BILL NUMBER: AB 2383	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   APRIL 6, 2000

INTRODUCED BY   Assembly Member Keeley

                        FEBRUARY 24, 2000

   An act to amend Section 22754 of the Government Code, relating to
the Public Employees' Medical and Hospital Care Act, and making an
appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2383, as amended, Keeley.  Public Employees' Medical and
Hospital Care Act:  covered employees.
   Existing law, the Public Employees' Medical and Hospital Care Act,
defines "employee" for purposes of  eligibility for benefits
under  the act and excludes from that definition specified
 local agency  officers and employees who are
employed less than half time.   Employee contributions under the
act are deposited in the Public Employees' Health Care Fund, a
continuously appropriated fund. 
   This bill would  delete that exclusion  
authorize contracting agencies, as defined, and school employers to
include within that definition certain employees who are employed
less than half time or as specified.  By expanding eligibility for
benefits under the act, the bill would increase the contributions to
a continuously appropriated fund, thereby making an appropriation
 .
   Vote:  majority.  Appropriation:  yes.  Fiscal committee:  yes.
State-mandated local program:  no.


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


  SECTION 1.  Section 22754 of the Government Code is amended to
read:
   22754.  As used in this part the following definitions, unless the
context otherwise requires, shall govern the interpretation of
terms:
   (a) "Board" means the Board of Administration of the Public
Employees' Retirement System.
   (b) "Employee" means:
   (1) Any officer or employee of the State of California or of any
agency, department, authority, or instrumentality of the state
including the University of California, or any officer or employee
who is a local or school member of the Public Employees' Retirement
System employed by a contracting agency that has elected to be or
otherwise has become subject to this part, or who is a member or
 retirant   retired member  of the State
Teachers' Retirement System employed by an employer who has elected
to become subject to this part, or who is an employee or annuitant of
a special district or county subject to the County Employees
Retirement Law of 1937 (Chapter 3 (commencing with Section 31450) of
Part 3 of Division 4 of Title 3) that has elected to become subject
to this part, or who is an employee or annuitant of a special
district, as defined in subdivision (i), that has elected to become
subject to this part, except persons employed on an intermittent,
irregular or less than half-time basis, or employees similarly
situated, or employees in respect to whom contributions by the state
for any type of plan or program offering prepaid hospital and medical
care are otherwise authorized by law.
   (2) Any officer or employee who participates in the retirement
system of a contracting agency as defined in paragraph (2) of
subdivision (g) that has elected to become subject to this part,
except persons  employed less than half time or  who are
otherwise determined to be ineligible.
   (3) Any annuitant of the Public Employees' Retirement System
employed by a contracting agency as defined in subdivision (g) that
has elected to become subject to this part who is a person retired
under Section 21228.  
   (4) Notwithstanding paragraphs (1) and (2), a contracting agency
or school employer may, by resolution filed with the board, deem all
permanent employees, except members of the State Teachers' Retirement
System, who have an appointment of six months or longer, but who are
employed on less than a half time basis, to be "employees" subject
to this part.
   (5) Notwithstanding paragraphs (1) and (2), a contracting agency
or school employer with employees who are members of the State
Teachers' Retirement System may, by resolution filed with the board,
deem the following to be "employees" subject to this part:
   (A) Regular employees who have an appointment of six months or
longer, but who are employed on less than a half time basis.
   (B) Part-time faculty employees who are hired on a semester basis.

   (C) Long-term substitutes who are hired for at least one-half of
the school year. 
   (c) "Carrier" means a private insurance company holding a valid
outstanding certificate of authority from the Insurance Commissioner
of the state, a medical society or other medical group, a nonprofit
hospital service plan qualifying under Chapter 11A (commencing with
Section 11491) of Part 2 of Division 2 of the Insurance Code, or
nonprofit membership corporation lawfully operating under Section
9200 or Section 9201 of the Corporations Code, or a health care
service plan as defined under subdivision (f) of Section 1345 of the
Health and Safety Code, or a health maintenance organization approved
under Title XIII of the federal Public Health Services Act, that is
lawfully engaged in providing, arranging, paying for, or reimbursing
the cost of personal health services under insurance policies or
contracts, medical and hospital service agreements, membership
contracts, or the like, in consideration of premiums or other
periodic charges payable to it.
   (d) "Health benefits plan" means any program or entity that
provides, arranges, pays for, or reimburses the cost of health
benefits.
   (e) "Annuitant" means:
   (1) Any person who has retired within 120 days of separation from
employment and who receives any retirement allowance under any state
or University of California retirement system to which the state was
a contributing party.
   (2) A family member receiving an allowance as the survivor of an
annuitant who has retired as provided in paragraph (1), or as the
survivor of a deceased employee under Section 21541, 21546, or 21547
or similar provisions of any other state retirement system.
   (3) Any employee who has retired under the retirement system
provided by a contracting agency as defined in paragraph (2) of
subdivision (g) and who receives a retirement allowance from that
retirement system, or a surviving family member who receives the
retirement allowance in place of the deceased.
   (4) Any person who was a state member for 30 years or more and
who, at the time of retirement, was a local member employed by a
contracting agency.
   (f) "Family member" means an employee's or annuitant's spouse and
any unmarried child (including an adopted child, a stepchild, or
recognized natural child who lives with the employee or annuitant in
a regular parent-child relationship).  The board shall, by
regulation, prescribe age limits and other conditions and limitations
pertaining to unmarried children.
   (g) "Contracting agency" means:
   (1) Any contracting agency as defined in Section 20022, any county
or special district 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 any special district, school district,
county board of education, personnel commission of a school district
or a county superintendent of schools.
   (2) Any public body or agency of, or within California not covered
by the Public Employees' Retirement System or subject to the County
Employees Retirement Law of 1937 (Chapter 3 (commencing with Section
31450) of Part 3 of Division 4 of Title 3), that provides a
retirement system for its employees funded wholly or in part by
public funds.
   (h) "Employer" means the state, any contracting agency employing
an employee, and any agency that has elected to become subject to
this part pursuant to Section 22856.
   (i) "Special district" means a nonprofit, self-governed public
agency, within the State of California and comprised solely of public
employees, performing a governmental rather than proprietary
function.