit 19.

SEC. 39.

 Section 19835.2 is added to the Government Code, to read:

19835.2.
 Effective June 1, 1998, Section 19835 does not apply to state employees in State Bargaining Unit 19.

SEC. 40.

 Section 19836.3 is added to the Government Code, to read:

19836.3.
 (a)  Effective June 1, 1998, notwithstanding Section 19836, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  The appointing power or designee with the approval of the department may authorize payment at any step above the minimum salary limit to classes or positions in order to correct salary inequities.
(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 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. 41.

 Section 19841.2 is added to the Government Code, to read:

19841.2.
 (a)  Notwithstanding Section 19841, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  Notwithstanding Section 11030, whenever a state officer or employee is required by the appointing power because of a change in assignment, promotion, or other reason related to his or her duties to change his or her place of residence, the officer, agent, or employee shall receive his or her actual and necessary moving, traveling, lodging, and meal expenses incurred by him or her both before and after and by reason of the change of residence. The maximum allowances for these expenses shall be as follows: the costs of packing, transporting, and unpacking 11,000 pounds of household effects, traveling, lodging, and meal expenses for 60 days while locating a permanent residence, storage of household effects for 60 days, and additional miscellaneous allowances not in excess of two hundred dollars ($200). The maximum allowances may be exceeded where the director determines that the change of residence will result in unusual and unavoidable hardship for the officer or employee, and in those cases the director shall determine the maximum allowances to be received by the officer or employee.
(c)  If a change of residence reasonably requires the sale of a residence or the settlement of an unexpired lease, the officer or employee may be reimbursed for any of the following expenses:
(1)  The settlement of the unexpired lease to a maximum of one year. Upon the date of surrender of the premises by the employee who is the lessee, the rights and obligations of the parties to the lease shall be as determined by Section 1951.2 of the Civil Code.
The state shall be absolved of responsibility for an unexpired lease if the department determines the employee knew or reasonably should have known that a transfer involving a physical move was imminent before entering into the lease agreement.
(2)  In the event of residence sale, reimbursement for brokerage and other related selling fees or charges, as determined by regulations of the department, customarily charged for like services in the locality where the residence is located.
(d)  If the change of residence is caused by a layoff, the application of this section shall be at the discretion of the department based upon the recommendation of the appointing power.
(e)  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.

SEC. 42.

 Section 19853.3 is added to the Government Code, to read:

19853.3.
 (a)  Notwithstanding Section 19853, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  Except as provided in subdivision (c), all employees shall be entitled to the following holidays: January 1, the third Monday in January, the third Monday in February, the last Monday in May, July 4, the first Monday in September, November 11, the day after Thanksgiving, December 25, and every day appointed by the Governor of this state for a public fast, Thanksgiving, or holiday.
When a day herein listed falls on a Sunday, the following Monday shall be deemed to be the holiday in lieu of the day observed. If November 11 falls upon a Saturday, the preceding Friday shall be deemed to be the holiday in lieu of the day observed. Any employee who may be required to work on any of the holidays mentioned in this section and who does work on any of these holidays shall be entitled to be paid compensation or given compensating time off for that work in accordance with his or her classification’s assigned workweek group.
(c)  If the provisions of subdivision (b) 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.
(d)  Any employee who either is excluded from the definition of state employee in subdivision (c) of Section 3513, or is a nonelected officer or employee of the executive branch of government who is not a member of the civil service, is entitled to the following holidays, with pay, in addition to any official state holiday appointed by the Governor:
(1)  January 1, the third Monday in January, the third Monday in February, the last Monday in May, July 4, the first Monday in September, November 11, Thanksgiving Day, the day after Thanksgiving, December 25.
(2)  When November 11 falls on a Saturday, employees shall be entitled to the preceding Friday as a holiday with pay.
(3)  When a holiday, other than a personal holiday, falls on a Saturday, an employee shall, regardless of whether he or she works on the holiday, accrue only an additional eight hours of personal holiday credit per fiscal year for the holiday. The holiday credit shall be accrued on the actual date of the holiday and shall be used within the same fiscal year.
(4)  When a holiday other than a personal holiday falls on Sunday, employees shall be entitled to the following Monday as a holiday with pay.
(5)  Employees who are required to work on a holiday shall be entitled to pay or compensating time off for this work in accordance with their classifications’ assigned workweek group.
(6)  Persons employed on less than a full-time basis shall receive holidays in accordance with the Department of Personnel Administration rules.
(e)  Any employee, as defined in subdivision (c) of Section 3513, may elect to use eight hours of vacation, annual leave, or compensating time off consistent with departmental operational needs and collective bargaining agreements for March 31, known as “Cesar Chavez Day.”
(f)  This section shall become effective only when the Department of Personnel Administration notifies the Legislature that the language contained in this section has been agreed to by all the parties, and the necessary statutes are amended to reflect this change for employees excluded from the Ralph C. Dills Act (Chapter 10.3 (commencing with Section 3512), Division 4, Title 1).

SEC. 43.

 Section 19854.2 is added to the Government Code, to read:

19854.2.
 (a)  Section 19854 does not apply to state employees in State Bargaining Unit 19.
(b)  Subdivision (a) shall become effective only when the Department of Personnel Administration notifies the Legislature that the language contained in that subdivision has been agreed to by all the parties, and the necessary statutes are amended to reflect this change for employees excluded from the Ralph C. Dills Act (Chapter 10.3 (commencing with Section 3512), Division 4, Title 1).

SEC. 44.

 Section 19994.6 is added to the Government Code, to read:

19994.6.
 (a)  Notwithstanding Section 19994, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  When the state takes over and there is transferred to it a function from any other public agency, the department may determine the extent, if any, to which the employees employed by the other public agency on the date of transfer are entitled to have credited to them in the state civil service, seniority credits, accumulated sick leave, and accumulated vacation because of service with the former agency.
(c)  The department shall limit that determination to the time any transferred employees were employed in the specific function or a function substantially similar while in the former agency and the seniority credits and accumulated sick leave and accumulated vacation shall not exceed that to which each employee would be entitled if he or she had been continuously employed by the State of California. This section is applicable to any function heretofore transferred to the state, whether by state action or otherwise, as well as to any future transfers of a function to the state, whether by state action or otherwise.

SEC. 45.

 Section 19994.7 is added to the Government Code, to read:

19994.7.
 (a)  Notwithstanding Section 19994.1, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  An appointing power may transfer any employee under his or her jurisdiction: (1) to another position in the same class; or (2) from one location to another whether in the same position, or in a different position as specified above in (1) or in Section 19050.5.
(c)  When a transfer under this section or Section 19050.5 reasonably requires an employee to change his or her place of residence, the appointing power shall give the employee, unless the employee waives this right, a written notice of transfer 60 days in advance of the effective date of the transfer unless the transfer is in lieu of layoff, in which case the notice shall be 30 days in advance of the effective date of the transfer. Unless the employee waives this right, the written notice shall set forth in clear and concise language the reasons why the employee is being transferred.
(d)  If this section is in conflict with 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 memorandum of understanding requires the expenditure of funds, it shall not become effective unless approved by the Legislature in the annual Budget Act.

SEC. 46.

 Section 19994.8 is added to the Government Code, to read:

19994.8.
 (a)  Notwithstanding Section 19994.2 this section shall apply only to state employees in State Bargaining Unit 19.
(b)  When there are two or more employees in a class and an involuntary transfer is required to a position in the same class, or an appropriate class as designated by the State Personnel Board, in a location that reasonably requires an employee to change his or her place of residence, the department may determine the methods by which employees in the class or classes involved are to be selected for transfer. These methods may include seniority and other considerations, including special skills.
(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 approved by the Legislature in the annual Budget Act.

SEC. 47.

 Section 19997.40 is added to the Government Code, to read:

19997.40.
 Notwithstanding Section 19997, this section shall apply only to state employees in State Bargaining Unit 19. Whenever it is necessary because of lack of work or funds, or whenever it is advisable in the interests of economy, to reduce the staff of any state agency, the appointing power may lay off employees pursuant to this article and department rule.

SEC. 48.

 Section 19997.43 is added to the Government Code, to read:

19997.43.
 (a)  Notwithstanding Section 19997.3, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  Layoff shall be made in accordance with the relative seniority of the employees in the class of layoff. In determining seniority scores, one point shall be allowed for each complete month of full-time state service regardless of when the service occurred. Department rules shall establish all of the following:
(1)  The extent to which seniority credits may be granted for less than full-time service.
(2)  The basis for determining the sequence of layoff whenever the class and subdivision of layoff includes employees whose service is less than full time.
(3)  Any other matters as are necessary or advisable to the operation of this chapter.
(c)  Less than full-time service shall be prorated.
(d)  For professional, scientific, administrative, management, and executive classes, the department shall prescribe standards and methods by rule whereby employee efficiency shall be combined with seniority in determining the order of layoffs and the order of names on reemployment lists. These standards and methods may vary for different classes, and shall take into consideration the needs of state service and practice in private industry and other public employment.
(e)  Prior to laying off, transferring, or demoting permanent or probationary employees, employment for other employees who did not formerly have permanent status shall be terminated in the following sequence: student assistants, retired annuitants, temporary intermittent, limited term, and permanent intermittent appointments. No distinction shall be made between a probationary and permanent employee or between full-time and part-time employees when making layoffs. For layoff purposes employees on leaves of absences shall be treated the same as other employees.
(f)  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 incurs either present or future costs, or requires the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.

SEC. 49.

 Section 19997.44 is added to the Government Code, to read:

19997.44.
 (a)  Notwithstanding Section 19997.4, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  For the purposes of determining seniority pursuant to Section 19997.43, the term “state service” shall include service that is exempted from the state civil service by any of the following:
(1)  Subdivision (e), (f), (g), (i), or (m) of Section 4 of Article VII of the California Constitution.
(2)  Subdivision (a) of Section 4 of Article VII of the California Constitution if an employee provides to the appointing power a copy of his or her official employment history record by July 1, 1999, or within six months of appointment to the state civil service.

SEC. 50.

 Section 19997.45 is added to the Government Code, to read:

19997.45.
 Notwithstanding Section 19997.5, this section shall apply only to state employees in State Bargaining Unit 19. Separations that are necessary by reason of reinstatement of an employee or employees after recognized military service as provided for in Section 19780 shall be made by layoff. In making these separations, the regular method of determining the order of layoff shall be used.

SEC. 51.

 Section 19997.46 is added to the Government Code, to read:

19997.46.
 (a)  Notwithstanding Section 19997.6, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  Seniority credit for recognized military service shall be computed as if it were service in the class to which the employee was first given permanent civil service or exempt appointment after his or her entry into the state service following recognized military service.
(c)  A veteran, except a veteran who was reinstated from military leave, shall in the event of layoff receive a maximum of one year’s seniority credit for recognized military service if the veteran entered the state service after discharge, the end of the national emergency, or the end of the state military emergency. For purposes of this subdivision, “recognized military service” means service in a military campaign or expedition for which a medal was authorized by the government of the United States in accordance with Section 300.1 of Title 12 of the California Code of Regulations.

SEC. 52.

 Section 19997.47 is added to the Government Code, to read:

19997.47.
 (a)  Notwithstanding Section 19998.7, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  Employees in the class under consideration, up to the number of positions to be abolished or discontinued, shall be laid off in the order as determined under this part. As between two or more employees who have the same score, veterans shall have preference in retention. Other ties shall be determined by lot.

SEC. 53.

 Section 19997.48 is added to the Government Code, to read:

19997.48.
 (a)  Notwithstanding Section 19997.8, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  In lieu of being laid off an employee may elect demotion to: (1) any class with substantially the same or a lower maximum salary in which he or she had served under permanent or probationary status, or (2) a class in the same class series as the class of layoff, but of lesser responsibility, or (3) a class in a related line of work as the class of layoff, but of lesser responsibility, if such a class is designated by the department. Whenever a demotion requires a layoff in the elected class, the seniority score for the demoted employee shall be recomputed in that class if necessary. The appointing power shall inform the employee in the notice of layoff of the classes to which he or she has the right to demote. To be considered for demotion in lieu of layoff an employee must notify his or her appointing power in writing of his or her election not later than five calendar days after receiving notice of layoff.
(c)  Demotions in lieu of layoff, and layoffs resulting therefrom, shall be governed by this article and shall be made within the subdivisions approved by the department for this purpose. These subdivisions need not be the same as those used to determine the area of layoff under Section 19997.2.
(d)  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.

SEC. 54.

 Section 19997.51 is added to the Government Code, to read:

19997.51.
 (a)  Notwithstanding Section 19997.11, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  The names of employees to be laid off, demoted in lieu of layoff, or transferred in lieu of layoff shall be placed upon the reemployment list for the subdivision, if such a subdivision was designated and upon the departmental reemployment list, for the class from which the employees were laid off, demoted in lieu of layoff, or transferred in lieu of layoff. The department shall also place these names upon the general reemployment list only for the entry level class within the employee’s primary demotional pattern. This general reemployment list shall be a rule of one name.
(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 approved by the Legislature in the annual Budget Act.

SEC. 55.

 Section 19997.53 is added to the Government Code, to read:

19997.53.
 (a)  Notwithstanding Section 19997.13, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  An employee compensated on a monthly basis shall be notified that he or she is to be laid off 30 days prior to the effective date of layoff. The notice of layoff shall be in writing and shall contain the reason or reasons for the layoff. An employee to be laid off may elect to accept this layoff prior to the effective date thereof.
(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 approved by the Legislature in the annual Budget Act.

SEC. 56.

 Section 20037.5 is added to the Government Code, to read:

20037.5.
 Notwithstanding Section 20035, “final compensation” for a state member who has elected to be subject to Section 21353.5, for the purposes of determining any pension or benefit based on service credited under that section, means the highest average annual compensation earnable by the member during the consecutive 36-month period immediately preceding the effective date of his or her retirement, or the date of his or her last separation from state service if earlier, or during any other period of 36 consecutive months during his or her state membership that the member designates on the application for retirement.

SEC. 57.

 Section 20068.2 is added to the Government Code, to read:

20068.2.
 (a)  Notwithstanding Section 20068, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  “State safety service” means service rendered as a state safety member only while receiving compensation for that service, except as provided in Article 4 (commencing with Section 20990) of Chapter 11. It also includes service rendered in an employment in which persons have since become state safety members and service rendered prior to April 1, 1973, and falling within the definition of warden, forestry, and law enforcement service under this chapter prior to April 1, 1973. “State safety service” pursuant to this subdivision does not include service as an investigator prior to April 1, 1973, within the Department of Justice of persons who prior to April 1, 1973, were classed as miscellaneous members.
(c)  “State safety service” with respect to a member who becomes a state safety member pursuant to Section 20405 shall also include service prior to the date on which he or she becomes a state safety member as an officer or employee of the Board of Prison Terms, Department of Corrections, Prison Industry Authority, or the Department of the Youth Authority.
(d)  “State safety service” with respect to a member who becomes a state safety member pursuant to Sections 20409 and 20410 shall also include service in a class specified in these sections or service pursuant to subdivision (a), prior to September 27, 1982.
(e)  “State safety service,” with respect to a member who becomes a state safety member pursuant to Sections 20414 and 20415, shall also include service prior to September 22, 1982, as an officer or employee of the Department of Parks and Recreation or the Military Department.
(f)  “State safety service” does not include service in classes specified in Section 20407 prior to January 1, 1989.
(g)  “State safety service” does not include service in classes specified in Section 20408 prior to January 1, 1990.
(h)  “State safety service,” with respect to a member who becomes a state safety member pursuant to subdivision (b) of Section 20405.3, shall also include service rendered in an employment in which persons have since become state safety members, as determined by the Department of Personnel Administration pursuant to that section.

SEC. 58.

 Section 20405.3 is added to the Government Code, to read:

20405.3.
 (a)  Notwithstanding Section 20405, this section shall apply only to state employees in State Bargaining Unit 19.
(b)  On and after the effective date of this section, state safety members shall also include officers and employees whose classifications or positions are found to meet the state safety criteria prescribed in Section 19816.23, provided the Department of Personnel Administration agrees to their inclusion. The effective date of safety membership shall be the date on which the department and the employees’ exclusive representative reach agreement by memorandum of understanding pursuant to Section 3517.5.
(c)  The department shall notify the board as new classes or positions become eligible for state safety membership, as specified in subdivision (a), and specify how service prior to the effective date shall be credited.
(d)  Notwithstanding Section 7550.5, the department shall prepare and submit to the Legislature an annual report that contains the classes or positions that are eligible for state safety membership under this section.
(e)  Any person designated as a state safety member pursuant to this section may elect, within 90 days of notification by the board, to remain subject to the miscellaneous or industrial service retirement benefit and contribution rate by filing an irrevocable election with the board. A member who so elects shall be subject to the reduced benefit factors specified in Section 21076 or Section 21353 only for service also included in the federal system.

SEC. 59.

 Section 20677 of the Government Code is amended to read:

20677.
 (a)  (1)  The normal rate of contribution for a state miscellaneous member whose service is not included in the federal system shall be 6 percent of the compensation in excess of three hundred seventeen dollars ($317) per month paid that member for service rendered on and after July 1, 1976. The normal rate of contribution for a school member, or a local miscellaneous member shall be 7 percent of the compensation paid that member for service rendered on and after June 21, 1971.
(2)  The normal rate of contribution for a state miscellaneous or industrial member, who has elected to be subject to Section 21353.5 and whose service is not included in the federal system, shall be 6 percent of the member’s compensation.
(3)  The normal rate of contribution as established under this subdivision for a member whose service is included in the federal system, and whose service retirement allowance is reduced under Section 21353, 21353.5, or Section 21354 because of that inclusion, shall be reduced by one-third as applied to compensation not exceeding four hundred dollars ($400) per month for service after the date of execution of the agreement including service in the federal system and prior to termination of the agreement with respect to the coverage group to which he or she belongs.
(b)  (1)  The normal rate of contribution for a state miscellaneous member whose service has been included in the federal system shall be 5 percent of compensation in excess of five hundred thirteen dollars ($513) per month paid that member for service rendered on and after July 1, 1976.
(2)  The normal rate of contribution for a state miscellaneous or industrial member, who has elected to be subject to Section 21353.5 and whose service has been included in the federal system, shall be 5 percent of compensation, subject to the reduction specified in paragraph (3) of subdivision (a).
(c)  The normal rate of contribution for a state miscellaneous or industrial member who elects to become subject to Section 21076 or Section 21077 shall be 0 percent, unless the member subsequently elects to become subject to Section 21353, as authorized by subdivision (c) of Section 21070 or Section 21353.5. A member who elects to become subject to Section 21353 shall contribute at the rate specified in paragraph (1) of subdivision (a) or paragraph (1) of subdivision (b), as determined by the member’s status with the federal system, and the rate shall be applied from the first of the month following the date of the election. A member who makes the election shall also contribute for service prior to the date the contribution rate was applied, in the manner specified in Section 21073. A member who elected to become subject to Section 21353 solely for service rendered on or after the effective date of the election, as authorized by subdivision (c) of Section 21070 during the period between November 1, 1988, and October 31, 1989, is not required to make the contributions specified in Section 21073.

SEC. 60.

 Section 20963 of the Government Code is amended to read:

20963.
 A state, school, or school safety member, whose effective date of retirement is within four months of separation from employment with the employer subject to this section that granted the sick leave credit, shall be credited at his or her retirement with 0.004 year of service credit for each unused day of sick leave certified to the board by the employer. The certification shall report only those days of unused sick leave that were accrued by the member during the normal course of his or her employment and shall not include any additional days of sick leave reported for the purpose of increasing the member’s retirement benefit. Reports of unused days of sick leave shall be subject to audit and retirement benefits may be adjusted where improper reporting is found.
Until receipt of certification from an employer concerning unused sick leave, the board may pay an estimated allowance pursuant to this section. At the time of receipt of the certification, the allowance shall be adjusted to reflect any necessary changes.
Notwithstanding any other provisions of this part, this section shall not apply to local members other than local miscellaneous members employed before July 1, 1980, by a school district that is a contracting agency or those school safety members employed before July 1, 1980, by a contracting agency that is a school district or community college district, as defined in subdivision (i) of Section 20057.
This section shall not be applicable to (a) any person who becomes a school member on and after July 1, 1980, and any person who becomes a local member employed, on and after July 1, 1980, by a school district that is a contracting agency whether or not the person was ever a school member or local member prior to that date, or (b) a state employee, with respect to sick leave credits earned as a state member under Section 21353.5, except that the member shall be entitled to receive credit under this section for the sick leave he or she has earned as a state member subject to any other retirement formula, provided the member has a sick leave credit balance remaining at the time of retirement.
For the purposes of this section, sick leave benefits provided to state employees pursuant to the state sick leave system shall be construed to mean compensation paid to employees on approved leaves of absence on account of sickness.

SEC. 61.

 Section 21071 of the Government Code is amended to read:

21071.
 (a)  Notwithstanding any other provision of this article, except as provided in subdivisions (b) and (c), persons who first become state miscellaneous or state industrial members of the system on or after July 1, 1991, and who are : (1) excluded from the definition of state employee in subdivision (c) of Section 3513; (2) employed by the executive branch of government who are not members of the civil service; or (3) included in the definition of state employee in subdivision (c) of Section 3513 shall become subject to Section 21076.
(b)  Any person who was a member on or before June 30, 1991, eligible to elect membership on or before June 30, 1991, or who was employed in any position on or before June 30, 1991, that would lead to membership as a state member, as defined in Section 20370, and who thereafter enters employment subject to Section 21076 shall be granted the rights provided in subdivision (c) of Section 21070, unless the person had earlier made an irrevocable election to be subject to Section 21076 or 21077. The one-year period in which to make the election provided in subdivision (c) of Section 21070 for any member who became a state member prior to January 1, 1994, shall commence with the mailing of a notice by the system to the member, of his or her election right. The effective date of the election shall be the date on which the member became a state miscellaneous or state industrial member. The member shall be obligated to make the contributions specified in Section 20677.
(c)  Effective on or after April 1, 1998, state miscellaneous or industrial members may elect to be subject to the service retirement formula prescribed in Section 21353.5, as an alternative to Second Tier membership under Section 21076. The election shall be provided to eligible members by the appointing authority, and, to be effective, an election must be filed with the board. Eligible members who must be in the employment of the state are defined as members in state bargaining units for which a memorandum of understanding has been agreed to by the state employer and the recognized employee organization to become subject to Section 21353.5. The effective date of a member’s election shall be the first day of the month following the date the election is filed with the system.
(d)  This section shall not apply to state miscellaneous members employed by the California State University or employees described in Section 20324.

SEC. 62.

 Section 21073.5 is added to the Government Code, to read:

21073.5.
 A state Second Tier member, who meets the eligibility definition prescribed in subdivision (c) of Section 21071 may elect to be subject to Section 21353.5 at any time while he or she is in the employment of the state. Upon becoming subject to Section 21353.5, the active member may elect to have his or her past Second Tier service credited under Section 21353.5. A member who elects to receive credit for past service shall pay all reasonable administrative costs and the amount that will be equivalent to the difference between the actuarial present value of the Second Tier service that had accrued to the member’s credit and the actuarial present value for the same service had it been credited under Section 21353.5, including interest if deemed necessary, in accordance with the method to be established by the board. The amount shall be contributed in a lump sum or by installments over a period and subject to minimum payments as may be prescribed by regulations of the board. Payments for administrative costs shall be credited to the current appropriation for support of the board and available for expenditures by the board to fund positions deemed necessary by the board to implement this section.

SEC. 63.

 Section 21073.6 is added to the Government Code, to read:

21073.6.
 (a)  The election provided to eligible members pursuant to subdivision (c) of Section 21071, to be subject to the service retirement formula prescribed in Section 21353.5, shall be subject to conditions to be established and communicated by the board.
(b)  The election provided to eligible members pursuant to Section 21073.5, to have the member’s past Second Tier service credited under Section 21353.5, shall first be available no earlier than January 1, 1999, subject to the election procedures to be established and communicated by the board.
(1)  Notwithstanding Section 21073.5 which limits to active members the election provided pursuant to Section 21353.5, this election shall also be provided to a member who retired between the date he or she became eligible under subdivision (c) of Section 21071 and the date the election was actually made available by the board.
(2)  Notwithstanding Section 21073.5 which limits to active members the election provided pursuant to Section 21353.5, this election shall also be provided to the beneficiary eligible for a continuing allowance upon the death of a member, provided the member had been determined to be eligible under subdivision (c) of Section 21071 but had died before making the election that would have been provided by the board.
(3)  The election provided under paragraph (1) or (2) shall be made within 60 days of the mailing date on the election notice sent by the board to the retired member or the member’s beneficiary.

SEC. 64.

 Section 21353.5 is added to the Government Code, to read:

21353.5.
 The combined current and prior service pensions for a state miscellaneous or industrial member who has elected to be subject to the service retirement formula prescribed in this section, as provided by Sections 21071 and 21073.5, is a pension derived from the contributions of the employer sufficient, when added to the service retirement annuity that is derived from the accumulated normal contributions of the member at the date of retirement, to equal the fraction of one-fiftieth of the member’s final compensation set forth opposite the member’s age at retirement, taken to the preceding completed quarter year, in the following table, multiplied by the number of years of current and prior service, except service in a category of membership other than that credited under this section, with which the member is entitled to be credited at retirement:
Age of
Retirement
Fraction
50     ........................
 .546
50 1/4 ........................
 .554
50 1/2 ........................
 .562
50 3/4 ........................
 .570
51     ........................
 .578
51 1/4 ........................
 .586
51 1/2 ........................
 .595
51 3/4 ........................
 .603
52     ........................
 .612
52 1/4 ........................
 .621
52 1/2 ........................
 .630
52 3/4 ........................
 .639
53     ........................
 .648
53 1/4 ........................
 .658
53 1/2 ........................
 .668
53 3/4 ........................
 .678
54     ........................
 .688
54 1/4 ........................
 .698
54 1/2 ........................
 .709
54 3/4 ........................
 .719
55     ........................
 .730
55 1/4 ........................
 .741
55 1/2 ........................
 .753
55 3/4 ........................
 .764
56     ........................
 .776
56 1/4 ........................
 .788
56 1/2 ........................
 .800
56 3/4 ........................
 .813
57     ........................
 .825
57 1/4 ........................
 .839
57 1/2 ........................
 .852
57 3/4 ........................
 .865
58     ........................
 .879
58 1/4 ........................
 .893
58 1/2 ........................
 .908
58 3/4 ........................
 .923
59     ........................
 .937
59 1/4 ........................
 .953
59 1/2 ........................
 .969
59 3/4 ........................
 .985
60 and over ........................
1.000
The fractions specified in the above table shall be reduced by one-third as applied to that part of final compensation which does not exceed four hundred dollars ($400) per month for all service of a member any of whose service has been included in the federal system.
The retirement allowance provided by this section, which shall be effective for members who retire on and after April 1, 1998, is granted subject to future reduction prior to a member’s retirement, by offset of federal system benefits or otherwise, as the Legislature may from time to time deem appropriate because of changes in such federal system benefits.

SEC. 65.

 Section 21423 of the Government Code is amended to read:

21423.
 The disability retirement pension, for service subject to Section 21353, for a member whose effective date of retirement is on or after the operative date of the amendments to this section at the 1972 Regular Session, or for service subject to Section 21353.5, for a member whose effective date of retirement is on or after the operative date of the amendments to this section at the 1997–98 Regular Session, shall be such an amount as with that portion of his or her annuity provided by his or her accumulated normal contributions, will make his or her disability retirement allowance equal:
(a)  Ninety percent of one-fiftieth of his or her final compensation multiplied by the number of years of service credited to him or her.
(b)  If the disability retirement allowance computed under subdivision (a) does not exceed one-third of his or her final compensation, 90 percent of one-fiftieth of his final compensation multiplied by the number of years of service which would be creditable to him or her were his or her service to continue until attainment by him or her of age 60, but in that case the retirement allowance shall not exceed one-third of final compensation.
Subdivision (b) is not applicable to members who are not entitled, at the time of retirement, to be credited with at least 10 years of state service.

SEC. 66.

 Section 22013.82 is added to the Government Code, to read:

22013.82.
 “Policeman” as used in this part also includes persons employed in classifications listed in Section 20405.3, if that designation is not contrary to any definition, ruling, or regulation relating to the term “policeman” issued by the federal agency for the purposes of Section 218(d)(5)(A) of the Social Security Act.

SEC. 67.

 Section 22754.2 is added to the Government Code, to read:

22754.2.
 As used in this part the following definitions, unless the context otherwise requires, shall govern the interpretation of terms:
(a)  “Board” means the Board of Administration of the Public Employees’ Retirement System.
(b)  “Employee” means:
(1)  Any officer or employee of the State of California or of any agency, department, authority, or instrumentality of the state including the University of California, or any officer or employee who is a local or school member of the Public Employees’ Retirement System employed by a contracting agency that has elected to be or otherwise has become subject to this part, or who is a member or retirant of the State Teachers’ Retirement System employed by an employer who has elected to become subject to this part, or who is an employee or annuitant of a special district or county subject to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3) that has elected to become subject to this part, or who is an employee or annuitant of a special district, as defined in subdivision (i), that has elected to become subject to this part, except persons employed on an intermittent, irregular or less than half-time basis, or employees similarly situated, or employees in respect to whom contributions by the state for any type of plan or program offering prepaid hospital and medical care are otherwise authorized by law.
(2)  Any officer or employee who participates in the retirement system of a contracting agency as defined in paragraph (2) of subdivision (g) that has elected to become subject to this part, except persons employed less than half time or who are otherwise determined to be ineligible.
(3)  Any annuitant of the Public Employees’ Retirement System employed by a contracting agency as defined in subdivision (g) that has elected to become subject to this part who is a person retired under Section 21228.
(4)  Notwithstanding paragraph (1), “eligible employee” of the State of California, as it applies to state employees in State Bargaining Unit 19, means (A) a permanent employee appointed half time or more; (B) an employee who is a limited term or temporary authorization appointee who continues coverage based on prior continuous permanent status; (C) an employee who is in a half time or more limited-term appointment shall qualify after working six consecutive months; and (D) an employee appointed half time or more to a temporary appointment in lieu of a permanent appointment; and (E) a permanent intermittent employee who works a minimum of 480 hours in a six-month control period. All other limited-term, nonstatus employees as defined by the Department of Personnel Administration and temporary authorization employees are not eligible.
(c)  “Carrier” means a private insurance company holding a valid outstanding certificate of authority from the Insurance Commissioner of the state, a medical society or other medical group, a nonprofit hospital service plan qualifying under Chapter 11A (commencing with Section 11491) of Part 2 of Division 2 of the Insurance Code, or nonprofit membership corporation lawfully operating under Section 9200 or Section 9201 of the Corporations Code, or a health care service plan as defined under subdivision (f) of Section 1345 of the Health and Safety Code, or a health maintenance organization approved under Title XIII of the federal Public Health Services Act, which is lawfully engaged in providing, arranging, paying for, or reimbursing the cost of personal health services under insurance policies or contracts, medical and hospital service agreements, membership contracts, or the like, in consideration of premiums or other periodic charges payable to it.
(d)  “Health benefits plan” means any program or entity that provides, arranges, pays for, or reimburses the cost of health benefits.
(e)  “Annuitant” means:
(1)  Any person who has retired within 120 days of separation from employment and who receives any retirement allowance under any state or University of California retirement system to which the state was a contributing party.
(2)  A family member receiving an allowance as the survivor of an annuitant who has retired as provided in paragraph (1), or as the survivor of a deceased employee under Section 21541, 21546, or 21571 or similar provisions of any other state retirement system.
(3)  Any employee who has retired under the retirement system provided by a contracting agency as defined in paragraph (2) of subdivision (g) and who receives a retirement allowance from that retirement system, or a surviving family member who receives the retirement allowance in place of the deceased.
(4)  Any person who was a state member for 30 years or more and who, at the time of retirement, was a local member employed by a contracting agency.
(f)  “Family member” means an employee’s or annuitant’s spouse and any unmarried child (including an adopted child, a stepchild, or recognized natural child who lives with the employee or annuitant in a regular parent-child relationship). The board shall, by regulation, prescribe age limits and other conditions and limitations pertaining to unmarried children.
(g)  “Contracting agency” means:
(1)  Any contracting agency as defined in Section 20022, any county or special district subject to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), and any special district, school district, county board of education, personnel commission of a school district or a county superintendent of schools.
(2)  Any public body or agency of, or within California not covered by the Public Employees’ Retirement System or subject to the County Employees Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of Title 3), which provides a retirement system for its employees funded wholly or in part by public funds.
(h)  “Employer” means the state, any contracting agency employing an employee, and any agency which has elected to become subject to this part pursuant to Section 22856.
(i)  “Special district” means a nonprofit, self-governed public agency, within the State of California and comprised solely of public employees, performing a governmental rather than proprietary function.

SEC. 68.

 Section 22754.11 is added to the Government Code, to read:

22754.11.
 (a)  Notwithstanding Section 22754, for state employees in State Bargaining Unit 19 and members of State Bargaining Unit 19 who retire on or after the effective date of this section and who meet the definition of annuitant, “eligible family member” means:
(1)  The legal spouse in a marriage recognized by the state.
(2)  A child under the age of 19 years who has never been married or who has obtained a legal annulment. This includes:
(A)  The natural or adopted child, or stepchild of the employee or annuitant.
(B)  A child, who is not the natural or adopted child, or stepchild of the employee or annuitant and who is not receiving or eligible for coverage through another source and who meets either of the following conditions:
(i)  The employee or annuitant has legal or joint custody of the child.
(ii)  The child is a grandchild living in the household of the employee or annuitant, and the natural parent or parents are not living in the same household.
(3)  A child over the age of 19 years but under the age of 23 years who has never been married or who has obtained a legal annulment and meets the criteria of subparagraph (A) or (B) of paragraph (2) may continue to be enrolled if the child is one of the following:
(A)  Enrolled on an ongoing basis as a college student for at least nine semester college units or equivalent quarter units.
(B)  Enrolled on an ongoing basis in an adult continuation school curriculum that would result in high school diploma or its equivalent. An employee or annuitant whose child continues to be enrolled under this paragraph must provide the employer or benefit carrier with an annual certification of schooling or enrollment upon request.
(4)  A child under the age of 19 years who has never been married or who has obtained a legal annulment may continue to be enrolled after attaining the age of 19 years if he or she is incapable of self-support because of physical disability or mental incapacity and he or she is dependent on the employee or annuitant for support and care. A disabled child may continue to be enrolled after attaining the age of 19 years only if he or she was enrolled as disabled at the time of the employee’s initial enrollment or became disabled while enrolled as an eligible family member prior to attaining the age of 19 years. The employee or annuitant must provide satisfactory evidence of the disability within 60 days after the disabled child attains the age of 19 years. Necessary documentation as prescribed by the employer must be completed, processed, and approved by the Public Employees’ Retirement System. An annual certification of continued disability may be required.
(b)  At the time of enrollment or audit, an employee or annuitant will be required to provide proof of eligibility for all enrolled family members that may include any of the following: (1) a valid marriage certificate, (2) a birth certificate, (3) a certification of disability, (4) legal custody documents, and (5) a copy of the employee’s or annuitant’s signed state income tax return.

SEC. 69.

 Section 22955.2 is added to the Government Code, to read:

22955.2.
 (a)  Notwithstanding Sections 22953 and 22954, an employee in State Bargaining Unit 19 who becomes a state member of the Public Employees’ Retirement System after July 1, 1998, and who is included in the definition of state employee in subdivision (c) of Section 3513 shall not receive any portion of the employer’s contribution payable for annuitants, pursuant to Sections 22953 and 22954, unless the employee is credited with 10 years or more of state service, as defined by this section, at the time of retirement. This subdivision shall have retroactive application to state employees in State Bargaining Unit 19 who become a state member of the Public Employees’ Retirement System after July 1, 1998, but prior to the effective date of the amendments to this section by the Legislature at the 1997–98 Regular Session.
(b)  The percentage of employer’s contribution amount payable for postretirement dental care benefits for an employee subject to this section shall be based on the funding provision of the plan and the member’s completed years of state service at retirement as shown in the following table:
Credited Years of Service
Percentage of Employer
Contribution
10 ........................
50
11 ........................
55
12 ........................
60
13 ........................
65
14 ........................
70
15 ........................
75
16 ........................
80
17 ........................
85
18 ........................
90
19 ........................
95
20 ........................
100
(c)  This section shall only apply to state employees who retire for service.
(d)  Benefits provided to an employee subject to this section shall be applicable to all future state service.
(e)  For purposes of this section, “state service” means service rendered as an employee or an appointed or elected officer of the state for compensation. In those cases where the state assumes or has assumed from a public agency a function and the related personnel, service rendered by that personnel for compensation as employees or appointed or elected officers of that local public agency shall not be credited, at retirement, as state service for the purposes of this section, unless the former employer has paid or agreed to pay the state agency the amount actuarially determined to equal the cost for any employee dental benefits that were vested at the time that the function and the related personnel were assumed by the state. For noncontracting local public agencies the state department shall certify the completed years of local agency service to be credited to the employee to the Public Employees’ Retirement System at the time of separation for retirement.
(f)  Whenever the state contracts to assume a local public agency function, completed years of service rendered by the personnel for compensation as employees or appointed or elected officers of the local public agency shall be credited as state service only upon a finding by the Department of Finance that the contract contains a benefit factor sufficient to reimburse the state for the amount necessary to compensate the state fully for postretirement dental benefit costs for those personnel.
(g)  This section shall not apply to employees of the California State University or the Legislature.

SEC. 70.

 Section 10295.3 is added to the Public Contract Code, to read:

10295.3.
 Notwithstanding any other provision of law, Section 10295 shall not apply to any contract entered into by the Department of Personnel Administration for state employees in State Bargaining Unit 19 for employee benefits, occupational health and safety, training services, or any combination thereof.

SEC. 71.

 Section 10344.3 is added to the Public Contract Code, to read:

10344.3.
 The Department of Personnel Administration, with respect to contracts entered into by the department for state employees in State Bargaining Unit 19 for employee benefits, occupational health and safety, training services, or any combination thereof, shall provide all qualified bidders with a fair opportunity to enter the bidding process, therefore stimulating competition in a manner conducive to sound fiscal practices. The Department of Personnel Administration shall make available to any member of the public its guidelines for awarding these contracts, and to the extent feasible, implement the objectives set forth in Section 10351.

SEC. 72.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order that the provisions of this act relating to state employees may become effective at the earliest possible time, it is necessary that this act go into immediate effect.