Amended in Senate June 3, 2013

Amended in Assembly April 1, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 130


Introduced by Assembly Member Alejo

(Coauthors: Assembly Members Ammiano and Wilk)

(Coauthor: Senator Beall)

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 insteadend 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 also prohibit abegin delete localend delete health care district from entering into, or renewing, an employment contract with abegin delete chief executive officerend deletebegin insert hospital administrator, including a hospital administrator who is designated as chief executive officer,end insert on or after January 1, 2014, that authorizes retirement plan benefits to be paid to thebegin delete chief executive officerend deletebegin insert hospital administratorend insert prior to his or her retirement.

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

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

P2    1

SECTION 1.  

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

3

32121.5.  

(a) Notwithstanding any other provision of this
4division, a health care district may enter into a contract of
5employment with a hospital administrator, including a hospital
6administrator who is designated as chief executive officer, the
7duration of which shall not exceed four years, but which may
8periodically be renewed for a term of not more than four years.

9(b) A contract entered into, or renewed, on or after January 1,
102014, shall not authorize retirement plan benefits to be paid tobegin delete theend delete
11begin insert a hospital administrator, including a hospital administrator who
12is designated asend insert
chief executivebegin delete officerend deletebegin insert officer,end insert prior to his or her
13retirement.



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