BILL ANALYSIS
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THIRD READING
Bill No: AB 186
Author: Assembly Budget Committee
Amended: 9/4/09 in Senate
Vote: 21
PRIOR VOTES NOT RELEVANT
SUBJECT : State employees: payroll: health care
SOURCE : Author
DIGEST : Senate Floor Amendments of 9/4/09 delete the
prior version of the bill expressing the intent of the
Legislature to enact statutory revisions relating to the
2009 Budget Act.
This bill now makes technical (non-substantive) and
clarifying changes to provisions enacted pursuant to ABX4
12, regarding payday deferral and health benefit plan
premiums by: (1) clarifying that the payday deferral
applies only to June 30th paychecks, and (2) making
technical clarifying amendments to the provision
authorizing the Public Employees' Retirement System to use
reserves generated by one or more self-funded benefit plans
to reduce premiums charged.
ANALYSIS : Existing law requires that, on and after
January 1, 2010, payments to employees made through the
Uniform State Payroll System for a pay period ending on
June 30 of each year shall be on or after July 1, provided
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AB 186
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that employees, in any event, be paid promptly.
This bill requires that, on and after January 1, 2010,
payments to employees made through the Uniform State
Payroll System for a master payroll paid on June 30 of each
year shall be issue dated on July 1.
Existing law requires the Department of Finance to install
and supervise an accounting system for state agencies.
Existing law requires, in regard to this system, that the
payments to employees made in July through the Uniform
State Payroll System for services rendered prior to July 1
of each year are to be considered payables incurred in the
fiscal year in which the warrant is issued.
This bill provides that payments to employees made through
the Uniform State Payroll System, as specified, with an
issue date each year of July 1 shall be considered payables
incurred in the fiscal year in which the payment is issue
dated.
Existing law authorizes the Board of Administration of the
Public Employees' Retirement System to use reserves
generated by one or more self-funded health benefit plans
to reduce the premiums charged for enrollment in one or
more separate self-funded health benefit plans offered by
the board, as specified.
This bill makes technical changes to that authorization.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
RJG:nl 10/12/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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