BILL NUMBER: AB 609	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 22, 2010
	AMENDED IN SENATE  JULY 1, 2009
	AMENDED IN ASSEMBLY  JUNE 2, 2009
	AMENDED IN ASSEMBLY  APRIL 30, 2009
	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Conway

                        FEBRUARY 25, 2009

   An act to amend Sections 31580.2 and 31580.3 of the Government
Code, relating to county employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 609, as amended, Conway. County employees retirement:
administrative costs.
   The County Employees Retirement Law of 1937 requires a board of
retirement, or a board of retirement and the board of investment,
with appointed members to annually adopt a budget covering the entire
expense of administration of the retirement system and prohibits the
expense incurred in any year from exceeding 18/100 of 1% of the
total assets of the retirement system.
   This bill would instead prohibit expenses incurred in any year
from exceeding  18/100   25/100  of 1% of
the  approved   accrued  actuarial
liability of the retirement system. The bill would also make a
conforming change regarding maximum expense in any year the
expenditures include certain computer expenses.
   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 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 or
31522.5, or both, 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. Except as described in Section 31580.3, the
expense incurred in any year may not exceed  eighteen
  twenty-five  hundredths of 1 percent of the
 approved   accrued  actuarial liability of
the retirement system. 
   (b)  Expenditures for legal services or costs of litigation shall
not be considered a cost of administration of the retirement system
for purposes of this section. 
  SEC. 2.  Section 31580.3 of the Government Code is amended to read:

   31580.3.  (a) If during any year the expense of administration of
the retirement system includes expenditures for software, hardware,
and computer technology consulting services in support of that
software or hardware, the expense incurred may not exceed the greater
of the following:
   (1) The sum of  eighteen   twenty-five 
hundredths of 1 percent of the  approved  
accrued  actuarial liability of the retirement system plus one
million dollars ($1,000,000).
   (2) Twenty-three hundredths of 1 percent of the  approved
  accrued  actuarial liability of the retirement
system.
   (b) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.