BILL NUMBER: AB 2383 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 31, 2000
AMENDED IN SENATE AUGUST 14, 2000
AMENDED IN SENATE JUNE 22, 2000
AMENDED IN ASSEMBLY MAY 26, 2000
AMENDED IN ASSEMBLY APRIL 6, 2000
INTRODUCED BY Assembly Members Keeley and Honda
(Coauthor: Assembly Member Lempert)
(Coauthors: Senators Johnston, Karnette, McPherson, Ortiz,
and Vasconcellos)
FEBRUARY 24, 2000
An act to add Section 25050 25950 to
the Education Code, and to add Article 10 (commencing with Section
22878) to Chapter 1 of Part 5 of Division 5 of Title 2 of the
Government Code, relating to health benefits, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 2383, as amended, Keeley. Public employee health benefits:
covered employees: retiree health benefits.
(1) 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 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 make the provisions of that act applicable to
specified employees of a school or agency, as defined, at the option
of its governing body, and would authorize the State
Teachers' Retirement System to become a contracting agency for
certain retired members or retired classified employees or both. The
bill and would define annuitants for purposes
of these provisions , and would prohibit a school or agency
from maintaining another health benefits plan unless it complies with
the provisions of the Public Employees' Medical and Hospital Care
Act and is equally available to its retired members, its active
employees, and their family members without discrimination as to
benefits, premiums, or employer contributions . By
expanding eligibility for benefits under the act, the bill would
increase the contributions to a continuously appropriated fund,
thereby making an appropriation.
(2) Existing law, the Teachers' Retirement Law, provides that the
State Teachers' Retirement System shall develop a program to provide
health care benefits for members, beneficiaries, children, and
dependent parents, as defined.
This bill would require the Teachers' Retirement Board to
develop 3 plans to provide certain report to the
Legislature, on or before April 1, 2001, on a prescription drug
program and a health benefits to
program for retired members, as specified, and to
report to specified legislative committees on or before March 1,
2001, regarding the costs and legislation necessary to implement
those plans and would authorize the Public Employees'
Retirement System to submit a proposal to administer a health
benefits program for retired members of the State Teachers'
Retirement System and their dependents .
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 25050 is added to the Education Code, to read:
25050. (a) The Teachers' Retirement Board shall develop:
(1) A prescription drug insurance plan for all retired members.
(2) A supplemental health insurance plan for all retired members
who have not yet attained the age of Medicare eligibility.
(3) A flexible plan to encourage employers and employing agencies
to provide health care benefits to their retirees by crediting those
employers and employing agencies, against the amount contributed
pursuant to Section 22950, a monthly amount, that would be adjusted
annually, for each retiree the employer or employing agency certifies
is enrolled in one or more health care benefits programs
administered or sponsored by the employer or employing agency. Those
programs would include a catastrophic health care program for
retirees who are less than 65 years of age, a Medicare supplement
health care program, a prescription drug program, and a health
program provide pursuant to Part 5 (commencing with Section 22751) of
Division 5 of Title 2 of the Government Code.
(b) Development of each plan shall be completed on or before March
1, 2001.
(c) Upon completion of the development of the plans, the board
shall prepare and deliver a report to the chairs of the appropriate
policy and fiscal committees of the Legislature that shall include an
estimate of the costs of implementation for each plan and draft
statutory language that could be proposed to implement each of the
plans.
SECTION 1. Section 25950 is added to the Education Code, to read:
25950. On or before April 1, 2001, the board shall report to the
Legislature on a prescription drug program and a program to provide
health benefits to retired members. The report shall include an
analysis of all potential methods of financing and administering the
programs. These shall include, but are not limited to, (1) the
system providing those health benefits under contracts with carriers
or other entities that administer health benefits plans, (2)
reimbursing employers for the costs of providing those health
benefits to retired employees, and (3) crediting employers and
employing agencies, against the amount contributed pursuant to
Section 22950, a monthly amount, adjusted annually, for each retiree
the employer or employing agency certifies is enrolled in one or more
health care benefits programs administered or sponsored by the
employer or employing agency. The report shall include an estimate
of the fiscal impact of each program on the system, including
administration and program costs, and recommended statutory language
to implement each program.
SEC. 2. Article 10 (commencing with Section 22878) is added to
Chapter 1 of Part 5 of Division 5 of Title 2 of the Government Code,
to read:
Article 10. Optional Health Benefits
Provisions for Schools and Agencies
22878. The provisions of this part also apply
to schools and agencies, as specified these
terms are defined in this article. The purpose of this article
is to set forth optional provisions which may
only be used by schools and agencies , as those terms are
defined in this article . If schools and agencies choose to
follow the optional provisions of this article,
all conflicting provisions of this part are
shall be superseded. This article shall not apply to any other
employer, employee, annuitant, or family member who has, or elects
to have, health care coverage pursuant to this part.
22878.1. The definitions in this part shall govern the
interpretation of terms in this article, except that the following
definitions shall govern the interpretation of these specific terms
as used in this article:
(a) "School" means any contracting agency that is a special
district, school district, county board of education, personnel
commission of a school district, a county superintendent of schools,
or a community college district.
(b) "Agency" means 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 contracting agency that is
a public body or agency 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.
22878.2. (a) A school or agency may by resolution filed with the
board deem all permanent or regular employees, except members of the
State Teachers' Retirement System, who have an appointment of six
months or longer but who are employed on a less than
half-time basis, to be employees subject to this part.
(b) An agency or school with employees who are members of the
State Teachers' Retirement System may by resolution filed with the
board deem any of the following to be employees subject to this part:
(1) Regular, permanent, probationary, or temporary employees
or substitutes who have an appointment for a semester, or
for six months, or for half of the school year or longer, but
are employed on a less than a half-time basis.
(2) Substitutes who have an appointment for a semester, for six
months, or for half of the school year or longer, but are employed on
less than a half-time basis.
(3)
(2) Substitutes who have an appointment for 100 days or more
in the school year.
22878.3. The State Teachers' Retirement System may, by resolution
filed with the board, become a contracting agency subject to this
part only with respect to either or both of the following:
(a) Retired members of the State Teachers' Retirement System
enrolled in both Parts A and B of Medicare whose former education
employer does not offer health care coverage for them, their eligible
family members, and surviving spouses.
(b) Retired classified employees enrolled in both Parts A and B of
Medicare whose former education employer does not offer health care
coverage for them, their eligible family members, and surviving
spouses.
22878.4. All of the following shall be deemed to be "annuitants"
subject to this part:
22878.3. As used in this part, the term "annuitant" shall
include:
(a) A family member of a deceased retired member of the State
Teachers' Retirement System who retired within 120 days of separation
from employment, and who prior to his or her death, received a
retirement allowance that did not provide for a survivor allowance to
family members and who elects coverage as an annuitant prior to
January 1, 2003. This subdivision shall not apply to any family
member of a retired member of the State Teachers' Retirement System
who retired on or after January 1, 2003 from a school contracting
under this part prior to January 1, 2001.
(b) A retired member of the State Teachers' Retirement System who
retired within 120 days of separation from employment, and who
retired before the member's school elected to contract for health
benefit coverage under this part, and who elects coverage as an
annuitant within one calendar year from the date that the member's
school elected to contract for health benefit coverage under this
part.
(c)
(b) A family member of a deceased retired member of the
State Teachers' Retirement System who retired within 120 days of
separation from employment, and who retired before
the member's school elected to contract for health benefit coverage
under this part, and who, prior to his or her death, received a
retirement allowance that did not provide for a survivor allowance to
family members and who elects coverage as an annuitant within
one calendar year from the date that the member's school elected to
contract for health benefit coverage under this part.
22878.5. A school or agency may not maintain another health
benefits plan unless the plan complies with the requirements of this
part and is equally available to its retired employees, its active
employees, and their family members, without discrimination as to
benefits, premiums, or employer contributions.
SEC. 3. At the request of the Teachers' Retirement Board, the
Public Employees' Retirement System may submit a proposal to
administer a health benefits program for retired members of the State
Teachers' Retirement System and their dependents.