Bill Text: CA SB215 | 2013-2014 | Regular Session | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Public employee benefits.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-10-12 - Chaptered by Secretary of State. Chapter 778, Statutes of 2013. [SB215 Detail]

Download: California-2013-SB215-Enrolled.html

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BILL NUMBER: SB 215	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 30, 2013
	PASSED THE ASSEMBLY  AUGUST 26, 2013
	AMENDED IN ASSEMBLY  AUGUST 22, 2013
	AMENDED IN ASSEMBLY  AUGUST 15, 2013
	AMENDED IN ASSEMBLY  AUGUST 5, 2013
	AMENDED IN ASSEMBLY  MAY 30, 2013
	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senator Beall

                        FEBRUARY 11, 2013

   An act to amend Sections 20092, 21269, 21462, 22772, 22850, 22920,
22922, and 31527 of, to amend, repeal, and add Section 21130 of, and
to repeal Section 20204 of, the Government Code, relating to public
employee benefits, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 215, Beall. Public employee benefits.
   (1) Existing law provides that the Public Employees' Retirement
System (PERS) is governed by its board of administration (board) and
prescribes the composition of the board. Existing law requires the
retirement fund of PERS to reimburse an employing agency that employs
an elected member of the board and that employs a person to replace
the member during attendance at meetings of the board, among other
times, for the direct and reasonable costs incurred by employing a
replacement.
   This bill would recast these provisions to provide that the
employing agency be reimbursed, as specified, without regard to
whether it replaces the elected member.
   (2) Existing law requires that a patrol member of PERS who is
subject to specified benefit formulas be retired in the calendar
month succeeding that in which he or she attains 60 years of age.
   This bill, until January 1, 2018, would except from this
requirement a Commissioner of the California Highway Patrol, as
specified, who was appointed on or after January 1, 2008.
   (3)  Existing law authorizes the board to sell exchange-traded
call options only through an exchange, and only with respect to stock
owned by the system, as specified.
   This bill would repeal these provisions.
   (4) Existing law authorizes a member, in lieu of the retirement
allowance for his or her life alone, to elect, or to revoke or change
a previous election, to have the actuarial equivalent of his or her
retirement allowance, as specified, applied to a lesser retirement
allowance, in accordance with one of several optional settlements.
Existing law authorizes a member who previously elected to receive
one of certain optional settlements involving a life contingency of
the beneficiary, and who has a qualifying event, as specified, to
make a new election within 12 months after the occurrence of the
qualifying event. Existing law requires the member to name a new
beneficiary for this purpose.
   This bill would authorize a member who exercises the election
described above on and after January 1, 2014, to name the same
beneficiary as previously designated and requires that the resulting
benefit under these circumstances otherwise satisfy applicable
existing law requirements.
   (5) Existing law permits a person entitled to a benefit from PERS
to request that payment be made by an electronic fund transfer, as
specified. Existing law prohibits the board from sending a copy of
benefit payment information to any person who has had payment made by
electronic fund transfer or by mail, as specified, if the board has
received a written request from that person that it not be sent.
   This bill would authorize the board to make available, in a manner
it determines appropriate, copies of the monthly benefit payment
information electronically and by mail. The bill would require the
board, if it does not elect to mail copies of this payment
information, as specified, to all or some of the people receiving
monthly benefit payments, to notify people of their right to request
that a copy of the benefit payment information be mailed. The bill
would require the board to mail the information upon receiving a
written request to do so.
   (6) Existing law, the Public Employees' Medical and Hospital Care
Act (PEMHCA), authorizes the board to enter into contracts with
carriers offering health benefit plans or with entities offering
services relating to the administration of health benefit plans.
Existing law authorizes the board to contract for, or approve, health
benefit plans exclusively for the employees and annuitants of the
state and contracting agencies. Existing law defines an employee for
these purposes and provides that a person who is an intermittent or
irregular employee is not an employee. Existing law authorizes a
contracting agency and its employees and annuitants to elect to be
subject to PEMHCA upon filing with the board a resolution of its
governing body, as specified. Existing law authorizes the board, by
regulation, to establish requirements for a contracting agency that
elects to become subject to PEMHCA.
   Existing law creates the Public Employees' Health Care Fund to
fund health benefit plans administered by the board. Existing law
provides that the fund is continuously appropriated and consists of,
among other things, health plan premiums paid by contracting
agencies, the state, and enrolled employees. Existing law creates the
Public Employees' Contingency Reserve Fund, and various accounts
within that fund, which are continuously appropriated, for the
receipt of funds for certain purposes relating to PEMHCA, including
for payments made by contracting agencies for health care premiums.
   This bill would revise the definition of employee to include an
individual who would not otherwise qualify but who meets the
definition of a full-time employee provided in specified federal law
and is designated as an employee by the state or a contracting
agency. By providing for increased contributions to a continuously
appropriated fund, this bill would make an appropriation. The bill
would provide that a contracting agency and its employees and
annuitants may obtain a health benefit plan, as defined, subject to
board approval of a resolution submitted by the governing body. The
bill would authorize the board to refuse to contract with, or to
agree to an amendment proposed by, any contracting agency for benefit
provisions that are not specifically authorized by PEMHCA and that
the board determines would adversely affect the administration of
this system. Among other things, the bill would permit the board to
require the contracting agency to enter into a contract with the
board in this regard. The bill would require that the approval of the
contract be by affirmative vote of a majority of the members of the
relevant governing body.
   (7) The County Employees Retirement Law of 1937 prescribes a
comprehensive set of rights and benefits for county and district
employees who are members of a retirement system subject to that law
and establishes retirement boards for the administration of those
systems. Existing law authorizes a retirement board to promulgate
regulations regarding the administration of benefits and specifically
authorizes regulations for the use and acceptance of a document
requiring a signature that is submitted by a member using an
electronic signature, as specified.
   This bill would permit a retirement board to promulgate
regulations regarding the use of recorded telephone communications
for the processing of authorized transactions affecting a member's
account if the board approves procedures adequate to protect the
member and the system, as specified.
   Appropriation: yes.


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

  SECTION 1.  Section 20092 of the Government Code is amended to
read:
   20092.  Each employing agency that employs an elected member of
the board shall be reimbursed by the retirement fund in an amount
equal to the salary and benefits paid to the elected board member by
the employing agency for the percentage of the elected board member's
regular work schedule during which the elected board member is on
leave from the employing agency to attend meetings or activities of
the board, or meetings of committees or subcommittees of the board,
or when serving as president or vice president of the board or chair
or vice chair of a committee or subcommittee of the board, or when
carrying out other powers or duties as may be approved by the board,
or to otherwise fulfill his or her responsibilities to the system.
  SEC. 2.  Section 20204 of the Government Code is repealed.
  SEC. 3.  Section 21130 of the Government Code is amended to read:
   21130.  (a) Except as provided in subdivision (b), every patrol
member subject to Section 21362, 21362.2, or 21363.1, as applicable,
shall be retired on the first day of the calendar month succeeding
that in which he or she attains the age of 60 years.
   (b) Subdivision (a) does not apply to a Commissioner of the
California Highway Patrol, as specified in Section 2107 of the
Vehicle Code, appointed on or after January 1, 2008.
   (c) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
  SEC. 4.  Section 21130 is added to the Government Code, to read:
   21130.  (a) Every patrol member subject to Section 21362, 21362.2,
or 21363.1, as applicable, shall be retired on the first day of the
calendar month succeeding that in which he or she attains the age of
60 years.
   (b) This section shall be operative January 1, 2018.
  SEC. 5.  Section 21269 of the Government Code is amended to read:
   21269.  (a) Any person entitled to a benefit from this system may
request that payment be made by deposit by electronic fund transfer
in the person's bank, savings and loan association, or credit union
account.
   (b) If deposit pursuant to subdivision (a) is not available,
deposit may be made by mail in the person's bank, savings and loan
association, or credit union account.
   (c) Mailing of the warrant or electronic fund transfer is a full
discharge of the board and this system.
   (d) The board shall make available, in a manner it determines
appropriate, copies of the monthly benefit payment information
electronically or by mail.
   (1) If the board elects to mail copies of this payment information
to all or a portion of persons receiving monthly benefit payments,
it shall not send a copy of the benefit payment information to any
person who has had payment made by electronic fund transfer or by
mail pursuant to subdivision (a) or (b), if the board has received a
written request from that person that it not be sent.
   (2) The board shall notify persons subject to this section, in the
monthly benefit payment notice, of their right to request that no
copy of the benefit payment information be mailed, pursuant to
paragraph (1).
   (3) If the board does not elect to mail copies of this payment
information to all or a portion of persons receiving monthly benefit
payments, it shall notify a person subject to this section of his or
her right to request that a copy of the benefit payment information
be mailed. The board shall mail a copy of the benefit payment
information if the system has received a written request to do so
from that person.
  SEC. 6.  Section 21462 of the Government Code is amended to read:
   21462.  (a) (1) Notwithstanding any other provision of this part,
a member who elected to receive optional settlement 2, 3, or 4,
involving a life contingency of the beneficiary, may, if the
beneficiary predeceases the member or if the member marries and the
former spouse was not named as beneficiary, or, if a former spouse
was named, in the event of a dissolution or annulment of the marriage
or a legal separation in which the judgment dividing the community
property awards the total interest in the retirement system to the
retired member, elect to have the actuarial equivalent reflecting any
selection against the fund resulting from the election as of the
date of election of the allowance payable for the remainder of the
member's lifetime under the optional settlement previously chosen
applied to a lesser allowance during the member's remaining lifetime
under one of the optional settlements specified in this article and
name a different beneficiary.
   (2) Notwithstanding paragraph (1), for an election pursuant to
this section that occurs on or after January 1, 2014, a member may
name the same beneficiary as previously designated, provided that the
resulting benefit to the member and the named beneficiary otherwise
meets the requirements of this section.
   (b) The election shall be made within 12 months following the
death of the beneficiary who predeceased the member or within 12
months of the date of entry of the judgment dividing the community
property of the parties, or within 12 months following marriage if
the spouse is named as beneficiary. The election shall become
effective on the date specified on the election, provided that this
date is not earlier than the day following receipt of the election in
this system pursuant to this section.
   (c) A member who has a qualifying event prior to January 1, 1988,
and who fails to elect by January 1, 1989, or a member who has a
qualifying event on or after January 1, 1988, and who fails to elect
within 12 months, shall retain the right to make an election under
this section. However, this election shall become effective no
earlier than 12 months after the date it is filed with the board,
provided that neither the member nor the designated beneficiary die
prior to the effective date of the election.
   (d) This section shall not be construed to mean that designation
of a new beneficiary causes the selection of an optional settlement.
An optional settlement shall be selected by a member in a writing
filed by the member with the board.
  SEC. 7.  Section 22772 of the Government Code is amended to read:
   22772.  (a) "Employee" means:
   (1) An officer or employee of the state or of any agency,
department, authority, or instrumentality of the state, including the
University of California.
   (2) An employee who is employed by a contracting agency and
participates in a publicly funded retirement system provided by the
contracting agency, or an officer or official of a contracting
agency.
   (3) An annuitant receiving a retirement allowance pursuant to
Section 21228 who is employed by a contracting agency.
   (4) A teaching associate, lecturer, coach, or interpreter employed
by the California State University who is appointed to work in an
academic year classification for at least six weighted teaching units
for one semester, or for at least six weighted teaching units for
two or more consecutive quarter terms. This paragraph does not apply
to a state member employed by the California State University, unless
provided for in a memorandum of understanding reached pursuant to
Chapter 12 (commencing with Section 3560) of Division 4 of Title 1 or
authorized by the Trustees of the California State University for
employees excluded from collective bargaining.
   (5) All employees in job classes specified in subdivision (a) of
Section 14876.
   (6) An individual not described in paragraphs (1) to (5),
inclusive, who is both of the following:
   (A) A "full-time employee" of the state or a contracting agency
within the meaning of Section 4980H of Title 26 of the United States
Code and applicable United States Treasury Department regulations and
interpretive guidance.
   (B) Designated in writing as an employee for purposes of this
section by the state or the contracting agency, as applicable.
   (b) Except as otherwise provided by this part, "employee" does not
include any of the following:
   (1) A person employed on an intermittent, irregular, or less than
half-time basis, or an employee similarly situated.
   (2) A National Guard member described in Section 20380.5.
  SEC. 8.  Section 22850 of the Government Code is amended to read:
   22850.  (a) The board may, without compliance with any provision
of law relating to competitive bidding, enter into contracts with
carriers offering health benefit plans or with entities offering
services relating to the administration of health benefit plans.
   (b) The board may contract with carriers for health benefit plans
or approve health benefit plans offered by employee organizations,
provided that the carriers have operated successfully in the hospital
and medical care fields prior to the contracting for or approval
thereof. The plans may include hospital benefits, surgical benefits,
inpatient medical benefits, outpatient benefits, obstetrical
benefits, and benefits offered by a bona fide church, sect,
denomination, or organization whose principles include healing
entirely by prayer or spiritual means.
   (c) Notwithstanding any other provision of this part, the board
may contract with health benefit plans offering unique or specialized
health services.
   (d) The board may administer self-funded or minimum premium health
benefit plans.
   (e) The board may contract for or implement employee cost
containment and cost reduction incentive programs that involve the
employee, the annuitant, and family members as active participants,
along with the carrier and the provider, in a joint effort toward
containing and reducing the cost of providing medical and hospital
health care services to public employees. In developing these plans,
the board, in cooperation with the Department of Human Resources, may
request proposals from carriers and certified public employee
representatives.
   (f) Notwithstanding any other provision of this part, the board
may do any of the following:
   (1) Contract for, or approve, health benefit plans that charge a
contracting agency and its employees and annuitants rates based on
regional variations in the costs of health care services.
   (2) Contract for, or approve, health benefit plans exclusively for
the employees and annuitants of contracting agencies. State
employees and annuitants may not enroll in these plans. The board may
provide health benefit plans exclusively for employees and
annuitants of contracting agencies in addition to or in lieu of other
health benefit plans offered under this part pursuant to Section
22922.
   (3) Implement and administer risk adjustment procedures consistent
with Section 22864 that require health benefit plans to adjust
premiums and authorize the system to redistribute premiums based on
rules and regulations established by the board for this purpose.
   (g) The board shall approve any employee association health
benefit plan that was approved by the board in the 1987-88 contract
year or prior, provided the plan continues to meet the minimum
standards prescribed by the board. The trustees of an employee
association health benefit plan are responsible for providing health
benefit plan administration and services to its enrollees.
Notwithstanding any other provision of this part, the California
Correctional Peace Officer Association Health Benefits Trust may
offer different health benefit plan designs with varying premiums in
different areas of the state.
   (h) Irrespective of any other provision of law, the sponsors of a
health benefit plan approved under this section may reinsure the
operation of the plan with an admitted insurer authorized to write
disability insurance, if the premium includes the entire prepayment
fee.
  SEC. 9.  Section 22920 of the Government Code is amended to read:
   22920.  The following entities are eligible to obtain a health
benefit plan, as defined in Section 22777, subject to board approval:

   (a) A contracting agency, as defined in Section 20022, a county or
special district subject to the County Employees Retirement Law of
1937 (Chapter 3 (commencing with Section 31450) of Part 3 of Division
4 of Title 3), and a school employer.
   (b) A public body or agency of or within the state that is not
subject to Part 3 (commencing with Section 20000) of the Government
Code or the County Employees Retirement Law of 1937 (Chapter 3
(commencing with Section 31450) of Part 3 of Division 4 of Title 3),
and that provides a retirement system for its employees funded wholly
or in part by public funds.
   (c) The protection and advocacy agency described in subdivision
(h) of Section 4900 of the Welfare and Institutions Code, if the
agency obtains a written advisory opinion from the United States
Department of Labor stating that the organization is an agency or
instrumentality of the state or a political subdivision thereof
within the meaning of Chapter 18 (commencing with Section 1001) of
Title 29 of the United States Code.
  SEC. 10.  Section 22922 of the Government Code is amended to read:
   22922.  (a) A contracting agency and its employees and annuitants
may obtain a health benefit plan, as defined in Section 22777,
subject to board approval of a resolution submitted by the governing
body electing to be so subject. The resolution shall be adopted by a
majority vote and shall be effective at the time provided in board
regulations.
   (b) In addition to, or in lieu of, submitting a resolution as
prescribed in subdivision (a), the board may require the contracting
agency to enter into a contract with the board to obtain a health
benefit plan, as defined in Section 22777, for all or part of its
employees, pursuant to rules and regulations developed by the board
for this purpose.
   (c) The board may refuse to contract with, or to agree to an
amendment proposed by, a contracting agency for any benefit
provisions that are not specifically authorized by this part and that
the board determines would adversely affect the administration of
this system.
   (d) A contracting agency may become subject to this part with
respect to a recognized employee organization with which it has
reached mutual agreement. The resolution and any contracts, or the
resolution and contract required by subdivisions (a) and (b), shall
specify the recognized employee organizations participating in this
system.
   (e) Pursuant to Section 22796 and subdivision (g) of Section
22934, the board may by regulation require any contracting agency
that becomes subject to this part to meet certain board-determined
criteria, including, but not limited to, additional requirements for
any contracting agency that elects to become subject to this part
that previously terminated coverage pursuant to Section 22938.
   (f) Approval of the contract to obtain a health benefit plan
pursuant to subdivision (b) shall be by the affirmative vote of a
majority of the members of the governing body of the contracting
agency.
  SEC. 11.  Section 31527 of the Government Code is amended to read:
   31527.  In its regulations, the board may include the following
provisions:
   (a) From what warrants deductions of members' contributions shall
be made.
   (b) For a period of time longer than one year during which a
member may redeposit in the retirement fund an amount equal to all of
the accumulated normal contributions that he or she has withdrawn,
plus regular interest thereon from the date of return to service.
   (c) For a period of time longer than one year during which a
member brought within the field of membership may pay into the
retirement fund the amount equal to the contributions he or she would
have made plus interest, if he or she had been a member from the
date of its organization, or from the date of his or her entrance
into service, whichever is later.
   (d) For a withdrawal charge against a member who withdraws his or
her accumulated contributions. The withdrawal charge shall not exceed
the interest credited to the member subsequent to the effective date
of the regulation.
   (e) For the exemption or exclusion from membership as a peace
officer member or as a safety member or from membership altogether,
in the discretion of the board, of persons whose tenure is temporary,
seasonal, intermittent, or for part time only, or persons whose
compensation is fixed at a rate by the day or hour.
   (f) For the periodic physical examination, at county expense, of
safety members.
   (g) The amount of additional deductions from the salaries or wages
of members pursuant to Article 15.5 (commencing with Section 31841)
or Article 16 (commencing with Section 31861). Such a provision may
be adopted in anticipation of, and prior to Article 15.5 (commencing
with Section 31841) or Article 16 (commencing with Section 31861)
becoming operative in the particular county.
   (h) The day upon which each person becomes a member of the
association if it is to be other than the first day of the calendar
month after his or her entrance into service. However, that day shall
be no later than 12 weeks after his or her entrance into service, or
the day upon which the member terminates service credited by the
association, and that the day shall be no earlier than 12 weeks prior
to the member's termination from employment.
   (i) Notwithstanding any other law, for the use and acceptance of a
document requiring a signature that is submitted by a member using
an electronic signature, if the document and electronic signature are
submitted using technology the board deems sufficient to ensure its
integrity, security, and authenticity. A document submitted pursuant
to the regulation shall be given the same force as a signed, valid
original document.
   (j) For the use of recorded telephone communications for the
processing of authorized transactions affecting a member's account,
if the board approves procedures adequate to protect the member and
the system. These procedures shall include adequate validation and
authentication of member identity and permanent retention of recorded
communication.