BILL NUMBER: AB 374	CHAPTERED  07/22/03

	CHAPTER  95
	FILED WITH SECRETARY OF STATE  JULY 22, 2003
	APPROVED BY GOVERNOR  JULY 22, 2003
	PASSED THE ASSEMBLY  JULY 7, 2003
	PASSED THE SENATE  JUNE 30, 2003
	AMENDED IN SENATE  JUNE 17, 2003
	AMENDED IN ASSEMBLY  MAY 14, 2003

INTRODUCED BY   Assembly Member Chan

                        FEBRUARY 14, 2003

   An act to add and repeal Section 31580.3 of the Government Code,
relating to county employees' retirement systems.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 374, Chan.  County employees' retirement systems:  capital
expenditures.
   Existing law requires certain counties subject to the County
Employees Retirement Law of 1937 to adopt an annual budget covering
the entire expense of administration of the retirement system, which
expense may not exceed a specified percentage of the total assets of
the retirement system.
   This bill would provide that, until January 1, 2007, if the net
asset value of the system has declined, that limit on the expense of
administration of the system may be based on the value of the assets
of the retirement system as of a prior valuation date, in a prior
fiscal year, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 31580.3 is added to the Government Code, to
read:
   31580.3.  (a) If Section 31580.2 is applicable, in a fiscal year
in which the net asset value of the retirement system is reduced from
a previous fiscal year due to a general investment market downturn,
the board of retirement or the board of retirement and the board of
investment may fix the expense of administration pursuant to Section
31580.2 based on the value of the total assets of the retirement
system as of an asset valuation date within a previous fiscal year,
as determined by the board or boards, in which a positive rate of
return for the retirement fund was generated.
   (b) At no time may the expense of administration, as determined
pursuant to paragraph (a), exceed 0.23 percent of net asset value.
   (c) This section shall remain in effect only until January 1,
2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.