BILL ANALYSIS Ó
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: SB 203
Gloria Negrete McLeod, Chair
Hearing date: April 11, 2011
SB 203 (Correa) as amended 3/31/11 FISCAL: NO
COUNTY RETIREMENT BOARDS: ALTERNATE MEMBERS/ELECTIONS
HISTORY :
Sponsor: California Retired County Employees Association
(CRCEA)
Prior legislation: AB 2526 (Berryhill)
Died in Senate PE&R Committee, 2008
SB 414 (Correa)
Vetoed, 2010
SUMMARY :
Makes various changes to the process for filling vacancies on
boards of retirement and boards of investment in counties
operating retirement systems under the County Employees'
retirement Law of 1937 ('37 Act).
BACKGROUND AND ANALYSIS :
1) Existing County Employees Retirement Law of 1937 ('37
Act) sets forth the composition of the nine-member Board of
Retirement for any '37 Act county retirement association, as
follows:
a) the county treasurer,
b) two general (non-safety) members elected by the general
members of the system (2nd and 3rd members),
c) four members who are qualified electors not in any way
connected with county government, except one may be a
county supervisor, appointed by the board of supervisors
(4th, 5th, 6th and 9th members),
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d) one safety member elected by the safety members of the
system (7th member),
e) one retired member elected by the retired members of
the system (8th member),
f) an alternate 7th member who is an eligible safety
member of the system, and
g) an alternate retired member of the system who is the
alternate for the 8th member (only in San Bernardino county
and other counties that adopt this option).
2) Existing '37 Act law creates an independent Board of
Investment in Los Angeles County and sets forth the
nine-member composition of that board in a manner
substantially similar to the composition of the boards of
retirement.
This bill makes technical changes to these provisions,
including clarifying references to the alternate 7th member.
3) Existing law provides that the alternate members, unless
prohibited by a resolution or regulation the board, have the
same rights, privileges, responsibilities, and access to
closed sessions as other specified board members, and may
participate in deliberations of the boards whether or not
other elected board members, including the 7th and 8th
members, are present.
This bill eliminates the ability of a board, by resolution or
board regulation, to prohibit an alternate member from
participation in deliberations and having the same rights,
privileges, responsibilities, and access to closed sessions
as other specified board members.
4) Existing law provides that, in counties without an
alternate retired member, the alternate 7th member may vote
in place of the 2nd, 3rd, 7th, or 8th member if one of those
members is absent, and allows the alternate 7th member to
fill a vacancy in one of those positions until a successor
qualifies.
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In counties with an alternate retired member, the alternate
retired member may only vote if the regular 8th member is
absent and may only fill a vacancy left by the regular 8th
member.
This bill clarifies that if the county has an alternate 7th
member and an alternate retired member, the alternate 7th
member shall act on behalf of an absent 2nd, 3rd, or 7th
member, and may not act on behalf of the 8th or alternate
retired member unless both are absent from the board meeting.
5) Existing law prescribes the manner of appointing an
alternate retired member for the 8th member of the board of
retirement. If there is a vacancy with respect to the 8th
member the alternate retired member is required to fill the
vacancy until a successor qualifies.
This bill specifies that if there is a vacancy with respect
to the 8th member, the alternate retired member will fill the
vacancy for the remainder of the 8th member's term in office.
6) Existing law provides that if a vacancy on the board
occurs for any cause or on the expiration of the term of
office of any member, a successor shall be chosen in the same
manner as was his predecessor, except that if an election to
fill a vacancy for the 2nd, 3rd, 7th or 8th member has been
called and only one member has been duly nominated, the board
of supervisors shall order that no election be held and shall
direct the clerk to cast a unanimous ballot in favor of such
nominated member.
This bill revises and recasts provisions governing the
process for filling vacancies on both the boards of
retirement and boards of investment to provide the following:
a) for vacancies in the 5th, 6th, 7th, or 9th member
positions, the board of supervisors is required to
appoint a replacement for the duration of the current
term forthwith. For vacancies in the 7th member
position, candidates will be a safety member from a
group which is not represented by an incumbent alternate
seventh member. The successful candidate will serve for
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the duration of the current term.
b) for vacancies in the 2nd, 3rd, 4th or 8th (if there
is no alternate retired member), the board is required
to cause an election to be held at the earliest possible
date to fill the vacancy. These vacancies will be
filled for the remainder of the current term unless only
six months or less remain of that term, in which case a
single election may be held to fill the remainder of the
current term and the succeeding term.
c) for vacancies with respect to the alternate retired
member position, the board of retirement is required to
appoint a replacement alternate member in the same
manner as prescribed for the initial appointment of an
alternate retired member.
d) if an election has been called due to the expiration
of the term of office of any member or to fill a vacancy
for the 2nd, 3rd, 7th, 8th, or alternate 7th member of a
board of retirement, or for the 2nd, 3rd, 7th, or 8th
member positions on a board of investment, and only one
candidate has been duly nominated, the board of
supervisors shall order that no election be held and
shall direct the clerk to cast a unanimous ballot in
favor of such nominated candidate.
COMMENTS :
1) Argument in support
According to the sponsor,
Nothing in statute requires the board of supervisors or
county board of retirement, as applicable, to
expeditiously fill vacancies on the board of retirement.
This can affect the board's ability to obtain a quorum
for official meetings. It can also deny the various
stakeholders of the retirement system proper
representation on the board. The sponsor also notes
that alternate board members have the same fiduciary
responsibility and liability as regular board members.
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Therefore, it is necessary that no potential limitation
to their activities exist.
In order to carry out their responsibilities they must
be involved in, and have access to, every aspect of the
board's business so that when called upon to vote, they
possess all of the same information as regular board
members.
Finally, the bill reduces the costs of elections by
allowing one election to fill both the remaining term of
a vacant position and the succeeding term when the
remaining term is of six months or less.
2) SUPPORT :
California Retired County Employees Association (CRCEA),
sponsor
3) OPPOSITION :
None to date
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