BILL ANALYSIS                                                                                                                                                                                                    



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          SENATE THIRD READING
          SB 1718 (Perata)
          As Amended August 8, 2008
          Majority vote 

           SENATE VOTE  :34-4  
           
           PUBLIC EMPLOYEES    5-1         APPROPRIATIONS      12-4        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hernandez, Jeffries,      |Ayes:|Leno, Caballero, Davis,   |
          |     |Mullin, Furutani, Torrico |     |DeSaulnier, Furutani,     |
          |     |                          |     |Huffman, Karnette,        |
          |     |                          |     |Krekorian, Lieu, Ma,      |
          |     |                          |     |Nava, Solorio             |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Anderson                  |Nays:|Walters, Emmerson, La     |
          |     |                          |     |Malfa, Nakanishi          |
           ----------------------------------------------------------------- 
           
          SUMMARY  :  Requires the Department of Personnel Administration  
          (DPA) to annually conduct a survey of specified public entities  
          relative to salary, compensation, and benefits paid to their  
          legal professionals in order to provide the state with an  
          accurate assessment of the relevant labor market.  DPA is  
          required to report the findings and analysis of the survey to  
          the Legislature, Governor and the exclusive representative of  
          State Bargaining Unit (BU) 2, California Attorneys,  
          Administrative Law Judges and Hearing Officers in State  
          Employment (CASE), by March 15 of each year.  Specifically,  this  
          bill  :   

          1)Requires DPA to conduct a survey of the following public  
            entities with respect to the state's attorneys:

             a)   The Sacramento County District Attorney's Office;
             b)   The Sacramento City Attorney's Office;
             c)   The San Francisco District Attorney's Office;
             d)   The Alameda County District Attorney's Office;
             e)   The Oakland City Attorney's Office;
             f)   The Los Angeles County District Attorney's Office;
             g)   The Los Angeles City Attorney's Office;








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             h)   The San Diego County District Attorney's Office;
             i)   The San Diego City Attorney's Office;
             j)   The Fresno District Attorney's Office;
             aa)  The Fresno City Attorney's Office; and,
             bb)  The Habeas Corpus Resource Center.

          2)Requires DPA, with respect to the state's administrative law  
            judges, hearing officers and commissioners, conduct a survey  
            of the compensation of federal administrative law judges in  
            California and judges on the California State Bar Court.

          3)Requires the surveys to gather the following data:

             a)   The entire pay scale, including all steps and ranges,  
               from entry level to the highest non-managerial position;
             b)   All duty statements, minimum qualifications,  
               time-in-grade requirements and promotional standards;
             c)   All compensation in addition to base salary paid by the  
               employer, including retirement, health care, and other  
               allowances, premiums or differentials;
             d)   Complete and accurate descriptions of all benefits  
               available;
             e)   The average salary actually paid to all attorneys or  
               judges employed by all the surveyed entities;
             f)   The salaries actually paid to incoming, entry level  
               attorneys and judges;
             g)   The number of attorneys and judges at each salary level  
               with each entity; and,
             h)   The average years of postbar legal experience of  
               attorneys or judges at each salary level with each entity.

          4)Requires DPA to issue an annual report, and provide it to the  
            Legislature, Governor, and CASE, by March 15 of each year  
            which shall include the above data as well as the following  
            analyses:

             a)   The average salaries actually paid to the highest paid  
               non-managerial attorney or judges; and,

             b)   The average salaries actually paid to entry-level  
               attorneys or judges.

          5)Requires the report be accompanied by a declaration from the  
            Director of DPA certifying the report is true and accurate to  








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            the best of his or her knowledge.

          6)Contains legislative findings and declarations relative to the  
            state's legal professionals.

           EXISTING LAW provides, under  the Ralph C. Dills Act (Dills Act),  
          also known as the State Employer Employee Relations Act, that  
          state employee compensation is determined in collective  
          bargaining with the state.

          If agreement is reached between the state and its 21 BUs,  
          Memoranda of Understanding (MOUs) are sent to the Legislature  
          for ratification.  If the MOUs are ratified by the Legislature  
          and members of the respective bargaining units, they go into  
          effect and the agreed upon employee compensation package is  
          implemented.

          Requires DPA is to establish and adjust salary ranges for all  
          state employees.  Additionally, at least six months before the  
          end of the term of an existing memorandum of understanding, or  
          immediately upon the reopening of negotiations under an existing  
          memorandum of understanding, DPA is required to submit, to the  
          parties meeting and conferring 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.

          BU 5 (Highway Patrol) has a statutory salary survey.  Salaries  
          of State Traffic Officers are determined based on a salary  
          survey of the compensation provided to similar occupations in  
          specified California governmental entities.



          BU 9 (Professional Engineers) has a salary survey agreed to in  
          their current MOU (effective July 2, 2003 to July 2, 2008).   
          Salaries of professional engineers employed by the State of  
          California are determined based on a salary survey of the  
          compensation provided to similar occupations in specified  
          California governmental entities.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, DPA would require one position, and about $150,000  
          (GF) annually, to implement the survey and reporting  








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          requirements of the bill.

           COMMENTS  :   According to the bill's sponsor, CASE, "Three  
          decades of collective bargaining between the state and its legal  
          professionals has resulted in the State becoming, according to  
          Dr. David Lewin of UCLA's Anderson School of Business, 'the  
          legal employer of last resort' with salaries as much as 50%  
          below comparable salaries at other public agencies in California  
          and far below the salaries paid to private attorneys suing the  
          state.  The cost to the State of allowing its legal foundation  
          to crumble is incalculable.  For this reason, in litigation now  
          pending in the Third District Court of Appeal, the State's  
          Attorney General recently appeared in court and urged the judge  
          to find the Dills Act unconstitutional as applied to legal  
          professionals noting that the State's low salaries were forcing  
          him to choose between adhering to a broken civil service system  
          and his constitutional duty to enforce the law and protect the  
          citizens of the State of California."

          In June of 2007, DPA issued a survey of total compensation for  
          attorneys in California which was conducted pursuant to the  
          current contract between the State and CASE.  CASE states that  
          while a prior survey conducted in 2006 showed a statewide  
          disparity for legal professionals of 36%, the 2007 survey showed  
          virtually no disparity.  CASE indicates that DPA's explanation  
          for the difference between the two surveys was that their  
          methodology had changed.

          The sponsor believes this bill will establish a plan to "?obtain  
          accurate data about the scope of the problem.  This bill will  
          provide that data to policy makers so that an honest discussion  
          can be had about how to compensate the State's legal  
          professionals.  The bill will require DPA to collect  
          compensation data from relevant comparable jurisdictions, and to  
          share that data with CASE as well as with the Legislature and  
          the Governor.  Only when the true disparity is acknowledged can  
          there be any coherent strategy about how to address it."


           Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957 


                                                                FN: 0006639








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