BILL NUMBER: AB 2115	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 10, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member Alejo

                        FEBRUARY 23, 2012

   An act to  add Section 7514.6 to the Government Code
   amend Section 32121.5 of the Health and Safety Code
 , relating to  public employees' retirement 
 local hospital districts  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2115, as amended, Alejo.  Public employees' retirement:
pension limitation.   Local hospital districts:
employment contracts.  
   Existing law, the Local Health Care District Law, regulates local
hospital districts and authorizes the hospital districts to exercise
specified powers. Existing law authorizes a local hospital district
to enter into an employment contract with a hospital administrator.
 
   This bill would require a local hospital district that employs a
hospital administrator to enter into a written employment contract
with the hospital administrator, thereby imposing a state-mandated
local program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.  
   Existing law establishes the Public Employees' Retirement System
and the State Teachers' Retirement System for the purpose of
providing pension benefits to their employees. Existing law also
establishes the Judges' Retirement System II which provides pension
benefits to elected judges and the Legislators' Retirement System
which provides pension benefits to elective officers of the state
other than judges and to legislative statutory officers. The County
Employees Retirement Law of 1937 authorizes counties to establish
retirement systems pursuant to its provisions in order to provide
pension benefits to county, city, and district employees. The Regents
of the University of California have established the University of
California Retirement System as a trust for this purpose. 

   This bill would prohibit the pension benefit of a person who is a
member of a public retirement system from exceeding $173,987 per
year. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no   yes  .


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

   SECTION 1.    Section 32121.5 of the  
Health and Safety Code   is amended to read: 
   32121.5.  Notwithstanding any other provision of this division, a
local hospital district  may   shall, if
employing a hospital administrator,  enter into a  written
 contract of employment with  a   the 
hospital administrator  , the   .  
The  duration of  which   the employment
contract  shall not exceed four years, but  which
 may periodically be renewed upon expiration for not more
than four years.
   SEC. 2.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.  
  SECTION 1.    Section 7514.6 is added to the
Government Code, to read:
   7514.6.  (a) Notwithstanding any other law, for purposes of
determining the defined pension benefit of a person who is a member
of a public retirement system, the maximum amount of that benefit
shall not exceed one hundred seventy-three thousand nine hundred
eighty-seven dollars ($173,987) per year.
   (b)  For purposes of this section, the following definitions
apply:
   (1) "Public employer" means:
   (A) The state and every state entity, including, but not limited
to, the Legislature, the courts, the California State University, and
the University of California.
   (B) Any political subdivision of the state, including, but not
limited to, a city, county, city and county, charter city, charter
county, charter city and county, school district, community college
district, joint powers authority, joint powers agency, and any public
agency, authority, board, commission, district, or other entity.
   (2) "Public retirement system" means any pension or retirement
system of a public employer.