BILL NUMBER: AB 1853	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 29, 2016

INTRODUCED BY   Assembly Member Cooper

                        FEBRUARY 10, 2016

   An act to amend Sections  31459.1,  31468, 31522.5,
31522.7, 31522.9, 31528, 31529.9, 31535,  31557.3,  and
31580.2 of, and to add Section 31522.75 to, the Government Code,
relating to county employees' retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1853, as amended, Cooper. County employees' retirement:
districts: retirement system governance.
   The County Employees Retirement Law of 1937 (CERL) authorizes
counties to establish retirement systems pursuant to its provisions
in order to provide pension benefits to their employees. CERL defines
a district for these purposes, includes specified county retirement
systems within that definition, and permits a district to participate
in CERL retirement systems. CERL generally provides that the
personnel of a county retirement system are county employees, subject
to county civil service provisions and salary ordinances, but also
authorizes the boards of retirement in specified counties to adopt
provisions providing for the appointment of personnel who are to be
employees of the retirement system, as well as other administrative
provisions that reflect the independence of the retirement system
from the county.
   The California Public Employees' Pension Reform Act of 2013
(PEPRA) requires a public retirement system, as defined, to modify
its plan or plans to comply with the act and establishes new
retirement formulas that a public employer offering a defined benefit
pension plan for employees first hired on or after January 1, 2013,
may not exceed. PEPRA authorizes individuals who were employed by any
public employer before January 1, 2013, and who became employed by a
subsequent public employer for the first time on or after January 1,
2013, to be subject to the retirement plan that would have been
available to employees of the subsequent employer who were first
employed by the subsequent employer on or before December 31, 2012,
if the individual was subject to reciprocity, as specified.
   This bill would authorize the retirement board of any retirement
system operating under CERL to elect, by resolution, to be a district
under the law. The bill would authorize a board to adopt, by
resolution, specified administrative provisions that would classify
various personnel of the retirement system as employees of the
retirement system and not employees of the county. In regard to
county employees who would become retirement system employees, the
bill would prescribe requirements in connection with their
compensation and employment benefits and status. These provisions
would include maintaining their county retirement benefits that would
otherwise be reduced under PEPRA, keeping their employment
classifications, and affording employees the opportunity to continue
participation in group health and dental plans, among other plans and
programs. The bill would also prescribe requirements regarding labor
negotiations and the continuity of labor agreements. The bill would
grant a retirement system electing these provisions the authority to
adopt the regulations and enter into the agreements necessary to
implement them. The bill would authorize retirement systems currently
operating under alternative administrative structures also to adopt
these provisions.  The bill would also extend this authorization
and the associated provisions to a board of investment, as specified.
 The bill would make various technical and conforming changes.

   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

   SECTION 1.    Section 31459.1 of the  
Government Code   is amended to read: 
   31459.1.  (a) In a county in which a board of investments has been
established pursuant to Section 31520.2:
   (1) As used in Sections 31453, 31453.5, 31454, 31454.1, 31454.5,
31472, 31588.1, 31589.1, 31591, 31592.3, 31594, 31595.1, 31595.9,
31596, 31596.1, 31601.1, 31607, 31610, 31611, 31612, 31613, 31616,
31618, 31621.11, 31625, 31639.26, 31784, and 31872, "board" means
board of investments.
   (2) As used in the first paragraph of Section 31592.2 and the
first paragraph and subdivision (c) of the second paragraph of
Section 31595, "board" means a board of investments.
   (3) Sections 31521, 31522, 31522.1, 31522.2, 31523, 31524, 31525,
31528, 31529, 31529.5, 31535.1, 31580.2, 31614, 31680, and 31680.1,
apply to both the board of retirement and board of investments, and
"board" means either or both the board of retirement and board of
investments.
   (4) Subdivision (a) of Section 31526 and subdivisions (a) and (b)
of the second paragraph of Section 31595 apply to both the board of
retirement and board of investments, and "board" means either or both
the board of retirement and board of investments. 
   (5) Paragraph (5) of subdivision (l) of Section 31468 and Sections
31522.5, 31522.7, 31522.75, and 31522.9 apply to both the board of
retirement and board of investments. For these purposes, "board"
means both the board of retirement and board of investments. "Board
of retirement" also means both the board of retirement and board of
investments. 
   (b) In Article 17 (commencing with Section 31880) of this chapter,
"board" means the Board of Administration of the Public Employees'
Retirement System.
   (c) In all other cases, "board" means the board of retirement.
   (d) This section shall apply only in a county of the first class,
as defined in Section 28020, as amended by Chapter 1204 of the
Statutes of 1971, and Section 28022, as amended by Chapter 43 of the
Statutes of 1961.
   SECTION 1.   SEC. 2.   Section 31468 of
the Government Code is amended to read:
   31468.  (a) "District" means a district, formed under the laws of
the state, located wholly or partially within the county other than a
school district.
   (b) "District" also includes any institution operated by two or
more counties, in one of which there has been adopted an ordinance
placing this chapter in operation.
   (c) "District" also includes any organization or association
authorized by Chapter 26 of the Statutes of 1935, as amended by
Chapter 30 of the Statutes of 1941, or by Section 50024, which
organization or association is maintained and supported entirely from
funds derived from counties, and the board of any retirement system
is authorized to receive the officers and employees of that
organization or association into the retirement system managed by the
board.
   (d) "District" also includes, but is not limited to, any sanitary
district formed under Part 1 (commencing with Section 6400) of
Division 6 of the Health and Safety Code.
   (e) "District" also includes any city, public authority, public
agency, and any other political subdivision or public corporation
formed or created under the constitution or laws of this state and
located or having jurisdiction wholly or partially within the county.

   (f) "District" also includes any nonprofit corporation or
association conducting an agricultural fair for the county pursuant
to a contract between the corporation or association and the board of
supervisors under the authority of Section 25905.
   (g) "District" also includes the Regents of the University of
California, but with respect only to employees who were employees of
a county in a county hospital, who became university employees
pursuant to an agreement for transfer to the regents of a county
hospital or of the obligation to provide professional medical
services at a county hospital, and who under that agreement had the
right and did elect to continue membership in the county's retirement
system established under this chapter.
   (h) "District" also includes the South Coast Air Quality
Management District, a new public agency created on February 1, 1977,
pursuant to Chapter 5.5 (commencing with Section 40400) of Part 3 of
Division 26 of the Health and Safety Code.
   (1) Employees of the South Coast Air Quality Management District
shall be deemed to be employees of a new public agency occupying new
positions on February 1, 1977. On that date, those new positions are
deemed not to have been covered by any retirement system.
   (2) No retirement system coverage may be effected for an employee
of the South Coast Air Quality Management District who commenced
employment with the district during the period commencing on February
1, 1977, and ending on December 31, 1978, unless and until the
employee shall have elected whether to become a member of the
retirement association established in accordance with this chapter
for employees of Los Angeles County or the retirement association
established in accordance with this chapter for employees of San
Bernardino County. The election shall occur before January 1, 1980.
Any employee who fails to make the election provided for herein shall
be deemed to have elected to become a member of the retirement
association established in accordance with this chapter for the
County of Los Angeles.
   (3) The South Coast Air Quality Management District shall make
application to the retirement associations established in accordance
with this chapter for employees of Los Angeles County and San
Bernardino County for coverage of employees of the South Coast Air
Quality Management District.
   (4) An employee of the South Coast Air Quality Management District
who commenced employment with the district during the period
commencing on February 1, 1977, and ending on December 31, 1978, and
who has not terminated employment before January 1, 1980, shall be
covered by the retirement association elected by the employee
pursuant to paragraph (2). That coverage shall be effected no later
than the first day of the first month following the date of the
election provided for in paragraph (2).
   (5) Each electing employee shall receive credit for all service
with the South Coast Air Quality Management District. However, the
elected retirement association may require, as a prerequisite to
granting that credit, the payment of an appropriate sum of money or
the transfer of funds from another retirement association in an
amount determined by an enrolled actuary and approved by the elected
retirement association's board. The amount to be paid shall include
all administrative and actuarial costs of making that determination.
The amount to be paid shall be shared by the South Coast Air Quality
Management District and the employee. The share to be paid by the
employee shall be determined by good faith bargaining between the
district and the recognized employee organization, but in no event
shall the employee be required to contribute more than 25 percent of
the total amount required to be paid. The elected retirement
association's board may not grant that credit for that prior service
unless the request for that credit is made to, and the required
payment deposited with, the elected retirement association's board no
earlier than January 1, 1980, and no later than June 30, 1980. The
foregoing shall have no effect on any employee's rights to reciprocal
benefits under Article 15 (commencing with Section 31830).
   (6) An employee of the South Coast Air Quality Management District
who commenced employment with the district after December 31, 1978,
shall be covered by the retirement association established in
accordance with this chapter for employees of San Bernardino County.
That coverage shall be effected as of the first day of the first
month following the employee's commencement date.
   (7) Notwithstanding paragraphs (2) and (4) above, employees of the
South Coast Air Quality Management District who were employed
between February 1, 1977, and December 31, 1978, and who terminate
their employment between February 1, 1977, and January 1, 1980, shall
be deemed to be members of the retirement association established in
accordance with this chapter for the employees of Los Angeles County
commencing on the date of their employment with the South Coast Air
Quality Management District.
   (i) "District" also includes any nonprofit corporation that
operates one or more museums within a county of the 15th class, as
described by Sections 28020 and 28036 of the Government Code, as
amended by Chapter 1204 of the Statutes of 1971, pursuant to a
contract between the corporation and the board of supervisors of the
county, and that has entered into an agreement with the board and the
county setting forth the terms and conditions of the corporation's
inclusion in the county's retirement system.
   (j) "District" also includes any economic development association
funded in whole or in part by a county of the 15th class, as
described by Sections 28020 and 28036 of the Government Code, as
amended by Chapter 1204 of the Statutes of 1971, and that has entered
into an agreement with the board of supervisors and the county
setting forth the terms and conditions of the association's inclusion
in the county's retirement system.
   (k) "District" also includes any special commission established in
the Counties of Tulare and San Joaquin as described by Section
14087.31 of the Welfare and Institutions Code, pursuant to a contract
between the special commission and the county setting forth the
terms and conditions of the special commission's inclusion in the
county's retirement system with the approval of the board of
supervisors and the board of retirement.
   (  l  ) (1) "District" also includes the retirement
system established under this chapter in Orange County.
   (2) "District" also includes the retirement system established
under this chapter in San Bernardino County at such time as the board
of retirement, by resolution, makes this section applicable in that
county.
   (3) "District" also includes the retirement system established
under this chapter in Contra Costa County.
   (4) "District" also includes the retirement system established
under this chapter in Ventura County.
   (5) "District" also includes a retirement system established under
this chapter at the time that the board of retirement, by
resolution, makes this  section   subdivision
 applicable to the retirement system in that county.
   (m) "District" also includes the Kern County Hospital Authority, a
public agency that is a local unit of government established
pursuant to Chapter 5.5 (commencing with Section 101852) of Part 4 of
Division 101 of the Health and Safety Code.
   SEC. 2.   SEC. 3.   Section 31522.5 of
the Government Code is amended to read:
   31522.5.  (a) In a county in which the board of retirement has
appointed personnel pursuant to Section 31522.1, the board of
retirement may appoint an administrator, an assistant administrator,
a chief investment officer, senior management employees next in line
of authority to the chief investment officer, subordinate
administrators, senior management employees next in line of authority
to subordinate administrators, and legal counsel.
   (b) Notwithstanding any other provision of law, the personnel
appointed pursuant to this section may not be county employees but
shall be employees of the retirement system, subject to terms and
conditions of employment established by the board of retirement.
Except as specifically provided in this subdivision, all other
personnel shall be county employees for purposes of the county's
employee relations resolution, or equivalent local rules, and the
terms and conditions of employment established by the board of
supervisors for county employees, including those set forth in a
memorandum of understanding.
   (c) Except as otherwise provided by Sections 31529.9 and 31596.1,
the compensation of personnel appointed pursuant to this section
shall be an expense of administration of the retirement system,
pursuant to Section 31580.2.
   (d) The board of retirement and board of supervisors may enter
into any agreements as may be necessary and appropriate to carry out
the provisions of this section.
   (e) Section 31522.2 is not applicable to any retirement system
that elects to appoint personnel pursuant to this section.
   (f) This section shall apply in Orange County.
   (g) This section shall apply to the retirement system established
under this chapter in San Bernardino County at such time as the board
of retirement, by resolution, makes this section applicable in that
county.
   (h) This section shall apply to a retirement system established
under this chapter at the time that the board of retirement, by
resolution, makes this section applicable in that county.
   SEC. 3.   SEC. 4.   Section 31522.7 of
the Government Code is amended to read:
   31522.7.  (a) In addition to the authority provided pursuant to
Section 31522.5, the board of retirement in the County of San
Bernardino, or in any other county in which this section has been
made applicable, may appoint an administrator, an assistant
administrator, a chief investment officer, senior management
employees next in line of authority to the chief investment officer,
subordinate administrators, senior management employees next in line
of authority to subordinate administrators, supervisors and employees
with specialized training and knowledge in pension benefit member
services, investment reporting compliance, investment accounting,
pension benefit tax reporting, pension benefit financial accounting,
pension law, and legal counsel.
   (b) Notwithstanding any other provision of law, the personnel
appointed pursuant to this section may not be county employees but
shall be employees of the retirement system, subject to terms and
conditions of employment established by the board of retirement.
Except as specifically provided in this subdivision, all other
personnel shall be county employees for purposes of the county's
employee relations resolution, or equivalent local rules, and the
terms and conditions of employment established by the board of
supervisors for county employees, including those set forth in a
memorandum of understanding.
   (c) Except as otherwise provided by Sections 31529.9 and 31596.1,
the compensation of personnel appointed pursuant to this section
shall be an expense of administration of the retirement system,
pursuant to Section 31580.2.
   (d) The board of retirement and board of supervisors may enter
into any agreements as may be necessary and appropriate to carry out
the provisions of this section.
   (e) Section 31522.2 is not applicable if the retirement system
elects to appoint personnel pursuant to this section.
   (f) This section shall apply to the retirement system established
under this chapter in San Bernardino County at such time as the board
of retirement, by resolution, makes this section applicable in that
county.
   (g) This section shall apply to a retirement system established
under this chapter at the time that the board of retirement, by
resolution, makes this section applicable in that county.
   SEC. 4.   SEC. 5.   Section 31522.75 is
added to the Government Code, immediately following Section 31522.7,
to read:
   31522.75.  (a) Any retirement system established under this
chapter, including a retirement system that, at the time of the
enactment of this section, is operating pursuant to Section 31522.5,
31522.7, or 31522.9, may elect to make this section,  paragraph
(5) of subdivision (l) of  Section 31468, and Section 31522.5,
31522.7, or 31522.9, applicable to the retirement system upon
adoption of a resolution by the board of retirement.
   (b) A board of retirement may elect to appoint personnel, or may
authorize the retirement administrator to appoint personnel, to
administer the system as provided in this section.
   (c) (1) Notwithstanding any other law, the personnel appointed
pursuant to this section and the sections referenced in subdivision
(a) shall not be county employees, but shall be employees of the
retirement system, subject to terms and conditions of employment
established by the board of retirement and the provisions of this
section.
   (2) A county employee to whom the California Public Employees'
Pension Reform Act of 2013 (Article  4, commencing 
 4 (commencing  with Section  7522  
7522)  of Chapter 21 of Division 7 of Title 1) did not apply
before becoming a retirement system employee shall maintain that
status as an employee of the retirement system.
   (3) For purposes of employment by a subsequent public employer, as
described in paragraph (1) of subdivision (c) of Section 7522.02,
the retirement system shall have the status of the county as a
subsequent employer.
   (4) With regard to an individual who was employed by the county
before January 1, 2013, and who becomes a retirement system employee
and then changes employment positions as described in paragraph (2)
of subdivision (c) of Section 7522.02, the retirement system shall
have the former obligations of the county to provide a defined
benefit plan that otherwise would have been available to the employee
had he or she remained a county employee.
   (d) Any employees who were previously appointed to retirement
system personnel positions pursuant to Section  31522.2 or
31522.3   31522.2, 31522.3, or 31522.4  shall cease
to be county employees and shall become retirement system employees
at their existing or equivalent classifications as of the date the
board of retirement makes this section applicable pursuant to
subdivision (a), subject to any subsequent revisions the retirement
board may make pursuant to regulations governing terms and conditions
of employment, and when applicable, the provisions of a subsequent
 memoranda   memorandum  of understanding
or bargaining agreement covering the employee.
   (e) Any employees who were previously appointed to retirement
system personnel positions pursuant to Section 31522.1 and are
subsequently appointed as retirement system employees pursuant to
subdivision (a) shall cease to be county employees and shall become
retirement system employees at their existing or equivalent
classifications as of the date the board of retirement makes this
section  applicable.   applicable, subject to
any subsequent revisions the retirement board may make pursuant to
regulations governing terms and conditions of employment and, when
applicable, the provisions of a subsequent memorandum of
understanding or bargaining agreement covering the employee. 
   (f) A retirement system that elects to make this section
applicable shall recognize as the exclusive representative of those
former county employees who become retirement system employees the
employee organization that represented those employees, if any, and
shall honor the provisions in any  memoranda  
memorandum  of understanding or bargaining agreement in effect
on the date the board of retirement makes this section applicable for
the duration of the  memoranda   memorandum
 of understanding or bargaining agreement.
   (g) The following shall apply to those persons who become
retirement system employees pursuant to this section:
   (1) Employment seniority of a retirement system employee,
including, but not limited to, an employee's continuous service date
used for purposes of retirement or other benefits, as calculated and
used under the county system in effect before the date this section
becomes applicable, shall be calculated and used in the same manner
by the retirement system at the time the county employee becomes a
retirement system employee, subject to any subsequent revisions the
retirement board may make pursuant to regulations governing terms and
conditions of employment, and when applicable, the provisions of a
subsequent  memoranda   memorandum  of
understanding or bargaining agreement covering the employee.
   (2) Retirement system employees shall have the same status they
had as probationary, permanent, or regular employees under the county
system in effect on the date this section becomes applicable,
subject to any subsequent revisions the retirement board may make
pursuant to regulations governing terms and conditions of employment,
and when applicable, the provisions of a subsequent 
memoranda   memorandum  of understanding or
bargaining agreement covering the employee.
   (3) Retirement system employees shall receive their same salary
rates, leaves of absence, leave accrual rates, including all related
compensation rules and provisions applicable to those salary rates,
leaves, and accrual rates as under the county system on the date this
section becomes applicable, subject to any subsequent revisions the
retirement board may make pursuant to regulations governing terms and
conditions of employment, and when applicable, the provisions of a
subsequent  memoranda   memorandum  of
understanding or bargaining agreement covering the employee.
   (4) (A) Retirement system employees shall be afforded the
opportunity to participate in county benefit plans and programs,
including, but not limited to, group health, dental and life
insurance, workers' compensation, and deferred compensation that
existed on the date this section becomes applicable, under the same
terms and conditions as those programs were available to county
employees. The retirement board shall contract with the county to
administer the county benefit plans and programs for retirement
system employees, under the same terms and conditions applicable to
county employees, and shall provide the employer cost for
participation in the programs unless and until the retirement board
chooses to provide different benefits or different benefit levels
through another provider.
   (B) The participation of retirement system employees in county
benefit plans or programs, and the county's administration of certain
compensation or benefits for retirement employees pursuant to this
section, shall not create or be construed to create, a meet and
confer obligation between the county and any employee organization
recognized to represent retirement system employees.
   (h) The board of retirement and the county may enter into any
agreements necessary and appropriate to carry out this section.
   (i) Sections 31522.1,  31522.2 and 31522.3  
31522.2, 32522.3, and 32522.4  shall no longer apply to a
retirement system that has made this section applicable.
   (j) Upon adoption of this section, the board of retirement may
make regulations consistent with this chapter, and the provisions of
Section 31525 that require approval of retirement board regulations
by the board of supervisors shall no longer apply.
   (k) The compensation of personnel appointed pursuant to this
section shall be an expense of administration of the retirement
system pursuant to Section 31580.2, except as provided in Section
31522.5, 31522.7, or 31522.9, as those sections may apply to a
retirement system that has adopted them.
   (l) This section shall not be construed as to modify any
authority, or to require any subsequent action by, a retirement
system that has made  paragraph (5) of subdivision (l) of 
Section 31468 and Section 31522.5, 31522.7, 31522.9, or 31522.10
applicable to the retirement system prior to the effective date of
this section.
   (m) Any retirement system that has elected to make either Section
31522.5, 31522.7, or 31522.9 applicable upon adoption of a subsequent
resolution by the board of retirement may make a different section
apply.
   SEC. 5.   SEC. 6.   Section 31522.9 of
the Government Code is amended to read:
   31522.9.  (a) The board of retirement of a county may appoint a
retirement administrator and other personnel as are required to
accomplish the necessary work of the board. The board may authorize
the administrator to make these appointments on its behalf.
Notwithstanding any other law, the personnel so appointed shall not
be county employees but shall become employees of the retirement
system, subject to terms and conditions of employment established by
the board of retirement, including those set forth in 
memoranda   a memorandum  of understanding executed
by the board of retirement and recognized employee organizations.
   (b) Sections 31522.1 and 31522.2 shall not apply to a retirement
system that appoints personnel pursuant to this section.
   (c) The retirement system that appoints personnel pursuant to this
section is a public agency for purposes of the Meyers-Milias-Brown
Act (Chapter 10 (commencing with Section 3500) of Division 4).
   (d) The compensation of personnel appointed pursuant to this
section shall be an expense of administration of the retirement
system, pursuant to Section 31580.2, except as provided in Sections
31529.5, 31529.9, and 31596.1.
   (e) The board of retirement and the board of supervisors may enter
into agreements as they determine are necessary and appropriate in
order to carry out the provisions of this section.
   (f) The retirement system, upon the effective date of this
section, shall retain, for a 90-day transition employment period,
nonprobationary employees who, upon the effective date of this
section, were covered by a county memorandum of understanding and
employed by the county at the retirement system's facilities, unless
just cause exists to terminate the employees or legitimate grounds
exist to lay off these employees. If during the 90-day period the
retirement system determines that a layoff of these employees is
necessary, the retirement system shall retain the employees by
seniority within job classification. The terms and conditions of
employment of the employees retained pursuant to this subdivision
shall be subject to the terms and conditions established by the
applicable  memoranda   memorandum  of
understanding executed by the board of retirement and the recognized
employee organizations. During the 90-day transition period,
probationary employees shall maintain only those rights they
initially acquired pursuant to their employment with the county.
   (g) Subject to the employees' rights under the Meyers-Milias-Brown
Act (Chapter 10 (commencing with Section 3500) of Division 4), the
retirement system, upon the effective date of this section, shall
recognize as the exclusive representative of the employees retained
pursuant to subdivision (f) the recognized employee organizations
that represented those employees when employed by the county. The
initial terms and conditions for those employees shall be as
previously established by the applicable  memoranda 
 memorandum 
    of understanding executed by the county and recognized employee
organizations.
   (h) This section shall apply in Contra Costa County.
   (i) This section shall apply to a retirement system established
under this chapter at the time that the board of retirement, by
resolution, makes this section applicable in that county.
   SEC. 6.   SEC. 7.   Section 31528 of the
Government Code is amended to read:
   31528.  (a) Unless permitted by this chapter, a member or employee
of the board shall not become an endorser, surety, or obligor on, or
have any personal interest, direct or indirect, in the making of any
investment for the board, or in the gains or profits accruing from
those investments. A member or employee of the board shall not
directly or indirectly, for himself or herself, or as an agent or
partner of others, borrow or use any of the funds or deposits of the
retirement system, except to make current and necessary payments
authorized by the board.
   (b) A member or employee of the board shall not, directly or
indirectly, by himself or herself, or as an agent or partner or
employee of others, sell or provide any investment product that would
be considered an asset of the fund, to any retirement system
established pursuant to this chapter.
   (c) An individual who held a position designated in Section
31522.3, 31522.4, 31522.5, or established pursuant to Section
31522.75, or was a member of the board or an administrator, shall
not, for a period of two years after leaving that position, for
compensation, act as agent or attorney for, or otherwise represent,
any other person except the county, by making any formal or informal
appearance before, or any oral or written communication to, the
retirement system, or any officer or employee thereof, if the
appearance or communication is made for the purpose of influencing
administrative or legislative action, or any action or proceeding
involving the issuance, amendment, awarding, or revocation of a
permit, license, grant, contract, or sale or purchase of goods or
property.
   SEC. 7.   SEC. 8.   Section 31529.9 of
the Government Code is amended to read:
   31529.9.  (a) In addition to the powers granted by Sections
31522.5, 31522.75, 31522.9, 31529, 31529.5, 31614, and 31732, the
board of retirement and the board of investment may contract with the
county counsel or with attorneys in private practice or employ staff
attorneys for legal services.
   (b) Notwithstanding Sections 31522.5, 31522.7, 31522.75, 31529.5,
and 31580, the board shall pay, from system assets, reasonable
compensation for the legal services.
   (c) This section applies to any county of the 2nd class, 7th
class, 9th class, 14th class, 15th class, or the 16th class as
described by Sections 28020, 28023, 28028, 28030, 28035, 28036, and
28037.
   (d) This section shall also apply to any other county if the board
of retirement, by resolution adopted by majority vote, makes this
section applicable in the county.
   SEC. 8.   SEC. 9.   Section 31535 of the
Government Code is amended to read:
   31535.  The board may issue subpoenas and subpoenas duces tecum,
and compensate persons subpoenaed. This power shall be exercised and
enforced in the same manner as the similar power granted the board of
supervisors in Article 9 (commencing with Section 25170) of Chapter
1, Part 2, Division 2; except that the power shall extend only to
matters within the retirement board's jurisdiction, and committees of
the board shall not have this power. Reasonable fees and expenses
may be provided for by board regulation for any or all of such
witnesses regardless of which party subpoenaed them.
   Subpoenas shall be signed by the chairman or secretary of the
retirement board, except that the board may by regulation provide for
express written delegation of its subpoena power to any referee it
appoints pursuant to this chapter or to any administrator appointed
pursuant to Section 31522.2, 31522.5, 31522.7, 31522.9, or 31522.10.
   Any member of the board, the referee, or any person otherwise
empowered to issue subpoenas may administer oaths to, or take
depositions from, witnesses before the board or referee.
   SEC. 10.    Section 31557.3 of the  
Government Code   is amended to read: 
   31557.3.  On the date a district, as defined in subdivision ( 
l  ) of Section 31468, is included in the retirement system,
any personnel appointed pursuant to Sections 31522.5, 31522.9,
31522.10,  31522.7, 31522.75,  and 31529.9 who had
previously been in county service shall continue to be members of the
system without interruption in service or loss of credit.
Thereafter, each person entering employment with the district shall
become a member of the system on the first day of the calendar month
following his or her entrance into service.
   SEC. 9.   SEC. 11.   Section 31580.2 of
the Government Code is amended to read:
   31580.2.  (a) In counties in which the board of retirement, or the
board of retirement and the board of investment, have appointed
personnel pursuant to Section 31522.1, 31522.5, 31522.7, 31522.75,
31522.9, or 31522.10, the respective board or boards shall annually
adopt a budget covering the entire expense of administration of the
retirement system which expense shall be charged against the earnings
of the retirement fund. The expense incurred in any year may not
exceed the greater of either of the following:
   (1) Twenty-one hundredths of 1 percent of the accrued actuarial
liability of the retirement system.
   (2) Two million dollars ($2,000,000), as adjusted annually by the
amount of the annual cost-of-living adjustment computed in accordance
with Article 16.5 (commencing with Section 31870).
   (b) Expenditures for computer software, computer hardware, and
computer technology consulting services in support of these computer
products shall not be considered a cost of administration of the
retirement system for purposes of this section.