BILL NUMBER: AB 459 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 22, 2004
AMENDED IN SENATE SEPTEMBER 10, 2003
AMENDED IN SENATE SEPTEMBER 9, 2003
AMENDED IN SENATE AUGUST 26, 2003
AMENDED IN SENATE JUNE 26, 2003
AMENDED IN ASSEMBLY JUNE 2, 2003
INTRODUCED BY Assembly Member Negrete McLeod
FEBRUARY 14, 2003
An act to amend Sections 22816.7, 22816.8, and 22857 of,
and to add Section 20057.2 to, the Government Code, relating to
public employee benefits, and making an appropriation therefor.
An act to amend Section 226 of the Labor Code,
relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 459, as amended, Negrete McLeod. Public employees:
retirement and health benefits Employment: payment of
wages .
Existing law requires that every employer, semimonthly or at the
time of each payment of wages, furnish each of his or her employees,
either as a detachable part of the check, draft, or voucher paying
the employee's wages, or separately when wages are paid by personal
check or cash, an itemized statement in writing showing, among other
things, the name of the employee and his or her social security
number.
This bill would authorize an employer to block out the first five
digits of the employee's social security number on the itemized
statement.
The bill would also make several technical, nonsubstantive changes
to that provision.
(1) The Public Employees' Retirement Law permits a public agency,
as defined, to participate in, and make its employees members of, the
Public Employees' Retirement System by contracting with the Board of
Administration of the Public Employees' Retirement System. To
qualify as a public agency for that purpose, an organization must
obtain a written advisory opinion from the United States Department
of Labor, as specified. Employer and employee contributions to the
retirement system are deposited in the Public Employees' Retirement
Fund, a continuously appropriated fund.
This bill would include within the definition of "public agency"
for these purposes, and would exempt from that qualification
requirement, any labor organization that is a tax-exempt nonprofit
corporation and whose membership includes employees of public
agencies. The bill would also provide that a nonprofit organization
that applies to contract with the system on or after July 1, 2006,
may be required, by the board, to obtain an alternative written
advisory opinion from the United States Department of Labor, as
specified. By expanding the class of persons who may make
contributions to the Public Employees' Retirement Fund, the bill
would make an appropriation.
(2) The Public Employees' Medical and Hospital Care Act specifies
that a Member of the Legislature, an elective constitutional officer
of the state, or an inactive member of the Legislators' Retirement
System, as specified, who has at least 8 years of credited service
and meets other specified criteria, is eligible to enroll in the
Public Employees' Retirement System.
This bill would instead require 6 years of credited service to
qualify for this eligibility.
(3) The Public Employees' Medical and Hospital Care Act provides
that a contracting agency may establish a lesser monthly employer
contribution for annuitants, if that contribution is annually
increased by 5% of the monthly employer contribution, as specified.
This bill would delete the annual 5% increase requirement, and
would instead permit the lesser monthly employer contribution to be
based on a yearly calculation, as specified.
Vote: majority. Appropriation: yes no
. Fiscal committee: yes no .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 20057.2 is added to the Government
SECTION 1. Section 226 of the Labor Code is amended to read:
226. (a) (1) Every employer shall, semimonthly or at
the time of each payment of wages, furnish each of his or
her the employer's employees, either as a
detachable part of the check, draft, or voucher paying the employee's
wages, or separately when wages are paid by personal check or cash,
an accurate itemized statement in writing showing (1) gross
all of the following:
(A) Gross wages earned , (2) total .
(B) Total hours worked by the employee, except for any
employee whose compensation is solely based on a salary and who is
exempt from payment of overtime under subdivision (a) of Section 515
or any applicable order of the Industrial Welfare Commission
, (3) the .
(C) The number of piece-rate units earned and any applicable
piece rate if the employee is paid on a piece-rate basis ,
(4) all .
(D) All deductions, provided that all deductions made on
written orders of the employee may be aggregated and shown as one
item , (5) net .
(E) Net wages earned , (6) the .
(F) The inclusive dates of the period for which the employee
is paid , (7) the .
(G) The name of the employee and his or her
the employee's social security number ,
(8) the . The employer may block out the first five
digits of the social security number so that only the last four
digits are visible.
(H) The name and address of the legal entity that is the
employer , and (9) all .
(I) All applicable hourly rates in effect during the pay
period and the corresponding number of hours worked at each hourly
rate by the employee.
(2) The deductions made from payments of wages shall be
recorded in ink or other indelible form, properly dated, showing the
month, day, and year , and a . A copy
of the statement or a record of the deductions shall be kept on file
by the employer for at least three years at the place of employment
or at a central location within the State of California.
(b) An employer that is required by this code or any regulation
adopted pursuant to this code to keep the information required by
subdivision (a) shall afford current and former employees the right
to inspect or copy the records pertaining to that current or former
employee, upon reasonable request to the employer.
(1) The employer may take reasonable steps to assure the
identity of a current or former employee.
(2) If the employer provides copies of the records, the
actual cost of reproduction may be charged to the current or former
employee.
(c)
(3) An employer who receives a written or oral request to
inspect or copy records pursuant to subdivision (b)
pertaining to a current or former employee shall comply
with the request as soon as practicable, but no later than 21
calendar days from the date of the request.
(A) An employer may designate the person to whom a request under
this subdivision will be made.
(B) A violation of this subdivision
paragraph is an infraction. Impossibility of performance, not
caused by or a result of a violation of law, shall be an affirmative
defense for an employer in any action alleging a violation of this
subdivision. An employer may designate the person to whom a
request under this subdivision will be made.
(d)
(c) This section does not apply to any employer of any
person employed by the owner or occupant of a residential dwelling
whose duties are incidental to the ownership, maintenance, or use of
the dwelling, including the care and supervision of children, or
whose duties are personal and not in the course of the trade,
business, profession, or occupation of the owner or occupant.
(e)
(d) An employee suffering injury as a result of a knowing
and intentional failure by an employer to comply with subdivision (a)
is entitled to recover the greater of all actual damages or fifty
dollars ($50) for the initial pay period in which a violation occurs
and one hundred dollars ($100) per employee for each violation in a
subsequent pay period, not exceeding an aggregate penalty of four
thousand dollars ($4,000), and is entitled to an award of costs and
reasonable attorney's fees.
(f)
(e) A failure by an employer to permit a current or former
employee to inspect or copy records within the time set forth in
subdivision (c) entitles the current or former employee or the Labor
Commissioner to recover a seven hundred fifty dollar ($750) penalty
from the employer.
(g)
(f) An employee may also bring an action for injunctive
relief to ensure compliance with this section, and is entitled to an
award of costs and reasonable attorney's fees.
(h)
(g) This section does not apply to the state, or any city,
county, city and county, district, or any other governmental entity.
Code, to read:
20057.2. Notwithstanding Section 20057.1, the following applies:
(a) "Public agency" also includes any labor organization that is
a nonprofit corporation qualified as an exempt organization under
Section 501(c)(5) of the Internal Revenue Code and whose membership
includes employees of public agencies defined in Section 20056.
(b) The board may require any organization referred to in
subdivision (a) that first makes a request on or after January 1,
2006, to enter into a contract with the board pursuant to Section
20460, to obtain a written advisory opinion from the United States
Department of Labor stating that the participation of the officers
and employees of the organization in this system does not affect this
system's exemption as a governmental plan under the federal Employee
Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001 et
seq.), in order to qualify as a public agency within the meaning of
this part.
SEC. 2. Section 22816.7 of the Government Code is amended to read:
22816.7. (a) As used in this section:
(1) "Exempt employee" means an employee exempt from civil service
pursuant to subdivision (a), (c), (f), or (g) of Section 4 of Article
VII of the California Constitution, or an exempt employee of the
Attorney General or Legislative Counsel appointed pursuant to
subdivision (m) of Section 4 of Article VII of the California
Constitution.
(2) Notwithstanding Sections 22754, 22810, and 22953, "annuitant"
means:
(A) A Member of the Legislature or an elective officer of the
state whose office is provided by the Constitution, who has at least
six years of credited service, who permanently separates from state
service both on or after January 1, 1988, and not more than 10 years
before or 10 years after he or she attains his or her minimum age for
service retirement under any state retirement system, who retires
more than 120 days after separation from employment, and who is
receiving any retirement allowance under any state retirement system
to which the state makes contributions.
(B) An exempt employee, as defined in paragraph (1) of this
subdivision who has at least 10 years of credited state service which
includes at least two years of credited service while such an exempt
employee, who permanently separates from state service both on or
after January 1, 1988, and not more than 10 years before or 10 years
after he or she attains his or her minimum age for service retirement
under any state retirement system, who retires more than 120 days
after separation from employment, and who is receiving any retirement
allowance under any state retirement system to which the state makes
contributions.
(3) Notwithstanding Sections 22754, 22810, and 22953, "state
employee" means:
(A) A Member of the Legislature or an elective officer of the
state whose office is provided by the Constitution, who has at least
six years of credited service, who permanently separates from state
service both on or after January 1, 1988, and more than 10 years
before he or she would attain his or her minimum age for service
retirement under any state retirement system, but who elects pursuant
to law to remain a member of a state retirement system supported, in
whole or in part, by state funds, other than the University of
California Retirement System.
(B) An exempt employee, as defined in paragraph (1) of this
subdivision who has at least 10 years of credited state service which
includes at least two years of credited service while such an exempt
employee, who permanently separates from state service both on or
after January 1, 1988, and more than 10 years before he or she would
attain his or her minimum age for service retirement under any state
retirement system, but who elects pursuant to law to remain a member
of a state retirement system supported, in whole or in part, by state
funds, other than the University of California Retirement System.
(b) Any person who becomes an annuitant, as defined in subdivision
(a), may, upon assuming payment of any employee contributions,
enroll in a health benefits plan and dental care plan without
discrimination as to premium rates or benefit coverage at which time
the state shall assume payment of employer contributions for that
insurance coverage and the person shall thereafter be deemed an
annuitant for the purposes of this part and Part 6 (commencing with
Section 22950), notwithstanding Sections 22754, 22810, and 22953.
(c) A state employee, as defined by subdivision (a), who was on
the effective date of his or her permanent separation from state
service enrolled in a health benefits plan or dental care plan under
this part or Part 6 (commencing with Section 22950), shall, upon the
permanent separation from state service, be entitled to have his or
her coverage continued without discrimination as to premium rates or
benefits coverage upon assuming payment of the contributions
otherwise required of the former employer on account of his or her
enrollment and any employee contribution during the period he or she
is not yet receiving his or her retirement allowance. Any election
to continue coverage under this subdivision shall be made within 60
days of permanent separation. The state employee shall also pay an
additional 2 percent of the contribution payments required to be paid
by the state employee pursuant to this section to cover the
administrative costs incurred by the public retirement system and the
Department of Personnel Administration in administering the program
provided by this section.
(d) Upon retirement and receipt of retirement allowance, a state
employee described in subdivision (c) may elect to continue to be
covered by the health benefits plan and dental care plan without
discrimination as to premium rates or benefits coverage at which time
the state shall assume payment of employer contributions for that
insurance coverage and the person shall thereafter be deemed an
annuitant for the purposes of this part and Part 6 (commencing with
Section 22950).
(e) A person who meets all of the conditions in subparagraph (A)
or (B) of paragraph (2) of subdivision (a), other than the condition
of receiving a retirement allowance under a state retirement system
to which the state makes contributions, may elect to have his or her
coverage continued, within 60 days of permanent separation from state
service, in a health plan and dental care plan provided to
annuitants. Upon that election, the coverage shall continue from the
date of the permanent separation to the date of retirement unless
the coverage is terminated. For those who have separated between
January 1, 1989, and the effective date of the amendment of this
section made in 1990 in the 1989-90 Regular Session, the election to
enroll in a health plan and dental care plan shall be made within
three months after the effective date the amendment of this section
made in 1990 in the 1989-90 Regular Session. The health and dental
benefits shall be without discrimination as to premium rates or
benefits coverage upon assuming payment of the contributions
otherwise required of the former employer on account of his or her
enrollment and any employee contribution during the period he or she
is not yet receiving his or her retirement allowance. The individual
shall also pay an additional 2 percent of the contribution payments
required to be paid pursuant to this subdivision to cover the
administrative costs incurred by the public retirement systems, the
Department of Personnel Administration, the Senate Committee on
Rules, and the Assembly Committee on Rules, in administering the
benefits provided by this subdivision. A person who receives
coverage pursuant to this subdivision who subsequently terminates
that coverage shall not be allowed to reenroll pursuant to this
subdivision. Continuation of coverage or enrollment or termination
under this subdivision does not affect an annuitant's rights under
subdivision (b). The benefits authorized by subdivision (b) and this
subdivision are separate and distinct benefits.
(f) There is no duty to locate or notify any person who may be
eligible to enroll pursuant to this section.
SEC. 3. Section 22816.8 of the Government Code is amended to read:
22816.8. Any person who is an inactive member of the Legislators'
Retirement System pursuant to Section 9355.2 and who has at least
six years of service credit may, upon assuming payment of all
employee and employer contributions and an additional 2 percent
thereof for the administrative cost incurred by the board and the
Department of Personnel Administration in administering this section,
enroll in the health benefits plan and dental care plan provided to
members of the Legislators' Retirement System and, upon retirement
shall thereafter be deemed an annuitant for purposes of this part and
Part 6 (commencing with Section 22950), notwithstanding Sections
22754, 22810, and 22953.
Any person who, on January 1, 1989, is eligible to elect to enroll
pursuant to this section shall exercise that election on or before
April 30, 1989.
No person who enrolls pursuant to this section and subsequently
terminates that enrollment may reenroll pursuant to this section.
SEC. 4. Section 22857 of the Government Code is amended to read:
22857. A contracting agency including, but not limited to, a
school district, county board of education, personnel commission of a
school district, or a county superintendent of schools that has
elected to be subject to this part:
(a) Shall by resolution establish the employer contribution for
employees and the employer contribution for annuitants. The
resolution shall be filed with the board and the contribution shall
be effective at the time that is provided in board regulations.
(b) (1) May, notwithstanding the equal contribution requirement of
Section 22825, establish a lesser monthly employer contribution for
annuitants than for employees, provided that the monthly contribution
for annuitants equals an amount not less than the number of years
that the contracting agency has been subject to this section
multiplied by 5 percent of the current monthly employer contribution
for employees, until the time that the employer contribution for
annuitants equals the employer contribution paid for employees.
(2) This subdivision shall only apply to agencies that first
become subject to this part on or after January 1, 1986.