BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        AB 130|
          |Office of Senate Floor Analyses   |                              |
          |1020 N Street, Suite 524          |                              |
          |(916) 651-1520         Fax: (916) |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 
           
                                           
                                       CONSENT


          Bill No:  AB 130
          Author:   Alejo (D), et al.
          Amended:  6/3/13 in Senate
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  6-0, 6/12/13
          AYES:  Wolk, Knight, Beall, DeSaulnier, Emmerson, Liu
          NO VOTE RECORDED:  Hernandez
           
          ASSEMBLY FLOOR  :  75-0, 5/13/13 (Consent) - See last page for  
            vote


           SUBJECT  :    Health care districts:  chief executive officers:   
          benefits

           SOURCE  :     Author


           DIGEST  :    This bill prohibits an employment contract between a  
          health care district and a hospital administrator, which is  
          entered into, or renewed, on or after January 1, 2014, from  
          authorizing retirement plan benefits to be paid to the  
          administrator before his/her retirement.  

           ANALYSIS  :    State law allows a local health care district to  
          enter into an employment contract with a hospital administrator,  
          the duration of which cannot exceed four years, but which may  
          periodically be renewed upon expiration for not more than four  
          years.

          This bill prohibits an employment contract between a health care  
                                                                CONTINUED





                                                                     AB 130
                                                                     Page  
          2

          district and a hospital administrator, which is entered into, or  
          renewed, on or after January 1, 2014, from authorizing  
          retirement plan benefits to be paid to the administrator before  
          his/her retirement.  

          This bill repeals a requirement that a health care district's  
          employment contract with a hospital administrator can only be  
          renewed upon expiration.

          This bill specifies that its provisions apply to a hospital  
          administrator who is designated as Chief Executive Officer.

           Comment
           
          Health care districts confront the dual challenges of competing  
          in a rapidly changing health care marketplace while managing the  
          pressures that escalating retiree costs impose on public  
          agencies' budgets.  Prompted by the findings of a state audit of  
          the Salinas Valley Healthcare District, this bill imposes new  
          restrictions on health care districts' executive compensation  
          practices.  By prohibiting contracts with administrators from  
          promising inappropriately generous retirement benefits, this  
          bill will help local health care districts control employee  
          retirement costs.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   Local:  
           No

           SUPPORT  :   (Verified  6/12/13)

          Association of California Healthcare Districts
          California Nurses Association
          California Teamsters Public Affairs Council
          Camarillo Health Care District
          National Union of Healthcare Workers

           ASSEMBLY FLOOR  :  75-0, 5/13/13
          AYES:  Achadjian, Alejo, Atkins, Bigelow, Bloom, Blumenfield,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,  
            Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray,  
            Grove, Hagman, Hall, Harkey, Roger Hernández, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Maienschein, Mansoor,  







                                                                     AB 130
                                                                     Page  
          3

            Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi,  
            Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel  
            Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, 
          Stone, Ting, Torres, Wagner, Waldron, Weber, Wieckowski, Wilk,  
            Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Allen, Ammiano, Holden, Lowenthal, Vacancy


          AB:k  6/13/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

                                   ****  END  ****