BILL NUMBER: AB 264 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 10, 2003
INTRODUCED BY Assembly Member Mullin
(Coauthor: Senator Speier)
FEBRUARY 4, 2003
An act to amend Sections 31496.3 and 31625.2 of, and to
add Section 31497.1 to, the Government Code, relating to county
employees' retirement. An act to add and repeal
Section 17462.5 of the Education Code, relating to public schools.
LEGISLATIVE COUNSEL'S DIGEST
AB 264, as amended, Mullin. County employees'
retirement: San Mateo County Surplus school property:
use of proceeds .
Existing law requires that the funds from the sale of surplus
school real property be used for capital outlay or for costs of
maintenance of prescribed school district property. Existing law
permits a school district to deposit proceeds from a lease of school
district property with an option to purchase in its general fund for
use for any general fund purpose if approved by the State Allocation
Board if certain conditions are met.
This bill would, notwithstanding contrary provisions of law,
authorize a school district to deposit up to 25% of the proceeds of
the sale of surplus school real property into the school district
general fund for use for any purpose of the school district if
prescribed conditions are met, and would preclude such a transfer
from disqualifying the school district for prescribed state
facilities funding. The bill would define "sale," for this purpose,
to include a lease of surplus property with an option to purchase.
(1) The County Employees Retirement Law of 1937 establishes an
alternative retirement plan, known as Retirement Plan 3, for
employees of the retirement system in San Mateo County and provides
that a member of that plan, whose employment is terminated and who is
subsequently reemployed, may receive service credit for that prior
service only if he or she is reemployed within 2 years.
Under this bill, a member of that plan would receive service
credit for that prior service irrespective of the time of
reemployment.
(2) Under the County Employees Retirement Law of 1937, members of
the retirement system in San Bernardino County with 30 years' of
continuous service are exempt from salary deductions for
contributions to the retirement system.
This bill would also exempt members of the retirement system in
San Mateo County with 30 years' of continuous service from those
deductions.
Vote: majority. Appropriation: no. Fiscal committee:
no yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 31496.3 of the Government Code
SECTION 1. Section 17462.5 is added to the Education Code, to
read:
17462.5. (a) Notwithstanding any other provision of law to the
contrary, including, but not limited to, Section 17462, a school
district may deposit an amount not to exceed 25 percent of the
proceeds of the sale of surplus school real property, excluding any
interest earned thereon, into the school district general fund and
may use those proceeds for any purpose of the school district if all
of the following criteria are met:
(1) The school district has an enrollment of fewer than 11,000
pupils.
(2) The school district has experienced declining enrollment for
each school year from 1999-2000 to 2002-03, inclusive.
(3) The proceeds are from the sale of school district real
property that occurred between July 1, 1997, and June 30, 2000,
inclusive.
(b) Deposit of proceeds in the school district general fund
pursuant to this section does not disqualify the school district from
eligibility for state funding under the Leroy F. Greene School
Facilities Act of 1998 (Chapter 12.5 (commencing with Section
17070.10)) or under Section 17584.
(c) For the purposes of this section "sale" includes, but is not
limited to, a lease of surplus property with an option to purchase.
(d) This section shall remain in effect only until January 1,
2005, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2005, deletes or extends that
date. is amended to read:
31496.3. Unless the context otherwise requires, the definitions
contained in this section govern the construction of this article.
(a) "Board" means the board of retirement.
(b) "Employer" means the county or district or agency whose
employees are members of the retirement system of the county.
(c) "Federal system" means the Old Age and Survivors Insurance
provisions of the Social Security Act.
(d) "Final compensation" means the average annual compensation
earnable by a general member during any three years, whether or not
consecutive, elected by the member at or before the time an
application for retirement is filed or, if no election is made,
during the three years in which the member or former member last
earned compensation preceding retirement. If a member or former
member has less than three years of service, final compensation shall
be determined by dividing total compensation by the number of months
of service credited to the member or former member and multiplying
by 12. Final compensation does not include any disability benefits
received by the member or former member under a disability plan
provided by the employer.
(e) "Member" or "general member" means an employee hired on a
permanent basis, as defined by the employer, except an employee
eligible for safety membership.
(f) "Primary insurance amount" means the monthly retirement
benefit payable under the federal system at the age of 65 years.
(g) "Service" means the period of uninterrupted employment of a
member and the time in which a member or former member (1) is totally
disabled, and (2) is receiving disability benefits or is eligible to
receive disability benefits either during or after any elimination
or qualifying period, under a disability plan provided by the
employer.
Except as otherwise herein provided, a member may not be credited
with service for any period of time in which the member is absent
from work without pay.
Unless otherwise provided, service does not include military
service or public service other than service with the employer.
SEC. 2. Section 31497.1 is added to the Government Code, to read:
31497.1. A member who has elected or transferred to the plan
created by this article and whose employment is terminated for any
reason and who is later reemployed shall receive credit at retirement
for his or her service rendered prior to the first termination of
employment.
SEC. 3. Section 31625.2 of the Government Code is amended to read:
31625.2. Notwithstanding any other provisions of this chapter:
(a) Contributions may not be deducted from the salary of any
member having credit for 30 years' service if the member was a member
on March 7, 1973, and remained in membership continuously until
credited with 30 years' service.
(b) Contributions may not be deducted from the salary of any
member having credit for 30 years' of continuous service in the
retirement association of a county of the seventh class as
established by Sections 28020 and 28028 or a county of the 10th class
as established by Sections 28020 and 28031.