Bill Text: CA SB1142 | 2011-2012 | Regular Session | Amended

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Bill Title: Public employee benefits: postemployment health care

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-04-18 - Set, first hearing. Failed passage in committee. (Ayes 1. Noes 3. Page 3208.) Reconsideration granted. [SB1142 Detail]

Download: California-2011-SB1142-Amended.html

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BILL NUMBER: SB 1142	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 9, 2012

INTRODUCED BY   Senator Walters

                        FEBRUARY 21, 2012

   An act to add  Section   Sections 
7507.1  and 7507.3  to the Government Code, relating to
public employee benefits.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1142, as amended, Walters. Public employee benefits:
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.
That law permits a contracting agency to be subject to the act for
its employees and annuitants, upon meeting specified criteria.
Existing law also establishes various postemployment health care
benefits under other benefit systems, including those offered by
counties, districts, and cities.
   This bill would prohibit a public employer, as defined, for
employees first hired on or after January 1, 2013, from providing
postemployment health care benefits on behalf of its employees unless
it fully funds those benefits, as determined by an actuary. 
This bill would also require a public employer, as defined, to fund
actuarially postemployment health care benefits to be provided to its
public employees, in accordance with generally accepted accounting
principles for governments, as specified, to ensure that those
benefits are fully funded. 
   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 7507.1 is added to the Government Code, to
read:
   7507.1.  (a) Notwithstanding any other law, for employees first
hired on or after January 1, 2013, a public employer shall not
provide postemployment health care benefits on behalf of its
employees, unless it fully funds these benefits, as determined by an
actuary.
   (b) 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, and the California State University,
but excluding the University of California.
   (B) Any political subdivision of the state, including, but not
limited to, a city, county, 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, but excluding a charter city or charter
county.
   SEC. 2.    Section 7507.3 is added to the  
Government Code   , to read:  
   7507.3.  (a) Notwithstanding any other law, a public employer
shall fund actuarially postemployment health care benefits to be
provided to its public employees, in accordance with generally
accepted accounting principles for governments, using amortization of
unfunded liabilities over periods that do not exceed the remaining
service lives of current employees, for the purpose of ensuring that
those benefits are fully funded. To implement this provision, an
employer may incrementally increase its contributions to the plan in
equally increasing installments over a five-year period, unless its
total revenues have declined in any fiscal year, in which case the
required contribution increases shall be suspended for that year.
   (b) 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, and the California State University,
but excluding the University of California.
   (B) Any political subdivision of the state, including, but not
limited to, a city, county, school district, community college
district, joint powers authority, joint powers agency, and any public
agency, authority, board, commission, district, or other entity, but
excluding a charter city or charter county.