SECTIONS 1150-1158 - California Statutes

GOVERNMENT CODE

SECTION 1150-1158

1150. As used in this article:
(a) "State employee" means all persons who receive wages for
services through the uniform payroll system established and
administered by the Controller under Section 12470.
(b) "Public agency" includes counties, cities, municipal
corporations, political subdivisions, public districts, and other
public agencies of the state.
(c) "Employee organization" means an organization which represents
employees of the state or the California State University in their
employer-employee relations, and which is registered with the
Department of Personnel Administration or the Trustees of the
California State University, or which has been recognized or
certified by the Public Employment Relations Board.
(d) "Bona fide association" means an organization of employees and
former employees of an agency of the state and the California State
University, and which does not have as one of its purposes
representing these employees in their employer-employee relations.
(e) "Deduction" does not include direct deposit by electronic fund
transfer, as authorized by Sections 7506 and 12480.

1151. State employees may authorize deductions to be made from
their salaries or wages for payment of one or more of the following:
(a) Insurance premiums or other employee benefit programs
sponsored by a state agency under appropriate statutory authority.
(b) Premiums on National Service Life Insurance or United States
Government Converted Insurance.
(c) Shares or obligations to any regularly chartered credit union.
(d) Recurrent fees or charges payable to a state agency for a
program that has a purpose related to government, as determined by
the Controller.
(e) The purchase of United States savings bonds in accordance with
procedures established by the Controller.
(f) Payment of charitable contributions under any plan approved by
the California Victim Compensation and Government Claims Board in
accordance with procedures established by the Controller.
(g) Passes, tickets, or tokens issued for a period of one month,
or more, by a public transportation system.
(h) Deposit into an employee's account with a state or federal
bank or savings and loan association located in this state, for
services offered by that bank or savings and loan association.
(i) The purchase of any investment or thrift certificate issued by
an industrial loan company licensed by this state.

1151.5. (a) In addition to deductions authorized pursuant to
Section 1151, a state employee may authorize deductions to be made
from salaries or wages for payment for the support, maintenance, or
care of the employee's child, children, family, or former spouse for
whom the employee has a duty of support. A service charge may be
assessed for this deduction.
(b) A public agency may establish payroll deduction programs for
any of the following purposes:
(1) Payment for the support, maintenance, or care of an employee's
child, children, family, or former spouse for whom the employee has
a duty of support.
(2) Payment of an employee's legal judgment.
(3) Garnishment or deduction of an employee's wages pursuant to a
court order.
(4) Payment of an employee's loan or obligation to a commercial
lending institution.

1152. Deductions may be requested by employee organizations and
bona fide associations from the salaries and wages of their members,
as follows:
(a) Employee organizations may request membership dues,
initiation fees, and general assessments, as well as payment of any
other membership benefit program sponsored by the organization.
(b) Bona fide associations may request membership dues and
initiation fees.
The Controller shall not be required to make any benefit
deductions for an employee member whose membership dues are not
deducted.

1153. The Controller shall provide for the administration of
payroll deductions as set forth in Sections 1151, 1151.5, and 1152,
salary reductions pursuant to Section 12420.2, and may establish, by
rule or regulation, procedures for that purpose.
In administering these programs the Controller shall:
(a) Make, cancel, or change a deduction or reduction at the
request of the person or organization authorized to have the
deduction or reduction. All requests shall be made on forms approved
by the Controller.
(b) Obtain a certification from any state agency, employee
organization, or business entity requesting a deduction or reduction
that they have and will maintain an authorization, signed by the
individual from whose salary or wages the deduction or reduction is
to be made.
(c) Provide for an agreement from individuals, organizations, and
business entities receiving services to relieve the state, its
officers and employees, of any liability that may result from making,
canceling, or changing requested deductions or reductions. However,
no financial institution receiving a payroll service pursuant to this
section shall be required to reimburse the state for any error in
the payroll service received by that financial institution after 90
days from the month in which the payroll service was deducted from an
individual's paycheck.
(d) Determine the cost of performing the requested service and
collect that cost from the organization, entity, or individual
requesting or authorizing the service. Services requested which are
incidental, but not necessary, to making the deduction may be
performed at the Controller's discretion with any additional cost to
be paid by the requester. At least 30 days prior to implementation of
any adjustment of employee costs pursuant to Section 12420.2, the
Controller shall notify in writing any affected employee
organization.
(e) Prior to making a deduction for an employee organization or a
bona fide association, determine that the organization or association
has been recognized, certified, or registered by the appropriate
authority.
(f) Decline to make salary services for any individual,
organization, or entity if the Controller determines that it is not
administratively feasible or practical, or if the Controller
determines that the individual, organization, or entity requesting or
receiving the salary service has failed to comply with any statute,
rule, regulation, or procedure for the administration of salary
services.
(g) Make, cancel, or change a deduction or reduction not later
than the month subsequent to the month in which the request is
received. Except as provided in subdivision (c), all cancellations or
changes shall be effective when made by the Controller.
(h) At the request of a state agency, transfer employee deduction
authorization for a state-sponsored benefit program from one provider
to another if the benefit and the employee contribution remain
substantially the same. Notice of the transfer shall be given by the
Controller to all affected employees.

1156. (a) Any eligible employee who is participating in a flexible
benefits program may elect to receive one or more benefits that
qualify to be excluded from gross income in lieu of a portion of his
or her salary.
(b) For purposes of this section, an "eligible employee" means any
of the following:
(1) An employee excluded from the definition of "state employee"
in Section 3513.
(2) A "managerial employee" as defined in Section 3513.
(3) A "confidential employee" as defined in Section 3513 and
Section 3562.
(4) A "supervisory employee" as defined in Section 3580.3.
(5) An officer or employee of the State of California in the
executive or judicial branch of government who is not a state civil
service employee pursuant to Part 2 (commencing with Section 18500)
of Division 5 of Title 2.
(6) A "state employee," as defined by Section 3513 or employed by
the state as provided for in Article VI of the Constitution.
(c) Any eligible employee participating in the flexible benefits
program shall be subject to federal laws and implementing regulations
of the Department of Personnel Administration which affects the
flexible benefit program throughout the period of the employee's
enrollment.
(d) Unless the trustee or the administrator of the state's
flexible benefit program is the Controller or another state officer,
that program shall be administered in compliance with the federal
Employee Retirement Income Security Act of 1974 (ERISA: 29 U.S.C.
Sec. 1001 et seq.).
(e) As a condition of participating in a flexible benefits
program, each eligible employee shall provide evidence, in a manner
satisfactory to the Department of Personnel Administration, that the
employee is covered by a basic health benefits plan, and his or her
agreement to remain covered for the period of participation in the
flexible benefits plan.
(f) There is in the State Treasury the Flexelect Benefit Fund
which, notwithstanding Section 13340, is continuously appropriated
without regard to fiscal years to the Department of Personnel
Administration for expenditure to implement the flexible benefits
program and to pay the related administrative costs. The fund shall
consist of the amounts received from state employee compensation
excluded from gross income and transmitted to the Flexelect Benefit
Fund, income of whatever nature earned on the money in the Flexelect
Benefit Fund during any fiscal year and credited to the fund, and
amounts appropriated therefor in the annual Budget Act and other
statutes.
(g) On or after July 1, 1990, any funds remaining in the State
Employees' Dependent Care Assistance and Health Care Assistance Fund
shall be transmitted into the account in the Flexelect Benefit Fund
for the administrative expenses of the Controller's office to pay the
related administrative costs.

1156.1. (a) Any eligible employee may elect to participate in the
State Employees' Pretax Parking Payroll Deduction Program. The
program shall be administered by the Department of Personnel
Administration. An amount equivalent to the value of the parking, to
the extent permitted by Internal Revenue Code Section 132, shall be
excluded from the gross income of the employee, in lieu of a portion
of the employee's compensation, and shall be transmitted to the State
Employees' Pretax Parking Fund. Each eligible employee electing to
participate in the program, for the period that he or she is enrolled
as a participant in the program, shall be subject to the applicable
federal law and regulations and related state administrative
regulations adopted by the Department of Personnel Administration.
(b) For purposes of this section, an "eligible employee" means any
of the following:
(1) A "state employee," as defined in Section 3513.
(2) An "excluded employee," as defined in Section 3527.
(3) An officer or employee of the State of California in the
executive branch of government who is not a state civil service
employee pursuant to Part 2 (commencing with Section 18500) of
Division 5 of Title 2.
(c) There is in the State Treasury the State Employees' Pretax
Parking Fund which, notwithstanding Section 13340, is continuously
appropriated without regard to fiscal years to the Department of
Personnel Administration for expenditure to implement the State
Employees' Pretax Parking Payroll Deduction Program. The fund shall
consist of the amounts received from employee compensation excluded
from gross income and transmitted to the State Employees' Pretax
Parking Fund pursuant to subdivision (a).

1157. (a) Officers and employees of a public agency, other than
those under the uniform payroll system provided for in Article 5
(commencing with Section 12470) of Chapter 5 of Part 2 of Division 3
of Title 2, may authorize the governing body of the public agency to
make deductions from their salaries or wages for the payment of
premiums on life, accident, health, disability, legal expense, or
automobile liability insurance, or on any two or more, under a system
of insurance approved by or adopted and carried into effect by the
governing body, or for the payment of premiums on National Service
Life Insurance or United States Government Converted Insurance.
Officers and employees of the public agency may authorize the
governing body of the public agency to make deductions from their
salaries or wages for the payment of dues or subscription charges of
nonprofit membership corporations for defraying the cost of medical
service (including services rendered by doctors of medicine, doctors
of osteopathic medicine, or doctors of chiropractic), or hospital
care, or legal services, or, any of them, under system of medical
service, or hospital care, or legal services, or, any of them,
approved by or adopted and carried into effect by the governing body.
(b) The board of supervisors may, by resolution, permit officers
and employees of a county to authorize deductions from their salaries
or wages for the premiums on long-term care insurance established
pursuant to Article 8.8 (commencing with Section 31696.1) of Chapter
3 of Part 3 of Division 4 of Title 3 or pursuant to Chapter 15
(commencing with Section 21660) of Part 3 of Division 5 of Title 2
and approved by, or adopted and carried into effect by, the
retirement association. Materials offering that long-term care
insurance shall specify that the long-term care insurance is approved
by, or adopted and carried into effect by, the retirement
association and not by the county.

1157.1. Employees of a public agency, on approval of and in
accordance with the provisions made by the governing body of the
public agency, may authorize deductions to be made from their
salaries or wages for the payment of dues in, or for any other
services provided by, any bona fide association (a) whose members are
comprised exclusively of the employees of such public agency, or (b)
whose members are comprised exclusively of the employees of such
public agency and one or more other public agencies the payrolls of
which are prepared by the same finance officer, or (c) whose members
are comprised exclusively of the employees of such public agency or
agencies as provided in (a) or (b) above, together with former
employees of such public agency or agencies if such former employees
(1) were employees of such public agency or agencies at the time of
joining such association, and (2) were members of such association at
the time of ceasing to be such employees.

1157.2. With the approval of the governing body of a public agency
and under such regulations as it may prescribe, employees of the
public agency may authorize deductions to be made from their salaries
or wages either for the payment of contributions to bona fide
charitable organizations or for the payment of designated sums to a
nonprofit California corporation which is compelled by its by-laws to
make, and which does expend such sums solely by the making of,
contributions to bona fide charitable organizations.

1157.3. Employees, including retired employees, of a public agency
in addition to any other purposes authorized in this article, on
approval of the governing body of such public agency, may also
authorize deductions to be made from their salaries, wages, or
retirement allowances for the payment of dues in, or for any other
service provided by, any bona fide organization whose membership is
comprised, in whole or in part, of employees of such agency and
employees of such organization and which has as one of its objectives
improvements in the terms or conditions of employment for the
advancement of the welfare of such employees, such deductions to be
made in accordance with the provisions made by the governing body of
the public agency.

1157.4. (a) Employees of a county employing more than 20,000
persons, other than a city and county, may authorize deductions to be
made from their salaries or wages for the payment of dues in, or for
any other services provided by, any bona fide association (a) whose
members are comprised exclusively of the employees of such county,
other than a city and county, or (b) whose members are comprised
exclusively of the employees of such county, other than a city and
county, and one or more other public agencies the payrolls of which
are prepared by the same finance officer, or (c) whose members are
comprised exclusively of the employees of such county, other than a
city and county, or agencies as provided in (a) or (b) above,
together with former employees of such county, other than a city and
county, or agencies if such former employees (1) were employees of
such county, other than a city and county, or other agencies at the
time of joining such association, and (2) were members of such
association at the time of ceasing to be such employees.
In addition to the other requirements of this section, any
employee organization for which dues are to be deducted from pay
warrants shall have in membership at least 1 percent of the employees
of such county, other than a city and county, provided that an
employee organization which is formally recognized as the majority
representative of employees of such county, other than a city and
county, in an established employee representational unit shall
qualify as an employee organization for which dues are to be deducted
from pay warrants.
(b) Notwithstanding subdivision (a), an employee organization
which has in membership at least 1 percent of the total number of
employees of such county, other than a city and county, on April 30,
1973, and which, on April 30, 1973, was an employee organization for
which dues could be deducted from pay warrants, shall not lose such
qualification for the reason that such employee organization does not
have after April 30, 1973, a membership of at least 1 percent of the
total number of employees of such county, other than a city and
county.
(c) No employee may have deductions for more than a total of two
organizations under this section and under Section 1157.5.

1157.5. Employees, including retired employees, of a county, other
than a city and county, employing more than 20,000 persons in
addition to any other purposes authorized in this article may also
authorize deductions to be made from their salaries, wages, or
retirement allowances for the payment of dues in, or for any other
service provided by, any bona fide organization whose membership is
comprised, in whole or in part, of employees of such county, other
than a city and county, and employees of such organization and which
has as one of its objectives improvements in the terms or conditions
of employment for the advancement of the welfare of such employees.

1157.6. Retired employees of a public agency, other than a school
district, or eligible surviving spouses of such retired employees, on
approval of the governing body of such public agency, in addition to
any other purposes authorized in this article, may authorize
deductions to be made from their retirement or survivors' allowances
for the payment of dues in any bona fide association whose membership
is comprised in whole or in part of retired employees of such public
agency in accordance with provisions made by the governing body of
the public agency.

1157.7. Employees of a public agency employing more than 20,000
persons, other than a city and county, may authorize dues deductions
for membership in an ethnic employee organization operating within
the public agency prior to January 1, 1981, which includes ethnic
minority employees and which has as its primary purpose representing
those employees in their employment civil rights with the employer.
This purpose shall not include meeting and conferring with the public
agency concerning matters within the scope of representation
pursuant to Chapter 10 (commencing with Section 3500).

1157.8. Officers and employees of public agencies may authorize
deductions to be made from their salaries or wages for the purchase
of United States savings bonds in accordance with provision made by
the governing body of the public agency.
All auditors, treasurers, and other disbursing officers of public
agencies are authorized to recognize and act upon these requests for
salary or wage deductions and to establish special accounts for each
officer or employee so that sufficient funds may be accumulated to
the credit of the officer or employee for the purchase of United
States savings bonds. All funds so accumulated are trust funds.

1157.9. Officers and employees of public agencies may authorize
wage and salary deductions for deposit into an account with a state
or federal bank or savings and loan association located in this
state, or for the purchase of shares in, or the payment of money to,
any regularly chartered credit union, or for the purchase of any
investment or thrift certificate issued by an industrial loan company
licensed by this state. Auditors, treasurers, and other disbursing
officers of any public agency other than a state agency are
authorized to recognize and act upon these wage or salary
assignments.

1157.10. Payroll deductions for state employees of public agencies,
other than those under the uniform payroll system, shall be
administered by the appropriate officer of the public agency. In
administering payroll deductions the officer shall do all of the
following:
(a) Make, cancel, or change a deduction at the request of the
person or organization authorized to have the deduction. All requests
shall be on forms approved by the public agency.
(b) Obtain a certification from any state agency, employee
organization, or business entity requesting a deduction that they
have, and will maintain, an authorization to make the deduction,
signed by the individual from whose salary or wages the deduction is
to be made.
(c) Provide for an agreement from organizations and business
entities receiving deductions to relieve the public agency, its
officers and employees, of any liability that may result from making,
canceling, or changing requested deductions.
(d) Determine the cost of performing the requested deduction
service and collect that cost from the organization, entity, or
individual requesting or authorizing the deduction. Services
requested which are incidental, but not necessary, to making the
deduction may be performed at the public agency's discretion, with
any additional cost to be paid by the requester.
(e) Prior to making a deduction for an employee organization or a
bona fide association, determine that the organization or association
has been recognized or registered by the appropriate authority.
(f) Decline to make deductions for any individual, organization,
or entity if the public agency determines that it is not
administratively feasible or practical to make the deduction.
(g) Make, cancel, or change a deduction not later than the month
subsequent to the month in which the request is received. All
deductions, cancellations, or changes shall be effective when made by
the public agency.

1157.11. (a) Officers and employees of a county with a population
of over 8,000,000, may authorize deductions to be made from their
salaries or wages for the purchase of securities issued by any of the
following:
(1) The county.
(2) Any joint powers authority created pursuant to an agreement to
which the county is a party entered into pursuant to Article 1
(commencing with Section 6500) of Chapter 5 of Division 7.
(3) Any public district which is governed by the governing body of
the county.
(4) Any nonprofit public benefit corporation created by the
governing body of the county for the purpose of assisting the county
in financing capital projects and equipment purchases, provided the
corporation is deemed to be an instrumentality of the county for
federal income tax purposes.
(b) In each case, the deductions shall be made in accordance with
provisions made by the governing body of the county.
(c) For purposes of this section, "securities" includes bonds,
notes, warrants, lease or installment sale obligations represented by
certificates of participation, or other evidences of indebtedness.
(d) The auditor, the treasurer, and other disbursing officers of
the county are authorized to recognize and act upon the requests for
wage or salary deductions and to establish special accounts for each
officer or employee so that sufficient funds may be accumulated to
the credit of the officer or employee for the purchase of securities
as authorized by this section. All funds so accumulated are trust
funds.

1158. No provision of law prohibiting, restricting or limiting the
assignment or order for wages or salaries in any way prohibits,
restricts or limits the powers conferred in this article.