Is anyone tracking a lawsuit challenging California Senate Bill 2 on the grounds of ERISA preemption? The Bill requires employers of 20 or more employees to provide group health coverage for employees, or pay into a state system that will subsidize employee health care.
Its my understanding that there is both an ERISA challenge, and state level litigation on the basis that the bill was not enacted with the 2/3 majority vote needed for measures that impose taxes or fees on Californians.
There is also a voter initiative on the Nov. '04 ballot to repeal the bill, but I am primarily interested in the ERISA preemption challenge.