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(a) The director shall determine the fair and reasonable
value of maintenance, living quarters, housing, lodging, board,
meals, food, household supplies, fuel, laundry, domestic servants and
other services furnished by the state as an employer to its
employees.
The value so determined shall constitute the charges to be made to
state employees for any such maintenance or other services furnished
by the state, unless the employee is entitled thereto as
compensation for his or her services or as actual and necessary
expenses incurred in the performance of the state's business.
Whenever a state employee is entitled to such maintenance or other
services as part or full compensation for services rendered, the
value thereof for retirement purposes, as defined by Section 20022,
and for salary or wage fixing purposes, shall also be determined in
accordance with the values established by the department hereunder.
The director, by rule, shall provide for reasonable opportunity to be
heard by departments or employees affected by this section.
(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.
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