BILL NUMBER: AB 609	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 2, 2009
	AMENDED IN ASSEMBLY  APRIL 30, 2009
	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Conway

                        FEBRUARY 25, 2009

   An act  to amend Sections 31580.2 and 31580.3 of the
Government Co  de,  relating to county employees'
retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 609, as amended, Conway. County employees retirement:
administrative costs.
   The County Employees Retirement Law of 1937 requires a board of
retirement, or a board of retirement and the board of investment,
with appointed members to annually adopt a budget covering the entire
expense of administration of the retirement system and prohibits the
expense incurred in any year from exceeding  a specified
percentage   18/100   of 1%  of the total
assets of the retirement system.
   This bill would  state the intent of the Legislature to
examine the advisability of linking, in statute, the administrative
budget of a board of retirement, or a board of retirement and a board
of investment, operating under the County Employees Retirement Law
of 1937, to the value of the assets of the retirement system
  increase that percentage to   19/100 
 of 1%. The bill would also make a conforming change regarding
maximum expense in any year the expenditures include certain computer
expenses  .
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

   SECTION 1.    Section 31580.2 of the  
Government Code   is amended to read: 
   31580.2.  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 or 31522.5, or both, 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.
Except as described in Section 31580.3, the expense incurred in any
year may not exceed  eighteen   nineteen 
hundredths of 1 percent of the total assets of the retirement system.

   SEC. 2.    Section 31580.3 of the 
Government Code   is amended to read: 
   31580.3.  (a) If during any year the expense of administration of
the retirement system includes expenditures for software, hardware,
and computer technology consulting services in support of that
software or hardware, the expense incurred may not exceed the greater
of the following:
   (1) The sum of  eighteen   nineteen 
hundredths of 1 percent of the total assets of the retirement system
plus one million dollars ($1,000,000).
   (2)  Twenty-three   Twenty-four  
 hundredths of 1 percent of the total assets of the retirement
system.
   (b) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date. 
  SECTION 1.    It is the intent of the Legislature
to examine the advisability of linking, in statute, the
administrative budget of a board of retirement, or a board of
retirement and a board of investment, operating under the County
Employees Retirement Law of 1937, to the value of the assets of the
retirement system.