BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 820|
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THIRD READING
Bill No: AB 820
Author: Conway (R)
Amended: As introduced
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 7-0, 6/8/09
AYES: Correa, Ashburn, Benoit, Ducheny, Liu, Padilla,
Wiggins
SENATE APPROPRIATIONS COMMITTEE : 11-0, 6/29/09
AYES: Kehoe, Cox, Corbett, Leno, Oropeza, Price, Runner,
Walters, Wolk, Wyland, Yee
NO VOTE RECORDED: Denham, Hancock
ASSEMBLY FLOOR : 73-0, 05/14/09 - See last page for vote
SUBJECT : Public employees
SOURCE : Department of Personnel Administration
DIGEST : This bill makes the self-funded group legal
services plan currently offered to state employees also
available to retirees. The bill also authorizes the
Department of Personnel Administration to directly bill a
retiree if there are insufficient funds in the retiree's
benefit allowance to pay the premium for the vision care
program and provides that monies in the vision care program
are continuously appropriated.
ANALYSIS :
CONTINUED
AB 820
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Existing law on the Legal Plan:
1.Authorizes the Department of Personnel Administration
(DPA) to enter into contracts to purchase various
insurance benefits for excluded and exempt employees
(managers and supervisors).
2.Provides that the individual Memoranda of Understanding
for the 21 bargaining units authorize participation
eligibility for rank-and-file state employees.
3.Provides that the existing Legal Plan is a voluntary and
fully employee-paid, designed to meet an individual's
most common personal legal needs, providing comprehensive
legal coverage for eligible employees and their eligible
dependents.
4.Provides that the Legal Plan is only available to active
employees and their eligible dependents via post-tax
payroll deduction.
5.Provides that once state employees separate or retire,
they are no longer eligible to participate in the Legal
Plan.
Existing law on the Vision Care Program:
1.Establishes the Vision Care Program and the Vision Care
Program for State Annuitants Fund.
2.Provides that state retirees participating in the Vision
Care Program are required to pay 100 percent of the costs
of the premiums and a small surcharge that covers the
costs associated with administering the Vision Care
Program.
This bill:
1.Allows state, legislative, and judicial branch retirees
to participate in the Legal Plan which is currently
offered to state employees, provided the annuitant pays
the full costs of the plan.
AB 820
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2.Authorizes DPA to directly bill an annuitant if there are
insufficient funds in the annuitant's benefit allowance
to pay the premium for the Vision Care Program.
3.Provides that monies in the Vision Care Program are
continuously appropriated.
This bill is identical to SB 1601 (Negrete McLeod), which
was vetoed by the Governor last year due to 2008-09 State
Budget delay.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee analysis,
DPA indicates that administrative costs to expand the legal
plan to retirees would be minor, and ongoing program costs,
including administration, would be covered by retiree
contribution.
SUPPORT : (Verified 7/1/09)
Department of Personnel Administration (source)
California Public Employees' Retirement System Board of
Administration
California State Employees Association
ARGUMENTS IN SUPPORT : According to the sponsor, DPA,
"Current state law does not allow state, legislative and
judicial retirees to participate in the Group Legal
Services Plan administered by DPA. Retirees have a
similar, perhaps greater, need for legal services than
active employees. AB 820 allows state, legislative, and
judicial branch retirees to participate in the Group Legal
Services Plan at their own expense.
"The Vision Care Program for State Annuitants, unlike most
of the state's benefit programs, requires an annual
appropriation. SB 820 would align this funding system to a
continuously appropriated fund, like other benefit
programs, thereby eliminating an unnecessary administrative
burden and ensure retirees receive services they have paid
for without disruption."
AB 820
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According to supporters, "Additionally, this bill clarifies
that these retirees may also participate in the retiree
vision care program at their own expense with after-tax
dollars. There are approximately 700 retirees who receive
retirement checks that are less than the amount of deducted
expenses. Retirement checks may not be enough to cover the
cost of health care premiums; in such cases, these retirees
may pay an additional vision care premium costs with
after-tax dollars."
ASSEMBLY FLOOR :
AYES: Adams, Anderson, Arambula, Beall, Bill Berryhill,
Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,
Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,
Fuller, Furutani, Galgiani, Gilmore, Hagman, Hall,
Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, John A. Perez, V. Manuel Perez,
Portantino, Price, Ruskin, Salas, Silva, Skinner,
Solorio, Audra Strickland, Swanson, Torlakson, Torres,
Torrico, Tran, Villines, Yamada
NO VOTE RECORDED: Ammiano, Fuentes, Gaines, Garrick,
Saldana, Smyth, Bass
DLW:cm 7/1/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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