BILL NUMBER: AB 1248	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 30, 2011
	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 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  , except as
specified  .
   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  and counties  , including
charter cities  and counties  , 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 shall provide coverage under the
federal system to all employees who are not covered under a defined
benefit plan. 
   (c) The requirements of this section shall not apply with regard
to replacing or changing an employer's alternate benefit plan for
part-time, seasonal, and temporary employees that was in place on
July 1, 2011.  
   (d) The requirements of this section shall not apply with regard
to replacing or changing an employer's defined contribution plan that
was in place on July 1, 2011, unless the defined contribution plan
will replace or change the employer's existing defined benefit plan.

  SEC. 2.  The Legislature finds and declares  that to
protect   all of the following:  
   (a) A defined contribution retirement system is susceptible to
extreme volatility, requires an employee to bear a significant amount
of market risk, and provides less stability and security than a
defined benefit retirement system. This risk and volatility is of
particular concern for employees who are not provided a safety net
through coverage under the federal Social Security Act.  
    (b) The state has an interest in ensuring that public employees
have a basic safety net to rely on in retirement. In the absence of
this safety net, the state may be called upon to provide benefits to
retired employees who are unable to care for themselves. 
    (c)     Accordingly, protecting  the
general welfare of the residents of this state  , 
 by ensuring  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  and counties  , including charter
cities  and charter counties  .