BILL ANALYSIS
AB 65
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 65 (Hayashi)
As Amended July 23, 2009
Majority vote
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|ASSEMBLY: |51-24|(June 3, 2009) |SENATE: |22-15|(September 2, |
| | | | | |2009) |
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Original Committee Reference: P.E.,R. & S.S.
SUMMARY : 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 (CalPERS) effective on or before January 1, 2011.
Specifically, this bill :
1)Authorizes CalPERS to contract with one or more vision care
plans, as specified, in order to provide the vision care
program for retired 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.
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.
AB 65
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7)Requires the CalPERS Board to implement the program on or
before January 1, 2011.
The Senate amendments make technical clarifying changes to the
bill.
EXISTING LAW requires the Department of Personnel Administration
to establish and administer the Program for State Annuitants.
Currently, the premium cost to participate in the Program for
State Annuitants is paid for entirely by the participant. [AB
2242 (P. E., R. & S. S. Committee), Chapter 611, Statutes of
2006].
AB 1288 (Hayashi), Chapter 331, Statutes of 2007, establishes
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). Under this program, the retiree is responsible
for the full cost of the vision care premium.
SB 235 (Negrete McLeod), Chapter 344, Statutes of 2007, allows
annuitants of the California State University (CSU) system to
participate in the newly created California State University
Annuitant Vision Care Program. This bill requires the Office of
the Chancellor of the CSU to administer the program for all
participating annuitants of the institution.
AS PASSED BY THE ASSEMBLY, this bill was substantially similar
to the version approved by the Senate.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, annual cost for vision care is entirely self-funded
through premiums charged to members participating in the
program. Administrative costs to CalPERS, about $200,000 per
year, will also be covered by the premiums charged to members.
First year costs would need to be covered through a loan either
from the General Fund or from the contracting vision care plans.
These loans would be repaid from premium payments collected
over time.
COMMENTS : According to the sponsor, "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.
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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, "AB 65 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 vision care treatment,
at an affordable price, resulting in a greater number of
retirees and California residents utilizing vision care
services."
This bill is similar to AB 1997 (Hayashi) of 2008 which was
vetoed by the Governor due to the 2008-2009 State Budget delay.
In his veto message of AB 1997, the Governor stated, "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."
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
FN: 0002581