BILL ANALYSIS Ó SB 39 Page 1 SENATE THIRD READING SB 39 (De León) As Amended September 6, 2013 2/3 vote. Urgency SENATE VOTE : Vote not relevant NATURAL RESOURCES APPROPRIATIONS (vote not relevant) (vote not relevant) SUMMARY : Specifies procedure for handling any claim by a local public officer for funding of retirement benefits that have been disallowed by a public retirement system. Specifically, this bill : 1)Provides that a local public officer, as defined, who believes that he or she is entitled to claim, from a local public agency employer, for funding of retirement benefits that have been disallowed by a public retirement system, however those benefits may be characterized, including, but not limited to, as lost compensation, may only pursue that claim through the administrative process and appeal procedure available under the applicable public retirement system. 2)Establishes that the local public agency employer shall only be responsible for amounts awarded to the local public officer as provided by this act. 3)Defines "local public officer," for the purpose of this act, to mean a person, either elected or appointed, with all of the following characteristics: a) The person exercised discretionary, executive authority in his or her employment. b) The person was convicted of a felony for conduct arising out of, or in the performance of, his or her official duties. c) This section shall apply to any claim filed prior to January 1, 2014, and still pending on that date, and any claim commenced after that date. 4)Finds and declares that local public agencies need protection SB 39 Page 2 from disgraced and avaricious public officials who, following conviction for crimes arising out of the performance of their official duties, continue to abuse the public trust by asserting a claim that their former employers owe them the value of pension benefits that the public retirement systems charged with administration of those benefits have rightfully disallowed. 5)Declares that this act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety, and declares that the facts constituting the necessity are that "In order to protect the public from local public officers who are convicted of felonies due to violations of the public trust and who continue to abuse the public trust and rob the taxpayers, it is necessary that this act take effect immediately." FISCAL EFFECT : Unknown COMMENTS : As recently amended, this bill specifies the procedural rights of a local public officer who believes that he or she is entitled to claim, from a local public agency employer, funding of retirement benefits that have been disallowed by a public retirement system, regardless of how those benefits may be characterized, including, but not limited to, lost compensation. In such cases, the bill establishes that the local public officer may pursue that claim only through the administrative process and appeal procedure available under the applicable public retirement system. Furthermore, the bill provides that the local public agency employer shall be responsible only for amounts awarded to the local public officer as provided by this act. For the purpose of this bill, a "local public officer" means a person, either elected or appointed, who exercised discretionary, executive authority in his or her employment, and who was convicted of a felony for conduct arising out of, or in the performance of, his or her official duties. This bill applies to any claim filed prior to January 1, 2014, and still pending on that date, and any claim commenced after that date. The bill recites legislative findings and declarations to the effect that this bill is needed because "local public agencies need protection from disgraced and avaricious public officials who, following conviction for crimes arising out of the SB 39 Page 3 performance of their official duties, continue to abuse the public trust by asserting a claim that their former employers owe them the value of pension benefits that the public retirement systems charged with administration of those benefits have rightfully disallowed." Analysis Prepared by : Anthony Lew / JUD. / (916) 319-2334 FN: 0002594