BILL NUMBER: SB 1382	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Negrete McLeod

                        FEBRUARY 24, 2012

   An act to amend Sections 31452.5, 31520.5, and 31592.5 of, and to
add Section 31471.5 to, the Government Code, relating to county
employees' retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1382, as introduced, Negrete McLeod. County employees'
retirement: retiree organizations.
   The County Employees Retirement Law of 1937 authorizes counties to
establish retirement systems pursuant to its provisions in order to
provide pension benefits to county, city, and district employees.
That law authorizes a county retirement board to give effect to a
revocable written authorization signed by a retired member or
beneficiary of a retired member entitled to a retirement allowance or
benefit for the deduction of a specified amount for various
purposes, including, among others, paying for group life insurance,
group disability insurance, prepaid group medical or hospital service
plans, and dental plans approved by the board.
   This bill would further allow for written authorization of, and
deduction for, payments to a recognized retiree organization.
   Under the County Employees Retirement Law of 1937, the retirement
board in specified counties is comprised of 9 members. In those
counties, the board is authorized to appoint an alternate retired
member to the office of the 8th member of the board, from a list of
nominees submitted by a qualified retiree organization, as defined.
   This bill would instead authorize that list of nominees to be
submitted by a recognized retiree organization. The bill would also
define "recognized retiree organization" for purposes of the County
Employees Retirement Law, and would make related conforming and
technical changes.
   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 31452.5 of the Government Code is amended to
read:
   31452.5.   (a)    The board may comply with and
give effect to a revocable written authorization signed by a retired
member or beneficiary of a retired member entitled to a retirement
allowance or benefit under this chapter, authorizing the treasurer or
other entity authorized by the board to deduct a specified amount
from the retirement allowance or benefit payable to any retired
member or beneficiary of a retired member for  the purpose of
paying premiums on any policy or certificate of group life insurance
or group disability insurance issued by an admitted insurer, for any
prepaid group medical or hospital service plan, or both, for any
vision care program or dental plan, approved by the board, for the
benefit of the retired member or his or her dependents, for the
payment of premiums on national service life insurance or United
States government converted insurance, for the purchase of shares in
or the payment of money to any regularly chartered credit union, for
charitable organizations or federally chartered veterans'
organizations as approved by both the board of retirement and the
board of supervisors, or for the purchase of United States Savings
Bonds, or for the payment of personal income taxes to the government
of the United States or of the State of California, and each month
shall draw his or her order in favor of the insurer, institution,
credit union, or government named in the written authorization for an
amount equal to the deductions so authorized and made during the
month. The board may charge a reasonable fee for the making of the
deductions and payments.   any of the following purposes
  : 
   (1) Paying premiums on any policy or certificate of group life
insurance or group disability insurance issued by an admitted
insurer.  
   (2) A prepaid group medical or hospital service plan.  
   (3) A vision care program or dental plan, approved by the board,
for the benefit of the retired member or his or her dependents. 

   (4) The payment of premiums on national service life insurance or
United States government converted insurance.  
   (5) The purchase of shares in or the payment of money to any
regularly chartered credit union.  
   (6) A charitable organization or a federally chartered veterans'
organization that is approved by the board.  
   (7) Payments to a recognized retiree organization.  
   (8) The purchase of United States Savings Bonds.  
   (9) The payment of personal income taxes to the government of the
United States or the State of California.  
   (b) Each month the order shall be drawn in favor of the insurer,
institution, credit union, or government named in the written
authorization for an amount equal to the deductions authorized in
subdivision (a) and made during the month.  
   (c) The board may charge a reasonable fee for the making of the
deductions and payments. 
  SEC. 2.  Section 31471.5 is added to the Government Code, to read:
   31471.5.  "Recognized retiree organization" means an organization
for which a majority of the members of the organization are retired
members of the system and which the board has approved recognition.
  SEC. 3.  Section 31520.5 of the Government Code is amended to read:

   31520.5.  (a) Notwithstanding Section 31520.1, in any county
subject to Articles 6.8 (commencing with Section 31639) and 7.5
(commencing with Section 31662), the board of retirement may, by
majority vote, appoint, from a list of nominees submitted by a
 qualified   recognized  retiree
organization, an alternate retired member to the office of the eighth
member, who shall serve until the expiration of the current term of
the current eighth member. Thereafter, the alternate retired member
shall be elected separately by the retired members of the association
in the same manner and at the same time as the eighth member is
elected.  An organization shall be deemed to be a "qualified
retiree organization" for purposes of this subdivision if a majority
of the members of the organization are retired members of the system.

   (b) The term of office of the alternate retired member shall run
concurrently with the term of office of the eighth member. The
alternate retired member shall vote as a member of the board only in
the event the eighth member is absent from a board meeting for any
cause. If there is a vacancy with respect to the eighth member, the
alternate retired member shall fill that vacancy for the remainder of
the eighth member's term of office.
   (c) Except as otherwise provided in this section, the alternate
retired member shall be entitled to the same rights and privileges
and shall have the same responsibilities and access to closed
sessions as the eighth member.
   (d) The alternate retired member may hold positions on committees
of the board independent of the eighth member and may participate in
the deliberations of the board or any of its committees to which the
alternate retired member has been appointed whether or not the eighth
member is present.
   (e) The alternate retired member shall be entitled to the same
compensation as the eighth member for attending a meeting, pursuant
to Sections 31521 and 31521.1, whether or not the eighth member is in
attendance at those meetings.
   (f) (1) If this section is made applicable in any county, by the
appointment of an alternate eighth member, the alternate seventh
member shall not sit and act for the eighth member, except as
described in paragraph (2).
   (2) If both the eighth member and the alternate retired member are
not attending a meeting, the alternate seventh member may sit and
act for the eighth member as described in Section 31520.1.
  SEC. 4.  Section 31592.5 of the Government Code is amended to read:

   31592.5.  The board shall provide to any  recognized retiree
 organization  that is recognized by the board as
representing the retired employees of the county or district
 reasonable advance notice of any proposed changes to the
retirement benefits offered by the system or the use or uses of
excess funds of the retirement system. The organization shall have a
reasonable opportunity to comment prior to any formal action by the
board on the proposed changes.