BILL ANALYSIS Ó AB 663 Page 1 Date of Hearing: May 6, 2015 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT, AND SOCIAL SECURITY Rob Bonta, Chair AB 663 (Irwin) - As Introduced February 24, 2015 SUBJECT: County retirement boards: alternate members SUMMARY: Authorizes the board of supervisors in Ventura County to make specified alternate appointments to their county board of retirement. Specifically, this bill: 1)Permits the Ventura County Board of Supervisors, by resolution adopted by majority vote, to appoint one alternate member for the 4th, 5th, 6th, or 9th retirement board member. Specifies that the term of office for the alternate member will run concurrently with the term of office of the 9th member. 2)Provides that the alternate board member can only vote when the 4th, 5th, 6th, or 9th members is absent from meetings of the county retirement board. 3)Specifies that if there is a vacancy with respect to the 4th, AB 663 Page 2 5th, 6th, or 9th member, the alternate member will fill the vacancy until a successor is appointed. 4)Requires that the alternate member have the same compensation for attending a meeting whether or not the 4th, 5th, 6th, or 9th member attends the meeting. EXISTING LAW: 1)Establishes the County Employees' Retirement Law of 1937 ('37 Act), which provides for retirement systems for county and district employees in those counties adopting its provisions. Currently 20 counties operate retirement systems under the '37 Act. 2)Sets forth the composition of the nine-member board of retirement for any '37 Act county retirement system as follows: a) The county treasurer; b) Two general (non-safety) members elected by the general members of the system (2nd and 3rd members); c) Four members who are qualified electors not in any way connected with county government, except one may be a county supervisor, appointed by the board of supervisors (4th, 5th, 6th, and 9th members); AB 663 Page 3 d) One safety member elected by the safety members of the system (7th member); and, e) One retired member elected by the retired members of the system (8th member). 3)Provides for alternates for all retirement board members except those appointed by the board of supervisors (4th, 5th, 6th, and 9th members). 4)Permits the Contra Costa Board of Supervisors, by resolution adopted by majority vote, to appoint one alternate member for the 4th, 5th, 6th, or 9th retirement board member. FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the Legislative Counsel. COMMENTS: According to the author, "Actions of the Retirement Board can have a significant impact on County finances and operations. Existing '37 Act law provides alternates for all Retirement Board members except those appointed by the Board of Supervisors. There are occasions when a County appointee is unable to attend, and it is important that the County have full representation at all times on the Retirement Board." AB 2628 (Mansoor) of 2014 would have allowed the Orange County Board of Supervisors to appoint alternate members to the county board of retirement. That bill failed passage in this Committee due to opposition from numerous Orange County employee AB 663 Page 4 organizations. AB 719 (Canciamilla), Chapter 64, Statutes of 2005, authorized the board of supervisors in Contra Costa County to make specified alternate appointments to their county board of retirement. REGISTERED SUPPORT / OPPOSITION: Support Ventura County Board of Supervisors (Sponsor) Opposition None on file Analysis Prepared by:Karon Green / P.E.,R., & S.S. / (916) 319-3957 AB 663 Page 5