BILL NUMBER: SB 24 AMENDED
BILL TEXT
AMENDED IN SENATE JANUARY 5, 2016
AMENDED IN SENATE JUNE 1, 2015
AMENDED IN SENATE APRIL 21, 2015
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator Hill
DECEMBER 1, 2014
An act to amend Sections 22950.5, 22951, 22956, 22958,
22961, 22962, 22963, 22970.2, 22971, 22974.7, 22980, 22980.1,
22980.2, 22980.3, and 22980.4 of, to amend, repeal, and add Sections
22952, 22960, 22972, and 22973 of, and to add Section 22950.1 to, the
Business and Professions Code, to amend Section 1947.5 of the Civil
Code, to amend Section 48901 of the Education Code, to amend Section
7597 of the Government Code, to amend Sections 1234, 1286, 1530.7,
1596.795, 104495, 113953.3, 113977, 114332.3, 114371, 118910, 118925,
118935, 118948, and 119405 of, and to add Section 119406 to, the
Health and Safety Code, to amend Section 6404.5 of the Labor Code, to
amend Sections 308 and 640 of the Penal Code, to amend Sections 561
and 99580 of the Public Utilities Code, and to amend Sections 12523
and 12523.5 of the Vehicle Code, relating to electronic cigarettes.
An act to amend Section 7522.02 of the Government
Code, relating to public employees' retirement.
LEGISLATIVE COUNSEL'S DIGEST
SB 24, as amended, Hill. Electronic cigarettes: licensing
and restrictions. California Public Employees
' Pension Reform Act of 2013: joint powers authority: employees.
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, among other provisions,
establishes new retirement formulas that may not be exceeded by a
public employer offering a defined benefit pension plan for employees
first hired on or after January 1, 2013. Existing law, the Joint
Exercise of Powers Act, generally authorizes 2 or more public
agencies, by agreement, to jointly exercise any common power, which
may include hiring employees and establishing retirement systems.
PEPRA authorizes a joint powers authority formed by the Cities of
Brea and Fullerton on or after January 1, 2013, to provide its
employees the defined benefit plan or formula that those employees
received from their respective employers prior to the exercise of a
common power, to which the employee is associated, by the joint
powers authority to any employee of specified cities who is not a new
member and subsequently is employed by the joint powers authority
within 180 days of the city providing for the exercise of a common
power, to which the employee was associated, by the joint powers
authority.
This bill would authorize a joint powers authority formed by the
Cities of Belmont, Foster City, and San Mateo on or after January 1,
2013, to provide employees who are not new members under PEPRA with
the defined benefit plan or formula that was received by those
employees from their respective employers on December 31, 2012, if
they are employed by the joint powers authority within 180 days of
the city providing for the exercise of a common power, to which the
employee was associated, by the joint powers authority. The bill
would prohibit the formation of a joint powers authority on or after
January 1, 2013, in a manner that would exempt a new employee or a
new member from the requirements of PEPRA.
This bill would make legislative findings and declarations as to
the necessity of a special statute for the Cities of Belmont, Foster
City, and San Mateo.
(1) Existing law, the Stop Tobacco Access to Kids Enforcement Act
(STAKE Act), establishes various requirements for distributors and
retailers relating to tobacco sales to persons under 18 years of age.
Existing law makes it a crime, punishable by a fine not to exceed
$500 or by imprisonment not exceeding 30 days in a county jail, to
fail to post a notice, at each point of purchase, stating that the
sale of tobacco products to persons under 18 years of age is illegal.
Existing law also permits enforcing agencies to assess various civil
penalties for violations of the STAKE Act.
This bill would extend the requirements of the STAKE Act to the
sale of electronic cigarettes to persons under 18 years of age. The
bill would also extend the requirements of the STAKE Act to the sale
of electronic cigarettes to persons under 21 years of age if SB 151
of the 2015-16 Regular Session is enacted and takes effect. The bill
would require the State Department of Public Health to enforce the
STAKE Act's provisions with regard to sales of electronic cigarettes
commencing July 1, 2016.
The bill would make the failure to post a notice, on and after
July 1, 2016, at each point of purchase, stating that the sale of
electronic cigarettes to persons under 18 years of age is illegal, a
crime. The bill would impose the same notice requirements as applied
to the sale of electronic cigarettes to persons under 21 years of age
if SB 151 of the 2015-16 Regular Session is enacted and takes
effect. By expanding the scope of existing crimes, the bill would
impose a state-mandated local program.
The bill would provide that the STAKE Act does not invalidate
existing local government ordinances regulating the distribution or
sale of cigarettes, electronic cigarettes, or tobacco products, or
prohibit local governments from adopting ordinances regulating the
distribution or sale of cigarettes, electronic cigarettes, or tobacco
products that are more restrictive than state law.
(2) Existing law prohibits a person from selling or otherwise
furnishing an electronic cigarette to minors, and makes a violation
punishable as an infraction.
The bill would prohibit a person from knowingly selling or
otherwise furnishing an electronic cigarette to persons under 18
years of age, and makes a violation punishable as a misdemeanor or
subject to a civil action, as specified. The bill would prohibit a
person from selling or otherwise furnishing an electronic cigarette
to persons under 21 years of age if SB 151 of the 2015-16 Regular
Session is enacted and takes effect. By expanding the scope of an
existing crime, the bill would impose a state-mandated local program.
The bill would require that cartridges for electronic cigarettes
and solutions for filling electronic cigarettes be in child-proof
packaging to protect children from opening and ingesting the
contents.
(3) Existing law, the Cigarette and Tobacco Products Licensing
Act, requires the State Board of Equalization to administer a
statewide program to license manufacturers, importers, distributors,
wholesalers, and retailers of cigarettes and tobacco products.
Existing law makes a violation of the Cigarette and Tobacco Products
Licensing Act a misdemeanor punishable by a fine not to exceed
$5,000, by imprisonment not exceeding one year in a county jail, or
by both the fine and imprisonment. Existing law also permits the
State Board of Equalization to assess various civil penalties for
violations of the Cigarette and Tobacco Products Licensing Act.
The bill would require the State Board of Equalization to
administer a statewide program to license retailers of electronic
cigarettes. The bill would require retailers to apply for a license
to sell electronic cigarettes and pay a specified license fee,
commencing July 1, 2016, and to display the license at each retail
location commencing September 30, 2016. The bill would require the
State Board of Equalization to use the revenue from this license fee
only for purposes of administering the licensure program for
retailers selling electronic cigarettes. The bill would also make
retailers of electronic cigarettes subject to various civil and
criminal penalties if they fail to comply with licensing
requirements.
(4) Existing law prohibits the smoking of cigarettes and other
tobacco products in a variety of specified areas. Under existing law,
a violation of some of these provisions is punishable as a crime.
This bill would prohibit the use of electronic cigarettes in a
variety of specified areas where the smoking of cigarettes and other
tobacco products is prohibited. The bill would also make
corresponding changes. The bill would make the use of electronic
cigarettes in some of these restricted locations a violation
punishable as a crime.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 7522.02 of the
Government Code is amended to read:
7522.02. (a) (1) Notwithstanding any other law, except as
provided in this article, on and after January 1, 2013, this article
shall apply to all state and local public retirement systems and to
their participating employers, including the Public Employees'
Retirement System, the State Teachers' Retirement System, the
Legislators' Retirement System, the Judges' Retirement System, the
Judges' Retirement System II, county and district retirement systems
created pursuant to the County Employees Retirement Law of 1937
(Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of
Title 3), independent public retirement systems, and to individual
retirement plans offered by public employers. However, this article
shall be subject to the Internal Revenue Code and Section 17 of
Article XVI of the California Constitution. The administration of the
requirements of this article shall comply with applicable provisions
of the Internal Revenue Code and the Revenue and Taxation Code.
(2) Notwithstanding paragraph (1), this article shall not apply to
the entities described in Section 9 of Article IX of, and Sections 4
and 5 of Article XI of, the California Constitution, except to the
extent that these entities continue to be participating employers in
any retirement system governed by state statute. Accordingly, any
retirement plan approved before January 1, 2013, by the voters of any
entity excluded from coverage by this section shall not be affected
by this article.
(3) (A) Notwithstanding paragraph (1), this article shall not
apply to a public employee whose interests are protected under
Section 5333(b) of Title 49 of the United States Code until a federal
district court rules that the United States Secretary of Labor, or
his or her designee, erred in determining that the application of
this article precludes certification under that section, or until
January 1, 2016, whichever is sooner.
(B) If a federal district court upholds the determination of the
United States Secretary of Labor, or his or her designee, that
application of this article precludes him or her from providing a
certification under Section 5333(b) of Title 49 of the United States
Code, this article shall not apply to a public employee specified in
subparagraph (A).
(4) Notwithstanding paragraph (1), this article shall not apply to
a multiemployer plan authorized by Section 302(c)(5) of the federal
Taft-Hartley Act (29 U.S.C. Sec. 186(c)(5)) if the public employer
began participation in that plan prior to January 1, 2013, and the
plan is regulated by the federal Employee Retirement Income Security
Act of 1974 (29 U.S.C. Sec. 1001 et seq.).
(b) The benefit plan required by this article shall apply to
public employees who are new members as defined in Section 7522.04.
(c) (1) 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, shall
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 concurrent membership for which creditable service
was performed in the previous six months or reciprocity established
under any of the following provisions:
(A) Article 5 (commencing with Section 20350) of Chapter 3 of Part
3 of Division 5 of Title 2.
(B) Chapter 3 (commencing with Section 31450) of Part 3 of
Division 4 of Title 3.
(C) Any agreement between public retirement systems to provide
reciprocity to members of the systems.
(D) Section 22115.2 of the Education Code.
(2) An individual who was employed before January 1, 2013, and
who, without a separation from employment, changed employment
positions and became subject to a different defined benefit plan in a
different public retirement system offered by his or her employer
shall be subject to that defined benefit plan as it would have been
available to employees who were first employed on or before December
31, 2012.
(d) If a public employer, before January 1, 2013, offers a defined
benefit pension plan that provides a defined benefit formula with a
lower benefit factor at normal retirement age and results in a lower
normal cost than the defined benefit formula required by this
article, that employer may continue to offer that defined benefit
formula instead of the defined benefit formula required by this
article, and shall not be subject to the requirements of Section
7522.10 for pensionable compensation subject to that formula.
However, if the employer adopts a new defined benefit formula on or
after January 1, 2013, that formula must conform to the requirements
of this article or must be determined and certified by the retirement
system's chief actuary and the retirement board to have no greater
risk and no greater cost to the employer than the defined benefit
formula required by this article and must be approved by the
Legislature. New members of the defined benefit plan may only
participate in the lower cost defined benefit formula that was in
place before January 1, 2013, or a defined benefit formula that
conforms to the requirements of this article or is approved by the
Legislature as provided in this subdivision.
(e) If a public employer, before January 1, 2013, offers a
retirement benefit plan that consists solely of a defined
contribution plan, that employer may continue to offer that plan
instead of the defined benefit pension plan required by this article.
However, if the employer adopts a new defined benefit pension plan
or defined benefit formula on or after January 1, 2013, that plan or
formula must conform to the requirements of this article or must be
determined and certified by the retirement system's chief actuary and
the system's board to have no greater risk and no greater cost to
the employer than the defined benefit formula required by this
article and must be approved by the Legislature. New members of the
employer's plan may only participate in the defined contribution plan
that was in place before January 1, 2013, or a defined contribution
plan or defined benefit formula that conforms to the requirements of
this article. This subdivision shall not be construed to prohibit an
employer from offering a defined contribution plan on or after
January 1, 2013, either with or without a defined benefit plan,
whether or not the employer offered a defined contribution plan prior
to that date.
(f) (1) If, on or after January 1, 2013, the Cities of Brea and
Fullerton form a joint powers authority pursuant to the provisions of
the Joint Exercise of Powers Act (Article 1 (commencing with Section
6500) of Chapter 5), that joint powers authority may provide
employees the defined benefit plan or formula that those employees
received from their respective employers prior to the exercise of a
common power, to which the employee is associated, by the joint
powers authority to any employee of the City of Brea, the City of
Fullerton, or a city described in paragraph (2) who is not a new
member and subsequently is employed by the joint powers authority
within 180 days of the city providing for the exercise of a common
power, to which the employee was associated, by the joint powers
authority.
(2) On or before January 1, 2017, a city in Orange County that is
contiguous to the City of Brea or the City of Fullerton may join the
joint powers authority described in paragraph (1) but not more than
three cities shall be permitted to join.
(3) The formation of a joint powers authority on or after January
1, 2013, shall not act in a manner as to exempt a new employee or a
new member, as defined by Section 7522.04, from the requirements of
this article. New members may only participate in a defined benefit
plan or formula that conforms to the requirements of this article.
(g) (1) If, on or after January 1, 2013, the Cities of Belmont,
Foster City, and San Mateo form a joint powers authority pursuant to
the provisions of the Joint Exercise of Powers Act (Article 1
(commencing with Section 6500) of Chapter 5), that joint powers
authority may provide employees the defined benefit plan or formula
that those employees received from their respective employers prior
to the exercise of a common power, to which the employee is
associated, by the joint powers authority to any employee of the City
of Belmont, the City of Foster City, or the City of San Mateo who is
not a new member and subsequently is employed by the joint powers
authority within 180 days of the city providing for the exercise of a
common power, to which the employee was associated, by the joint
powers authority.
(2) The formation of a joint powers authority on or after January
1, 2013, shall not act in a manner as to exempt a new employee or a
new member, as defined by Section 7522.04, from the requirements of
this article. New members may only participate in a defined benefit
plan or formula that conforms to the requirements of this article.
(g)
(h) The Judges' Retirement System and the Judges'
Retirement System II shall not be required to adopt the defined
benefit formula required by Section 7522.20 or 7522.25 or the
compensation limitations defined in Section 7522.10.
(h)
(i) This article shall not be construed to provide
membership in any public retirement system for an individual who
would not otherwise be eligible for membership under that system's
applicable rules or laws.
(i)
(j) On and after January 1, 2013, each public retirement
system shall modify its plan or plans to comply with the
requirements of this article and may adopt regulations or resolutions
for this purpose.
SEC. 2. The Legislature finds and declares that a
special law is necessary and that a general law cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution because of the need to clarity the benefit
eligibility rules under the California Public Employees' Pension
Reform Act of 2013 and maintain the integrity of that act and further
its purpose. All matter omitted in this version of the bill
appears in the bill as amended in the Senate, June 1, 2015. (JR11)