BILL ANALYSIS Ó
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: AB 1008
Jim Beall, Chair HEARING DATE: September 6, 2013
AB 1008 (Buchanan) as amended 09/04/2013 FISCAL: No
ALAMEDA HEALTH SYSTEM: EMPLOYEE BENEFITS
HISTORY :
Sponsor: Union of American Physician & Dentists (UAPD)
Alameda Health Systems (AHS)
American Federation of State, County, and Municipal
Employees (AFSCME)
Other legislation: None
SUMMARY :
AB 1008 makes finding regarding the agreement between Sutter
Health and the Alameda Health System (AHS) to transfer
ownership of San Leandro Hospital to AHS, and specifies how
employees of a facility acquired by, or merged into, AHS
shall be treated with regard to their retirement benefits,
and specifies that those employees shall not automatically
become members of the Alameda County Employees' Retirement
Association (ACERA).
This is an URGENCY BILL .
BACKGROUND AND ANALYSIS :
1) Existing law :
a) authorizes the County of Alameda to establish a
hospital authority (now known as the Alameda Health
System, or AHS) to manage the respective county hospitals
and county programs currently known as the Alameda County
Medical Center (ACMC).
b) sets forth rights, duties, powers and requirements of
AHS.
c) specifies the mission of AHS to be the management,
administration and other control of the group of public
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hospitals, clinics and programs that comprise the ACMC in
a manner that ensures appropriate quality, and
cost-effective medical care as required by Section 17000
of the Welfare and Institutions Code and other
populations, including special populations, in Alameda
County to the extent feasible.
d) establishes AHS as a district for the purposes of
providing retirement benefits under the County Employees'
Retirement Law of 1937 ('37 Act), which governs 20
independent county retirement systems.
e) establishes ACERA as a retirement system pursuant to
the provisions of the '37 Act.
f) specifies that employees of AHS (i.e., "the hospital
authority") are eligible to participate in ACERA to the
extent permitted under law.
2) This bill :
a) prohibits, prior to January 1, 2024, AHS from entering
into any contract with any private person or entity to
replace services being provided by physicians and
surgeons who are employed by AHS, and in a recognized
collective bargaining unit as of March 31, 2013, without
clear and convincing evidence that the needed medical
care can only be delivered cost-effectively by a private
contractor.
b) makes findings that an agreement has been reached
between Sutter Health, operators of San Leandro
Hospital, and AHS as of October 31, 2013, and that this
bill is necessary in order to ensure continued care of
residents of Alameda County and benefits for employees
of the hospital.
c) specifies that certain employees and officers of AHS,
including those who are employees of a facility that is
acquired by, or merged into AHS, will not automatically
become members of ACERA, as specified.
d) provides that on or after the effective date of this
bill, the ability of an employee of AHS to participate
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in ACERA is limited as follows:
e) prohibits a person who is an employee of a facility
acquired by AHS or who later becomes an employee of that
facility, who is not currently a member of ACERA, and
who is not subject to a Memorandum of Understanding
(MOU), from participating in ACERA. The employee will
instead participate in one or more retirement plans
adopted by AHS on November 27, 2012, or as subsequently
amended. (The AHS plans include a Defined Contribution
Plan and a Hybrid Retirement Plan).
f) allows a person who is an employee of a facility
acquired by AHS or who later becomes an employee of that
facility, who is not currently a member of ACERA, and
who is subject to a MOU, to become a member of ACERA or
one or more of the retirement plans adopted by AHS on
November 27, 2012, or as subsequently amended, or in a
pension trust sponsored by a third party, as agreed to
in a collective bargaining agreement.
g) prohibits, upon adoption of a resolution by AHS
making this provision applicable, a person who is
subsequently hired by AHS who is not a member of ACERA
on the date of hire and who is not subject to a MOU,
from participating in ACERA. The employee will instead
participate in one or more retirement plans adopted by
AHS on November 27, 2012, or as subsequently amended.
h) prohibits a person who is employed by AHS on or
before the effective date of this bill who is not
qualified for membership in ACERA at that time from
becoming qualified for membership as a result of
subsequent employment with AHS. The employee will
instead participate in one or more retirement plans
adopted by AHS on November 27, 2012, or as subsequently
amended.
i) is an urgency statute in order to provide for the
transfer of health care facilities that will ensure
continued access to care for residents of Alameda
County.
COMMENTS :
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1)Arguments in Support :
According to the sponsor, "In 1996 the hospital authority,
now known as Alameda Health System (AHS), was created as the
best way to fulfill the commitment to the medically indigent,
special needs, and general populations of Alameda County. A
critical safety-net provider with only 4% of the clients
served having commercial insurance.
"In furtherance of the commitment of AHS to fulfill its
continuing obligation to the residents of Alameda County, AHS
is considering assuming the management of additional
facilities. AHS is committed to keeping the Emergency Rooms
open at facilities it assumes in order to continue providing
safety-net services to the community.
"In an effort to allow for the timely completion of any
transactions, this legislation will allow AHS to maintain the
existing Memoranda of Understanding for any represented
employees at a facility it acquires until AHS can complete
the collective bargaining process with employees at its
existing and acquired facilities.
"The assumption of these facilities would ensure that
critical healthcare options remain in the county but does
come with significant financial risk that is not sustainable.
Without this legislation, costs would immediately rise at
the facilities when they are assumed by AHS which would
immediately impact the quality of care at all AHS facilities.
"This legislation will allow AHS to hold costs steady,
protect existing level of benefits earned by any represented
employee at any assumed facility and ensure access to
healthcare for the residents of Alameda County. This will
provide AHS the time necessary to evaluate how to integrate
the new facility and employees into the AHS system while
maintaining the current quality of care to the community."
2)SUPPORT :
Alameda Health Systems (AHS), Co-Sponsor
American Federation of State, County and Municipal
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Employees (AFSCME), AFL-CIO, Co-Sponsor
Union of American Physicians and Dentists/AFSCME - Local
206 (UAPD), Co-Sponsor
International Longshoremen's & Warehousemen's Union, Local
6 (ILWU)
International Union of Operation Engineers
Service Employees International Union (SEIU)
3)OPPOSITION :
None to date
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