BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2053|
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THIRD READING
Bill No: AB 2053
Author: Allen (D)
Amended: As introduced
Vote: 21
SENATE PUBLIC EMPLOYMENT & RETIRE. COMM. : 4-1, 6/11/12
AYES: Negrete McLeod, Walters, Padilla, Vargas
NOES: Gaines
SENATE APPROPRIATIONS COMMITTEE : 6-0, 6/25/12
AYES: Kehoe, Walters, Alquist, Lieu, Price, Steinberg
NO VOTE RECORDED: Dutton
ASSEMBLY FLOOR : 75-0, 5/17/12 (Consent) - See last page
for vote
SUBJECT : Postemployment health benefits: the San
Francisco Bay
Area Rapid Transit District
SOURCE : California Conference Board of the Amalgamated
Transit
Union
DIGEST : This bill authorizes the San Francisco Bay Area
Rapid Transit District (BART) to establish a vesting
requirement for post-retirement health benefits coverage
that is different than what is allowed under current law
for agencies that contract with the California Public
Employees Retirement System.
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ANALYSIS : Existing law requires the Board of
Administration of the Public Employees' Retirement System
to administer the Public Employees' Medical and Hospital
Care Act. Existing law permits a contracting agency to
elect to be subject to the act for its employees and
annuitants, provided that the contracting agency and each
employee or annuitant contribute a portion of the cost of
providing the benefit coverage afforded under the health
benefit plan approved or maintained by the board in which
the employee or annuitant may be enrolled.
This bill:
1.Allows BART to make contributions for postretirement
health benefits for members of the district board of
directors, the districts' unrepresented employees, and
for any unit of employees whose terms and conditions of
employment are determined through collective bargaining,
based on years of service performed for the district.
2.Requires employer contributions for postretirement health
benefits for unrepresented employees to conform to
eligibility criteria and schedules in approved bargaining
agreements for represented employees.
3.Prohibits any agreement from providing an employer
contribution for retiree healthcare for employees with
less than 10 years of service with BART except in cases
where an employee retires for disability.
4.Requires any agreement to provide full employer
contribution for employees with 15 or more years of
service with BART. Full contributions for employees who
retire for disability with less than 15 years of service
is allowed.
5.Specifies that these provisions apply to BART employees
first hired on or after July 1, 2013, or on the date
specified in the bargaining agreement.
Comments
According to the author's office, BART has had funding
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issues over the years and has sought to resolve its fiscal
problems through layoffs and wage concessions from its rank
and file employees. The author notes through these
concessions and changes in work rules the District has
saved significantly, with some projections of these savings
are in excess of $100 million. According to the author's
office, many of the cuts have had a detrimental impact on
BART workers and the public that relies on the system. The
author argues AB 2053 avoids these results by finding
creative ways to save money that doesn't impact the transit
services and doesn't harm the workforce.
Supporters, including the bill's sponsor, California
Conference Board of the Amalgamated Transit Union and SEIU
and AFSCME conclude this bill will allow BART and its
employees to incorporate these changes into a new
bargaining agreement when the existing one expires June 30,
2013.
The sponsor has provided the Senate Public Employment &
Retirement Committee with a copy of the agreement, reached
in 2009, to increase the retiree health vesting schedule to
the 15-year vesting addressed in the bill and to seek
legislation necessary to implement the change. The
agreement, incorporated into the current memorandum of
understanding, which expires on June 30, 2013, states the
intent to implement the new vesting schedule in fiscal year
2012 or 2013.
Prior Legislation
AB 2510 (Fletcher), Chapter 600, Statutes of 2010, provided
the City of San Diego the ability to establish a vesting
requirement for post-retirement health benefits coverage
that is different than what is allowed under current law
for contracting agencies.
AB 1506 (Kuehl), Chapter 326, Statutes of 1995, authorized
the Santa Monica Community College District and the Mt. San
Antonio Community College Districts to establish their own
schedule of employer contributions for post-retirement
health benefit coverage under the Public Employees' Medical
and Hospital Care Act.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
Minor, absorbable administrative expenses to CalPERS
(Special), and potentially significant savings to BART,
depending upon the terms of the new contract.
SUPPORT : (Verified 6/26/12)
California Conference Board of the Amalgamated Transit
Union (source)
American Federation of State, County and Municipal
Employees
California Labor Federation
Service Employees International Union
ASSEMBLY FLOOR : 75-0, 5/17/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Furutani, Beth
Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, Grove,
Hagman, Halderman, Hall, Harkey, Hayashi, Roger
Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Lara, Logue, Ma, Mansoor, Mendoza, Miller,
Mitchell, Monning, Morrell, Nestande, Nielsen, Norby,
Olsen, Pan, V. Manuel P�rez, Portantino, Silva, Smyth,
Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski,
Williams, John A. P�rez
NO VOTE RECORDED: Fletcher, Bonnie Lowenthal, Perea,
Skinner, Yamada
DLW:n 6/26/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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