BILL NUMBER: AB 753 CHAPTERED 10/08/07 CHAPTER 320 FILED WITH SECRETARY OF STATE OCTOBER 8, 2007 APPROVED BY GOVERNOR OCTOBER 8, 2007 PASSED THE SENATE SEPTEMBER 4, 2007 PASSED THE ASSEMBLY SEPTEMBER 5, 2007 AMENDED IN SENATE JUNE 27, 2007 AMENDED IN SENATE JUNE 12, 2007 AMENDED IN ASSEMBLY APRIL 26, 2007 AMENDED IN ASSEMBLY APRIL 25, 2007 INTRODUCED BY Committee on Public Employees, Retirement and Social Security (Hernandez (Chair), Mullin, Soto, and Torrico) FEBRUARY 22, 2007 An act to amend Sections 31520.3, 31520.5, 31521, and 31521.1 of, and to add Section 31521.3 to, the Government Code, relating to county employees' retirement. LEGISLATIVE COUNSEL'S DIGEST AB 753, Committee on Public Employees, Retirement and Social Security. County employees' retirement: administration. (1) The County Employees Retirement Law of 1937 sets forth the membership composition for boards of retirement and boards of investments, as specified. Under that law, the retirement board in specified counties is comprised of 9 members. That law provides that the retirement board in those counties is authorized to appoint an alternate retired member to the office of the 8th member of the board from a list of nominees, as specified. That law also provides that the alternate retired member is entitled to the same compensation as the 8th member of the retirement board for attending a meeting. Under that law, when an alternate retired member is appointed to the retirement board, the alternate safety member of the retirement board shall not sit or act for the 8th member of the board. That law permits the board of supervisors for counties for which these provisions apply to provide that certain members of these boards shall receive compensation of not more than $100 for a meeting or for a meeting of a committee authorized by the entire board. This bill would provide that the alternate safety member of the retirement board shall not sit or act for the 8th member of the retirement board unless both the 8th member and the alternate retired member of the retirement board are not attending a meeting, as specified. The bill would also provide that the board of supervisors may provide that an alternate retired member of a board of retirement may be paid for meetings, as described above. The bill would also delete the requirement that a committee meeting be authorized by the entire board to be compensable, and instead would require that the committee meeting be authorized by the board. (2) That law permits the board of supervisors in Los Angeles County to provide that certain members of the board of investments and the board of retirement shall receive compensation of not more than $100 for a meeting, or for a meeting of a committee authorized by a vote of 6 members of the board, not to exceed 3 meetings per month. This bill would provide, in Los Angeles County, that the board of supervisors may provide that an alternate retired member of a board of retirement may be paid for meetings, as described above. The bill would delete the requirement that a committee meeting be authorized by a vote of 6 members of the board to be compensable, and instead would require that the committee meeting be authorized by the board. The bill would also permit payment for up to 5 meetings per month, instead of 3. The bill would also delete a provision related to compensation for specified board members of a 5-member board of retirement in Los Angeles County. (3) Under that law, if the proof received, including any medical examination, shows to the satisfaction of the board of retirement that a member is permanently incapacitated physically or mentally for the performance of his or her duties in the service of his or her public employer, the board of retirement shall grant that member a disability retirement allowance. This bill would permit a board of supervisors in Los Angeles County to provide that certain members of a board of retirement shall receive compensation for the review and analysis of disability retirement cases. The bill would provide that this compensation shall be limited to the first time a case is considered by the board of retirement and shall not exceed $100 per day, to be prorated and not to exceed 32 hours a month, subject to a change based on the Consumer Price Index, as specified. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. 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. 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 until a successor qualifies. 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. In the event that this section is made applicable in any county, by the appointment of an alternate eighth member, the alternate safety member shall not sit and act for the eighth member, except as described in subdivision (b). (b) If both the eighth member and the alternate retired member are not attending a meeting, the alternate safety member may sit and act for the eighth member as described in Section 31520.1. SEC. 2. 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 until a successor qualifies. Except as provided in subdivision (c) and as otherwise provided in this subdivision, 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. (c) 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 its committees whether or not the eighth member is present, unless prohibited by resolution or regulation of the board. (d) 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. (e) (1) If this section is made applicable in any county, by the appointment of an alternate eighth member, the alternate safety 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 safety member may sit and act for the eighth member as described in Section 31520.1. SEC. 3. Section 31521 of the Government Code is amended to read: 31521. The board of supervisors may provide that the fourth and fifth members, and in counties having a board consisting of nine members or nine members and an alternate retired member, the fourth, fifth, sixth, eighth, ninth, and alternate retired members, and in counties having a board of investments under Section 31520.2, the fifth, sixth, seventh, eighth, and ninth members of the board of investments, shall receive compensation at a rate of not more than one hundred dollars ($100) for a meeting, or for a meeting of a committee authorized by the board, for not more than five meetings per month, together with actual and necessary expenses for all members of the board. SEC. 4. Section 31521.1 of the Government Code is amended to read: 31521.1. (a) The board of supervisors may provide that in counties having a board consisting of nine members and an alternate retired member, the fourth, fifth, sixth, eighth, ninth, and alternate retired members, and in counties having a board of investments under Section 31520.2, the fifth, sixth, seventh, eighth, and ninth members of the board of investments, shall receive compensation at a rate of not more than one hundred dollars ($100) for a meeting, or for a meeting of a committee authorized by the board, for not more than five meetings per month, together with actual and necessary expenses for all members of the board. (b) This section shall apply only in a county of the first class, as defined by Section 28020, as amended by Chapter 1204 of the Statutes of 1971, and Section 28022, as amended by Chapter 43 of the Statutes of 1961. SEC. 5. Section 31521.3 is added to the Government Code, to read: 31521.3. (a) The board of supervisors may provide that the fourth, fifth, sixth, eighth, ninth, and alternate retired members of the board of retirement shall receive compensation for the review and analysis of disability retirement cases. That compensation shall be limited to the first time a case is considered by the board and shall not exceed one hundred dollars ($100) per day. The compensation shall be prorated for less than eight hours of work in a single day. (b) A board member compensated pursuant to subdivision (a) shall certify to the retirement board, in a manner specified by the retirement board, the number of hours spent reviewing disability cases each month. In no event shall the number of hours compensated under this section exceed 32 hours per month. (c) On or before March 31, 2010, and on or before March 31 in each even-numbered year thereafter, the compensation limit established by the board of supervisors pursuant to subdivision (a) shall be adjusted biennially by the board of retirement to reflect any change in the Consumer Price Index for the Los Angeles, Riverside, and Orange County areas that has occurred in the previous two calendar years, rounded to the nearest dollar. (c) This section shall apply only in a county of the first class, as defined by Section 28020, as amended by Chapter 1204 of the Statutes of 1971, and Section 28022, as amended by Chapter 43 of the Statutes of 1961.