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 would 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:
Section 32121.5 of the Health and Safety Code
2 is amended to read:
Notwithstanding any other provision of this
4division, a health care district may enter into a contract of
begin delete an individual to be itsend delete chief
begin delete officer if both of the following apply:end delete
begin delete(a)end delete begin delete end delete begin deleteThe term of the contract does not exceed four years. The
9contract may periodically be renewed for a term of not more thanend delete
10 four years.
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.