Amended in Senate September 4, 2013

Amended in Senate June 24, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 1222


Introduced by Assemblybegin delete Memberend deletebegin insert Membersend insert Bloombegin insert and Dickinsonend insert

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(Coauthor: Assembly Member Cooley)

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February 22, 2013


begin deleteAn act relating to hazardous substances. end deletebegin insertAn act to amend Section 7522.02 of the Government Code, relating to public employees’ retirement, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1222, as amended, Bloom. begin deleteHazardous substances: oil recycling: legislative intent. end deletebegin insertPublic employees’ retirement: collective bargaining: transit workers: transportation.end insert

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The California Public Employees’ Pension Reform Act of 2013 (PEPRA), among other things, establishes new retirement formulas for employees first employed on or after January 1, 2013, which a public employer offering a defined benefit pension plan is prohibited from exceeding, requires those employees to contribute a specified percentage of the normal cost of the defined benefit plan, and prohibits public employers from paying an employee’s share of retirement contributions. PEPRA excepts certain retirement systems from its provisions.

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This bill would except from PEPRA public employees whose collective bargaining rights are subject to specified provisions of federal law until a specified federal district court decision on a certification by the United States Secretary of Labor, or his or her designee, or until January 1, 2015, whichever is sooner. The bill would also provide that if a federal district court upholds the determination of the United States Secretary of Labor, or his or her designee, that application of PEPRA to those public employees precludes certification, those employees are excepted from PEPRA. The bill would authorize the Director of Finance to authorize a loan of up to $26,000,000 from the Public Transportation Account in the State Transportation Fund to be made to local mass transit providers in amounts equal to federal transportation grants not received due to noncertification from the federal Department of Labor, as specified. By providing for loans in the manner specified, this bill would make an appropriation. The bill would prescribe requirements regarding the disbursement of these funds. The bill would require a local transit provider to repay the loan based on the occurrence of certain contingencies or by January 1, 2019.

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This bill would declare that it is to take effect immediately as an urgency statute.

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Existing law requires the Department of Toxic Substances to implement and administer various programs regulating the treatment and disposal of hazardous substances. The California Oil Recycling Enhancement Act, which is administered by the California Department of Resources Recycling and Recovery, establishes a used oil recycling program designed to discourage the illegal disposal of used oil.

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This bill would declare the intent of the Legislature to enact subsequent statutory changes to the Department of Toxic Substance’s hazardous waste fee system that would streamline the system, harmonize the department’s hazardous waste program objectives and fees with the Department of Resources Recycling and Recovery’s responsibilities and program objectives under the California Oil Recycling and Recovery Enhancement Act, and align hazardous waste fees with the actual regulatory costs associated with managing hazardous waste and used oil.

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Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

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

P2    1begin insert

begin insertSECTION 1.end insert  

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begin insertSection 7522.02 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

3

7522.02.  

(a) (1) Notwithstanding any other law, except as
4provided in this article, on and after January 1, 2013, this article
P3    1shall apply to all state and local public retirement systems and to
2their participating employers, including the Public Employees’
3Retirement System, the State Teachers’ Retirement System, the
4Legislators’ Retirement System, the Judges’ Retirementbegin delete System
5I,end delete
begin insert System,end insert the Judges’ Retirement System II, county and district
6retirement systems created pursuant to the County Employees
7Retirement Law of 1937, independent public retirement systems,
8and to individual retirement plans offered by public employers.
9However, this article shall be subject to the Internal Revenue Code
10and Section 17 of Article XVI of the California Constitution. The
11administration of the requirements of this article shall comply with
12applicable provisions of the Internal Revenue Code and the
13Revenue and Taxation Code.

14(2) Notwithstanding paragraph (1), this article shall not apply
15to the entities described in Section 9 of Article IX of, and Sections
164 and 5 of Article XI of, the California Constitution, except to the
17extent that these entities continue to be participating employers in
18any retirement system governed by state statute. Accordingly, any
19retirement plan approved before January 1, 2013, by the voters of
20any entity excluded from coverage by this section shall not be
21affected by this article.

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22(3) (A) Notwithstanding paragraph (1), this article shall not
23apply to a public employee whose interests are protected under
24subsection (b) of Section 5333 of Title 49 of the United States Code
25until a federal district court rules that the United States Secretary
26of Labor, or his or her designee, erred in determining that the
27application of this article precludes certification under that section,
28or until January 1, 2015, whichever is sooner.

end insert
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29(B) If a federal district court upholds the determination of the
30United States Secretary of Labor, or his or her designee, that
31application of this article precludes him or her from providing a
32certification under subsection (b) of Section 5333 of Title 49 of
33the United States Code, this article shall not apply to a public
34employee specified in subparagraph (A).

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35(b) The benefit plan required by this article shall apply to public
36employees who are new members as defined in Section 7522.04.

37(c) Individuals who were employed by any public employer
38before January 1, 2013, and who became employed by a subsequent
39public employer for the first time on or after January 1, 2013, shall
40be subject to the retirement plan that would have been available
P4    1to employees of the subsequent employer who were first employed
2by the subsequent employer on or before December 31, 2012, if
3the individual was subject to reciprocity established under any of
4the following provisions:

5(1) Article 5 (commencing with Section 20350) of Chapter 3
6of Part 3 of Division 5 of Title 2.

7(2) Chapter 3 (commencing with Section 31450) of Part 3 of
8Division 4 of Title 3.

9(3) Any agreement between public retirement systems to provide
10reciprocity to members of the systems.

11(d) If a public employer, before January 1, 2013, offers a defined
12benefit pension plan that provides a defined benefit formula with
13a lower benefit factor at normal retirement age and results in a
14lower normal cost than the defined benefit formula required by
15this article, that employer may continue to offer that defined benefit
16formula instead of the defined benefit formula required by this
17article, and shall not be subject to the requirements of Section
187522.10 for pensionable compensation subject to that formula.
19However, if the employer adopts a new defined benefit formula
20on or after January 1, 2013, that formula must conform to the
21requirements of this article or must be determined and certified by
22the retirement system’s chief actuary and the retirement board to
23have no greater risk and no greater cost to the employer than the
24defined benefit formula required by this article and must be
25approved by the Legislature. New members of the defined benefit
26plan may only participate in the lower cost defined benefit formula
27that was in place before January 1, 2013, or a defined benefit
28formula that conforms to the requirements of this article or is
29approved by the Legislature as provided in this subdivision.

30(e) If a public employer, before January 1, 2013, offers a
31retirement benefit plan that consists solely of a defined contribution
32plan, that employer may continue to offer that plan instead of the
33defined benefit pension plan required by this article. However, if
34the employer adopts a new defined benefit pension plan or defined
35benefit formula on or after January 1, 2013, that plan or formula
36must conform to the requirements of this article or must be
37determined and certified by the retirement system’s chief actuary
38and the system’s board to have no greater risk and no greater cost
39to the employer than the defined benefit formula required by this
40article and must be approved by the Legislature. New members of
P5    1the employer’s plan may only participate in the defined
2contribution plan that was in place before January 1, 2013, or a
3defined contribution plan or defined benefit formula that conforms
4to the requirements of this article.

5(f) The Judges’ Retirement Systembegin delete Iend delete and the Judges’ Retirement
6System II shall not be required to adopt the defined benefit formula
7required by Section 7522.25 or 7522.30 or the compensation
8limitations defined in Section 7522.10.

9(g) This article shall not be construed to provide membership
10in any public retirement system for an individual who would not
11otherwise be eligible for membership under that system’s
12applicable rules or laws.

13begin insert

begin insertSEC. 2.end insert  

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begin insert

(a) Notwithstanding any other law, the Director of
14Finance may authorize a cashflow loan of up to twenty-six million
15dollars ($26,000,000) from moneys in the Public Transportation
16Account in the State Transportation Fund to local mass transit
17providers upon their request to the Director of Finance. The
18cashflow loans shall be provided as follows:

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begin insert

19(1) The loan to a local mass transit provider shall be in an
20amount equal to the federal transportation grant not received by
21the provider due to the noncertification by the United States
22Secretary of Labor, or his or her designee, under subsection (b)
23of Section 5333 of Title 49 of the United States Code for the funds
24scheduled to lapse on September 30, 2013, as determined by the
25Director of Finance.

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26(2) The Director of Finance shall provide a schedule to the State
27Controller for the disbursement of the loan amount for each local
28mass transit provider that receives a loan under paragraph (1).

end insert
begin insert

29(3) The Controller shall draw warrants against the Public
30Transportation Account in the State Transportation Fund per the
31schedule provided by the Director of Finance in paragraph (2)
32within 14 days of receipt of the schedule.

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begin insert

33(b) (1) On or before 60 days after a federal district court rules
34that the United States Secretary of Labor, or his or her designee,
35erred in determining that application of the California Public
36Employees’ Pension Reform Act of 2013 precludes certification
37under subsection (b) of Section 5333 of Title 49 of the United States
38Code, or longer if so authorized by the Director of Finance, a local
39mass transit provider shall repay the amount loaned pursuant to
40subdivision (a) to the Public Transportation Account in the State
P6    1Transportation Fund with the interest calculated at the rate earned
2by the Pooled Money Investment Account at that time of loan,
3unless interest charges are waived by the Director of Finance.

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begin insert

4(2) On or before 60 days after a certification by the United
5States Secretary of Labor, or his or her designee, that results in
6the receipt of funds described in paragraph (1) of subdivision (a),
7a local mass transit provider shall repay the amount loaned
8pursuant to subdivision (a) to the Public Transportation Account
9in the State Transportation Fund with the interest calculated at
10the rate earned by the Pooled Money Investment Account at that
11time of loan, unless interest charges are waived by the Director
12of Finance.

end insert
begin insert

13(3) No later than January 1, 2019, if neither of the contingencies
14described in paragraph (1) or (2) have occurred, a local mass
15transit provider shall repay the amount loaned pursuant to
16subdivision (a) to the Public Transportation Account in the State
17Transportation Fund with the interest calculated at the rate earned
18by the Pooled Money Investment Account at that time of loan,
19unless interest charges are waived by the Director of Finance.

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20(c) A cashflow loan from the Public Transportation Account in
21the State Transportation Fund authorized by this section does not
22constitute budgetary expenditures. A cashflow loan, and the
23repayment of a cashflow loan, made under this section shall not
24affect the budgetary reserve.

end insert
25begin insert

begin insertSEC. 3.end insert  

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begin insert

This act is an urgency statute necessary for the
26immediate preservation of the public peace, health, or safety within
27the meaning of Article IV of the Constitution and shall go into
28immediate effect. The facts constituting the necessity are:

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29In order to preserve the funding for essential transportation
30infrastructure projects while balancing the public’s need to control
31the costs of public employee pension benefits, it is necessary that
32this measure take effect immediately.

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33

SECTION 1.  

It is the intent of the Legislature to enact
34subsequent statutory changes to the Department of Toxic Substance
35Control’s hazardous waste fee system that would streamline the
36system, harmonize the department’s hazardous waste program
37objectives and fees with the Department of Resources Recycling
38and Recovery’s responsibilities and programs under the California
39Oil Recycling Enhancement Act, and align the hazardous waste
P7    1fees with the actual regulatory costs associated with managing
2hazardous waste and used oil.

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