BILL NUMBER: SB 628	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 22, 2009

INTRODUCED BY   Senator Ashburn

                        FEBRUARY 27, 2009

   An act to add Section  22868   22894  to
the Government Code, relating to county employees.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 628, as amended, Ashburn. County employees: health benefit
system.
   The Public Employees' Medical and Hospital Care Act (PEMHCA)
provides that an employee or annuitant is eligible to enroll in an
approved health benefit plan, as specified. PEMHCA authorizes a
contracting agency, as specified, to elect to become subject to the
act, along with the agency's employees and annuitants.  Existing
law establishes certain minimum rates for contracting employer
contributions in this regard and requires that the employer
contribution be equal for both employees and annuitants.  
   This bill would permit a contracting agency of PEMHCA and the
exclusive representative of employees of that agency to agree through
collective bargaining that the employer contribution for employee
and annuitant health benefits coverage for employees first hired on
or after the effective date of a memorandum of understanding may
differ from the employer contribution provided to existing employees
and annuitants. The bill would provide that these provisions are not
subject to labor negotiation impasse procedures. The bill would
require a contracting agency that applies a different contribution
rate to employees not represented by a bargaining unit to certify
that, with regard to those employees, there is not an applicable
memorandum of understanding. The bill would provide that an agreement
reached in this regard is not valid if it provides an employer
contribution for employees with less than five years of credited
service with the contracting agency.  
   This bill would authorize a county board of supervisors to
contract with the Public Employees' Retirement System to provide a
2-tiered health benefit system for the county's annuitants. This bill
would establish, on a date designated by the county board of
supervisors, a 2-tiered health benefit system for annuitants.

   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 22894 is added to the 
 Government Code   , to read:  
   22894.  (a) A contracting agency and the exclusive representative
of employees of that agency may agree through collective bargaining
that the employer contribution for employee and annuitant health
benefits coverage for employees first hired on or after the effective
date of a memorandum of understanding may differ from the employer
contribution provided to existing employees and annuitants pursuant
to Sections 22890 and 22892. This issue may not be subject to labor
negotiation impasse procedures.
   (b) If the memorandum of understanding establishes a retroactive
effective date, any employee who is first hired on or before the date
the memorandum of understanding is signed shall retain status as an
existing employee for purposes of determining eligibility for
postretirement health benefits coverage.
   (c) If the contracting agency applies a different contribution
rate to employees not represented by a bargaining unit, the
contracting agency shall certify to the board that, with regard to
those employees, there is not an applicable memorandum of
understanding.
   (d) An agreement reached pursuant to subdivision (a) is not valid
if it provides an employer contribution for employees with less than
five years of credited service with the contracting agency.
   (e) The contracting agency shall provide, in the manner prescribed
by the board, notice any agreement entered into pursuant to this
section and any additional information necessary to implement this
section.  
  SECTION 1.    Section 22868 is added to the
Government Code, to read:
   22868.  (a) A county board of supervisors is authorized to
contract with the Public Employees' Retirement System to provide a
two-tiered health benefit system for the county's annuitants.
   (b) Effective on a date designated by a county board of
supervisors, there shall be a two-tiered health benefit system for
annuitants.
   (c) This section shall apply to a public body or agency of, or
within, the state that is not subject to the County Employees
Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of
Part 3 of Division 4 of Title 3) and that is a contracting agency, as
defined in Section 20022.