BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON
          PUBLIC EMPLOYMENT AND RETIREMENT
                               Dr. Richard Pan, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 663          Hearing Date:     6/08/15
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          |Author:    |Irwin                                                |
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          |Version:   |2/24/15    As introduced                             |
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          |Urgency:   |No                     |Fiscal:    |No               |
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          |Consultant:|Glenn Miles                                          |
          |           |                                                     |
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          Subject:  County retirement boards:  alternate members

            SOURCE:  Ventura County Board of Supervisors

            ASSEMBLY VOTES:
          
          
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          |Assembly Floor:                 |78 - 0                          |
          |--------------------------------+--------------------------------|
          |Assembly Public Employees,      |7 - 0                           |
          |Retirement/Soc Sec Committee:   |                                |
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           DIGEST:  This bill authorizes the Ventura County Board of  
          Supervisors to appoint an alternate member to the county board  
          of retirement who would be permitted to vote only when specified  
          retirement board members are absent.

          ANALYSIS:
          
          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.








          AB 663 (Irwin)                                      Page 2 of ?
          
          
          2)Sets forth the composition of the nine-member board of  
            retirement with one alternate member 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 (i.e.,  
               individuals who are registered to vote in the applicable  
               county) not in any way connected with county government,  
               except one may be a county supervisor, and who are  
               appointed by the board of supervisors (4th, 5th, 6th, and  
               9th members);

             d)   One safety member elected by the safety members of the  
               system (7th member);

             e)   One retired member elected by the retired members of the  
               system (8th member), and;

             f)   One alternate member (the alternate 7th member) chosen  
               from the system's safety members, as specified, to  
               represent the 2nd, 3rd, 7th, or 8th members if one of those  
               members is absent.

          3)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.  However,  
            if the regular retirement board member appointed by the  
            supervisors is one of the supervisors then the alternate for  
            that member may not serve as an alternate for that supervisor  
            member unless service by an alternate member for an appointed  
            supervisor member is approved by the majority of the electors  
            in the county.

          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, and 9th retirement board member.

          2)Specifies that the term of office for the alternate member  
            will run concurrently with the term of office of the 9th  








          AB 663 (Irwin)                                      Page 3 of ?
          
          
            member.

          3)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.

          4)Specifies that if there is a vacancy with respect to the 4th,  
            5th, 6th, or 9th member, the alternate member will fill the  
            vacancy until a successor is appointed.

          5)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.


          Background

          Existing law governing '37 Act retirement systems authorizes an  
          alternative retirement board member (the alternative 7th member)  
          to serve in lieu of absent retirement board members who are  
          elected from the system's membership groups (2nd, 3rd, 7th, and  
          8th member).

          Except for Contra Costa County, there is no authorization for a  
          similar alternative retirement board member to serve in lieu of  
          retirement board members appointed by the county board of  
          supervisors (4th, 5th, 6th, or 9th member).

          Thus, when a board of supervisor appointed 4th, 5th, 6th, or 9th  
          member must be absent from a retirement board meeting, important  
          actions that can have significant impact on county finances are  
          delayed or continued until future meetings or proceed without  
          the full representation of the board of supervisors appointed  
          members.

          Prior/Related Legislation
          
          AB 719 (Canciamilla, Chapter 64, Statutes of 2005) authorized  
          the Contra Costa County Board of Supervisors, by resolution  
          adopted by majority vote, to appoint an alternate member for the  
          fourth, fifth, sixth, and ninth members.

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             No           Local:          No









          AB 663 (Irwin)                                      Page 4 of ?
          
          

          SUPPORT:  

          Ventura County Board of Supervisors (source)

          OPPOSITION:

          None received

          ARGUMENTS IN SUPPORT:  According to the sponsor, "the ability to  
          provide an alternate when needed will enable the Retirement  
          Board to take actions in a timely manner and with the proper  
          balance of representation."