BILL ANALYSIS                                                                                                                                                                                                    

          |SENATE RULES COMMITTEE            |                        AB 129|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |

                                   THIRD READING 

          Bill No:  AB 129
          Author:   Committee on Budget
          Amended:  8/31/15 in Senate
          Vote:     21

           SENATE BUDGET & FISCAL REVIEW COMMITTEE:  14-0, 8/27/15
           AYES:  Leno, Nielsen, Allen, Anderson, Beall, Block, Hancock,  
            Monning, Moorlach, Pan, Pavley, Roth, Stone, Wolk
           NO VOTE RECORDED:  Mitchell, Nguyen

           ASSEMBLY FLOOR:  Not relevant

           SUBJECT:   State civil serviceState civil service.

          SOURCE:    Author

          DIGEST:  This bill provides for statutory changes to the state  
          civil service system.

          ANALYSIS:   This bill makes the following statutory changes to  
          laws governing the civil service system for state employees.  
          Specifically, this bill impacts two key areas of law governing  
          1) the competitive ranking of state civil service employees and  
          applicants, and 2) eligibility and hiring of state employees in  
          "Career Executive Assignments (CEA).

          Ranking of Civil Service Employees and Applicants

          In general, state employment is based on a system of merit  
          achieved through competitive examination. Applicants for  


                                                                     AB 129  
                                                                    Page  2

          promotion or employment are ranked based on exam scores and  
          employers may promote or hire from either the top three names or  
          ranks, as specified. An employee may receive a passing score on  
          an exam, but not score high enough to place in the top three  
          ranks, and therefore, may not be eligible for hire or promotion.  
          As people in the top three ranks are hired, promoted, or  
          otherwise fall off the hiring list, individuals who have passed  
          the exam may move up into the top three ranks and become  
          eligible for hire or promotion. Specifically, this bill:
            1) Eliminates the "Rule of Three Names," which requires hiring  
             managers to consider only the top three individuals on  
             promotional hiring eligibility lists whose examination scores  
             result in them being in the top three names.

           2) Eliminates the "Rule of Six Ranks," which requires all  
             managerial hiring eligibility lists to be organized into six  
             ranks, depending on the scores applicants receive on the  
             classification's exam, and limits a department's hiring  
             manager to only consider applicants whose examination scores  
             result in them being in the top three ranks. 

           3) Eliminates the "Rule of One Rank," which requires  
             departmental hiring managers to only consider individuals  
             whose examination scores result in them being in the first  
             rank for supervisory positions. 

           4) Consolidates various hiring eligibility list requirements  
             into a single process, the "Rule of Three Ranks", which would  
             apply to all promotional or open state jobs. This change will  
             allow hiring managers to consider eligible persons whose  
             examination scores result in them being in the top three  
             ranks for rank and file and managerial lists, as specified.

          CEA Assignments

          CEAs are state employees in high-level managerial positions that  
          serve at the top levels in a department. Their responsibility  
          includes developing and implementing policy, and may serve in a  
          department director's cabinet or form a department's executive  

          In general, CEAs in state employment must be hired from among  
          individuals with permanent civil service status. In addition,  


                                                                     AB 129  
                                                                    Page  3

          CEA applicants can include legislative employees, executive  
          branch appointees (i.e., exempt employees), or former military,  
          as specified. CEAs are not subject to the same job protections  
          or hiring and disciplinary standards as apply to non-executive  
          state civil service employees. CEAs may be terminated "at will."  
          CEAs must be hired or promoted via a competitive process that is  
          overseen by the State Personnel Board (SPB). Former civil  
          service employees who become CEAs and are subsequently  
          terminated have certain rights to return to civil service  
          positions following termination, as specified. 

          This bill expands the pool of CEA candidates by making the  
             following changes: 

           5) Eliminates the requirement that a former legislative or  
             non-elected exempt employee be separated from employment for  
             no more than 12 months prior to applying for the CEA  

           6) Expands the pool of eligible candidates that can be  
             appointed to a CEA position to include individuals from the  
             private sector who meet the requirements of the applicable  

           7) Provides terminated CEAs hired from outside state civil  
             service the right to appeal to the SPB for restoration of  
             their assignment. 

           8) Clarifies that terminated CEAs who were previously employed  
             by the state and had permanent civil service status, have  
             return rights to a (non-CEA) civil service position, with at  
             least the same salary level as the last position they held.  
             If the employee had a minimum of five years of state service,  
             he or she may return to a position that has the same salary  
             level as the last position or at least the same salary level  
             that is at least two steps lower than the CEA position from  
             which the employee is being terminated. These provisions are  
             consistent with existing law.

             Additionally, this bill states that terminated CEAs hired  
             from outside civil service would be eligible for deferred  
             examination for any open position at the department they were  
             employed at and meet the minimum qualifications. 


                                                                     AB 129  
                                                                    Page  4

           9) Eliminates rules prohibiting a CEA applicant from competing  
             in multiple civil service promotional exams at more than one  
             department in the same class. 

           10)  Provides $300,000 one-time General Fund for the Department  
             of Finance (DOF) to post all budget requests included as a  
             part of the Governor's Budget on DOF's website. The funds  
             will be used to purchase high-speed industrial scanners and  
             additional software programming. 

          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   No

          SUPPORT:   (Verified8/28/15)

          None received

          OPPOSITION:   (Verified8/28/15)

          None received

          Prepared by:Anita Lee / B. & F.R. / (916) 651-4103
          8/31/15 10:56:48

                                   ****  END  ****