Amended in Assembly April 1, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 130


Introduced by Assembly Member Alejo

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(Coauthors: Assembly Members Ammiano and Wilk)

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(Coauthor: Senator Beall)

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January 15, 2013


An act to amend Section 32121.5 of the Health and Safety Code, relating to health care districts.

LEGISLATIVE COUNSEL’S DIGEST

AB 130, as amended, Alejo. Health care districts: chief executive officers: benefits.

The Local Health Care District Law governs the organization and management of local health care districts, formerly known and sometimes referred to as local hospital districts. Among other things, that law authorizes the board of supervisors of a local health care district to establish, maintain, and operate, or provide assistance in the operation of, one or more health facilities or health services, including, but not limited to, retirement programs, services, and facilities. The law also authorizes a local health care district to enter into a written employment contract with a chief executive officer.

This bill wouldbegin insert authorize a local health care district to enter into an employment contract with a hospital administrator, including a hospital administrator who is designated as chief executive officer. The bill would alsoend insert prohibit a local health care district from entering into, or renewing, an employment contract with a chief executive officer on or after January 1, 2014, that authorizes retirement plan benefits to be paid to the chief executive officer prior to his or her retirement.begin delete The bill would also make nonsubstantive, technical and clarifying changes.end delete

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

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SECTION 1.  

Section 32121.5 of the Health and Safety Code
2 is amended to read:

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32121.5.  

begin insert(a)end insertbegin insertend insert Notwithstanding any other provision of this
4division, a health care district may enter into a contract of
5employment withbegin delete an individual to be itsend deletebegin insert a hospital administrator,
6including a hospital administrator who is designated asend insert
chief
7executivebegin delete officer if both of the following apply:end delete

8begin delete(a)end deletebegin deleteend deletebegin deleteThe term of the contract does not exceed four years. The
9contract may periodically be renewed for a term of not more thanend delete

10begin insert officer, the duration of which shall not exceedend insert four yearsbegin insert, but which
11may periodically be renewed for a term of not more than four
12yearsend insert
.

13(b) A contract entered into, or renewed, on or after January 1,
142014, shall not authorize retirement plan benefits to be paid to the
15chief executive officer prior to his or her retirement.



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