BILL ANALYSIS Ó
AB 1008
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1008 (Buchanan and Bonta)
As Amended September 4, 2013
2/3 vote. Urgency
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|ASSEMBLY: | |(May 16, 2013) |SENATE: |35-2 |(September 6, |
| | | | | |2013) |
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(vote not relevant)
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|COMMITTEE VOTE: |9-0 |(September 9, 2013) |RECOMMENDATION: |concur |
| | | | | |
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Original Committee Reference: JUD.
SUMMARY : Prohibits the Alameda Health System (AHS) from
privatizing services provided by physicians and surgeons, as
specified, and establishes eligibility for retirement benefits for
employees of a facility that is acquired or merged into AHS.
The Senate amendments delete the Assembly version of this bill, and
instead:
1)Prohibit AHS, before January 1, 2024, from entering into a
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, with services provided by a private person or entity
without clear and convincing evidence that the needed medical
care can only be delivered cost-effectively by a private
contractor.
2)Require AHS, prior to entering into a contract for any of those
services, to negotiate with the representative of the recognized
collective bargaining unit of its physician and surgeon employees
over the decision to privatize and, if unable to resolve any
dispute through negotiations, to submit the matter to final
binding arbitration.
3)Prohibit specified AHS employees from automatically becoming
members of the Alameda County Employees' Retirement Association
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(ACERA), and establish, on or after the effective date of this
bill, the eligibility of an AHS employee to participate in ACERA,
as follows:
a) Prohibit a person who is an employee of a facility on the
date that the facility is acquired or who later becomes an
employee of the facility, who is not currently an ACERA
member, and who is not subject to an memorandum of
understanding (MOU), from becoming a member of ACERA. Require
the employee to instead become a participant in one or more
retirement plans adopted by AHS on November 27, 2012, or
subsequently amended;
b) Allow a person who is an employee of the facility on the
date that the facility is acquired or who later becomes an
employee of the facility, who is not currently an ACERA
member, and is subject to an MOU, to become a member of ACERA
or one or more of the retirement plans adopted by AHS on
November 27, 2012, or subsequently amended, or in a pension
trust sponsored by a third party, dependent on the collective
bargaining agreement;
c) Prohibit, upon adoption of a resolution by AHS, a person
who is hired by AHS on or after the effective date of this
bill and the resolution, who is not an ACERA member, and who
is not subject to an MOU from becoming a member of ACERA.
Require the employee to instead participate in one or more
retirements plans adopted by AHS on November 27, 2012, or
subsequently amended; and,
d) Prohibit a person who is employed by AHS on or before the
effective date of this bill, and who is not qualified for
ACERA membership at that time from becoming qualified for
membership as a result of subsequent employment with AHS.
Require the employee to instead participate in one or more
retirement plans adopted by AHS on November 27, 2012, or
subsequently amended.
4)Include an urgency clause allowing this bill to take effect
immediately upon enactment.
5)Make findings and declarations about an agreement that has been
reached between Sutter Health, operators of San Leandro Hospital,
and AHS transferring ownership of San Leandro Hospital to AHS as
of October 31, 2012.
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6)Make findings and declarations that this bill is necessary to
prevent the closure of the San Leandro Hospital in order to
ensure the continuation of employment and benefits for the
employees of San Leandro Hospital and continuation of care for
the residents of Alameda County.
EXISTING LAW :
1)Authorizes the Alameda County Board of Supervisors to establish a
hospital authority separate and apart from the county to manage,
administer and control the Alameda County Medical Center.
2)Requires the hospital authority to be governed by a board
appointed by the Alameda County Board of Supervisors.
3)Establishes the following powers for the hospital authority:
a) To acquire and possess real or personal property;
b) To sue or be sued;
c) To employ personnel; and,
d) To contract for services required to meet its obligations.
4)Provides that a hospital authority to which the maintenance,
operation, management of the medical center is transferred shall
be a "district" pursuant to the County Employees Retirement Law
of 1937 which governs 20 independent county retirement systems.
5)States that employees of the authority are eligible to
participate in the County Employees Retirement System to the
extent permitted by law.
6)Establishes requirements for a personnel transition plan, as
specified.
7)Provides that the hospital authority is bound by the terms of the
MOU executed by and between the county and healthcare and
management employee organizations that is in effect at the time
of the creation of the authority.
8)Provides the hospital authority, upon expiration of the MOU at
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the time the hospital authority was created, with sole authority
to negotiate subsequent memorandums of understanding with
appropriate employee organizations.
9)Requires that the MOU to be approved by the hospital authority.
AS PASSED BY THE ASSEMBLY , this bill clarified that a clerk of the
superior court must attend every session of the superior court and
upon judges in chambers when requested.
FISCAL EFFECT : None
COMMENTS : Following the passage of AB 2374 (Bates), Chapter 816,
Statutes of 1996, the Alameda County Board of Supervisors appointed
a board of trustees to separately manage, administer and control
the Alameda County Medical Center, now known as the Alameda Health
System (AHS). According to AHS, their integrated public health
care system employs more than 3,000 people including 500 physicians
throughout Alameda County. In the 1990s the Highland Hospital, a
regional trauma center and teaching hospital, John George
Psychiatric Hospital, an acute and emergency care facility,
Fairmont Hospital, an acute rehabilitation hospital and skilled
nursing facility, and the community wellness centers, in Highland,
Newark, Eastmont, and Hayward consolidated as the Alameda County
Medical Center.
Current law authorizes AHS to employ personnel, to contract for
services, and to negotiate MOUs with the appropriate employee
organizations. Current law also authorizes AHS employees to
participate in the County Employee Retirement System, the Alameda
County Employees' Retirement Association (ACERA).
This bill makes two changes to the special act governing AHS.
First, the bill prohibits AHS from privatizing any work performed
as of March 31, 2013, by physicians and surgeons employed by AHS
without clear and convincing evidence that the needed medical care
can only be delivered cost-effectively by a private contractor.
This bill requires, before those services are privatized, that AHS
must negotiate with the representative of its physician and surgeon
employees over the decision to privatize. If any dispute cannot be
resolved through negotiations, this bill requires AHS to submit the
matter to final binding arbitration.
According to the author, "AHS is exploring a move to a Physician
Operating Model with a separate governance structure. This would
AB 1008
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impact the jobs of the employed physicians at AHS."
Second, this bill prohibits specified employees, including those
who are employees of a facility that is acquired by or merged into
AHS, from automatically becoming members of ACERA. This bill
limits the eligibility of an employee to participate in ACERA, and
instead requires that employees participate in a retirement plan
adopted by AHS or in a pension trust sponsored by a third party
depending on several characteristics which include a person's
employment with the acquired or merged facility or AHS, current
membership in ACERA, and whether their employment is subject to an
MOU.
According to the author, AHS has reached an agreement to take over
San Leandro Hospital, which is currently operated by Sutter Health.
AHS is also planning to acquire Alameda Hospital, currently
operated by the City of Alameda. The Legislature may wish to note
that absent a definition for "facility" the bill applies to all
employees of a facility that is acquired by or merged into AHS
going forward.
This bill is an urgency measure and sponsored by AHS, the American
Federation of State, County, and Municipal Employees (AFSCME), and
the Union of American Physicians and Dentists.
Support arguments: Supporters argue that this bill will allow AHS
to protect existing levels of retirement benefits earned by
represented employees and ensure access to healthcare for the
residents of Alameda County.
Opposition arguments: Opposition could argue that some of the
provisions of this bill could be negotiated at the local level.
Analysis Prepared by : Misa Yokoi-Shelton / L. GOV. / (916)
319-3958
FN: 0002664