2005 California Government Code Sections 19997-19997.15 Article 2. Layoff and Demotion

19997.  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.  All layoff
provisions and procedures established or agreed to under this article
shall be subject to State Personnel Board review pursuant to Section
19816.2.
19997.1.  The duties performed by any employee laid off may be
assigned to any other employee or employees in the state agency
holding positions in appropriate classes.
19997.2.  (a) With the approval of the department, only the
employees of a designated geographical, organizational or functional
subdivision of a state agency need be considered for layoff, and
reemployment lists shall be established for such subdivision.  Such
lists take priority over the departmental and other reemployment or
employment lists.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if such provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
19997.3.  (a) 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 seniority credit to be granted for service in a class that
has been abolished, combined, divided, or otherwise altered under
the authority of Section 18802.
   (3) The basis for determining the sequence of layoff whenever the
class and subdivision of layoff includes employees whose service is
less than full time.
   (4) Any other matters as are necessary or advisable to the
operation of this chapter.
   (b) 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.
   (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 incur either present or future costs,
or require the expenditure of funds, the provisions shall not become
effective unless approved by the Legislature in the annual Budget
Act.
19997.4.  (a) For the purposes of determining seniority pursuant to
subdivision (a) of Section 19997.3, the term "state service" shall
include all service that is exempt from state civil service.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions may not become effective unless approved by the
Legislature in the annual Budget Act.
19997.5.  (a) 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 unless this would result in the layoff
of an employee who has been reinstated in the class and subdivision
of layoff under Section 19780, and in the retention of an employee
who was appointed in the class and subdivision of layoff during the
time that a reinstated employee was on military leave.  Under these
circumstances, seniority shall not be counted as provided in Section
19997.3.  Instead, service in the subdivision of layoff that
qualifies under Section 19997.3 for credit is the only state service
that shall be counted.
   Whenever such a layoff results in the demotion to a lower class of
an employee who has been reinstated after recognized military
service as provided in Section 19780, the resulting layoff, if any,
in the lower class shall be made as though that reinstated employee
had been in that lower class at the time he or she went on military
leave.
   Any layoff occurring within one year after reinstatement of an
employee after recognized military service shall be presumed to have
been necessary by reason of reinstatement of an employee or employees
under Section 19780 unless the department determines that the reason
for layoff is clearly not related to the reinstatement.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions may not become effective unless approved by the
Legislature in the annual Budget Act.
19997.6.  (a) A veteran, except a veteran who was reinstated from
military leave, shall in the event of layoff receive 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.
   (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) Seniority credit for recognized military service shall not
exceed one year's credit if the veteran had no state service prior to
entering the military service.
   (d) This section shall become operative on July 1, 1993.
19997.7.  (a) 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 of these employees who have the same score, veterans shall have
preference in retention.  Other ties shall be resolved according to
department rule that shall take into consideration other matters of
record before names are drawn by lot.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions may not become effective unless approved by the
Legislature in the annual Budget Act.
19997.8.  (a) 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 line of work as the
class of layoff, but of lesser responsibility, if 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.  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 shall notify his or her appointing power in
writing of his or her election not later than five calendar days
after receiving notice of layoff.
   (b) 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.
   (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.
19997.9.  (a) Any employee replaced by such demotion has the same
option of demotion afforded by Section 19997.8 as if his or her
position had been abolished or discontinued.
   Except as authorized by the department under the provisions of
Section 19837, any employee demoted pursuant to this article shall
receive the maximum of the salary range of the class to which he or
she is demoted; provided, that such salary is not greater than the
salary he or she received at the time of demotion.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if such provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
19997.10.  (a) Any officer or employee, directly or indirectly,
entitled to or having permanent status under the provisions of
Article VII of the Constitution or the State Civil Service Act, who
is displaced by one having a right to return shall be accorded the
same rights to elect demotion in lieu of layoff as though he or she
had had permanent status at all times in any previous position.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if such provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
19997.11.  (a) The names of employees to be laid off or demoted
shall be placed upon the reemployment list for the subdivision, if
such a subdivision was designated, upon the departmental reemployment
list and upon the general reemployment list, for the class from
which the employees were laid off or demoted.  The department may
also place these names upon the general reemployment list for any
other appropriate classes as the department determines.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
19997.12.  (a) An employee who is certified to a position in a class
after layoff, or demotion in lieu of layoff, shall receive not less
than the same step in the salary range as he or she received in the
position in that class prior to such layoff or demotion.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if such provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
19997.13.  (a) 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 and not more than 60 days after the date of
the seniority computation.  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.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
19997.14.  (a) An employee may appeal to the department within 30
days after receiving notice of layoff on the ground that the required
procedure has not been complied with or that the layoff has not been
made in good faith or was otherwise improper.  Within 30 days after
such an appeal, the department shall hold such hearing or
investigation as it deems necessary.
   On its own motion the department may also conduct such a hearing
or investigation within 30 days after receiving a notice of layoff.
   In rendering a decision on a layoff, the department may order the
reinstatement of the employee with or without pay if it appears that
the required procedure was not followed or that the layoff was not
made in good faith or was otherwise improper.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if such provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
19997.15.  (a) In order to provide state civil service employees of
the California Maritime Academy with an opportunity to remain in the
state civil service system, there shall be a transition period from
January 1, 1994, to  June 30, 1995, inclusive.  Any civil service
employee of the California Maritime Academy who does not transfer
with the California Maritime Academy to the California State
University system shall be eligible for all job placement provisions
available pursuant to Sections 19998 and 19998.1.  Any civil service
employee who does not intend to transfer with the academy to the
California State University system prior to July 1, 1995, must file a
statement, on or before December 30, 1994, in the form as the
Director of the Department of Personnel Administration shall
prescribe rejecting employment in the California State University.
Those employees shall be subject to state civil service layoff and
reemployment in accordance with Part 2 (commencing with Section
18500), regulations adopted pursuant to those provisions, provisions
of applicable memoranda of understanding, or any other provision
governing layoff and reemployment within the state civil service.
Any employee who does not file the statement rejecting California
State University employment shall be considered an employee of the
California State University, effective July 1, 1995.
   (b) In order to provide for the orderly transition of California
Maritime Academy employees from the state civil service to the
California State University, the following shall apply:
   (1) The terms of any memorandum of understanding shall remain in
effect until the memorandum of understanding expires or is amended or
replaced.
   (2) After January 1, 1994, employees of the California Maritime
Academy, with the agreement of the exclusive representative and the
Trustees of the California State University, may petition the Public
Employment Relations Board to effect a bargaining unit modification;
however, any modification ordered by the board shall not be effective
until July 1, 1995, at the earliest.
   (3) If no modification is effected, the state classifications used
by the California Maritime Academy on June 30, 1995, shall, on July
1, 1995, be placed in new bargaining units under the Higher Education
Employer-Employee Relations Act (Chapter 12 (commencing with Section
3560) of Division 4 of Title 1) for the California Maritime Academy
parallel to the bargaining units as they exist on June 30, 1995, and
shall continue unless and until a unit modification is ordered by the
Public Employment Relations Board.
   (4) The exclusive representatives for each state bargaining unit
representing California Maritime Academy employees, as those
representatives and units exist on June 30, 1995, shall continue as
the exclusive representatives for their respective bargaining units
unless an election is called, but in no case may any such change in
exclusive representative occur prior to July 1, 1995.  An election is
not required to be held, and if no election occurs, the exclusive
representatives shall continue as the exclusive representatives with
responsibility to meet and confer with the Trustees of the California
State University or their designees on collective bargaining issues.
  Notwithstanding any provision of the act that added this section to
the Government Code, and to the extent authorized by law, the scope
of representation shall at least include any subject matter contained
in the current memoranda of understanding.