SECTIONS 1150-1158

1150.  As used in this article: (a) "State employee" means all persons who receive wages forservices through the uniform payroll system established andadministered by the Controller under Section 12470. (b) "Public agency" includes counties, cities, municipalcorporations, political subdivisions, public districts, and otherpublic agencies of the state. (c) "Employee organization" means an organization which representsemployees of the state or the California State University in theiremployer-employee relations, and which is registered with theDepartment of Personnel Administration or the Trustees of theCalifornia State University, or which has been recognized orcertified by the Public Employment Relations Board. (d) "Bona fide association" means an organization of employees andformer employees of an agency of the state and the California StateUniversity, and which does not have as one of its purposesrepresenting these employees in their employer-employee relations. (e) "Deduction" does not include direct deposit by electronic fundtransfer, as authorized by Sections 7506 and 12480.1151.  State employees may authorize deductions to be made fromtheir salaries or wages for payment of one or more of the following: (a) Insurance premiums or other employee benefit programssponsored by a state agency under appropriate statutory authority. (b) Premiums on National Service Life Insurance or United StatesGovernment Converted Insurance. (c) Shares or obligations to any regularly chartered credit union. (d) Recurrent fees or charges payable to a state agency for aprogram that has a purpose related to government, as determined bythe Controller. (e) The purchase of United States savings bonds in accordance withprocedures established by the Controller. (f) Payment of charitable contributions under any plan approved bythe California Victim Compensation and Government Claims Board inaccordance 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 federalbank or savings and loan association located in this state, forservices offered by that bank or savings and loan association. (i) The purchase of any investment or thrift certificate issued byan industrial loan company licensed by this state.1151.5.  (a) In addition to deductions authorized pursuant toSection 1151, a state employee may authorize deductions to be madefrom salaries or wages for payment for the support, maintenance, orcare of the employee's child, children, family, or former spouse forwhom the employee has a duty of support. A service charge may beassessed for this deduction. (b) A public agency may establish payroll deduction programs forany of the following purposes: (1) Payment for the support, maintenance, or care of an employee'schild, children, family, or former spouse for whom the employee hasa duty of support. (2) Payment of an employee's legal judgment. (3) Garnishment or deduction of an employee's wages pursuant to acourt order. (4) Payment of an employee's loan or obligation to a commerciallending institution.1152.  Deductions may be requested by employee organizations andbona 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 anyother membership benefit program sponsored by the organization. (b) Bona fide associations may request membership dues andinitiation fees. The Controller shall not be required to make any benefitdeductions for an employee member whose membership dues are notdeducted.1153.  The Controller shall provide for the administration ofpayroll deductions as set forth in Sections 1151, 1151.5, and 1152,salary reductions pursuant to Section 12420.2, and may establish, byrule or regulation, procedures for that purpose. In administering these programs the Controller shall: (a) Make, cancel, or change a deduction or reduction at therequest of the person or organization authorized to have thededuction or reduction. All requests shall be made on forms approvedby the Controller. (b) Obtain a certification from any state agency, employeeorganization, or business entity requesting a deduction or reductionthat they have and will maintain an authorization, signed by theindividual from whose salary or wages the deduction or reduction isto be made. (c) Provide for an agreement from individuals, organizations, andbusiness entities receiving services to relieve the state, itsofficers 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 thissection shall be required to reimburse the state for any error inthe payroll service received by that financial institution after 90days from the month in which the payroll service was deducted from anindividual's paycheck. (d) Determine the cost of performing the requested service andcollect that cost from the organization, entity, or individualrequesting or authorizing the service. Services requested which areincidental, but not necessary, to making the deduction may beperformed at the Controller's discretion with any additional cost tobe paid by the requester. At least 30 days prior to implementation ofany adjustment of employee costs pursuant to Section 12420.2, theController shall notify in writing any affected employeeorganization. (e) Prior to making a deduction for an employee organization or abona fide association, determine that the organization or associationhas been recognized, certified, or registered by the appropriateauthority. (f) Decline to make salary services for any individual,organization, or entity if the Controller determines that it is notadministratively feasible or practical, or if the Controllerdetermines that the individual, organization, or entity requesting orreceiving the salary service has failed to comply with any statute,rule, regulation, or procedure for the administration of salaryservices. (g) Make, cancel, or change a deduction or reduction not laterthan the month subsequent to the month in which the request isreceived. Except as provided in subdivision (c), all cancellations orchanges shall be effective when made by the Controller. (h) At the request of a state agency, transfer employee deductionauthorization for a state-sponsored benefit program from one providerto another if the benefit and the employee contribution remainsubstantially the same. Notice of the transfer shall be given by theController to all affected employees.1156.  (a) Any eligible employee who is participating in a flexiblebenefits program may elect to receive one or more benefits thatqualify to be excluded from gross income in lieu of a portion of hisor her salary. (b) For purposes of this section, an "eligible employee" means anyof 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 andSection 3562. (4) A "supervisory employee" as defined in Section 3580.3. (5) An officer or employee of the State of California in theexecutive or judicial branch of government who is not a state civilservice 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 bythe state as provided for in Article VI of the Constitution. (c) Any eligible employee participating in the flexible benefitsprogram shall be subject to federal laws and implementing regulationsof the Department of Personnel Administration which affects theflexible benefit program throughout the period of the employee'senrollment. (d) Unless the trustee or the administrator of the state'sflexible benefit program is the Controller or another state officer,that program shall be administered in compliance with the federalEmployee Retirement Income Security Act of 1974 (ERISA: 29 U.S.C.Sec. 1001 et seq.). (e) As a condition of participating in a flexible benefitsprogram, each eligible employee shall provide evidence, in a mannersatisfactory to the Department of Personnel Administration, that theemployee is covered by a basic health benefits plan, and his or heragreement to remain covered for the period of participation in theflexible benefits plan. (f) There is in the State Treasury the Flexelect Benefit Fundwhich, notwithstanding Section 13340, is continuously appropriatedwithout regard to fiscal years to the Department of PersonnelAdministration for expenditure to implement the flexible benefitsprogram and to pay the related administrative costs. The fund shallconsist of the amounts received from state employee compensationexcluded from gross income and transmitted to the Flexelect BenefitFund, income of whatever nature earned on the money in the FlexelectBenefit Fund during any fiscal year and credited to the fund, andamounts appropriated therefor in the annual Budget Act and otherstatutes. (g) On or after July 1, 1990, any funds remaining in the StateEmployees' Dependent Care Assistance and Health Care Assistance Fundshall be transmitted into the account in the Flexelect Benefit Fundfor the administrative expenses of the Controller's office to pay therelated administrative costs.1156.1.  (a) Any eligible employee may elect to participate in theState Employees' Pretax Parking Payroll Deduction Program. Theprogram shall be administered by the Department of PersonnelAdministration. An amount equivalent to the value of the parking, tothe extent permitted by Internal Revenue Code Section 132, shall beexcluded from the gross income of the employee, in lieu of a portionof the employee's compensation, and shall be transmitted to the StateEmployees' Pretax Parking Fund. Each eligible employee electing toparticipate in the program, for the period that he or she is enrolledas a participant in the program, shall be subject to the applicablefederal law and regulations and related state administrativeregulations adopted by the Department of Personnel Administration. (b) For purposes of this section, an "eligible employee" means anyof 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 theexecutive branch of government who is not a state civil serviceemployee pursuant to Part 2 (commencing with Section 18500) ofDivision 5 of Title 2. (c) There is in the State Treasury the State Employees' PretaxParking Fund which, notwithstanding Section 13340, is continuouslyappropriated without regard to fiscal years to the Department ofPersonnel Administration for expenditure to implement the StateEmployees' Pretax Parking Payroll Deduction Program. The fund shallconsist of the amounts received from employee compensation excludedfrom gross income and transmitted to the State Employees' PretaxParking Fund pursuant to subdivision (a).1157.  (a) Officers and employees of a public agency, other thanthose under the uniform payroll system provided for in Article 5(commencing with Section 12470) of Chapter 5 of Part 2 of Division 3of Title 2, may authorize the governing body of the public agency tomake deductions from their salaries or wages for the payment ofpremiums on life, accident, health, disability, legal expense, orautomobile liability insurance, or on any two or more, under a systemof insurance approved by or adopted and carried into effect by thegoverning body, or for the payment of premiums on National ServiceLife Insurance or United States Government Converted Insurance.Officers and employees of the public agency may authorize thegoverning body of the public agency to make deductions from theirsalaries or wages for the payment of dues or subscription charges ofnonprofit membership corporations for defraying the cost of medicalservice (including services rendered by doctors of medicine, doctorsof osteopathic medicine, or doctors of chiropractic), or hospitalcare, or legal services, or, any of them, under system of medicalservice, 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 officersand employees of a county to authorize deductions from their salariesor wages for the premiums on long-term care insurance establishedpursuant to Article 8.8 (commencing with Section 31696.1) of Chapter3 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 2and approved by, or adopted and carried into effect by, theretirement association. Materials offering that long-term careinsurance shall specify that the long-term care insurance is approvedby, or adopted and carried into effect by, the retirementassociation and not by the county.1157.1.  Employees of a public agency, on approval of and inaccordance with the provisions made by the governing body of thepublic agency, may authorize deductions to be made from theirsalaries or wages for the payment of dues in, or for any otherservices provided by, any bona fide association (a) whose members arecomprised exclusively of the employees of such public agency, or (b)whose members are comprised exclusively of the employees of suchpublic agency and one or more other public agencies the payrolls ofwhich are prepared by the same finance officer, or (c) whose membersare comprised exclusively of the employees of such public agency oragencies as provided in (a) or (b) above, together with formeremployees of such public agency or agencies if such former employees(1) were employees of such public agency or agencies at the time ofjoining such association, and (2) were members of such association atthe time of ceasing to be such employees.1157.2.  With the approval of the governing body of a public agencyand under such regulations as it may prescribe, employees of thepublic agency may authorize deductions to be made from their salariesor wages either for the payment of contributions to bona fidecharitable organizations or for the payment of designated sums to anonprofit California corporation which is compelled by its by-laws tomake, 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 agencyin addition to any other purposes authorized in this article, onapproval of the governing body of such public agency, may alsoauthorize deductions to be made from their salaries, wages, orretirement allowances for the payment of dues in, or for any otherservice provided by, any bona fide organization whose membership iscomprised, in whole or in part, of employees of such agency andemployees of such organization and which has as one of its objectivesimprovements in the terms or conditions of employment for theadvancement of the welfare of such employees, such deductions to bemade in accordance with the provisions made by the governing body ofthe public agency.1157.4.  (a) Employees of a county employing more than 20,000persons, other than a city and county, may authorize deductions to bemade from their salaries or wages for the payment of dues in, or forany other services provided by, any bona fide association (a) whosemembers are comprised exclusively of the employees of such county,other than a city and county, or (b) whose members are comprisedexclusively of the employees of such county, other than a city andcounty, and one or more other public agencies the payrolls of whichare prepared by the same finance officer, or (c) whose members arecomprised exclusively of the employees of such county, other than acity and county, or agencies as provided in (a) or (b) above,together with former employees of such county, other than a city andcounty, or agencies if such former employees (1) were employees ofsuch county, other than a city and county, or other agencies at thetime of joining such association, and (2) were members of suchassociation at the time of ceasing to be such employees. In addition to the other requirements of this section, anyemployee organization for which dues are to be deducted from paywarrants shall have in membership at least 1 percent of the employeesof such county, other than a city and county, provided that anemployee organization which is formally recognized as the majorityrepresentative of employees of such county, other than a city andcounty, in an established employee representational unit shallqualify as an employee organization for which dues are to be deductedfrom pay warrants. (b) Notwithstanding subdivision (a), an employee organizationwhich has in membership at least 1 percent of the total number ofemployees of such county, other than a city and county, on April 30,1973, and which, on April 30, 1973, was an employee organization forwhich dues could be deducted from pay warrants, shall not lose suchqualification for the reason that such employee organization does nothave after April 30, 1973, a membership of at least 1 percent of thetotal number of employees of such county, other than a city andcounty. (c) No employee may have deductions for more than a total of twoorganizations under this section and under Section 1157.5.1157.5.  Employees, including retired employees, of a county, otherthan a city and county, employing more than 20,000 persons inaddition to any other purposes authorized in this article may alsoauthorize deductions to be made from their salaries, wages, orretirement allowances for the payment of dues in, or for any otherservice provided by, any bona fide organization whose membership iscomprised, in whole or in part, of employees of such county, otherthan a city and county, and employees of such organization and whichhas as one of its objectives improvements in the terms or conditionsof employment for the advancement of the welfare of such employees.1157.6.  Retired employees of a public agency, other than a schooldistrict, or eligible surviving spouses of such retired employees, onapproval of the governing body of such public agency, in addition toany other purposes authorized in this article, may authorizedeductions to be made from their retirement or survivors' allowancesfor the payment of dues in any bona fide association whose membershipis comprised in whole or in part of retired employees of such publicagency in accordance with provisions made by the governing body ofthe public agency.1157.7.  Employees of a public agency employing more than 20,000persons, other than a city and county, may authorize dues deductionsfor membership in an ethnic employee organization operating withinthe public agency prior to January 1, 1981, which includes ethnicminority employees and which has as its primary purpose representingthose employees in their employment civil rights with the employer.This purpose shall not include meeting and conferring with the publicagency concerning matters within the scope of representationpursuant to Chapter 10 (commencing with Section 3500).1157.8.  Officers and employees of public agencies may authorizedeductions to be made from their salaries or wages for the purchaseof United States savings bonds in accordance with provision made bythe governing body of the public agency. All auditors, treasurers, and other disbursing officers of publicagencies are authorized to recognize and act upon these requests forsalary or wage deductions and to establish special accounts for eachofficer or employee so that sufficient funds may be accumulated tothe credit of the officer or employee for the purchase of UnitedStates savings bonds. All funds so accumulated are trust funds.1157.9.  Officers and employees of public agencies may authorizewage and salary deductions for deposit into an account with a stateor federal bank or savings and loan association located in thisstate, or for the purchase of shares in, or the payment of money to,any regularly chartered credit union, or for the purchase of anyinvestment or thrift certificate issued by an industrial loan companylicensed by this state. Auditors, treasurers, and other disbursingofficers of any public agency other than a state agency areauthorized to recognize and act upon these wage or salaryassignments.1157.10.  Payroll deductions for state employees of public agencies,other than those under the uniform payroll system, shall beadministered by the appropriate officer of the public agency. Inadministering payroll deductions the officer shall do all of thefollowing: (a) Make, cancel, or change a deduction at the request of theperson or organization authorized to have the deduction. All requestsshall be on forms approved by the public agency. (b) Obtain a certification from any state agency, employeeorganization, or business entity requesting a deduction that theyhave, and will maintain, an authorization to make the deduction,signed by the individual from whose salary or wages the deduction isto be made. (c) Provide for an agreement from organizations and businessentities receiving deductions to relieve the public agency, itsofficers and employees, of any liability that may result from making,canceling, or changing requested deductions. (d) Determine the cost of performing the requested deductionservice and collect that cost from the organization, entity, orindividual requesting or authorizing the deduction. Servicesrequested which are incidental, but not necessary, to making thededuction may be performed at the public agency's discretion, withany additional cost to be paid by the requester. (e) Prior to making a deduction for an employee organization or abona fide association, determine that the organization or associationhas 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 notadministratively feasible or practical to make the deduction. (g) Make, cancel, or change a deduction not later than the monthsubsequent to the month in which the request is received. Alldeductions, cancellations, or changes shall be effective when made bythe public agency.1157.11.  (a) Officers and employees of a county with a populationof over 8,000,000, may authorize deductions to be made from theirsalaries or wages for the purchase of securities issued by any of thefollowing: (1) The county. (2) Any joint powers authority created pursuant to an agreement towhich 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 ofthe county. (4) Any nonprofit public benefit corporation created by thegoverning body of the county for the purpose of assisting the countyin financing capital projects and equipment purchases, provided thecorporation is deemed to be an instrumentality of the county forfederal income tax purposes. (b) In each case, the deductions shall be made in accordance withprovisions 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 bycertificates of participation, or other evidences of indebtedness. (d) The auditor, the treasurer, and other disbursing officers ofthe county are authorized to recognize and act upon the requests forwage or salary deductions and to establish special accounts for eachofficer or employee so that sufficient funds may be accumulated tothe credit of the officer or employee for the purchase of securitiesas authorized by this section. All funds so accumulated are trustfunds.1158.  No provision of law prohibiting, restricting or limiting theassignment or order for wages or salaries in any way prohibits,restricts or limits the powers conferred in this article.