BILL NUMBER: AB 2664	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JUNE 15, 2012
	PASSED THE ASSEMBLY  MAY 21, 2012
	AMENDED IN ASSEMBLY  MAY 9, 2012
	AMENDED IN ASSEMBLY  APRIL 24, 2012
	AMENDED IN ASSEMBLY  MARCH 19, 2012

INTRODUCED BY   Committee on Public Employees, Retirement and Social
Security (Furutani (Chair), Allen, Ma, and Wieckowski)

                        FEBRUARY 29, 2012

   An act to amend Section 31527 of, to add Sections 31540 and 31541
to, and to add Article 8.11 (commencing with Section 31699.20) to
Chapter 3 of Part 3 of Division 4 of Title 3 of, the Government Code,
relating to county employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2664, Committee on Public Employees, Retirement and Social
Security. County employees' retirement: electronic signatures.
   The County Employees Retirement Law of 1937 provides a
comprehensive set of benefits for county and district employees who
are members of a retirement system subject to that law and
establishes county retirement boards for the administration of
benefits authorized under that law and authorizes each board to
include specified provisions, by regulation, with respect to the
administration of benefits.
   This bill would permit a county retirement board to include a
provision for the use and acceptance of electronic signatures, as
specified, within the regulations.
    This bill would also establish the County Retirement System
Dental Care Program and authorize a retired member of a county
retirement system to enroll in a dental program offered pursuant to
those provisions, subject to meeting eligibility requirements and
payment of premiums. The bill would authorize the board of retirement
to contract with a 3rd-party administrator to provide dental care to
the retired member, his or her survivors, and his or her eligible
dependents. The bill would specify that those dental benefits could
be revised or discontinued at any time.
   The Public Employees' Retirement Law (PERL) vests the Board of
Administration of the Public Employees' Retirement System with
management and control of the system. PERL authorizes the board to
adjust retirement payments due to errors or omissions, as specified.
   This bill would similarly authorize a county retirement system in
Los Angeles County to adjust retirement payments due to errors or
omissions using the same standards and period of limitations found in
PERL.


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

  SECTION 1.  Section 31527 of the Government Code is amended to
read:
   31527.  In its regulations, the board may include the following
provisions:
   (a) From what warrants deductions of members' contributions shall
be made.
   (b) For a period of time longer than one year during which a
member may redeposit in the retirement fund an amount equal to all of
the accumulated normal contributions that he or she has withdrawn,
plus regular interest thereon from the date of return to service.
   (c) For a period of time longer than one year during which a
member brought within the field of membership may pay into the
retirement fund the amount equal to the contributions he or she would
have made plus interest, if he or she had been a member from the
date of its organization, or from the date of his or her entrance
into service, whichever is later.
   (d) For a withdrawal charge against a member who withdraws his or
her accumulated contributions. The withdrawal charge shall not exceed
the interest credited to the member subsequent to the effective date
of the regulation.
   (e) For the exemption or exclusion from membership as a peace
officer member or as a safety member or from membership altogether,
in the discretion of the board, of persons whose tenure is temporary,
seasonal, intermittent, or for part time only, or persons whose
compensation is fixed at a rate by the day or hour.
   (f) For the periodic physical examination, at county expense, of
safety members.
   (g) The amount of additional deductions from the salaries or wages
of members pursuant to Article 15.5 (commencing with Section 31841)
or Article 16 (commencing with Section 31861). Such a provision may
be adopted in anticipation of, and prior to Article 15.5 (commencing
with Section 31841) or Article 16 (commencing with Section 31861)
becoming operative in the particular county.
   (h) The day upon which each person becomes a member of the
association if it is to be other than the first day of the calendar
month after his or her entrance into service. However, that day shall
be no later than 12 weeks after his or her entrance into service, or
the day upon which the member terminates service credited by the
association, and that the day shall be no earlier than 12 weeks prior
to the member's termination from employment.
   (i) Notwithstanding any other law, for the use and acceptance of a
document requiring a signature that is submitted by a member using
an electronic signature, if the document and electronic signature are
submitted using technology the board deems sufficient to ensure its
integrity, security, and authenticity. A document submitted pursuant
to the regulation shall be given the same force as a signed, valid
original document.
  SEC. 2.  Section 31540 is added to the Government Code, to read:
   31540.  (a) The obligations of the retirement system to its
members continue throughout their respective memberships, and the
obligations of the retirement system to, and in respect to, retired
members continue throughout the lives of the retired members, and
thereafter until all obligations to the members' beneficiaries under
optional settlements have been discharged. The obligations of the
county or district to the retirement system with respect to members
employed by them, respectively, continue throughout the memberships
of the members, and the obligations of the county or district to the
retirement system with respect to retired members formerly employed
by them, respectively, continue until all of the obligations of the
retirement system to those retired members have been discharged. The
obligations of any member to the retirement system continue
throughout his or her membership, and thereafter until all of the
obligations of the retirement system to that member have been
discharged.
   (b) For the purposes of payments into or out of the retirement
fund for adjustment of errors or omissions, the period of limitation
of actions shall be three years, and shall be applied as follows:
   (1) In cases in which the retirement system makes an erroneous
payment to a member or beneficiary, the system's right to collect
shall expire three years from the date of payment.
   (2) In cases in which the retirement system owes money to a member
or beneficiary, the period of limitation shall not apply.
   (c) Notwithstanding subdivision (b), in cases in which payment is
erroneous because of the death of the retired member or beneficiary
or because of the remarriage of the beneficiary, the period of
limitation shall be 10 years and that period shall commence with the
discovery of the erroneous payment.
   (d) Notwithstanding subdivision (b), if any payment has been made
as a result of fraudulent reports for compensation made, or caused to
be made, by a member for his or her own benefit, the period of
limitation shall be 10 years and that period shall commence either
from the date of payment or upon discovery of the fraudulent
reporting, whichever date is later.
   (e) The board shall determine the applicability of the period of
limitation in any case, and its determination with respect to the
running of any period of limitation shall be conclusive and binding
for purposes of correcting the error or omission.
   (f) This section shall apply only to a county of the first class
as described in Section 28020.
  SEC. 3.  Section 31541 is added to the Government Code, to read:
   31541.  (a) Subject to subdivisions (c) and (d), the board may, in
its discretion and upon any terms it deems just, correct the errors
or omissions of any active or retired member, or any beneficiary of
an active or retired member, if all of the following facts exist:
   (1) The request, claim, or demand to correct the error or omission
is made by the party seeking correction within a reasonable time
after discovery of the right to make the correction, which in no case
shall exceed six months after discovery of this right.
   (2) The error or omission was the result of mistake, inadvertence,
surprise, or excusable neglect, as each of those terms is used in
Section 473 of the Code of Civil Procedure.
   (3) The correction will not provide the party seeking correction
with a status, right, or obligation not otherwise available under
this part.
   Failure by a member or beneficiary to make the inquiry that would
be made by a reasonable person in like or similar circumstances does
not constitute an "error or omission" correctable under this section.

   (b) Subject to subdivisions (c) and (d), the board shall correct
all actions taken as a result of errors or omissions of the county or
district, or this system.
   (c) The duty and power of the board to correct mistakes, as
provided in this section, shall terminate upon the expiration of
obligations of this system to the party seeking correction of the
error or omission, as those obligations are defined by Section 31540.

   (d) The party seeking correction of an error or omission pursuant
to this section has the burden of presenting documentation or other
evidence to the board establishing the right to correction pursuant
to subdivisions (a) and (b).
   (e) Corrections of errors or omissions pursuant to this section
shall be such that the status, rights, and obligations of all parties
described in subdivisions (a) and (b) are adjusted to be the same as
they would have been if the act that would have been taken, but for
the error or omission, was taken at the proper time. However,
notwithstanding any other provision of this section, corrections made
pursuant to this section shall adjust the status, rights, and
obligations of all parties described in subdivisions (a) and (b) as
of the time that the correction actually takes place if the board
finds any of the following:
   (1) That the correction cannot be performed in a retroactive
manner.
   (2) That, even if the correction can be performed in a retroactive
manner, the status, rights, and obligations of all of the parties
described in subdivisions (a) and (b) cannot be adjusted to be the
same, as they would have been if the error or omission had not
occurred.
   (3) That the purposes of this chapter will not be effectuated if
the correction is performed in a retroactive manner.
   (f) This section shall apply only to a county of the first class
as described in Section 28020.
  SEC. 4.  Article 8.11 (commencing with Section 31699.20) is added
to Chapter 3 of Part 3 of Division 4 of Title 3 of the Government
Code, to read:

      Article 8.11.  Dental Care


   31699.20.  This article shall be known and may be cited as the
County Retirement System Dental Care Program.
   31699.21.  A retired member of a county retirement system covered
by this chapter may enroll in a dental care program offered pursuant
to this article, subject to meeting the eligibility requirements
established for the program.
   31699.22.  A retired member who elects to participate in the
program shall be solely responsible for the payment of premiums.
   31699.23.  The benefits in this article are in addition to any
other benefits provided in this chapter.
   31699.24.  The board of retirement may contract with a third-party
administrator to provide dental care to the retired member, his or
her survivors, and his or her eligible dependents.
   31699.25.  The provision of dental benefits in accordance with
this article may be revised or discontinued at any time.