BILL NUMBER: AB 1406	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 21, 2009
	AMENDED IN ASSEMBLY  MAY 7, 2009
	AMENDED IN ASSEMBLY  APRIL 2, 2009

INTRODUCED BY   Assembly Member Emmerson

                        FEBRUARY 27, 2009

   An act  to amend Section 31529.9 of, and  to add Section
31522.7 to  , the Government Code, relating to county
employees' retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1406, as amended, Emmerson. County board of retirement: San
Bernardino County.
   The County Employees Retirement Law of 1937 authorizes the board
of retirement of San Bernardino County  ,  upon resolution
by the board of retirement, to appoint specified management,
investment, and legal personnel. These appointees are not classified
as county employees and are therefore not subject to the civil
service system, but are employees of that retirement system, subject
to the terms of employment determined by the board of retirement.
Existing law provides that the compensation of certain of these
personnel is an expense of administration of the retirement system,
while the compensation of other of these personnel is considered as a
reduction in earnings from the system's investments or a charge
against the assets of the system.
   This bill would enact similar provisions  ,  applicable
only to the board of retirement in San Bernardino County, upon
adoption by resolution, to appoint specified personnel outside the
civil service system  to apply to   , including
 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.
 The bill would make a conforming change. 
   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 31522.7 is added to the Government Code, 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 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  a  
the  retirement system elects to appoint personnel pursuant to
this section.
   (f) This section shall apply only 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.
   SEC. 2.    Section 31529.9 of the  
Government Code   is amended to read: 
   31529.9.  (a) In addition to the powers granted by Sections
31522.5, 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,  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, 14th class, 15th class, or the 16th class as described by
Sections 28020, 28023, 28028, 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.