Master FIR (1988)

NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

F I S C A L I M P A C T R E P O R T

SPONSOR:	Campos		DATE TYPED:	02/07/01		HB
SHORT TITLE:		Amend Retiree Health Care Act				SB	339
					ANALYST:		Carrillo

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY01	FY02	FY01	FY02	Recurring or Non-Rec	Fund Affected
		Minimal

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Public School Insurance Authority

Retiree Health Care Authority

Commission on Higher Education

Office of the Attorney General

State Department of Education

SUMMARY

Synopsis of Bill

Senate Bill 339 proposes to amend the Retiree Health Care Act to include (provided they have served at least four years):

•former legislators (and their eligible dependents),
•former members of certain boards (and their eligible dependents), and
•certain former county and municipal officers (and their eligible dependents).

Significant Issues

SB339 amends the Retiree Health Care Act by creating two additional categories of individuals eligible to participate in the Retiree Health Care Authority (RHCA) program. Former legislators and governing board members (from participating employers) who have served a minimum of four years, and are currently excluded from participation, would be eligible. These new categories of eligible retirees would be subject to a monthly participation fee set by the RHCA board. These retirees would be required to pay a monthly premium equal to one-twelfth of the cost of the claims and administrative costs of the selected plan of health care benefits.

FISCAL IMPLICATIONS

According the RHCA staff, SB339 would not have an adverse impact on the Retiree Health Care Fund. Legislators and governing board members would pay 100 percent of their costs. The bill will not result in additional costs to the RHCA. Any revenue generation will be negligible.

ADMINISTRATIVE IMPLICATIONS

RHCA staff notes SB339 would not have an immediate administrative impact. However, over time, there will be a need for additional customer service personnel. The need for additional staff is proportional to the growth of enrollment in the program, currently about 7 percent annually.

WJC/njw