Amended in Senate June 20, 2013

Amended in Assembly April 30, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 822


Introduced by Assembly Member Hall

February 21, 2013


An act to add Section 9611 to the Elections Code, relating to elections.

LEGISLATIVE COUNSEL’S DIGEST

AB 822, as amended, Hall. Local government retirement plans.

Existing law requires local legislative bodies, before authorizing changes in public retirement plan benefits or other postemployment benefits, to secure the services of an actuary to provide a statement of the actuarial impact of the changes.

This bill would require, whenever a local measure qualifies for the ballot that proposes to alter, replace, or eliminate the retirement benefit plan of employees of a local government entity, whether by initiative or legislative action, the governing body of the local government entity to secure the services of an independent actuary to provide a statement, not to exceed 500 words in length, of the actuarial impact of the proposed measure upon future annual costs of the retirement benefit plan, and to have this statement printed in the voter information portion of the sample ballot. The bill would require, under certain circumstances, that the proponents of an initiative measure pay an additional filing fee to pay for the costs of the actuarial impact statement, which would be refunded if the measure is approved by the voters. The bill would require the governing body to make public at least 2 weeks prior to the election the future annual costs that will result from the changes to the retirement plan proposed by the measure. The bill would require a specified notice regarding obtaining a copy of the measure to be printed in the voter information portion of the sample ballot, if the text of the measure is not printed on the ballot, nor in the voter information portion of the sample ballot. The bill would require the measure to be submitted to the voters only at a statewide general electionbegin insert held pursuant to existing lawend insert. The requirements of the bill would apply to a charter city, charter city and county, or charter county.

By imposing new requirements on local governments, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 9611 is added to the Elections Code, 2following Section 9610, to read:

3

9611.  

(a) Whenever a local measure qualifies for the ballot
4that proposes to alter, replace, or eliminate the retirement benefit
5plan of employees of a local government entity, whether by
6initiative or legislative action, the governing body of the local
7government entity shall do all of the following:

8(1) Secure the services of an independent actuary to provide a
9statement, not to exceed 500 words in length, of the actuarial
10impact of the proposed measure upon future annual costs of the
11retirement benefit plan, including normal costs and any additional
12accrued liability.

13(2) Make public at a public meeting, at least two weeks prior
14to the election that the measure has qualified for, the future annual
15costs that will result from the changes to the retirement plan
16proposed by the measure.

17(b) The statement provided pursuant to paragraph (1) of
18subdivision (a) shall be printed in the voter information portion of
P3    1the sample ballot preceding the arguments for and against the
2measure, if any.

3(c) If the entire text of the measure is not printed on the ballot,
4nor in the voter information portion of the sample ballot, there
5shall be printed immediately below the independent actuarial
6analysis, in no less than 10-point bold type, a legend substantially
7as follows:

8“The above statement is an independent actuarial analysis of
9Ordinance or Measure ____. If you desire a copy of the ordinance
10or measure, please call the elections official’s office at (insert
11telephone number) and a copy will be mailed at no cost to you.”

12(d) If a measure described in this section qualifies for the ballot
13pursuant to an initiative petition described in Section 9101, 9102,
149201, or 9301, the proponents of the measure shall pay an
15additional filing fee to pay for the costs of the actuarial impact
16statement in an amount to be established by the local governing
17body, not to exceed five hundred dollars ($500). If the measure is
18adopted by the voters, the fee shall be refunded to the proponents.

19(e) Notwithstanding any other provision of law, a measure
20described in this section that qualifies for the ballot shall be
21submitted to the voters only at an established statewide general
22electionbegin insert held pursuant to Section 1200end insert.

23(f) For the purpose of this section:

24(1) “Actuary” has the same meaning as set forth in Section 7507
25of the Government Code.

26(2) “Future annual costs” has the same meaning as set forth in
27Section 7507 of the Government Code.

28(3) “Local government entity” includes a city, county, city and
29county, school district, community college district, county board
30of education, and special district.

31(g) The requirements of this section apply to a charter city,
32charter city and county, or charter county.

33

SEC. 2.  

The Legislature finds and declares that the security of
34public moneys and the fiscal integrity of local governmental entities
35in this state, including charter cities and charter counties, have a
36direct impact on the long-term well-being of all residents of this
37state. Further, many local governments experiencing budgetary
38crises have difficulty providing sufficient public safety services
39and place additional burdens on resources of the state. Accordingly,
40ensuring an informed electorate with respect to the statewide
P4    1integrity and security of government pension systems and ensuring
2the sufficiency of public safety services are matters of statewide
3concern and not a municipal affair, as that term is used in Section
4 5 of Article XI of the California Constitution.

5

SEC. 3.  

If the Commission on State Mandates determines that
6this act contains costs mandated by the state, reimbursement to
7local agencies and school districts for those costs shall be made
8pursuant to Part 7 (commencing with Section 17500) of Division
94 of Title 2 of the Government Code.



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