BILL ANALYSIS
SENATE PUBLIC EMPLOYMENT & RETIREMENT BILL NO: SB 414
Lou Correa, Chair Hearing date: January 11, 2010
SB 414 (Correa) as introduced 2/26/09 FISCAL: NO
HISTORY :
Sponsor: California Retired County Employees Association
(CRCEA)
California Professional Firefighters (CPF)
Prior legislation: AB 2526 of 2008 (Berryhill)
SUMMARY :
Makes various changes to the process for filling vacancies on
boards of retirement and boards of investment in counties
operating retirement systems under the County Employees'
retirement Law of 1937 ('37 Act).
BACKGROUND AND ANALYSIS :
Existing County Employees Retirement Law of 1937 ('37 Act)
sets forth the composition of the nine-member board of
retirement for any '37 Act county retirement system, as
follows:
a) the county treasurer,
b) two general (non-safety) members elected by the general
members of the system (2nd and 3rd members),
c) four members who are qualified electors not in any way
connected with county government, except one may be a
county supervisor, appointed by the board of supervisors
(4th, 5th, 6th and 9th members),
d) one safety member elected by the safety members of the
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system (7th member), and
e) one retired member elected by the retired members of
the system (8th member).
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Existing law provides for an alternate member who is the
candidate for the 7th member from the group of safety members
that is not represented by the board member who received the
highest number of votes for all candidates in that group.
Unless prohibited by the board, the alternate member may
participate in the deliberations at periodic meetings of the
county board of retirement and, unless prohibited by a
resolution or regulation, has the same rights, privileges,
responsibilities, and access to closed sessions as other
specified board members.
This bill names the alternate member who is the candidate for
the 7th member, as specified, as the "alternate 7th member".
Existing law prescribes the manner of appointing an alternate
retired member for the 8th member of the board of retirement.
If there is a vacancy with respect to the 8th member the
alternate retired member is required to fill the vacancy
until a successor qualifies. The alternate retired member is
authorized 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 the
board.
This bill specifies that if there is a vacancy with respect
to the 8th member, the alternate retired member will fill the
vacancy for the remainder of the 8th member's term in office.
This bill also revokes the authority of a board of retirement
to prohibit, by resolution or regulation, an alternate
member's ability to participate in the deliberations of the
board or its committees.
Existing law provides that if a vacancy on the board occurs
for any cause or on the expiration of the term of office of
any member, a successor shall be chosen in the same manner as
was his predecessor, except that if an election to fill a
vacancy for the 2nd, 3rd, 7th or 8th member has been called
and only one member has been duly nominated, the board of
supervisors shall order that no election be held and shall
direct the clerk to cast a unanimous ballot in favor of such
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nominated member.
This bill revises and recasts provisions governing the
process for filling vacancies on both the boards of
retirement and boards of investment to provide the following:
1. For vacancies in the 5th, 6th, 7th, or 9th member
positions, the board of supervisors is required to
appoint a replacement for the duration of the current
term forthwith. For vacancies in the 7th member
position, candidates will be a safety member from a
group which is not represented by an incumbent alternate
seventh member. The successful candidate will serve for
the duration of the current term.
2. For vacancies in the 2nd, 3rd, 4th, or 8th (if there
is no alternate retired member), the board is required
to cause an election to be held at the earliest possible
date to fill the vacancy. These vacancies will be
filled for the remainder of the current term unless only
six months or less remain of that term, in which case
the successful candidate will serve for the remainder of
the term and for the succeeding term.
3. For vacancies with respect to the alternate retired
member position, the board of retirement is required to
appoint a replacement alternate member, in the same
manner as prescribed for the initial appointment of an
alternate retired member.
4. If an election has been called due to the expiration
of the term of office of any member or to fill a vacancy
for the 2nd, 3rd, 7th, 8th or alternate 7th member of a
board of retirement, or for the 2nd, 3rd, 4th or 8th
member positions on a board of investment, and only one
candidate has been duly nominated, the board of
supervisors shall order that no election be held and
shall direct the clerk to cast a unanimous ballot in
favor of such nominated candidate.
COMMENTS :
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1) Arguments in support
According to the author, nothing in statute requires the
board of supervisors or county board of retirement, as
applicable, to expeditiously fill vacancies on the board of
retirement. This can affect the board's ability to obtain a
quorum for official meetings. It can also deny the various
stakeholders of the retirement system proper representation
on the board. The sponsor also notes that alternate board
members have the same fiduciary responsibility and
liability as regular board members. Therefore, it is
necessary that no potential limitation to their activities
exist.
In order to carry out their responsibilities they must be
involved in, and have access to, every aspect of the board's
business so that when called upon to vote, they possess all
of the same information as regular board members.
2) OPPOSITION :
None to date
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