BILL ANALYSIS
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THIRD READING
Bill No: AB 65
Author: Hayashi (D), et al
Amended: 7/23/09 in Senate
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 4-2, 6/22/09
AYES: Correa, Liu, Padilla, Wiggins
NOES: Ashburn, Benoit
NO VOTE RECORDED: Ducheny
SENATE APPROPRIATIONS COMMITTEE : 8-5, 8/27/09
AYES: Kehoe, Corbett, Hancock, Leno, Oropeza, Price, Wolk,
Yee
NOES: Cox, Denham, Runner, Walters, Wyland
ASSEMBLY FLOOR : 51-24, 6/3/09 - See last page for vote
SUBJECT : Public employee: health benefits
SOURCE : Retired Public Employees Association
DIGEST : This bill establishes a self-funded vision care
program for retired local members, school members and
university members to be administered by the California
Public Employees' Retirement System effective on or before
January 1, 2011.
ANALYSIS :
Existing law:
CONTINUED
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1. Requires the Department of Personnel Administration
(DPA) to establish and administer the Vision Care
Program for State Annuitants.
2. Provides, pursuant to Chapter 611 of 2006, that the
premium cost to participate in the Vision Care Program
for State Annuitants is paid for entirely by the
participant.
3. Establishes, pursuant to Chapter 331 of 2007, the County
Retirement System Vision Care Program to provide vision
care benefits to retired employees of counties operating
retirement systems under the County Employees'
Retirement Law of 1937 ('37 Act), providing that the
retiree is responsible for the full cost of the vision
care premium.
4. Allows, pursuant to Chapter 344 of 2007, annuitants of
the California State University (CSU) system to
participate in the newly created California State
University Annuitant Vision Care Program, and requires
the Office of the Chancellor of the CSU to administer
the program for all participating annuitants of the
institution.
This bill:
1. Authorizes the California Public Employees' Retirement
System (CalPERS) to contract with one or more vision
care plans, as specified, in order to provide the vision
care program for retired CalPERS local, school, and
university members.
2. Specifies that the retiree electing coverage is
responsible for the monthly vision care premium and
requires the premium to be deducted from the
participant's monthly retirement allowance.
3. Creates the Retired Public Employees Vision Care Program
Fund in the State Treasury, as specified, where all
premiums received from participants in the program will
be deposited.
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4. Specifies that any contract entered into by the CalPERS
Board will only take effect if funds have been made
available to cover the program's startup costs.
5. Specifies that the vision care premiums are to be used
for the cost of providing benefits to enrollees, the
payment of claims for vision care benefits,
administrative costs, and any reasonable startup costs
incurred by the CalPERS Board.
6. Allows the CalPERS Board to discontinue the program,
upon written notice to the enrollees, if the Board
determines that it is not economically feasible to
continue its operation; enrollees must be informed of
the plan termination at least three months prior to the
termination date.
7. CalPERS Board to implement the program on or before
January 10, 2010.
Previous legislation
This bill is similar to AB 1997 (Hayashi) of 2008 which was
vetoed by the Governor due to the 2008-2009 State Budget
delay. The veto message states, "The historic delay in
passing the 2008-2009 State Budget has forced me to
prioritize the bills sent to my desk at the end of the
year's legislative session. Given the delay, I am only
signing bills that are the highest priority for California.
This bill does not meet that standard and I cannot sign it
at this time."
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
Senate Appropriations Committee analysis states, although
this bill specifies that the program and administrative
costs will be paid by participants who choose to enroll in
the vision care program, CalPERS has indicated that minimal
start-up costs would likely be $325,000 before the program
can be fully implemented. After that time, it is
anticipated that fees charged to participants would
completely support the administrative functions. However,
CalPERS has indicated that ongoing administration of this
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program would require four staff positions to administer,
maintain, and audit the system side of the program with
costs of $280,000 annually. It is uncertain at this time
whether participation and the amount of the fee that would
need to be charged would actually be sufficient to entirely
fund this program. The full costs of the vision care
provider will be paid from premiums by retired members who
choose to participate.
SUPPORT : (Verified 9/1/09)
Retired Public Employees' Association (source)
American Federation of State, County and Municipal
Employees
California Alliance for Retired Americans
California Federation of Teachers
California Professional Firefighters
CalPERS Board of Administration, support if amended
Glendale City Employees Association
Organization of SMUD Employees
San Bernardino Public Employees Association
San Luis Obispo County Employees Association
Santa Rosa City Employees Association
ARGUMENTS IN SUPPORT : According to the sponsor, the
Retired Public Employees' Association, "Vision care is an
important, yet under appreciated preventive health care
service. In 2006, the National Institute of Health
estimated that over 11 million Americans had an uncorrected
visual impairment. Vision loss is often accepted as a
normal part of aging, but regular eye exams and conscious
vision care can make a difference - not just in how well we
see, but in our overall health and quality of life. Eye
exams can detect diseases, such as diabetes and
hypertension, that otherwise might go undiagnosed and
therefore untreated. As Californians live longer lives,
maintaining good vision is an important part of staying
active and independent."
Supporters conclude this bill will make vision care
available for retired local government employees similar to
the vision care now available for retired state employees.
This legislation will allow them the necessary access to
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vision care treatment, at an affordable price, resulting in
a greater number of retirees and California residents
utilizing vision care services."
ASSEMBLY FLOOR :
AYES: Ammiano, Arambula, Beall, Blumenfield, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Conway, Coto, Davis, De La Torre, De Leon, Eng, Evans,
Feuer, Fong, Fuentes, Furutani, Galgiani, Hall, Hayashi,
Hernandez, Hill, Huber, Huffman, Jones, Krekorian, Lieu,
Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, John A.
Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas,
Saldana, Skinner, Solorio, Swanson, Torlakson, Torres,
Torrico, Tran, Bass
NOES: Adams, Anderson, Tom Berryhill, Blakeslee, Cook,
DeVore, Emmerson, Fletcher, Fuller, Gaines, Garrick,
Gilmore, Hagman, Harkey, Jeffries, Knight, Logue,
Nestande, Niello, Nielsen, Silva, Smyth, Audra
Strickland, Villines
NO VOTE RECORDED: Bill Berryhill, Block, Duvall, Miller,
Yamada
DLW:do 9/1/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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