Bill Text: CA AB1681 | 2013-2014 | Regular Session | Amended

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Bill Title: Public employees: benefits.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2014-05-21 - From committee without further action pursuant to Joint Rule 62(a). [AB1681 Detail]

Download: California-2013-AB1681-Amended.html

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BILL NUMBER: AB 1681	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 21, 2014
	AMENDED IN ASSEMBLY  MARCH 28, 2014

INTRODUCED BY   Assembly Member Allen

                        FEBRUARY 12, 2014

   An act to add Sections 3509.7 and 3523.4 to the Government Code,
relating to public employees' benefits.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1681, as amended, Allen. Public employees: benefits.
   Existing law permits the Board of Administration of the Public
Employees' Retirement System to authorize an employer to participate
in the prefunding of health care coverage and other postemployment
benefits for annuitants.
   This bill would  require a memorandum of understanding or
on the topic of postemployment health care benefits between 
 prohibit  a public  employer or a  
agency,  state  employer and   agency,
employee organization, or public  employees  to contain
a plan to begin the permanent prefunding of   from
entering into a memorandum of understanding that provides
postemployment health care benefits without a strategy for
permanently prefunding members'  postemployment health care
benefits.  The bill would provide that the plan may authorize
any amount that otherwise would be used to permanently increase
employee compensation to be used to permanently prefund members'
postemployment healthcare benefits. 
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 3509.7 is added to the Government Code, to
read:
   3509.7.  (a) Notwithstanding any other law, a public agency  ,
employee organization, or public employee  shall not enter into
a memorandum of understanding  or on the topic of
postemployment health care benefits with employees first hired
 on or after January 1, 2015,  unless it contains a
plan to begin permanent prefunding of   that provides
postemployment health care benefits without a strategy for
permanently prefunding members'  postemployment health care
benefits pursuant to Article 11 (commencing with Section 22940) of
Chapter 1 or Part 5 of Division 5 of Title 2.  The plan may
authorize any amount that otherwise would be used to permanently
increase employee compensation to be used to permanently prefund
members' postemployment health care benefits. 
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding, the memorandum of
understanding shall be controlling, except that upon expiration of
the memorandum of understanding or other collective bargaining
agreement, this section shall be controlling and may not be
superseded by a subsequent memorandum of understanding or other
collective bargaining agreement.
  SEC. 2.  Section 3523.4 is added to the Government Code, to read:
   3523.4.  (a) Notwithstanding any other law, the state employer
 , employee organization, or state employee  shall not enter
into a memorandum of understanding  on the topic of
postemployment health care benefits with employees first hired
 on or after January 1, 2015,  unless it contains a
plan to begin permanent prefunding of  that provides
postemployment health care benefits without a strategy for
permanently prefunding members'  postemployment health care
benefits pursuant to Article 11 (commencing with Section 22940) of
Chapter 1 or Part 5 of Division 5 of Title 2.  The plan may
authorize any amount that otherwise would be used to permanently
increase employee compensation to be used to permanently prefund
members' postemployment health care benefits. 
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding, the memorandum of
understanding shall be controlling, except that upon expiration of
the memorandum of understanding, this section shall be controlling
and may not be superseded by a subsequent memorandum of understanding
or other collective bargaining agreement.