BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                              UNFINISHED BUSINESS


          Bill No:  SB 72
          Author:   Senate Budget and Fiscal Review Committee
          Amended:  9/4/09 in Senate
          Vote:     27 - Urgency

           
           PRIOR SENATE VOTES NOT RELEVANT
           
           ASSEMBLY FLOOR  :  63-9, 9/8/09 - See last page for vote


           SUBJECT  :    State employees:  payroll:  health care

           SOURCE  :     Author


           DIGEST  :    As it left the Senate, this bill expressed the  
          intent of the Legislature to enact statutory changes  
          relating to the Budget Act of 2009.  This bill now:  (1)  
          Clarifies that the payday deferral enacted through AB  
          12XXXX (Evans), Chapter 12, Statutes of 2009-10, Fourth  
          Extraordinary Session, applies to only June 30th paychecks.  
            (Current law directs the State Controller to issue date  
          all June 30th paychecks to July 1, thus allocating those  
          costs into the following fiscal year.  (2) Makes 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  
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          June 30 of each year shall be on or after July 1, provided  
          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 section.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Arambula, Beall, Tom Berryhill,  
            Blakeslee, Block, Blumenfield, Brownley, Buchanan,  
            Caballero, Charles Calderon, Carter, Chesbro, Cook, Coto,  
            Davis, De La Torre, De Leon, Emmerson, Eng, Evans, Feuer,  
            Fong, Fuentes, Furutani, Gaines, Galgiani, Gilmore, Hall,  
            Hayashi, Hernandez, Hill, Huffman, Jeffries, Jones,  
            Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza,  
            Monning, Nava, Niello, Nielsen, John A. Perez, V. Manuel  
            Perez, Portantino, Ruskin, Salas, Saldana, Skinner,  







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            Smyth, Solorio, Swanson, Torlakson, Torres, Torrico,  
            Tran, Villines, Yamada, Bass
          NOES:  Anderson, DeVore, Duvall, Fuller, Harkey, Knight,  
            Miller, Silva, Audra Strickland
          NO VOTE RECORDED:  Bill Berryhill, Conway, Fletcher,  
            Garrick, Hagman, Huber, Nestande, Vacancy


          DLW:mw  9/9/09   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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