California Assembly Bill AB2115 Amended / Bill

 BILL NUMBER: AB 2115AMENDED 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.