Bill Text: CA SB673 | 2013-2014 | Regular Session | Chaptered
Bill Title: County employees' retirement: Contra Costa County.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Passed) 2014-08-22 - Chaptered by Secretary of State. Chapter 244, Statutes of 2014. [SB673 Detail]
Download: California-2013-SB673-Chaptered.html
BILL NUMBER: SB 673 CHAPTERED
BILL TEXT
CHAPTER 244
FILED WITH SECRETARY OF STATE AUGUST 22, 2014
APPROVED BY GOVERNOR AUGUST 22, 2014
PASSED THE SENATE JANUARY 28, 2014
PASSED THE ASSEMBLY AUGUST 7, 2014
AMENDED IN SENATE JANUARY 23, 2014
AMENDED IN SENATE JANUARY 6, 2014
AMENDED IN SENATE MAY 21, 2013
AMENDED IN SENATE APRIL 15, 2013
INTRODUCED BY Senator DeSaulnier
FEBRUARY 22, 2013
An act to amend Sections 31468, 31529.9, 31557.3, and 31580.2 of,
and to add Section 31522.9 to, the Government Code, relating to
county employees' retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 673, DeSaulnier. County employees' retirement: Contra Costa
County.
The County Employees Retirement Law of 1937 authorizes counties
and districts to establish retirement systems pursuant to its
provisions in order to provide pension benefits to their employees.
The law defines a district for these purposes and includes specified
county retirement systems within that definition. The law generally
provides that the personnel of a county retirement system are county
employees, but also authorizes the board of retirement in specified
counties to appoint certain personnel who are designated employees of
the retirement system.
This bill would make the Contra Costa County retirement system a
district for purposes of the County Employees Retirement Law of 1937.
The bill would authorize the board of retirement to appoint a
retirement administrator and other personnel as required to
accomplish the necessary work of the board and would authorize the
administrator to make appointments on its behalf. The bill would
provide that these employees are employees of the retirement system,
not the county, and would except them from civil service provisions
and merit system rules that would otherwise apply. The bill would
make the retirement board a public agency for purposes of collective
bargaining and provide that the compensation of the personnel so
employed by the board is an expense of the system.
The bill would require the retirement system to retain, for a
90-day transition period, nonprobationary county employees employed
at the retirement system's facilities who were covered by a
memorandum of understanding, as specified. The bill would provide
that, during the 90-day transition period, probationary employees
would maintain only those rights they had pursuant to their
employment with the county. The bill would require the retirement
system to recognize as the exclusive representative of the former
county employees who are retained, as specified, those recognized
employee organizations that represented the employees when they were
employed by the county, and would require that the initial terms and
conditions for those employees be as previously established. The bill
would make technical and conforming changes in relation to these
provisions.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 31468 of the Government Code is amended to
read:
31468. (a) "District" means a district, formed under the laws of
the state, located wholly or partially within the county other than a
school district.
(b) "District" also includes any institution operated by two or
more counties, in one of which there has been adopted an ordinance
placing this chapter in operation.
(c) "District" also includes any organization or association
authorized by Chapter 26 of the Statutes of 1935, as amended by
Chapter 30 of the Statutes of 1941, or by Section 50024, which
organization or association is maintained and supported entirely from
funds derived from counties, and the board of any retirement system
is authorized to receive the officers and employees of that
organization or association into the retirement system managed by the
board.
(d) "District" also includes, but is not limited to, any sanitary
district formed under Part 1 (commencing with Section 6400) of
Division 6 of the Health and Safety Code.
(e) "District" also includes any city, public authority, public
agency, and any other political subdivision or public corporation
formed or created under the constitution or laws of this state and
located or having jurisdiction wholly or partially within the county.
(f) "District" also includes any nonprofit corporation or
association conducting an agricultural fair for the county pursuant
to a contract between the corporation or association and the board of
supervisors under the authority of Section 25905.
(g) "District" also includes the Regents of the University of
California, but with respect only to employees who were employees of
a county in a county hospital, who became university employees
pursuant to an agreement for transfer to the regents of a county
hospital or of the obligation to provide professional medical
services at a county hospital, and who under that agreement had the
right and did elect to continue membership in the county's retirement
system established under this chapter.
(h) "District" also includes the South Coast Air Quality
Management District, a new public agency created on February 1, 1977,
pursuant to Chapter 5.5 (commencing with Section 40400) of Part 3 of
Division 26 of the Health and Safety Code.
(1) Employees of the South Coast Air Quality Management District
shall be deemed to be employees of a new public agency occupying new
positions on February 1, 1977. On that date, those new positions are
deemed not to have been covered by any retirement system.
(2) No retirement system coverage may be effected for an employee
of the South Coast Air Quality Management District who commenced
employment with the district during the period commencing on February
1, 1977, and ending on December 31, 1978, unless and until the
employee shall have elected whether to become a member of the
retirement association established in accordance with this chapter
for employees of Los Angeles County or the retirement association
established in accordance with this chapter for employees of San
Bernardino County. The election shall occur before January 1, 1980.
Any employee who fails to make the election provided for herein shall
be deemed to have elected to become a member of the retirement
association established in accordance with this chapter for the
County of Los Angeles.
(3) The South Coast Air Quality Management District shall make
application to the retirement associations established in accordance
with this chapter for employees of Los Angeles County and San
Bernardino County for coverage of employees of the South Coast Air
Quality Management District.
(4) An employee of the South Coast Air Quality Management District
who commenced employment with the district during the period
commencing on February 1, 1977, and ending on December 31, 1978, and
who has not terminated employment before January 1, 1980, shall be
covered by the retirement association elected by the employee
pursuant to paragraph (2). That coverage shall be effected no later
than the first day of the first month following the date of the
election provided for in paragraph (2).
(5) Each electing employee shall receive credit for all service
with the South Coast Air Quality Management District. However, the
elected retirement association may require, as a prerequisite to
granting that credit, the payment of an appropriate sum of money or
the transfer of funds from another retirement association in an
amount determined by an enrolled actuary and approved by the elected
retirement association's board. The amount to be paid shall include
all administrative and actuarial costs of making that determination.
The amount to be paid shall be shared by the South Coast Air Quality
Management District and the employee. The share to be paid by the
employee shall be determined by good faith bargaining between the
district and the recognized employee organization, but in no event
shall the employee be required to contribute more than 25 percent of
the total amount required to be paid. The elected retirement
association's board may not grant that credit for that prior service
unless the request for that credit is made to, and the required
payment deposited with, the elected retirement association's board no
earlier than January 1, 1980, and no later than June 30, 1980. The
foregoing shall have no effect on any employee's rights to reciprocal
benefits under Article 15 (commencing with Section 31830).
(6) An employee of the South Coast Air Quality Management District
who commenced employment with the district after December 31, 1978,
shall be covered by the retirement association established in
accordance with this chapter for employees of San Bernardino County.
That coverage shall be effected as of the first day of the first
month following the employee's commencement date.
(7) Notwithstanding paragraphs (2) and (4) above, employees of the
South Coast Air Quality Management District who were employed
between February 1, 1977, and December 31, 1978, and who terminate
their employment between February 1, 1977, and January 1, 1980, shall
be deemed to be members of the retirement association established in
accordance with this chapter for the employees of Los Angeles County
commencing on the date of their employment with the South Coast Air
Quality Management District.
(i) "District" also includes any nonprofit corporation that
operates one or more museums within a county of the 15th class, as
described by Sections 28020 and 28036 of the Government Code, as
amended by Chapter 1204 of the Statutes of 1971, pursuant to a
contract between the corporation and the board of supervisors of the
county, and that has entered into an agreement with the board and the
county setting forth the terms and conditions of the corporation's
inclusion in the county's retirement system.
(j) "District" also includes any economic development association
funded in whole or in part by a county of the 15th class, as
described by Sections 28020 and 28036 of the Government Code, as
amended by Chapter 1204 of the Statutes of 1971, and that has entered
into an agreement with the board of supervisors and the county
setting forth the terms and conditions of the association's inclusion
in the county's retirement system.
(k) "District" also includes any special commission established in
the Counties of Tulare and San Joaquin as described by Section
14087.31 of the Welfare and Institutions Code, pursuant to a contract
between the special commission and the county setting forth the
terms and conditions of the special commission's inclusion in the
county's retirement system with the approval of the board of
supervisors and the board of retirement.
( l ) (1) "District" also includes the retirement
system established under this chapter in Orange County.
(2) "District" also includes the retirement system established
under this chapter in San Bernardino County at such time as the board
of retirement, by resolution, makes this section applicable in that
county.
(3) "District" also includes the retirement system established
under this chapter in Contra Costa County.
SEC. 2. Section 31522.9 is added to the Government Code, to read:
31522.9. (a) The board of retirement of a county may appoint a
retirement administrator and other personnel as are required to
accomplish the necessary work of the board. The board may authorize
the administrator to make these appointments on its behalf.
Notwithstanding any other law, the personnel so appointed shall not
be county employees but shall become employees of the retirement
system, subject to terms and conditions of employment established by
the board of retirement, including those set forth in memoranda of
understanding executed by the board of retirement and recognized
employee organizations.
(b) Sections 31522.1 and 31522.2 shall not apply to a retirement
system that appoints personnel pursuant to this section.
(c) The retirement system that appoints personnel pursuant to this
section is a public agency for purposes of the Meyers-Milias-Brown
Act (Chapter 10 (commencing with Section 3500) of Division 4).
(d) The compensation of personnel appointed pursuant to this
section shall be an expense of administration of the retirement
system, pursuant to Section 31580.2, except as provided in Sections
31529.5, 31529.9, and 31596.1.
(e) The board of retirement and the board of supervisors may enter
into agreements as they determine are necessary and appropriate in
order to carry out the provisions of this section.
(f) The retirement system, upon the effective date of this
section, shall retain, for a 90-day transition employment period,
nonprobationary employees who, upon the effective date of this
section, were covered by a county memorandum of understanding and
employed by the county at the retirement system's facilities, unless
just cause exists to terminate the employees or legitimate grounds
exist to lay off these employees. If during the 90-day period the
retirement system determines that a layoff of these employees is
necessary, the retirement system shall retain the employees by
seniority within job classification. The terms and conditions of
employment of the employees retained pursuant to this subdivision
shall be subject to the terms and conditions established by the
applicable memoranda of understanding executed by the board of
retirement and the recognized employee organizations. During the
90-day transition period, probationary employees shall maintain only
those rights they initially acquired pursuant to their employment
with the county.
(g) Subject to the employees' rights under the Meyers-Milias-Brown
Act (Chapter 10 (commencing with Section 3500) of Division 4), the
retirement system, upon the effective date of this section, shall
recognize as the exclusive representative of the employees retained
pursuant to subdivision (f) the recognized employee organizations
that represented those employees when employed by the county. The
initial terms and conditions for those employees shall be as
previously established by the applicable memoranda of understanding
executed by the county and recognized employee organizations.
(h) This section shall apply only in Contra Costa County.
SEC. 3. Section 31529.9 of the Government Code is amended to read:
31529.9. (a) In addition to the powers granted by Sections
31522.5, 31522.9, 31529, 31529.5, 31614, and 31732, the board of
retirement and the board of investment may contract with the county
counsel or with attorneys in private practice or employ staff
attorneys for legal services.
(b) Notwithstanding Sections 31522.5, 31522.7, 31529.5, and 31580,
the board shall pay, from system assets, reasonable compensation for
the legal services.
(c) This section applies to any county of the 2nd class, 7th
class, 9th class, 14th class, 15th class, or the 16th class as
described by Sections 28020, 28023, 28028, 28030, 28035, 28036, and
28037.
(d) This section shall also apply to any other county if the board
of retirement, by resolution adopted by majority vote, makes this
section applicable in the county.
SEC. 4. Section 31557.3 of the Government Code is amended to read:
31557.3. On the date a district, as defined in subdivision (
l ) of Section 31468, is included in the retirement system,
any personnel appointed pursuant to Sections 31522.5, 31522.9, and
31529.9 who had previously been in county service shall continue to
be members of the system without interruption in service or loss of
credit. Thereafter, each person entering employment with the district
shall become a member of the system on the first day of the calendar
month following his or her entrance into service.
SEC. 5. Section 31580.2 of the Government Code is amended to read:
31580.2. (a) In counties in which the board of retirement, or the
board of retirement and the board of investment, have appointed
personnel pursuant to Section 31522.1, 31522.5, 31522.7, or 31522.9,
the respective board or boards shall annually adopt a budget covering
the entire expense of administration of the retirement system which
expense shall be charged against the earnings of the retirement fund.
The expense incurred in any year may not exceed the greater of
either of the following:
(1) Twenty-one hundredths of 1 percent of the accrued actuarial
liability of the retirement system.
(2) Two million dollars ($2,000,000), as adjusted annually by the
amount of the annual cost-of-living adjustment computed in accordance
with Article 16.5 (commencing with Section 31870).
(b) Expenditures for computer software, computer hardware, and
computer technology consulting services in support of these computer
products shall not be considered a cost of administration of the
retirement system for purposes of this section.
