BILL NUMBER: SB 1203 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 28, 2016
INTRODUCED BY Senator Hertzberg
FEBRUARY 18, 2016
An act to amend Section 22820 of the Government Code,
relating to public employee benefits. An act to add
Section 7522.05 to the Government Code, relating to retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 1203, as amended, Hertzberg. Firefighters and peace
officers: health benefits. Retirement systems: joint
powers authorities: benefit formulas.
The California Public Employees' Pension Reform Act of 2013
(PEPRA) requires a public retirement system, as defined, to modify
its plan or plans to comply with the act and, among other provisions,
establishes new retirement formulas that may not be exceeded by a
public employer offering a defined benefit pension plan for employees
first hired on or after January 1, 2013. Existing law, the Joint
Exercise of Powers Act, generally authorizes 2 or more public
agencies, by agreement, to jointly exercise any common power, which
may include hiring employees and establishing retirement systems.
This bill would require a joint powers authority to offer defined
benefit plans or formulas that are not PEPRA plans or formulas
provided that the plans or formulas were those the employees received
prior to the creation of the authority, the employees are not new
members under PEPRA, and they are employed by the authority with 180
days, as specified.
Under the Public Employees' Medical and Hospital Care Act
(PEMHCA), an uninsured surviving spouse or other eligible family
member of a deceased firefighter or peace officer is eligible to
enroll in a health benefit plan approved or maintained by the Board
of Administration of the Public Employees' Retirement System if the
death of the firefighter or peace officer occurred as a result of
injury or disease arising out of, and in the course of, the
firefighter's or peace officer's official duties, as specified. Under
PEMHCA, the employer of a deceased firefighter or peace officer is
required to notify the board within 10 days of the death of the
firefighter or peace officer if a spouse or a family member may be so
eligible for enrollment.
This bill would require the employer to also provide the board
with updated contact information of the spouse or family member. By
requiring local government employers to provide this contact
information, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7522.05 is added to the
Government Code , to read:
7522.05. (a) A joint powers authority formed on or after January
1, 2013, and formed pursuant to the provisions of the Joint Exercise
of Powers Act (Article 1 (commencing with Section 6500) of Chapter
5), where at least one member agency provided benefits on or before
December 31, 2012, as described in subdivision (c) of Section
7522.02, shall provide employees of that joint powers authority the
defined benefit plan or formula that those employees received from
their respective employers prior to the exercise of a common power
where that employee was not a new member with that employer and
subsequently is employed by the joint powers authority within 180
days of the member agency providing for the exercise of a common
power.
(b) The formation of a joint powers authority on or after January
1, 2013, shall not act in a manner as to exempt a new employee or a
new member, as defined by Section 7522.04, hired by that joint powers
authority from the requirements of the Public Employees' Pension
Reform Act of 2013. New members may only participate in a defined
benefit plan or formula that conforms to the requirements of the
Public Employees' Pension Reform Act of 2013.
SECTION 1. Section 22820 of the Government Code
is amended to read:
22820. (a) Upon the death, on or after January 1, 2002, of a
firefighter employed by a county, city, city and county, district, or
other political subdivision of the state, a firefighter employed by
the Department of Forestry and Fire Protection, a firefighter
employed by the federal government who was a resident of this state
and whose regular duty assignment was to perform firefighting
services within this state, or a peace officer as defined in Section
830.1, 830.2, 830.3, 830.31, 830.32, 830.33, 830.34, 830.35, 830.36,
830.37, 830.38, 830.39, 830.4, 830.5, 830.55, or 830.6 of the Penal
Code, if the death occurred as a result of injury or disease arising
out of and in the course of his or her official duties, the surviving
spouse or other eligible family member of the deceased firefighter
or peace officer, if uninsured, is deemed to be an annuitant under
Section 22760 for purposes of enrollment. All eligible family members
of the deceased firefighter or peace officer who are uninsured may
enroll in a health benefit plan of the surviving spouse's choice.
However, an unmarried child of the surviving spouse is not eligible
to enroll in a health benefit plan under this section if the child
was not a family member under Section 22775 and regulations pertinent
thereto prior to the firefighter's or peace officer's date of death.
The employer of the deceased firefighter or peace officer shall
notify the board within 10 business days of the death of the employee
if a spouse or family member may be eligible for enrollment in a
health benefit plan under this section, and shall provide the board
with updated contact information of the spouse or family member.
(b) Upon notification, the board shall promptly determine
eligibility and shall forward to the eligible spouse or family member
the materials necessary for enrollment. In the event of a dispute
regarding whether a firefighter's or peace officer's death occurred
as a result of injury or disease arising out of and in the course of
his or her official duties as required under subdivision (a), that
dispute shall be determined by the Workers' Compensation Appeals
Board, subject to the same procedures and standards applicable to
hearings relating to claims for workers' compensation benefits. The
jurisdiction of the Workers' Compensation Appeals Board under this
section is limited to the sole issue of industrial causation and this
section does not authorize the Workers' Compensation Appeals Board
to award costs against the system.
(c) (1) Notwithstanding any other provision of law, and except as
otherwise provided in subdivision (d), the state shall pay the
employer contribution required for enrollment under this part for the
uninsured surviving spouse of a deceased firefighter or peace
officer for life, and the other uninsured eligible family members of
a deceased firefighter or peace officer, provided the family member
meets the eligibility requirements of Section 22775 and regulations
pertinent thereto.
(2) The contribution payable by the state for each uninsured
surviving spouse and other uninsured eligible family members shall be
adjusted annually and be equal to the amount specified in Section
22871.
(3) The state's contribution under this section shall commence on
the effective date of enrollment of the uninsured surviving spouse or
other uninsured eligible family members. The contribution of each
surviving spouse and eligible family member shall be the total cost
per month of the benefit coverage afforded him or her under the plan
less the portion contributed by the state pursuant to this section.
(d) The cancellation of coverage by an annuitant, as defined in
this section, shall be final without option to reenroll, unless
coverage is canceled because of enrollment in an insurance plan from
another source.
(e) For purposes of this section, "surviving spouse" means a
spouse who was married to the deceased firefighter or peace officer
on the deceased's date of death and either was married for a
continuous period of at least one year prior to the date of death or
was married to the deceased prior to the date the deceased
firefighter or peace officer sustained the injury or disease
resulting in death.
(f) For purposes of this section, "uninsured" means that the
surviving spouse is not enrolled in an employer-sponsored health plan
under which the employer contribution covers 100 percent of the cost
of health care premiums.
(g) The board has no duty to identify, locate, or notify any
surviving spouse or eligible family member who may be or may become
eligible for benefits under this section.
SEC. 2. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.