Bill Text: CA SB203 | 2011-2012 | Regular Session | Chaptered
Bill Title: County employee retirement: boards.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2011-07-26 - Chaptered by Secretary of State. Chapter 124, Statutes of 2011. [SB203 Detail]
Download: California-2011-SB203-Chaptered.html
BILL NUMBER: SB 203 CHAPTERED
BILL TEXT
CHAPTER 124
FILED WITH SECRETARY OF STATE JULY 26, 2011
APPROVED BY GOVERNOR JULY 26, 2011
PASSED THE SENATE JULY 11, 2011
PASSED THE ASSEMBLY JULY 7, 2011
AMENDED IN ASSEMBLY MAY 31, 2011
AMENDED IN SENATE MARCH 31, 2011
INTRODUCED BY Senator Correa
FEBRUARY 8, 2011
An act to amend Sections 31520.1, 31520.2, 31520.3, 31520.4, and
31520.5 of, to add Section 31523.1 to, and to repeal and add Section
31523 of, the Government Code, relating to county retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 203, Correa. County employee retirement: boards.
(1) The County Employees Retirement Law of 1937 sets forth the
membership composition for boards of retirement, as specified. Under
that law, the retirement board in specified counties is comprised of
9 members and an alternate member who is the candidate for the 7th
member from the group of safety members, under specified provisions,
that is not represented by a board member who received the highest
number of votes for all candidates in that group, except as
specified. The alternate member has, unless prohibited by a
resolution or regulation of the board, the same rights, privileges,
responsibilities, and access to closed sessions, as the 2nd, 3rd,
7th, and 8th member and the right to hold positions on committees of
the board independent of the 2nd, 3rd, 7th, or 8th member, and to
participate in the deliberations of the board or its committees, as
specified.
This bill would delete the authority of the board to prohibit, by
a resolution or regulation of the board, a member from having the
same rights, privileges, responsibilities, and access to closed
sessions as the 2nd, 3rd, 7th, or 8th member, or from holding
positions on committees of the board, and participating in board or
committee deliberations, as described above. The bill would authorize
the alternate 7th member to participate in the deliberations of the
board on any of its committees to which the alternate 7th member has
been appointed regardless of whether the 2nd, 3rd, 7th, or 8th member
is present. The bill would require the board to cause an election to
be held at the earliest possible date to fill a vacancy for the
duration of the current term, except as specified, if there is a
vacancy in the 2nd, 3rd, 7th, 8th, or alternate 7th member position.
It would limit candidacy for the 7th member and alternate member
positions, as specified. The bill would require the board of
supervisors to forgo an election in specified circumstances when
there is only one candidate. The bill would also make various changes
in terminology and delete obsolete references.
(2) Existing law prescribes the manner of appointing an alternate
retired member to the office of the 8th member of the board of
retirement. If there is a vacancy with respect to the 8th member,
existing law requires that the alternate retired member fill the
vacancy until a successor qualifies. Existing law authorizes the
alternate retired member to hold positions on committees of the board
independent of the 8th member and to participate in the
deliberations of the board or its committees regardless of whether
the 8th member is present, unless prohibited by resolution or
regulation of the board.
This bill would instead require the alternate retired member to
fill the vacancy with respect to the 8th member for the remainder of
the 8th member's term of office. The bill would also require the
board of retirement to, by majority vote, appoint a replacement
alternate member, in the same manner as prescribed for the initial
appointment of an alternate retired member, who shall serve until the
expiration of the current term of the current member. The alternate
retired member would have the same rights, privileges,
responsibilities, and access to closed sessions as the 8th member,
except as specified. The bill would also delete the authority of the
board to prohibit the alternate retired member from holding positions
on committees of the board or participating in the deliberations of
the board or any of its committees to which the alternate retired
member has been appointed, as described above. The bill would also
make changes in terminology.
(3) Existing law permits the board of supervisors in a county in
which the assets of the retirement system exceed $800,000,000 to
establish a board of investments, to consist of 9 members of
specified classifications, which is responsible for the investments
of the retirement system. Existing law prescribes the terms for the
members of the board of investments.
This bill would prescribe a process for filling vacancies in
specified positions on a board of investments, as described above.
The bill would require the board to cause an election to be held at
the earliest possible date to fill those vacancies, except as
specified, with a replacement member to serve for the duration of the
current term, unless the remaining portion is 6 months or less, in
which case a single election would be authorized to be held to fill
the position for the vacant term position and the succeeding term.
The bill would require the board of supervisors to forgo an election
in specified circumstances when there is only one candidate. The bill
would also delete obsolete references and establish the initial term
of a person appointed as a 9th member.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 31520.1 of the Government Code is amended to
read:
31520.1. (a) In any county subject to Articles 6.8 (commencing
with Section 31639) and 7.5 (commencing with Section 31662.2), the
board of retirement shall consist of nine members and one alternate,
one of whom shall be the county treasurer. The second and third
members of the board shall be members of the association, other than
safety members, elected by those members within 30 days after the
retirement system becomes operative in a manner determined by the
board of supervisors. The fourth, fifth, sixth, and ninth members
shall be qualified electors of the county who are not connected with
the county government in any capacity, except one may be a
supervisor, and shall be appointed by the board of supervisors. A
supervisor appointed as a member of the retirement board may not
serve beyond his or her term of office as supervisor. The seventh
member shall be a safety member of the association elected by the
safety members. The eighth member shall be a retired member elected
by the retired members of the association in a manner to be
determined by the board of supervisors. The alternate member shall be
that candidate, if any, for the seventh member from the group under
Section 31470.2 or 31470.4, or any other eligible safety member in a
county if there is no eligible candidate from the groups under
Sections 31470.2 and 31470.4, which is not represented by a board
member who received the highest number of votes of all candidates in
that group, and shall be referred to as the alternate seventh member.
If there is no eligible candidate there may not be an alternate
seventh member. The first person chosen as the second and fourth
members shall serve for a term of two years beginning with the date
the system becomes operative, the third and fifth members shall serve
for a term of three years beginning with that date, and the sixth,
seventh and alternate seventh members shall serve for a term of two
years beginning on the date on which a retirement system established
by this chapter becomes operative. The eighth and ninth members shall
take office as soon as practicable for an initial term to expire
concurrent with the expiration of the longest remaining term of an
elected member. Thereafter, the terms of office of the elected,
appointed, and alternate seventh members are three years, except as
provided in Section 31523.
(b) The alternate seventh member provided for by this section
shall vote as a member of the board only if the second, third,
seventh, or eighth member is absent from a board meeting for any
cause, or if there is a vacancy with respect to the second, third,
seventh, or eighth member, the alternate seventh member shall fill
the vacancy until a successor qualifies. The alternate seventh member
shall sit on the board in place of the seventh member if a member of
the same service is before the board for determination of his or her
retirement.
(c) The alternate seventh member shall be entitled to both of the
following:
(1) The alternate seventh member shall have the same rights,
privileges, responsibilities, and access to closed sessions as the
second, third, seventh, and eighth member.
(2) The alternate seventh member may hold positions on committees
of the board independent of the second, third, seventh, or eighth
member and may participate in the deliberations of the board or any
of its committees to which the alternate seventh member has been
appointed whether or not the second, third, seventh, or eighth member
is present.
SEC. 2. Section 31520.2 of the Government Code is amended to read:
31520.2. (a) In any county in which the assets of the
retirement system exceed eight hundred million dollars
($800,000,000), the board of supervisors may, by resolution,
establish a board of investments. The board shall consist of nine
members, one of whom shall be the county treasurer. The second and
third members shall be general members of the association elected by
the general membership of the association for a three-year term. The
fourth member shall be a safety member elected by the safety
membership of the association for a three-year term. The eighth
member shall be a retired member of the association elected by the
retired membership of the association for a three-year term. The
fifth, sixth, seventh, and ninth members shall be qualified electors
of the county who are not connected with county government in any
capacity, and shall be appointed by the board of supervisors. They
shall also have had significant experience in institutional
investing, either as investment officer of a bank, or trust company;
or as investment officer of an insurance company, or in an active, or
advisory, capacity as to investments of institutional or endowment
funds. The first person chosen as a fifth, sixth, or seventh member
shall serve for a three-year term, the second person chosen shall
serve a four-year term, and the third person chosen shall serve a
two-year term. The first person appointed as the ninth member shall
serve a one-year term. Thereafter, all terms of all appointed members
shall be three years.
(b) The board of investments shall be responsible for all
investments of the retirement system.
SEC. 3. Section 31520.3 of the Government Code is amended to read:
31520.3. (a) Notwithstanding Section 31520.1, the board of
retirement of a county of the 16th class, as defined by Sections
28020 and 28037, as amended by Chapter 1204 of the Statutes of 1971,
may, by majority vote, appoint, from a list of nominees submitted by
an organization consisting solely of retired members, an alternate
retired member to the office of the eighth member, who shall serve
until the expiration of the current term of the current eighth member
and thereafter the alternate retired member shall be elected by the
retired members of the association in the same manner and at the same
time as the eighth member is elected.
(b) The term of office of the alternate retired member shall run
concurrently with the term of office of the eighth member. The
alternate retired member shall vote as a member of the board only in
the event the eighth member is absent from a board meeting for any
cause. If there is a vacancy with respect to the eighth member, the
alternate retired member shall fill that vacancy for the remainder of
the eighth member's term of office.
(c) Except as provided in subdivision (b), the alternate retired
member shall be entitled to the same rights and privileges and shall
have the same responsibilities and access to closed sessions as the
eighth member. The alternate retired member may hold positions on
committees of the board independent of the eighth member and may
participate in the deliberations of the board or any of its
committees to which the alternate retired member has been appointed
whether or not the eighth member is present.
(d) The alternate retired member shall be entitled to the same
compensation as the eighth member for attending a meeting, pursuant
to Section 31521, whether or not the eighth member is in attendance
at those meetings.
(e) (1) In the event that this section is made applicable in any
county, by the appointment of an alternate eighth member, the
alternate seventh member shall not sit and act for the retired
member, except as described in paragraph (2).
(2) If both the eighth member and the alternate retired member
are not attending a meeting, the alternate seventh member may sit and
act for the eighth member as described in Section 31520.1.
SEC. 4. Section 31520.4 of the Government Code is amended to read:
31520.4. In any county with a board of retirement composed of
nine members pursuant to Section 31520.1, if the second, third,
seventh, or alternate seventh member of the board is injured or
killed while performing his or her duties as a member of the board,
that member shall be deemed to have been acting in the course and
scope of his or her duties as an employee of the county or district
employing the member, for the limited purpose of determining
eligibility for workers' compensation benefits or disability or death
benefits from the retirement system.
This section shall not be operative in any county until the board
of supervisors, by resolution adopted by a majority vote, makes this
section operative in that county.
SEC. 5. Section 31520.5 of the Government Code is amended to read:
31520.5. (a) Notwithstanding Section 31520.1, in any county
subject to Articles 6.8 (commencing with Section 31639) and 7.5
(commencing with Section 31662), the board of retirement may, by
majority vote, appoint, from a list of nominees submitted by a
qualified retiree organization, an alternate retired member to the
office of the eighth member, who shall serve until the expiration of
the current term of the current eighth member. Thereafter, the
alternate retired member shall be elected separately by the retired
members of the association in the same manner and at the same time as
the eighth member is elected. An organization shall be deemed to be
a "qualified retiree organization" for purposes of this subdivision
if a majority of the members of the organization are retired members
of the system.
(b) The term of office of the alternate retired member shall run
concurrently with the term of office of the eighth member. The
alternate retired member shall vote as a member of the board only in
the event the eighth member is absent from a board meeting for any
cause. If there is a vacancy with respect to the eighth member, the
alternate retired member shall fill that vacancy for the remainder of
the eighth member's term of office.
(c) Except as otherwise provided in this section, the alternate
retired member shall be entitled to the same rights and privileges
and shall have the same responsibilities and access to closed
sessions as the eighth member.
(d) The alternate retired member may hold positions on committees
of the board independent of the eighth member and may participate in
the deliberations of the board or any of its committees to which the
alternate retired member has been appointed whether or not the
eighth member is present.
(e) The alternate retired member shall be entitled to the same
compensation as the eighth member for attending a meeting, pursuant
to Sections 31521 and 31521.1, whether or not the eighth member is in
attendance at those meetings.
(f) (1) If this section is made applicable in any county, by the
appointment of an alternate eighth member, the alternate seventh
member shall not sit and act for the eighth member, except as
described in paragraph (2).
(2) If both the eighth member and the alternate retired member are
not attending a meeting, the alternate seventh member may sit and
act for the eighth member as described in Section 31520.1.
SEC. 6. Section 31523 of the Government Code is repealed.
SEC. 7. Section 31523 is added to the Government Code, to read:
31523. (a) In the event of a vacancy in the second, third,
seventh, eighth, or alternate seventh member position on the board of
retirement, the board shall cause an election to fill the vacancy to
be held at the earliest possible date, except as provided in
Sections 31520.3 and 31520.5. The vacancy in the second, third, or
eighth member position on the board of retirement shall be filled for
the duration of the current term except that, if the remaining
portion of the current term is six months or less on the date of the
election, a single election may be held to fill the vacancy for the
remainder of the current term and to fill the position for the
succeeding term. With respect to a vacancy in the seventh member
position, candidates shall be a safety member from a group which is
not represented by an incumbent alternate seventh member. With
respect to the alternate seventh member position, the candidates
shall be limited to the group under Section 31470.2 or 31470.4, or
any other eligible safety member in a county if there is no eligible
candidate from the groups under Sections 31470.2 and 31470.4 that is
not represented by an incumbent seventh board member. The successful
candidate shall serve for the duration of the current term.
(b) If there is a vacancy with respect to the alternate retired
member, the board of retirement shall, by majority vote, appoint a
replacement alternate member in the same manner as prescribed in
Sections 31520.3 and 31520.5 for the initial appointment of an
alternate retired member, who shall serve until the expiration of the
current term of the current eighth member.
(c) If an election has been called on the expiration of the term
of office of any member or alternate member, or to fill a vacancy for
the second, third, seventh, eighth, or alternate seventh member of a
board of retirement, and only one candidate has been duly nominated
in accordance with the rules established for the holding of that
election, the board of supervisors shall order that no election be
held and shall direct the clerk to cast a unanimous ballot in favor
of the candidate.
SEC. 8. Section 31523.1 is added to the Government Code, to read:
31523.1. (a) In the event of a vacancy in the second, third,
fourth, or eighth member position on a board of investments
established pursuant to Section 31520.2, the board of investments
shall cause an election to be held at the earliest possible date to
fill the vacancy. The vacancy in the second, third, fourth, or eighth
member position shall be filled for the duration of the current term
except that, if the remaining portion of the current term on the
date of the election is six months or less, a single election may be
held to fill the vacancy for the remainder of the current term and to
fill the position for the succeeding term.
(b) If an election has been called on the expiration of the term
of office of any member, or to fill a vacancy for the second, third,
fourth, or eighth member position of a board of investments, and only
one candidate has been duly nominated in accordance with the rules
established for the holding of that election, the board of
supervisors shall order that no election be held and shall direct the
clerk to cast a unanimous ballot in favor of the candidate.
