BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 235
                                                                  Page  1


          SENATE THIRD READING
          SB 235 (Negrete McLeod)
          As Amended July 19, 2007
          Majority vote 

           SENATE VOTE  :29-7  
           
           PUBLIC EMPLOYEES    4-1         APPROPRIATIONS      17-0         
           
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          |Ayes:|Hernandez, Mullin,        |Ayes:|Leno, Walters, Caballero, |
          |     |Swanson, Torrico          |     |Davis, DeSaulnier,        |
          |     |                          |     |Emmerson, Huffman,        |
          |     |                          |     |Karnette, Krekorian, La   |
          |     |                          |     |Malfa, Lieu, Ma,          |
          |     |                          |     |Nakanishi, Nava, Sharon   |
          |     |                          |     |Runner, Solorio, Feuer    |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Anderson                  |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
          SUMMARY  :  Authorizes retirees of the California State University  
          (CSU) to participate in the California State University Annuitant  
          Vision Care Program and requires the office of the Chancellor of  
          the CSU to administer the program for participating retirees.

           EXISTING LAW , prior to enactment of AB 2242 (PER&SS Committee),  
          Chapter 611, Statutes of 2006, provided vision care for active  
          state employees only, not retirees.  AB 2242 established, under  
          the administration of the Department of Personnel Administration  
          (DPA), a vision care program for state annuitants and their  
          dependents, at no cost to the state.  The cost of the coverage is  
          paid for by the participant.  Under the provisions of AB 2242,  
          annuitants of the CSU and the University of California are  
          prohibited from participating in the DPA administered vision care  
          program.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, all costs, including start-up and ongoing expenses  
          associated with administering the program, would be included in  
          premiums paid by participating annuitants.

           COMMENTS  :  Under regulations and through collective bargaining  
          agreements, DPA has provided vision care benefits to approximately  
          176,000 active state employees and their dependents since 1986.   







                                                                  SB 235
                                                                  Page  2


          Until enactment last year of AB 2242, vision care benefits were  
          not made available to state retirees.  The newly created Vision  
          Care Program for State Annuitants is in the process of an "open  
          enrollment" period and to date, over 30,000 retirees have  
          enrolled.  The carrier is Vision Service Plan, and rates are  
          estimated at $8.78 per month per single participant, $17.12 per  
          month for a two party, and $18.43 per month for a party of three  
          or more.

          Supporters state, "The ability to see plays an integral role in  
          retirees' level of mobility and independence.  Many physical  
          ailments and diseases can be diagnosed at a much earlier stage if  
          regular and complete eye exams are conducted.  Glaucoma and  
          cataracts can be effectively treated with comprehensive eye care.   
          Not only can early intervention save the eyesight of retirees, it  
          could also save money by reducing high-cost complications, serious  
          health problems and irrevocable vision loss?By having a vision  
          services program, retirees will be more likely to receive a  
          regular eye exam, update their lenses and maintain good visual  
          health."


           Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957 
                                                                  FN: 0002423