BILL NUMBER: AB 65	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Hayashi

                        DECEMBER 9, 2008

   An act to add Part 6.7 (commencing with Section 22959.90) to
Division 5 of Title 2 of the Government Code, relating to public
employee health benefits, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 65, as introduced, Hayashi. Public employee health benefits:
vision care: local, school, and university members.
   Existing law establishes the Vision Care Program for State
Annuitants, which is administered by the Department of Personnel
Administration, and creates the Vision Care Program for State
Annuitants Fund in the State Treasury, which is continuously
appropriated, for expenditure solely for the provision of vision care
benefits to state annuitants.
   This bill would establish a similar vision care program for
specified local members, school members, and university members, and
their dependents to be known as the Retired Public Employees Vision
Care Program. The bill would require the Board of Administration of
the Public Employees' Retirement System, on or before January 1,
2011, to administer the program, and would create the Retired Public
Employees Vision Care Program Fund, which would be continuously
appropriated for those purposes. The bill would also require the
board to terminate the program upon a specified circumstance.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Part 6.7 (commencing with Section 22959.90) is added to
Division 5 of Title 2 of the Government Code, to read:

      PART 6.7.  RETIRED PUBLIC EMPLOYEES VISION CARE PROGRAM


   22959.90.  This part shall be known and may be cited as the
Retired Public Employees Vision Care Program. The purpose of this
part is to do all of the following:
   (a) Promote increased economy and efficiency in the provision of
vision care benefits to retired members of public agencies, schools,
and the university system.
   (b) Enable the public agencies, schools, and the university
system, when those entities provide retirement benefits to their
annuitants through the Public Employees' Retirement System, to use
economies of scale to provide a vision care plan for their employees
that is similar to those commonly provided to State of California
employees, annuitants, and private industry, and as may be provided
in other states.
   (c) Promote and preserve continued good health among members of
public agencies, schools, and the university system.
   22959.91.  The Retired Public Employees Vision Care Program shall
be administered by the board or its designees.
   22959.92.  For purposes of this part, the following definitions
apply:
   (a) "Annuitant" means any of the following:
   (1) A person who has retired within 120 days of separation from an
employer described in subdivision (d) and receives a retirement
allowance from the Public Employees' Retirement System.
   (2) A surviving family member receiving an allowance in place of
an annuitant who has retired as provided in paragraph (1), or as the
survivor of a deceased employee under Section 21541, 21546, or
21547.7.
   (b) "Board" means the Board of Administration of the Public
Employees' Retirement System.
   (c) "Employer" means an employer described in Section 20022,
20063, or 20071.
   (d) "Family Member" means any of the following:
   (1) An annuitant's spouse or domestic partner.
   (2) Any unmarried child, including an adopted child, a stepchild,
or recognized natural child under 23 years of age who is economically
dependent upon the annuitant, when there exists a parent-child
relationship with the annuitant.
   (3) An unmarried child who at the time of attaining 23 years of
age is incapable of self-support because of physical or mental
disability that existed continuously from a date prior to attainment
of 23 years of age, and who continues in family member status until
termination of that status.
   22959.93.  (a) An annuitant or eligible family member may enroll
in a vision care plan offered under this part.
   (b) The board has no duty to locate or notify any annuitant who
may be eligible to enroll, or to provide names or addresses to any
person, agency, or entity for the purpose of notifying any annuitant.

   22959.96.  (a) The board may, without compliance with any
provisions of law relating to competitive bidding, contract with one
or more vision care plans for annuitants and eligible family members,
provided each vision care plan carrier has operated successfully in
the area of vision care benefits for a reasonable period, as
determined by the board.
   (b) The board, as the program administrator, has full
administrative authority over this program and associated funds and
shall require the monthly premium to be paid by the annuitant for the
vision care plan. The premium to be paid by the annuitant shall be
deducted from his or her monthly allowance. If the annuitant's
monthly allowance is insufficient to cover the full premium, the
annuitant shall be responsible for paying the required balance
directly to the vision care plan carrier.
   (c) A vision care plan or plans provided under this authority
shall be funded by the annuitant's premium. All premiums received
from annuitants shall be deposited in the Retired Public Employees
Vision Care Program Fund, which is hereby created in the State
Treasury. Any income earned on the moneys in the Retired Public
Employees Vision Care Program Fund shall be credited to the fund.
Notwithstanding Section 13340 of the Government Code, moneys in the
fund are hereby continuously appropriated for the purposes specified
in subdivision (d).
   (d) The board shall have the exclusive control of the
administration and investment of the Retired Public Employees Vision
Care Program Fund.
   (e) An annuitant may enroll in a vision care plan provided by a
carrier that also provides a health benefit plan if the annuitant is
also enrolled in the health benefit plan provided by that carrier.
However, nothing in this section may be construed to require an
annuitant to enroll in a vision care plan and a health benefit plan
provided by the same carrier. An annuitant enrolled in this program
shall only enroll in a vision plan or vision plans contracted for by
the board.
   (f) No contract for a vision care plan may be entered into unless
the board determines it is reasonable to do so, and any contract
shall take effect only if funds have been made available to cover the
startup costs of the program. Notwithstanding any other provision of
law, any premium moneys paid into this program by annuitants for the
purposes of the member vision care plan that is contracted for shall
be used for the cost of providing vision care benefits to eligible,
enrolled annuitants and their eligible and enrolled dependents, the
payment of claims for those vision benefits, the cost of
administration of the vision care plan or plans under this vision
care program, and any reasonable cost or expense incurred by the
board in connection with the startup of the program, those costs
being determined by the board.
   (g) If the board determines that it is not economically feasible
to continue this program at any time after its commencement, the
board may, upon written notice to enrollees and to the contracting
plan or plans, terminate this program within a reasonable time. The
notice of termination to the plan or plans shall be determined by the
board. The notice to enrollees of the termination of the program
shall commence no later than three months prior to the actual date of
termination of the program.
   (h) Premium rates for this program shall be determined by the
board in conjunction with the contracted plan or plans and shall be
considered separate from any active employee premium rates.
   22959.97.  On or before January 1, 2011, the board shall implement
the Retired Public Employees Vision Care Program.