BILL NUMBER: AB 2476	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 21, 2014

INTRODUCED BY   Committee on Public Employees, Retirement and Social
Security (Bonta (Chair), Rendon, Ridley-Thomas, and Wieckowski)

                        FEBRUARY 21, 2014

   An act to amend  Section 7522.56   Sections
7522.56, 7522.72, and 75  22.74  of the Government
Code, relating to public employees' retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2476, as amended, Committee on Public Employees, Retirement and
Social Security.  Employment after retirement: eligibility.
  Public employees' retirement. 
   Existing law, the California Public Employees' Pension Reform Act
of 2013 (PEPRA) establishes various limits on retirement benefits
generally applicable to a public employee retirement  system
in the state,   system,  except as specified, and
among other things, prescribes limits on service after retirement
without reinstatement into the applicable retirement system. Under
PEPRA, a retired person is not eligible to be employed for a period
of 180 days following the date of retirement unless he or she meets
specified requirements, including a requirement that the state
employer certifies the nature of the employment and that the
appointment is necessary to fill a critically needed state employment
position before 180 days have passed and the appointment has been
approved by the Department of Human Resources.
   This bill would instead provide, for purposes of that requirement,
that either the Senate Committee on Rules or the Assembly Rules
Committee, the Trustees of the California State University, or the
Administrative Office of the Courts makes those certifications and
approvals for legislative, California State University, and judicial
employees, respectively, instead of the Department of Human
Resources. 
   PEPRA requires a public employee, including one who is elected or
appointed to a public office, who is convicted of any state or
federal felony for conduct arising out of, or in the performance of,
his or her official duties in pursuit of the office or appointment,
or in connection with obtaining salary, disability retirement,
service retirement, or other benefits, to forfeit right, and benefits
earned or accrued from the earliest date of the commission of the
felony to the forfeiture date, as specified.  
   This bill would provide, instead, that a member of the retirement
system who is convicted, as described above, would forfeit those
rights and benefits. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7522.56 of the Government Code is amended to
read:
   7522.56.  (a) This section shall apply to any person who is
receiving a pension benefit from a public retirement system and shall
supersede any other provision in conflict with this section.
   (b) A retired person shall not serve, be employed by, or be
employed through a contract directly by, a public employer in the
same public retirement system from which the retiree receives the
benefit without reinstatement from retirement, except as permitted by
this section.
   (c) A person who retires from a public employer may serve without
reinstatement from retirement or loss or interruption of benefits
provided by the retirement system upon appointment by the appointing
power of a public employer either during an emergency to prevent
stoppage of public business or because the retired person has skills
needed to perform work of limited duration.
   (d) Appointments of the person authorized under this section shall
not exceed a total for all employers in that public retirement
system of 960 hours or other equivalent limit, in a calendar or
fiscal year, depending on the administrator of the system. The rate
of pay for the employment shall not be less than the minimum, nor
exceed the maximum, paid by the employer to other employees
performing comparable duties, divided by 173.333 to equal an hourly
rate. A retired person whose employment without reinstatement is
authorized by this section shall acquire no service credit or
retirement rights under this section with respect to the employment
unless he or she reinstates from retirement.
   (e) (1) Notwithstanding subdivision (c), any retired person shall
not be eligible to serve or be employed by a public employer if,
during the 12-month period prior to an appointment described in this
section, the retired person received any unemployment insurance
compensation arising out of prior employment subject to this section
with a public employer. A retiree shall certify in writing to the
employer upon accepting an offer of employment that he or she is in
compliance with this requirement.
   (2) A retired person who accepts an appointment after receiving
unemployment insurance compensation as described in this subdivision
shall terminate that employment on the last day of the current pay
period and shall not be eligible for reappointment subject to this
section for a period of 12 months following the last day of
employment.
   (f) A retired person shall not be eligible to be employed pursuant
to this section for a period of 180 days following the date of
retirement unless he or she meets one of the following conditions:
   (1) The employer certifies the nature of the employment and that
the appointment is necessary to fill a critically needed position
before 180 days have passed and the appointment has been approved by
the governing body of the employer in a public meeting. The
appointment may not be placed on a consent calendar.
   (2) (A) Except as otherwise provided in this paragraph, for state
employees, the state employer certifies the nature of the employment
and that the appointment is necessary to fill a critically needed
state employment position before 180 days have passed and the
appointment has been approved by the Department of Human Resources.
The department may establish a process to delegate appointing
authority to individual state agencies, but shall audit the process
to determine if abuses of the system occur. If necessary, the
department may assume an agency's appointing authority for retired
workers and may charge the department an appropriate amount for
administering that authority.
   (B) For legislative employees, the Senate Committee on Rules or
the Assembly Rules Committee certifies the nature of the employment
and that the appointment is necessary to fill a critically needed
position before 180 days have passed and approves the appointment in
a public meeting. The appointment may not be placed on a consent
calendar.
   (C) For employees of the California State University, the Trustees
of the California State University certifies the nature of the
employment and that the appointment is necessary to fill a critically
needed position before 180 days have passed and approves the
appointment in a public meeting. The appointment may not be placed on
a consent calendar.
   (D) For judicial employees, the Administrative Office of the
Courts certifies the nature of the employment and that the
appointment is necessary to fill a critically needed position before
180 days have passed and approves the appointment in a public
meeting. The appointment may not be placed on a consent calendar.
   (3) The retiree is eligible to participate in the Faculty Early
Retirement Program pursuant to a collective bargaining agreement with
the California State University that existed prior to January 1,
2013, or has been included in subsequent agreements.
   (4) The retiree is a public safety officer or firefighter hired to
perform a function or functions regularly performed by a public
safety officer or firefighter.
   (g) A retired person who accepted a retirement incentive upon
retirement shall not be eligible to be employed pursuant to this
section for a period of 180 days following the date of retirement and
subdivision (f) shall not apply.
   (h) This section shall not apply to a person who is retired from
the State Teachers' Retirement System, and who is subject to Section
24214, 24214.5, or 26812 of the Education Code.
   (i) This section shall not apply to (1) a subordinate judicial
officer whose position, upon retirement, is converted to a judgeship
pursuant to Section 69615, and he or she returns to work in the
converted position, and the employer is a trial court, or (2) a
retiree who takes office as a judge of a court of record pursuant to
Article VI of the California Constitution or a retiree of the Judges'
Retirement System or the Judges' Retirement System II who is
appointed to serve as a retired judge.
   SEC. 2.    Section 7522.72 of the  
Government Code   is amended to read: 
   7522.72.  (a) This section shall apply to a public employee first
employed by a public employer or first elected or appointed to an
office before January 1, 2013, and, on and after that date, Section
7522.70 shall not apply.
   (b) (1) If a public employee is convicted by a state or federal
trial court of any felony under state or federal law for conduct
arising out of or in the performance of his or her official duties,
in pursuit of the office or appointment, or in connection with
obtaining salary, disability retirement, service retirement, or other
benefits, he or she shall forfeit all accrued rights and benefits in
any public retirement system in which he or she is a member to the
extent provided in subdivision (c) and shall not accrue further
benefits in that public retirement system, effective on the date of
the conviction.
   (2) If a public employee who has contact with children as part of
his or her official duties is convicted of a felony that was
committed within the scope of his or her official duties against or
involving a child who he or she has contact with as part of his or
her official duties, he or she shall forfeit all accrued rights and
benefits in any public retirement system in which he or she is a
member to the extent provided in subdivision (c) and shall not accrue
further benefits in that public retirement system, effective on the
date of the conviction.
   (c) (1) A  public employee   member 
shall forfeit all the rights and benefits earned or accrued from the
earliest date of the commission of any felony described in
subdivision (b) to the forfeiture date, inclusive. The rights and
benefits shall remain forfeited notwithstanding any reduction in
sentence or expungement of the conviction following the date of the
 public employee's   member's  conviction.
Rights and benefits attributable to service performed prior to the
date of the first commission of the felony for which the 
public employee   member  was convicted shall not
be forfeited as a result of this section.
   (2) For purposes of this subdivision, "forfeiture date" means the
date of the conviction.
   (d) (1) Any contributions to the public retirement system made by
the public employee described in subdivision (b) on or after the
earliest date of the commission of any felony described in
subdivision (b) shall be returned, without interest, to the public
employee upon the occurrence of a distribution event unless otherwise
ordered by a court or determined by the pension administrator.
   (2) Any funds returned to the public employee pursuant to
subdivision (d) shall be disbursed by electronic funds transfer to an
account of the public employee, in a manner conforming with the
requirements of the Internal Revenue Code, and the public retirement
system shall notify the court and the district attorney at least
three business days before that disbursement of funds.
   (3) For the purposes of this subdivision, a "distribution event"
means any of the following:
   (A) Separation from employment.
   (B) Death of the member.
   (C) Retirement of the member.
   (e) (1) Upon conviction, a public employee as described in
subdivision (b) and the prosecuting agency shall notify the public
employer who employed the public employee at the time of the
commission of the felony within 60 days of the felony conviction of
all of the following information:
   (A) The date of conviction.
   (B) The date of the first known commission of the felony.
   (2) The operation of this section is not dependent upon the
performance of the notification obligations specified in this
subdivision.
   (f) The public employer that employs or employed a public employee
described in subdivision (b) and that public employee shall each
notify the public retirement system in which the public employee is a
member of that public employee's conviction within 90 days of the
conviction. The operation of this section is not dependent upon the
performance of the notification obligations specified in this
subdivision.
   (g) A public retirement system may assess a public employer a
reasonable amount to reimburse the cost of audit, adjustment, or
correction, if it determines that the public employer failed to
comply with this section.
   (h) If a public employee's conviction is reversed and that
decision is final, the employee shall be entitled to do either of the
following:
   (1) Recover the forfeited rights and benefits as adjusted for the
contributions received pursuant to subdivision (d).
   (2) Redeposit those contributions and interest that would have
accrued during the forfeiture period, as determined by the system
actuary, and then recover the full amount of the forfeited rights and
benefits.
   (i) The forfeiture of rights and benefits provided in this
section, with respect to judges, are in addition to and supplement
the forfeitures and other requirements provided in Section 75033.2,
75062, 75526, or 75563. If there is a conflict between this section
and Section 75033.2, 75062, 75526, or 75563, the provisions that
result in the greatest forfeiture or provide the most stringent
procedural requirements to the claim of a judge shall apply.
   (j) A public employee first employed by a public employer or first
elected or appointed to an office on or after January 1, 2013, shall
be subject to Section 7522.74.
   SEC. 3.    Section 7522.74 of the  
Government Code   is amended to read: 
   7522.74.  (a) This section shall apply to a public employee first
employed by a public employer or first elected or appointed to an
office on or after January 1, 2013, and on and after that date,
Section 7522.70 shall not apply.
   (b) (1) If a public employee is convicted by a state or federal
trial court of any felony under state or federal law for conduct
arising out of or in the performance of his or her official duties,
in pursuit of the office or appointment, or in connection with
obtaining salary, disability retirement, service retirement, or other
benefits, he or she shall forfeit all accrued rights and benefits in
any public retirement system in which he or she is a member to the
extent provided in subdivision (c) and shall not accrue further
benefits in that public retirement system, effective on the date of
the conviction.
   (2) If a public employee who has contact with children as part of
his or her official duties is convicted of a felony that was
committed within the scope of his or her official duties against or
involving a child who he or she has contact with as part of his or
her official duties, he or she shall forfeit all accrued rights and
benefits in any public retirement system in which he or she is a
member to the extent provided in subdivision (c) and shall not accrue
further benefits in that public retirement system, effective on the
date of the conviction.
   (c) (1) A  public employee   member 
shall forfeit all the rights and benefits earned or accrued from the
earliest date of the commission of any felony described in
subdivision (b) to the forfeiture date, inclusive. The rights and
benefits shall remain forfeited notwithstanding any reduction in
sentence or expungement of the conviction following the date of the
 public employee's   member's  conviction.
Rights and benefits attributable to service performed prior to the
date of the first commission of the felony for which the 
public employee   member  was convicted shall not
be forfeited as a result of this section.
   (2) For purposes of this subdivision, "forfeiture date" means the
date of the conviction.
   (d) (1) Any contributions to the public retirement system made by
the public employee described in subdivision (b) on or after the
earliest date of the commission of any felony described in
subdivision (b) shall be returned, without interest, to the public
employee upon the occurrence of a distribution event unless otherwise
ordered by a court or determined by the pension administrator.
   (2) Any funds returned to the public employee pursuant to
subdivision (d) shall be disbursed by electronic funds transfer to an
account of the public employee, in a manner conforming with the
requirements of the Internal Revenue Code, and the public retirement
system shall notify the court and the district attorney at least
three business days before that disbursement of funds.
   (3) For the purposes of this subdivision, a "distribution event"
means any of the following:
   (A) Separation from employment.
   (B) Death of the member.
   (C) Retirement of the member.
   (e) (1) Upon conviction, a public employee as described in
subdivision (b) and the prosecuting agency shall notify the public
employer who employed the public employee at the time of the
commission of the felony within 60 days of the felony conviction of
all of the following information:
   (A) The date of conviction.
   (B) The date of the first known commission of the felony.
   (2) The operation of this section is not dependent upon the
performance of the notification obligations specified in this
subdivision.
   (f) The public employer that employs or employed a public employee
described in subdivision (b) and that public employee shall each
notify the public retirement system in which the public employee is a
member of that public employee's conviction within 90 days of the
conviction. The operation of this section is not dependent upon the
performance of the notification obligations specified in this
subdivision.
   (g) A public retirement system may assess a public employer a
reasonable amount to reimburse the cost of audit, adjustment, or
correction, if it determines that the public employer failed to
comply with this section.
   (h) If a public employee's conviction is reversed and that
decision is final, the employee shall be entitled to do either of the
following:
   (1) Recover the forfeited rights and benefits as adjusted for the
contributions received pursuant to subdivision (d).
   (2) Redeposit those contributions and interest that would have
accrued during the forfeiture period, as determined by the system
actuary, and then recover the full amount of the forfeited rights and
benefits.
   (i) The forfeiture of rights and benefits provided in this
section, with respect to judges, are in addition to and supplement
the forfeitures and other requirements provided in Section 75033.2,
75062, 75526, or 75563. If there is a conflict between this section
and Section 75033.2, 75062, 75526, or 75563, the provisions that
result in the greatest forfeiture or provide the most stringent
procedural requirements to the claim of a judge shall apply.
   (j) A public employee first employed by a public employer or first
elected or appointed to an office before January 1, 2013, shall be
subject to Section 7522.72.