BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2383
                                                                  Page  1

          Date of Hearing:   April 12, 2000

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY 
                                  Lou Correa, Chair
                    AB 2383 (Keeley) - As Amended:  April 6, 2000
           
          SUBJECT  :   Public Employees' Medical and Hospital Care Act:  
          covered employees

           SUMMARY  :   Specifically,  this bill  allows employees of local  
          agencies that contract with the Public Employees' Retirement  
          System (CalPERS) who are employed less than half time to  
          participate in the Public Employees' Medical and Hospital Care  
          Act (PEMHCA).

           EXISTING LAW  requires that employees work at least half time  
          (50%) in order to be eligible for health benefits coverage under  
          PEMHCA.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   CalPERS is responsible for administering PEMHCA  
          which provides health benefits for over one million employees,  
          retirees, and dependents.  According to CalPERS, however,  
          current PEMHCA eligibility requirements pose a barrier for some  
          otherwise qualified employers to obtain affordable healthcare  
          coverage for their employees and retirees.

          Supporters point out that "While school district employees  
          comprise the largest percentage of the CalPERS eligible groups,  
          they make up the smallest percentage enrolling in PEMHCA.   
          Currently, just over 100 of more than 1,100 school districts are  
          enrolled in PEMHCA.  One reason for the low school district  
          participation is that PEMHCA does not cover less than half time  
          employees, limiting the ability of school districts to provide  
          coverage for all employees."

          Supporters also state that additional amendments will be added  
          to the bill that will hopefully increase participation in the  
          program.  According to the author, "AB 2383 seeks to provide  
          greater flexibility in PEMHCA enrollment eligibility for  
          employers, employees, retirees, and dependents.  This bill  
          remains a work in progress while CalPERS and the State Teachers'  
          Retirement System confer with various stakeholders to resolve a  








                                                                  AB 2383
                                                                  Page  2

          number of policy and technical issues."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support  

          California Public Employees' Retirement System (Sponsor)
          California School Employees Association

           Opposition  

          None on file.
           
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. /  
          (916)319-3957