BILL NUMBER: SB 414	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 15, 2010

INTRODUCED BY   Senator Correa

                        FEBRUARY 26, 2009

   An act to amend Sections 31520.1, 31520.2, 31520.3, and 31520.5
of, to add Section 31523.1 to, and to repeal and add Section 31523
of, the Government Code, relating to county retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 414, as amended, Correa. County employee retirement: boards.
   (1) The County Employees Retirement Law of 1937 sets forth the
membership composition for boards of retirement, as specified. Under
that law, the retirement board in specified counties is comprised of
9 members and an alternate member who is the candidate for the 7th
member from the group of safety members, under specified provisions,
that is not represented by a board member who received the highest
number of votes for all candidates in that group, except as
specified. The alternate member has, unless prohibited by a
resolution or regulation of the board, the same rights, privileges,
responsibilities, and access to closed sessions as the 2nd, 3rd, 7th,
and 8th member and the right to hold positions on committees of the
board independent of the 2nd, 3rd, 7th, or 8th member and to
participate in the deliberations of the board or its committees, as
specified.
   This bill would delete the authority of the board to prohibit, by
a resolution or regulation of the board, a member from having the
same rights, privileges, responsibilities, and access to closed
sessions as the 2nd, 3rd, 7th, or 8th member, or from holding
positions on committees of the board, and participating in board or
committee deliberations, as described above. The bill would direct
the board of supervisors to hold an election to fill a vacancy for
the duration of the current term, except as specified,  at
the earliest possible date   within 90 days of the date
the vacancy occurs  if there is a vacancy in the 2nd, 3rd, 7th,
8th, or alternate 7th member positions. It would limit candidacy to
the 7th member and alternate member positions, as specified. The bill
would require the board of supervisors to forego an election in
specified circumstances when there is only one candidate. The bill
would also make various changes in terminology and delete obsolete
references.
   (2) Existing law prescribes the manner of appointing an alternate
retired member to the office of the 8th member of the board of
retirement. If there is a vacancy with respect to the 8th member,
existing law requires that the alternate retired member fill the
vacancy until a successor qualifies. Existing law authorizes the
alternate retired member to hold positions on committees of the board
independent of the 8th member and to participate in the
deliberations of the board or its committees regardless of whether
the 8th member is present, unless prohibited by resolution or
regulation of the board.
   This bill would instead require the board of retirement to, by
majority vote, appoint a replacement alternate member, in the same
manner as prescribed for the initial appointment of an alternate
retired member, who shall serve until the expiration of the current
term of the current member. The alternate retired member would have
the same rights, privileges, responsibilities, and access to closed
sessions as the 8th member. The bill would also delete the authority
of the board to prohibit the alternate retired member from holding
positions on committees of the board or participating in the
deliberations of the board or its committees, as described above. The
bill would also make changes in terminology.
   (3) Existing law permits the board of supervisors in a county in
which the assets of the retirement system exceed $800,000,000 to
establish a board of investments, to consist of 9 members of
specified classifications, which is responsible for the investments
of the retirement system. Existing law prescribes the terms for the
members of the board of investments.
   This bill would prescribe a process for filling vacancies in
specified positions on a board of investments, as described above.
The bill would require the board of investments to hold an election
to fill  those vacancies at the earliest possible date
  a vacancy within 90 days of the date the vacancy
occurs  , with a replacement member to serve for the duration of
the current term, unless the remaining portion is 6 months or less,
in which case concurrent elections would be authorized to be held for
the vacant term position and the succeeding term position. The bill
would require the board of supervisors to forego an election in
specified circumstances when there is only one candidate. The bill
would also delete obsolete references and establish the initial term
of a person appointed as a 9th member.
   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 31520.1 of the Government Code is amended to
read:
   31520.1.  (a) In any county subject to Articles 6.8 (commencing
with Section 31639) and 7.5 (commencing with Section 31662.2), the
board of retirement shall consist of nine members and one alternate,
one of whom shall be the county treasurer. The second and third
members of the board shall be members of the association, other than
safety members, elected by those members within 30 days after the
retirement system becomes operative in a manner determined by the
board of supervisors. The fourth, fifth, sixth, and ninth members
shall be qualified electors of the county who are not connected with
the county government in any capacity, except one may be a
supervisor, and shall be appointed by the board of supervisors. A
supervisor appointed as a member of the retirement board may not
serve beyond his or her term of office as supervisor. The seventh
member shall be a safety member of the association elected by the
safety members. The eighth member shall be a retired member elected
by the retired members of the association in a manner to be
determined by the board of supervisors. The alternate member shall be
that candidate, if any, for the seventh member from the group under
Section 31470.2 or 31470.4, or any other eligible safety member in a
county if there is no eligible candidate from the groups under
Sections 31470.2 and 31470.4, which is not represented by a board
member who received the highest number of votes of all candidates in
that group, and shall be referred to as the alternate seventh member.
If there is no eligible candidate there may not be an alternate
seventh member. The first person chosen as the second and fourth
members shall serve for a term of two years beginning with the date
the system becomes operative, the third and fifth members shall serve
for a term of three years beginning with that date, and the sixth,
seventh and alternate seventh members shall serve for a term of two
years beginning on the date on which a retirement system established
by this chapter becomes operative. The eighth and ninth members shall
take office as soon as practicable for an initial term to expire
concurrent with the expiration of the longest remaining term of an
elected member. Thereafter, the terms of office of the elected,
appointed, and alternate seventh members are three years, except as
provided in Section 31523.
   (b) The alternate seventh member provided for by this section
shall vote as a member of the board only if the second, third,
seventh, or eighth member is absent from a board meeting for any
cause, or if there is a vacancy with respect to the second, third,
seventh, or eighth member, the alternate seventh member shall fill
the vacancy until a successor qualifies. The alternate seventh member
shall sit on the board in place of the seventh member if a member of
the same service is before the board for determination of his or her
retirement.
   (c) The alternate seventh member shall be entitled to both of the
following:
   (1) The alternate seventh member shall have the same rights,
privileges, responsibilities, and access to closed sessions as the
second, third, seventh, and eighth member.
   (2) The alternate seventh member may hold positions on committees
of the board independent of the second, third, seventh, or eighth
member and may participate in the deliberations of the board or its
committees whether or not the second, third, seventh, or eighth
member is present.
  SEC. 2.  Section 31520.2 of the Government Code is amended to read:

   31520.2.  (a) In any county in which the assets of the retirement
system exceed eight hundred million dollars ($800,000,000), the board
of supervisors may, by resolution, establish a board of investments.
The board shall consist of nine members, one of whom shall be the
county treasurer. The second and third members shall be general
members of the association elected by the general membership of the
association for a three-year term. The fourth member shall be a
safety member elected by the safety membership of the association for
a three-year term. The eighth member shall be a retired member of
the association elected by the retired membership of the association
for a three-year term. The fifth, sixth, seventh, and ninth members
shall be qualified electors of the county who are not connected with
county government in any capacity, and shall be appointed by the
board of supervisors. They shall also have had significant experience
in institutional investing, either as investment officer of a bank,
or trust company; or as investment officer of an insurance company,
or in an active, or advisory, capacity as to investments of
institutional or endowment funds. The first person chosen as a fifth,
sixth, or seventh member, shall serve for a three-year term, the
second person chosen shall serve a four-year term, and the third
person chosen shall serve a two-year term. The first person appointed
as the ninth member shall serve a one-year term. Thereafter, all
terms of all appointed members shall be three years.
   (b) The board of investment shall be responsible for all
investments of the retirement system.
  SEC. 3.  Section 31520.3 of the Government Code is amended to read:

   31520.3.  (a) Notwithstanding Section 31520.1, the board of
retirement of a county of the 16th class, as defined by Sections
28020 and 28037, as amended by Chapter 1204 of the Statutes of 1971,
may, by majority vote, appoint, from a list of nominees submitted by
an organization consisting solely of retired members, an alternate
retired member to the office of the eighth member, who shall serve
until the expiration of the current term of the current eighth member
and thereafter the alternate retired member shall be elected by the
retired members of the association in the same manner and at the same
time as the eighth member is elected. The term of office of the
alternate retired member shall run concurrently with the term of
office of the eighth member. The alternate retired member shall vote
as a member of the board only in the event the eighth member is
absent from a board meeting for any cause. If there is a vacancy with
respect to the eighth member, the alternate retired member shall
fill that vacancy for the remainder of the eighth member's term of
office. The alternative retired member shall be entitled to the same
rights and privileges and shall have the same responsibilities and
access to closed sessions as the eighth member. The alternative
retired member may hold positions on committees of the board
independent of the eighth member and may participate in the
deliberations of the board or its committees whether or not the
eighth member is present.
    The alternate retired member shall be entitled to the same
compensation as the eighth member for attending a meeting, pursuant
to Section 31521, whether or not the eighth member is in attendance
at those meetings. In the event that this section is made applicable
in any county, by the appointment of an alternate eighth member, the
alternate seventh member shall not sit and act for the eighth member,
except as described in subdivision (b).
   (b) If both the eighth member and the alternate retired member are
not attending a meeting, the alternate seventh member may sit and
act for the eighth member as described in Section 31520.1.
  SEC. 4.  Section 31520.5 of the Government Code is amended to read:

   31520.5.  (a) Notwithstanding Section 31520.1, in any county
subject to Articles 6.8 (commencing with Section 31639) and 7.5
(commencing with Section 31662), the board of retirement may, by
majority vote, appoint, from a list of nominees submitted by a
qualified retiree organization, an alternate retired member to the
office of the eighth member, who shall serve until the expiration of
the current term of the current eighth member. Thereafter, the
alternate retired member shall be elected separately by the retired
members of the association in the same manner and at the same time as
the eighth member is elected. An organization shall be deemed to be
a "qualified retiree organization" for purposes of this subdivision
if a majority of the members of the organization are retired members
of the system.
   (b) The term of office of the alternate retired member shall run
concurrently with the term of office of the eighth member. The
alternate retired member shall vote as a member of the board only in
the event the eighth member is absent from a board meeting for any
cause. If there is a vacancy with respect to the eighth member, the
alternate retired member shall fill that vacancy for the remainder of
the eighth member's term of office. The alternate retired member
shall be entitled to the same rights and privileges and shall have
the same responsibilities and access to closed sessions as the eighth
member.
   (c) The alternate retired member may hold positions on committees
of the board independent of the eighth member and may participate in
the deliberations of the board or its committees whether or not the
eighth member is present.
   (d) The alternate retired member shall be entitled to the same
compensation as the eighth member for attending a meeting, pursuant
to Sections 31521 and 31521.1, whether or not the eighth member is in
attendance at those meetings.
   (e) (1) If this section is made applicable in any county, by the
appointment of an alternate eighth member, the alternate seventh
member shall not sit and act for the eighth member, except as
described in paragraph (2).
   (2) If both the eighth member and the alternate retired member are
not attending a meeting, the alternate seventh member may sit and
act for the eighth member as described in Section 31520.1.
  SEC. 5.  Section 31523 of the Government Code is repealed.
  SEC. 6.  Section 31523 is added to the Government Code, to read:
   31523.  (a) In the event of a vacancy in the second, third,
seventh, eighth, or alternate seventh member position on the board of
retirement, the board shall cause an election to fill the vacancy to
be held  at the earliest possible date   within
90 days of the date the vacancy occurs  , except as provided in
Sections 31520.3 and 31520.5. The vacancy in the second, third, or
eighth member position on the board of retirement shall be filled for
the duration of the current term except that, if the remaining
portion of the current term is six months or less on the date of the
election, concurrent elections may be held to fill the vacancy for
the remainder of the current term and to fill the position for the
succeeding term. With respect to a vacancy in the seventh member
position, candidates shall be a safety member from a group which is
not represented by an incumbent alternate seventh member. With
respect to the alternate seventh member position, the candidates
shall be limited to the group under Sections 31470.2 or 31470.4, or
any other eligible safety member in a county if there is no eligible
candidate from the groups under Sections 31470.2 and 31470.4 that is
not represented by an incumbent seventh board member. The successful
candidate shall serve for the duration of the current term.
   (b) If there is a vacancy with respect to the alternate retired
member, the board of retirement shall, by majority vote, appoint a
replacement alternate member in the same manner as prescribed in
Sections 31520.3 and 31520.5 for the initial appointment of an
alternate retired member, who shall serve until the expiration of the
current term of the current eighth member.
   (c) If an election has been called on the expiration of the term
of office of any member or alternate member, or to fill a vacancy for
the second, third, seventh, eighth, or alternate seventh member of a
board of retirement, and only one candidate has been duly nominated
in accordance with the rules established for the holding of that
election, the board of supervisors shall order that no election be
held and shall direct the clerk to cast a unanimous ballot in favor
of the candidate.
  SEC. 7.  Section 31523.1 is added to the Government Code, to read:
   31523.1.  (a) In the event of a vacancy in the second, third,
fourth, or eighth member position on a board of investments
established pursuant to Section 31520.2, an election shall be called
 at the earliest possible date   within 90 days
of the date the vacancy occurs  to fill the vacancy. The vacancy
in the second, third, fourth, or eighth member position shall be
filled for the duration of the current term except that, if the
remaining portion of the current term on the date of the election is
six months or less, concurrent elections may be held to fill the
vacancy for the remainder of the current term and to fill the
position for the succeeding term.
   (b) If an election has been called on the expiration of the term
of office of any member, or to fill a vacancy for the second, third,
fourth, or eighth member position of a board of investments, and only
one candidate has been duly nominated in accordance with the rules
established for the holding of that election, the board of
supervisors shall order that no election be held and shall direct the
clerk to cast a unanimous ballot in favor of the candidate.