BILL NUMBER: AB 609	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 19, 2010
	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 
 Section 31580.2 of, and to repeal Section 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.  Existing law provides
that expenditures for legal services or costs of litigation are not
considered to be a cost of administration of the retirement system.
Existing law prohibits expenses incurred in any year for expenditures
for computer software and hardware and computer technology
consulting services, in support of these products, from exceeding the
greater of the sum of     18/100   of 1%
of the total assets of the retirement syst   em plus
$1,000,000 or   23/100   of 1% of the total assets
of the retirement system. 
   This bill would  instead  prohibit expenses
for the costs of administration of the retirement system 
incurred in any year from exceeding  25/100  
the greater of   21/100  of 1% of the accrued actuarial
liability of the retirement system  or $2,000,000, as adjusted
annually by a specified annual cost-of-living adjustment. This bill
would eliminate the exclusion of expenditures for legal services and
costs of litigation from the costs of administration of the
retirement system and would, instead, exclude from those costs of
administration expenditures for computer software and hardware and
computer technology consulting services in support of these products
 .  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)     (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,
  31522.1, 31522.5, or 31522.7,  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  
The  expense incurred in any year may not exceed 
twenty-five   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  legal services or costs of
litigation   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. 
  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 twenty-five hundredths of 1 percent of the accrued
actuarial liability of the retirement system plus one million dollars
($1,000,000).
   (2) Twenty-three hundredths of 1 percent of the 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. 
   SEC. 2.    Section 31580.3 of the  
Government Code   is repealed.  
   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 hundredths of 1 percent of the total
assets of the retirement system plus one million dollars
($1,000,000).
   (2) Twenty-three hundredths of 1 percent of the total assets 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.