Bill Text: CA SB1141 | 2011-2012 | Regular Session | Introduced


Bill Title: Public employees: postemployment health care benefits.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-04-18 - Set, first hearing. Failed passage in committee. (Ayes 1. Noes 3. Page 3207.) Reconsideration granted. [SB1141 Detail]

Download: California-2011-SB1141-Introduced.html
BILL NUMBER: SB 1141	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Walters

                        FEBRUARY 21, 2012

   An act to amend Sections 22870 and 22890 of, and to add Section
7514.6 to, the Government Code, relating to public employee benefits.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1141, as introduced, Walters. Public employees: postemployment
health care benefits.
   The Public Employees' Medical and Hospital Care Act (PEMHCA),
which is administered by the Board of Administration of the Public
Employees' Retirement System, establishes provisions governing
postemployment health care benefits for members and their families,
upon meeting vesting requirements and subject to various limitations.
Existing law also establishes various postemployment health care
benefits under other benefit systems, including those offered by
counties, districts, cities, and the University of California.
   This bill would prohibit a public employer, for employees first
hired on or after January 1, 2013, from entering into a memorandum of
understanding or other collective bargaining agreement that provides
for defined postemployment health care benefits unless each employee
pays at least 50 percent of the actuarially required contributions
to fund those health care benefits. The bill would also declare that
ensuring the statewide integrity and security of state and local
government health care plans is a matter of statewide concern and not
a municipal affair, and that, therefore, all cities, including
charter cities, would be subject to the provisions of the bill. The
bill would also declare that these provisions apply to the University
of California to ensure the financial security of the university.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 7514.6 is added to the Government Code, to
read:
   7514.6.  (a) Notwithstanding any other law, for employees first
hired on or after January 1, 2013, a public employer shall not enter
into a memorandum of understanding or other collective bargaining
agreement that provides for defined postemployment health care
benefits unless each employee pays at least 50 percent of the
actuarially required contributions to fund those health care
benefits.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding or other collective
bargaining agreement, the memorandum of understanding or other
collective bargaining agreement shall be controlling, except 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.
   (c) For purposes of this section, the following definitions apply:

   (1) "Public employee" means an officer, including those elected or
appointed, or an employee of a public employer.
   (2)  "Public employer" means:
   (A) The state and every state entity, including, but not limited
to, the Legislature, the courts, the California State University, and
the University of California.
   (B) Any political subdivision of the state, including, but not
limited to, a city, county, city and county, charter city, charter
county, charter city and county, school district, community college
district, joint powers authority, joint powers agency, and any public
agency, authority, board, commission, district, or other entity.
  SEC. 2.  Section 22870 of the Government Code is amended to read:
   22870.  (a) The state and each employee or annuitant shall
contribute a portion of the cost of providing the benefit coverage
afforded under the approved health benefit plan in which the employee
or annuitant is enrolled.
   (b) An annuitant is entitled to only one employer contribution. If
more than one annuitant is receiving an allowance as the survivor of
the same employee or annuitant, there shall be only one employer
contribution with respect to all of those annuitants.
   (c) The contribution of each employee and annuitant shall be the
total cost per month of the benefit coverage afforded him or her
under the health benefit plan or plans in which he or she is enrolled
less the portion thereof to be contributed by the employer. The
employer contribution for each employee or annuitant shall commence
on the effective date of enrollment. 
   (d) The formulas for contributors pursuant to this article are
subject to the prefunding requirements in Section 7514.6. 
  SEC. 3.  Section 22890 of the Government Code is amended to read:
   22890.  (a) The contracting agency and each employee or annuitant
shall contribute a portion of the cost of providing the benefit
coverage afforded under the health benefit plan approved or
maintained by the board in which the employee or annuitant may be
enrolled.
   (b) An annuitant is entitled to only one employer contribution. If
more than one annuitant is receiving an allowance as the survivor of
the same employee or annuitant, there shall be only one employer
contribution with respect to all such annuitants.
   (c) The contribution of each employee and annuitant shall be the
total cost per month of the benefit coverage afforded him or her
under the health benefit plan or plans in which he or she is enrolled
less the portion thereof to be contributed by the employer. The
employer contribution for each employee and annuitant shall commence
on the effective date of enrollment. 
   (d) The formulas for contributors pursuant to this article are
subject to the prefunding requirements in Section 7514.6. 
  SEC. 4.  The Legislature finds and declares the following:
   (a) To ensure the financial security of the University of
California, it is necessary for this act to apply to the University
of California.
   (b) The statewide integrity and security of state and local
government health care plans is a matter of statewide concern and not
a municipal affair, as that term is used in Section 5 of Article XI
of the California Constitution. Therefore, this act shall apply to
all cities, including charter cities.    
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