BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1844|
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THIRD READING
Bill No: AB 1844
Author: Hernandez (D)
Amended: 8/12/08 in Senate
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 4-0, 6/23/08
AYES: Wiggins, Ashburn, Migden, Negrete McLeod
NO VOTE RECORDED: McClintock
SENATE APPROPRIATIONS COMMITTEE : 15-0, 8/7/08
AYES: Torlakson, Cox, Aanestad, Ashburn, Cedillo, Corbett,
Dutton, Florez, Kuehl, Oropeza, Ridley-Thomas, Runner,
Simitian, Wyland, Yee
ASSEMBLY FLOOR : 79-0, 5/28/08 - See last page for vote
SUBJECT : Public employee benefits
SOURCE : Governors Public Employee Post-Employment
Benefits
Commission
DIGEST : This bill implements various recommendations
made by the Governors Public Employee Post-Employment
Benefits Commission.
ANALYSIS :
Existing law:
CONTINUED
AB 1844
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1. Provides that it is a crime to knowingly make a false
statement or representation for the purpose of obtaining
a workers' compensation benefit or making such a false
statement for the purposes of supporting or denying a
workers' compensation benefit.
2. Requires all state and local public retirement systems
to:
A. Not less than triennially, hire an actuary to
perform a valuation of the system.
B. Hire a qualified person to perform an audit of the
system's financial statements.
C. Submit audited financial statements to the State
Controller within six months of the close of each
fiscal year.
3. Requires, the State Controller to compile and publish a
report annually on the fiscal condition of state and
local public retirement systems.
This bill:
1. Establishes a definition of, and penalties for, fraud
when done so in connection with benefits, or an
application for benefits, administered by the Public
Employees' Retirement System (PERS), the State Teachers'
Retirement System (STRS) or a retirement system
established under the County Employees' Retirement Law
of 1937 ('37 Act).
2. Requires that workers' compensation insurers and the
Director of the Employment Development Department (EDD)
provide PERS investigators with information they deem
necessary when investigating someone concerning the
application for, or the receipt of, PERS benefits.
3. Requires the State Controller to devise a cost-efficient
procedure for collecting the required other
post-employment benefits data and posting it on the
State Controller's web site.
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4. Requires the State Controller to publish the currently
required annual report on the financial condition of
California's public retirement systems within 12 months
of the receipt of the information, and in no case later
than 18 months after end of the fiscal year upon which
the information in the report is based.
5. Authorizes PERS to request information from the Director
of EDD and from any workers' compensation insurer as
part of an investigation of unlawful application for, or
receipt of, benefits provided by that retirement system.
Comments
Governor Arnold Schwarzenegger established the Governor's
Public Employee Post-Employment Benefits Commission in
December 2006, to "identify the extent of unfunded
liabilities" in public sector pension and retiree health
care obligations, review and analyze options for addressing
them and recommend a plan to the Legislature and Governor.
The 12-member Commission, chaired by former University of
California Board of Regents President Gerald Parsky, was
charged with the tasks of identifying the size of the
public sector's unfunded other post-employment benefits
liability, comparing various approaches for addressing that
unfunded liability, considering the advantages to the state
of providing post-employment benefits, and proposing a
plan(s) for addressing unfunded other post-employment
benefits liabilities. After conducting more than a dozen
public hearings around the state, the Commission produced
its final report in January 2008. That report contains 34
recommendations for improving the functioning of retirement
systems and the delivery of other post-employment benefits,
and for controlling employer benefit costs, seven of which
require legislative implementation.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
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Major Provisions 2008-09 2009-10
2010-11 Fund
State Controller $95 $51
$51General
EDD $50, reimbursed by requestorSpecial
Agency report to unknown, probably not
significant General
State Controller
SUPPORT : (Verified 8/12/08)
Governor's Public Employee Post-Employment Benefits
Commission (source)
Amalgamated Transit Union
Association of California Healthcare Districts
Association of California Water Agencies
California Association of Joint Powers Authorities
California Conference of machinists
California Faculty Association
California Federation of Teachers
California School Employees Association
California Special Districts Association
California State Association of Counties
California State Employees Association
California Teachers Association
California Teamsters Public Affairs Council
Department of Personnel Administration
Engineers and Scientists of California
Glendale City Employees Association
Howard Jarvis Taxpayers Association
IFPTE Local 21
Organization of SMUD Employees
Peace Officers Research Association of California
PERS Board of Administration
PERS Retirement Betterment Committee Inc.
Professional Engineers in California Government
Regional Council of Rural Counties
San Bernardino Public Employees Association
San Diego County Court Employees Association
San Luis Obispo County Employees Association
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Santa Rosa City Employees Association
Service Employees International Union, Local 1000
Strategic Committee of Public Employees, Laborers'
International Union of North America
STRS Board of Administration
ARGUMENTS IN SUPPORT : According to the author, "This
bill will help increase transparency with regard to public
employee benefits through enhanced reporting requirements
and will also help to curb fraud in the various public
retirement systems by providing those systems with the
tools they need to detect and prosecute fraudulent
actions."
ASSEMBLY FLOOR :
AYES: Adams, Aghazarian, Anderson, Arambula, Beall,
Benoit, Berg, Berryhill, Blakeslee, Brownley, Caballero,
Charles Calderon, Carter, Cook, Coto, Davis, De La Torre,
De Leon, DeSaulnier, DeVore, Duvall, Dymally, Emmerson,
Eng, Evans, Feuer, Fuentes, Fuller, Furutani, Gaines,
Galgiani, Garcia, Garrick, Hancock, Hayashi, Hernandez,
Horton, Houston, Huff, Huffman, Jeffries, Jones,
Karnette, Keene, Krekorian, La Malfa, Laird, Leno,
Levine, Lieber, Lieu, Ma, Maze, Mendoza, Mullin,
Nakanishi, Nava, Niello, Nunez, Parra, Plescia,
Portantino, Price, Sharon Runner, Ruskin, Salas, Saldana,
Silva, Smyth, Solorio, Spitzer, Strickland, Swanson,
Torrico, Tran, Villines, Walters, Wolk, Bass
NO VOTE RECORDED: Soto
JJA:mw 8/12/08 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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