AgdaPkt 2003-10-27 - Laserfiche WebLink

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104A-o& EMPLOYER REQUIRED HEALTH CARE BENEFITS BILL (SB 2) PHASE -IN CLAUSE The Governor signed SB 2, which requires every employer in the State to provide health care benefits to their "full -time" employees. This proposal has a phase -in clause that will not take effect until 2006 and 2007. Guidelines and regulations will be developed over the next several months to identify how the State will get around the current federal ERISS standards, how this will apply to dependents and spouses who already receive benefits through their spouses employers, etc. Phase In: • January 1, 2006 for large employers (200 or more) • January 1, 2007 for medium employers (50 -199) • January 1, 2007 for medium employers (20 -49) This group is exempt from the require- ment until a tax credit is passed to reduce their net costs by 20% Employers pay into a state healthcare fund that provides coverage or are required to pro- vide coverage directly. Employer coverage is subject to the same coverage requirements and employee contribution limitations as the newly created State program. Applies To: • Employers of 20-49: employees only (This mandate is suspended until a tax credit is adopted in the future) • Employers of 50 -199: employees only • Employers of 200 or more: employees and dependents "Employee" means a person who works at least 100 hours per month for an individual employer (23 hours per week). The employee must have worked for that employer for a mini- mum of three months. Mechanics of the State Run System: Employers and employees contribute a fee to the Employment Development Department (amount to be determined). • A fee of at least 80% from employers • A fee of no more than 20% from employ- ees • Low -wage workers (employees earning less than 200% of the Federal Poverty Level) cannot be required to pay a fee more than 5% of their wages. INITIATIVE from page 1 • .. " . .. " " .. " The purpose of this step of the drafting process has been to make sure the final lan- guage is clear to some of the preeminent mu- nicipal finance law experts around the state and provides the level of protection desired by the local government sponsors. The month long drafting process also has allowed other consult- ants to the League to help shape the measure for maximum impact. Once finalized, it will be filed (possibly as early as next week) with the Attorney General. While the final drafting has been underway, city councils across the state have been consid- ering and adopting resolutions of support for the initiative measure that would amend the consti- tution to require voter approval before the legis- lature can again take local revenues that fund vital community public safety and other pro- grams. The initiative also brings some much - needed reforms to the existing unfunded man- date reimbursement process. According to the revised timetable, signature gathering could commence in December and plans are being made to kick it off with the help of local officials around the state. For informa- tion on how you can help, please contact your League Regional Representative (see www.cacities.org /reps) or visit the CITIPAC website at www.citipac.org. Visit the League's Official Web Site -- www.cacities.org PRIORITY FOCUS /PAGE i