BILL ANALYSIS                                                                                                                                                                                                    



                                                                            
         AB 226
                                                                Page  1

        CONCURRENCE IN SENATE AMENDMENTS
        AB 226 (Torrico)
        As Amended August 27, 2010
        2/3 vote.  Urgency
         
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        |ASSEMBLY:  |     |(June 1, 2009)  |SENATE: |27-8 |(August 30,    |
        |           |     |                |        |     |2010)          |
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                     (vote not relevant)


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        |COMMITTEE VOTE:  |6-0  |(August 30, 2010)   |RECOMMENDATION: |Concur    |
        |                 |     |                    |                |          |
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        Original Committee Reference:    NAT. RES.  

         SUMMARY  :  Clarifies that compensation paid to a retiring member of  
        a retirement system that was deferred based on concessions agreed  
        to in a collective bargaining agreement will be considered  
        compensation earnable, as specified, and implements the retirement  
        provisions of a recently negotiated bargaining agreement between  
        Sacramento County and the Sacramento County Deputy Sheriff's  
        Association (SCDSA).

         The Senate amendments  delete the Assembly version of the bill, and  
        instead:

        1)Provide that compensation paid to a retiring member of a  
          retirement system established pursuant to the County Employees'  
          Retirement Law of 1937 ('37 Act) to restore compensation the  
          member would have been entitled to receive pursuant to a  
          collective bargaining agreement executed on or before July 1,  
          2010, that was subsequently deferred or otherwise modified as a  
          result of a concessionary amendment executed prior to September  
          1, 2010, must be considered pay rate or salary and not considered  
          to have been paid for the purpose of enhancing a member's  
          retirement benefits.

        2)Allows the Sacramento County Board of Supervisors, as part of an  
          approved memorandum of understanding, to require safety employees  
          of that bargaining unit first hired after the approval of the  








                                                                            
         AB 226
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          resolution to be covered by the 3% at 55 retirement formula  
          rather than the current 3% at 50 formula.  The Board of  
          Supervisors may also apply this provision to an unrepresented  
          safety employee first hired after the approval of the resolution.

        3)Allows the Sacramento County Board of Supervisors, by resolution  
          as specified, to provide different retirement formulas for new  
          members in one safety bargaining unit or other new unrepresented  
          safety employees than is provided for new safety members of other  
          bargaining units or unrepresented safety members.

         AS PASSED BY THE ASSEMBLY,  this bill authorized the California  
        Coastal Commission to administratively impose civil penalties in an  
        enforcement case against anyone in violation of the Coastal Act of  
        1976.  

        FISCAL EFFECT  :  Unknown

         COMMENTS  :  According to the sponsor, the Board of Supervisors of  
        Sacramento County, AB 226 will assist in implementing provisions  
        contained in recently negotiated labor agreements that will prevent  
        layoffs without increasing pension obligations.  The County points  
        out that their Sheriff, John McGinness, also supports these  
        changes.

        According to the sponsor, AB 226 will, "?enable Sacramento County  
        to establish a new lower retirement tier for some of our new county  
        law enforcement employees of 3% at age 55 with a three year highest  
        compensation average, and a retiree Cost of Living Adjustment  
        (COLA) not to exceed 2% annually.  This new Safety Tier is part of  
        a labor package the Board of Supervisors endorsed on August 12,  
        2010.  It applies to bargaining units represented by both the  
        Sacramento County Deputy Sheriffs' Association (SCDSA) and the Law  
        Enforcement Management Association (LEMA).   Both organizations  
        support AB 226.  Without this bill, implementation of the agreement  
        would have to await agreement with all other Recognized Employee  
        Organizations (REO's) that have safety employees.

        "The second change in the bill amends the 1937 Act and specifically  
        applies to Sacramento County because of recent agreements reached  
        between us and three of our REOs: SCDSA, LEMA, and AFSCME-Health  
        Services Unit 008.  In general, the County and these REOs have  
        agreed to delay implementation of both a Cost of Living Adjustment  
        (COLA) and an equity salary increase.  Due to pending legislation  








                                                                            
         AB 226
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        that addresses the calculation of final compensation for retirement  
        purposes (Assembly Bill 1987-Ma), our Sacramento County Retirement  
        Administrator advised us that statutory clarification would be  
        prudent to make it clear that these agreements will  not  increase  
        the final compensation that will be calculated for their retirement  
        benefit.  AB 226 makes that necessary clarification."


         Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
        319-3957 


        FN:  
        0006890