BILL NUMBER: AB 1248	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 23, 2011
	AMENDED IN ASSEMBLY  APRIL 14, 2011
	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Hueso

                        FEBRUARY 18, 2011

   An act to add Section 7500.5 to the Government Code, relating to
local public employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1248, as amended, Hueso. Local public employees' retirement.
   Existing law authorizes the creation of retirement systems for
public employees by counties, cities, and districts. The California
Constitutional authorizes charter cities to establish pension plans
under their respective independent constitutional authority. 

   This bill would prohibit a local public employer, as defined, that
provides a defined benefit plan to its employees from eliminating
that plan unless its employees are covered by the federal Social
Security system.  
   This bill would require a local public employer to provide
coverage under the federal social security system to all employees
who are not covered under a defined benefit plan. 
   The bill would also express a legislative finding and declaration
that federal social security coverage of local employees is an issue
of statewide concern and not a municipal affair, and that therefore,
all cities, including charter cities, would be subject to the
provisions of the bill.
   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 7500.5 is added to the Government Code, to
read:
   7500.5.  (a) For the purposes of this section, the following
definitions shall apply:
   (1) "Federal system" means the old age, survivors, disability, and
health insurance provisions of the federal Social Security Act (42
U.S.C. Sec. 301 et seq.).
   (2) "Local public employer" means a city, county, and city and
county, including a charter city, charter county, and charter city
and county. 
   (b) A local public employer that provides a defined benefit plan
to its employees shall not eliminate that plan unless its employees
are covered by the federal system.  
   (b) A local public employer shall provide coverage under the
federal system to all employees who are not covered under a defined
benefit plan. 
  SEC. 2.  The Legislature finds and declares that to protect the
general welfare of the residents of this state, federal social
security coverage of local employees is an issue of statewide concern
and not a municipal affair, as that term is used in Section 5 of
Article XI of the California Constitution. Therefore, this act shall
apply to all cities, including charter cities.