BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 340|
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                                 THIRD READING


          Bill No:  AB 340
          Author:   Furutani (D), et al.
          Amended:  9/7/11 in Senate
          Vote:     21

           
           SEN.PUBLIC EMPLOY. & RETIRE. COMMITTEE  :  5-0, 6/27/11
          AYES:  Negrete McLeod, Walters, Gaines, Padilla, Vargas

           ASSEMBLY FLOOR  :  73-0, 5/12/11 - See last page for vote


           SUBJECT  :    Public employees retirement

           SOURCE  :     Author


           DIGEST  :    This bill expresses the intent of the 
          Legislature to convene a conference committee to craft 
          responsible, comprehensive legislation to reform state and 
          local pension systems in a manner that reflects both the 
          legitimate needs of public employees and the fiscal 
          committees of state and local governments.

           Senate Floor Amendments  of 9/2/11 remove a redundant 
          provision that is already provided for in another existing 
          Government Code section and add a co-author.

           ANALYSIS  :    

          Existing law:

          1.Establishes the 20 county retirement systems operating 
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            under the 1937 Act County Retirement Law ('37 Act), which 
            provide defined benefit retirement allowances based on 
            employees' years of service, age at retirement, and final 
            compensation (most commonly, the highest paid 12 or 36 
            months of employment).

          2.Allows public employers, through laws, rules, local 
            ordinances, and collective bargaining agreements, to pay 
            differentials, bonuses, overtime, separation pay, holiday 
            pay, and other forms of compensation in addition to base 
            pay and requires that employers accurately and timely 
            report to the retirement boards the amount of 
            compensation paid to employees, including special forms 
            of pay, changes in employment status, leaves, and other 
            facts that impact compensation.

          3.Defines "compensation earnable" in the '37 Act system as 
            the average compensation for the period under 
            consideration with respect to the average number of days 
            ordinarily worked by persons in the same grade or class 
            of positions during the period, and at the same rate of 
            pay.

          4.Allows a retired public employee or teacher to return to 
            public employment with an employer covered by the 
            retirement system he or she retired from on a part-time 
            basis, as specified.  An employee who exceeds the limited 
            time base or earnings, as specified, may be subject to 
            reinstatement into the retirement system and reduction or 
            cessation of his or her retirement allowance or earnings.

          This bill expresses the intent of the Legislature to 
          convene a conference committee to craft responsible, 
          comprehensive legislation to reform state and local pension 
          systems in a manner that reflects both the legitimate needs 
          of public employees and the fiscal committees of state and 
          local governments.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  9/8/11)

          American Federation of State, County and Municipal 

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          Employees, AFL-CIO
          Association for Los Angeles Deputy Sheriffs
          California Association of Psychiatric Technicians
          California School Employees Association
          Glendale City Employees Association
          Los Angeles County Probation Officers Union
          Organization of SMUD Employees
          Redondo Beach Chamber of Commerce
          Retired Public Employees Association
          San Bernardino Public Employees Association
          San Luis Obispo County Employees Association
          Santa Rosa City Employees Association
          Service Employees International Union
          South Bay Association of Chambers of Commerce

           OPPOSITION  :    (Verified  9/8/11)

          Association of California Water Agencies
          California District Attorneys Association
          California State Association of Counties (oppose unless 
          amended)


           ASSEMBLY FLOOR  :  73-0, 5/12/11
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Chesbro, Cook, Davis, Dickinson, Donnelly, Eng, 
            Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, 
            Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, 
            Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, 
            Jeffries, Jones, Knight, Lara, Logue, Bonnie Lowenthal, 
            Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, 
            Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel 
            Pérez, Silva, Skinner, Smyth, Solorio, Swanson, Valadao, 
            Wagner, Wieckowski, Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Cedillo, Conway, Galgiani, Garrick, 
            Gorell, Portantino, Torres


          CPM:cm  9/8/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE


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