BILL NUMBER: AB 1175	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member Bocanegra

                        FEBRUARY 22, 2013

   An act to  amend Section 22875.5 of   add
Section 22875.6 to  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. 
   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.

   This bill would  make technical, nonsubstantive changes to
these provisions   , 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  . 
   The bill would include findings and declarations regarding the
necessity of a special statute. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 22875.6 is added to the 
 Government Code  , to read:  
   22875.6.  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. 
   SEC. 2.    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.  
  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.