BILL ANALYSIS Ó SB 637 Page 1 Date of Hearing: June 8, 2011 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL SECURITY Warren T. Furutani, Chair SB 637 (P.E. & R. Com.) - As Introduced: February 18, 2011 SENATE VOTE : 40-0 SUBJECT : County employees' retirement: board of investment: powers. SUMMARY : Provides the Board of Investment of the Los Angeles County Employees Retirement Association (LACERA) with the power to issue subpoenas. EXISTING LAW : 1)Authorizes the board of retirement in counties operating retirement systems pursuant to the County Employees Retirement Law of 1937 ('37 Act) to issue subpoenas. The board of retirement may delegate authority to issue subpoenas to the retirement administrator. 2)Allows, in any '37 Act county in which the assets of the retirement system exceed $800 million, the board of supervisors to establish a board of investments which is responsible for all investment of the retirement system. LACERA is currently the only county with a board of investment. FISCAL EFFECT : Unknown. COMMENTS : Since 1965, all '37 Act boards of retirement have had the authority to issue subpoenas. According to the sponsor, this authority is used to subpoena documents and witnesses critical to the board's oversight and decision making: Subpoenas are issued under delegated authority of the board of retirement on a regular basis in connection with the processing of disability retirement applications. Typical situations involve compelling witnesses to appear at administrative hearings and obtaining medical records from physicians. This is the only purpose to date for which the board of retirement's subpoena power has been exercised. SB 637 Page 2 LACERA is the only '37 Act retirement system that also has a separate and independent board of investment. The LACERA board of retirement does not oversee matters under the purview of the board of investment. Currently, the power to issue subpoenas is not specified in law for the LACERA board of investment. According to the sponsor, the board of investments' subpoena power would be limited to investigations related to the investment of system assets, and "would only be used on rare occasions when the records and testimony required to protect LACERA's interests could not be obtained through other means." REGISTERED SUPPORT / OPPOSITION : Support Los Angeles County Employees Retirement Association (Sponsor) Opposition None on file Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957