Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1175

Introduced by Assembly Member Bocanegra

February 22, 2013

An act to begin delete amend Section 22875.5 of end delete begin insert add Section 22875.6 to end insert the Government Code, relating to public employee benefits.

LEGISLATIVE COUNSEL’S DIGEST

AB 1175, as amended, Bocanegra. Public employee benefits: postemployment health care.

The Public Employees’ Medical and Hospital Care Act (PEMHCA), which is administered by the Board of Administration of the Public Employees’ Retirement System, establishes provisions governing postemployment health care benefits for members and their families that vest upon meeting certain requirements. Existing law also establishes various postemployment health care benefits under other benefit systems, including those offered by counties, districts, and cities.

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The PEMHCA prohibits compensated service rendered by personnel related to a function that has been assumed by the state from a public agency from being considered state service for purposes of these vesting requirements, unless specified conditions are met.

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This bill would begin delete make technical, nonsubstantive changes to these provisions end delete begin insert , if the governing board of the designated local authority for the former redevelopment agency within the County of Los Angeles acts to dissolve that authority, require the governing board to identify the entity responsible for assuming the enforceable obligation of the authority for the amount necessary to fully compensate for the postretirement health benefit costs of specified personnel end insert .

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The bill would include findings and declarations regarding the necessity of a special statute.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

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begin insert Section 22875.6 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

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begin insert 22875.6. end insert   

If the governing board of the designated local
authority, as defined in paragraph (3) of subdivision (d) of Section
34173 of the Health and Safety Code, for the former redevelopment
agency in Los Angeles acts to dissolve the designated local
authority, the governing board shall identify the entity responsible
for assuming the enforceable obligation of the authority, as
described in paragraph (1) of subdivision (d) of Section 34171 of
the Health and Safety Code, for the amount necessary to fully
compensate for the postretirement health benefit costs of the former
personnel of the authority and the former redevelopment agency.
The identified entity shall be considered the employer of the former
personnel of the authority and the former redevelopment agency
for purposes of making ongoing contributions for premium
payments pursuant to this part.

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begin insert

begin insert SEC. 2. end insert   

end insert begin insert

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the following: Due to the circumstances
that established a unique designated local authority for the former
redevelopment agency of Los Angeles that does not consist of the
city or county, and the unique contractual relationship between
the designated local authority and CalPERS, a special law is
necessary.

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SECTION 1.  

Section 22875.5 of the Government Code is
amended to read:

22875.5.  

(a) If the state has assumed from a public agency a
function and the related personnel, service rendered by that
personnel for compensation as employees or appointed or elective
officers of that public agency may not be credited as state service
for the purposes of Section 22874 or 22875, unless both of the
following apply:

(1) The former employer has paid or agreed to pay the state the
amount actuarially determined to equal the cost for any employee
health benefits that were vested at the time that the function and
the related personnel were assumed by the state.

(2) The Department of Finance finds that the contract contains
a benefit factor that is sufficient to reimburse the state for the
amount necessary to fully compensate for the postretirement health
benefit costs of those personnel.

(b) For a noncontracting public agency, the state agency that
has assumed the function shall certify the completed years of public
agency service to be credited to the employee as state service credit
under Section 22874 or 22875.

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