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AB-1554 State employee health benefits: employer contributions.(2001-2002)

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Passed  IN  Senate  September 13, 2001
Passed  IN  Assembly  September 14, 2001

CALIFORNIA LEGISLATURE— 2001–2002 REGULAR SESSION

Assembly Bill
No. 1554

Introduced  by  Assembly Member Hertzberg

February 23, 2001

An act to amend Section 22825.1 of, and to repeal Section 22825.15 of, the Government Code, relating to state employee health benefits, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


AB 1554, Hertzberg. State employee health benefits: employer contributions.
Existing law provides that the state’s contribution for employee health benefits is determined by the Department of Personnel Administration, with respect to excluded employees, as defined, or through the collective bargaining process, with respect to represented state employees, subject to the appropriation of funds by the Legislature in the Budget Act.
This bill would repeal that provision and, as a result, the state’s contribution for health benefits with respect to state employees would be adjusted by the Legislature in the annual Budget Act according to the formula contained in existing law that is currently applicable to annuitants and survivors. The bill would also declare that it is to take effect immediately as an urgency statute.

The people of the State of California do enact as follows:


SECTION 1.

 Section 22825.1 of the Government Code is amended to read:

22825.1.
 (a) Notwithstanding any other provision of this article, the employer’s contribution, with respect to each state officer and employee or an annuitant who was in the employment or office including an academic position with a campus of the California State University or is a survivor of that person, shall be adjusted by the Legislature in the annual Budget Act. Annual adjustments of the dollar amounts therein shall be based upon the principle that the employer’s contribution for each employee or annuitant shall be an amount equal to 100 percent of the weighted average of the health benefits plan premiums for employees or annuitants enrolled for self alone plus 90 percent of the weighted average of the additional premiums required for enrollment of family members in the four health benefits plans which have the largest number of enrollments during the fiscal year to which the formula applied.
(b) The employer’s contribution under this section for each employee shall commence on the effective date of his or her enrollment.
(c) The contribution of each employee and annuitant shall be the total cost per month of the benefit coverage afforded him or her under the plan or plans less the portion thereof to be contributed by the employer.

SEC. 2.

 Section 22825.15 of the Government Code is repealed.

SEC. 3.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order for the provisions of this act to be applicable as soon as possible in the 2001–02 fiscal year, and to provide for the health of the state’s employees at the earliest possible time, it is necessary that this act take effect immediately.