BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2099|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: AB 2099
Author: Cedillo (D)
Amended: 8/24/12 in Senate
Vote: 21
PRIOR VOTES NOT RELEVANT
SUBJECT : Employment: wage, hour and working conditions
violations
SOURCE : Author
DIGEST : This bill authorizes Los Angeles Unified School
District (LAUCD) or the Los Angeles Community College
District (LACCD) to do one of the following: (1) select
specific 403(b) products offered by four or more vendors of
403(b) products; (2) select 403(b) products offered by four
or more vendors of 403(b) products and continue to make
contributions to a 403(b) product not selected if the
school employee had already purchased or entered into the
product before the effective date of a contract that
excluded that option as specified; or (3) establish a list
of preferred vendors as recommended by a joint committee
made up exclusively of bargaining unit members and
management as defined. This bill also requires that the
collective bargaining agreement specify whether the school
employer elects to exercise its authority and the process
by which vendors are selected. This bill defines the
competitive bidding process and provides that a violation
of any of the following policies by a vendor shall result
CONTINUED
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in termination of the contract or removal from the
preferred vendor list, as specified. Additionally, this
bill requires a school employer that elects to exercise the
authority to submit a report, as specified, to the
Legislature on or before January 1, 2017. This bill has a
sunset date of January 1, 2018.
Senate Floor Amendments of 8/24/12 delete the prior version
of the bill and add language that permits LAUCD or the
LACCD to select specific "Section 403(b)" investment
options.
ANALYSIS : Existing law requires state agencies to permit
employees to select any investment product when making
contributions to a plan authorized under Internal Revenue
Code Section 403(b). This bill authorizes LAUCD or the
LACCD to do one of the following:
1. Select specific 403(b) products offered by four or more
vendors of 403(b) products;
2. Select 403(b) products offered by four or more vendors
of 403(b) products and continue to make contributions to
a 403(b) product not selected if the school employee had
already purchased or entered into the product before the
effective date of a contract that excluded that option
as specified; or
3. Establish a list of preferred vendors as recommended by
a joint committee made up exclusively of bargaining unit
members and management as defined.
This bill also requires that the collective bargaining
agreement specify whether the school employer elects to
exercise its authority and the process by which vendors are
selected.
This bill defines the competitive bidding process and
provides that a violation of any of the following policies
by a vendor shall result in termination of the contract or
removal from the preferred vendor list. These policies
require that:
1. Prospective vendors not communicate with members of the
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3
governing body or joint committee except in an official
meeting related to the competitive review process.
2. Prospective vendors not provide any financial payment to
any member of the governing body or joint committee
during the competitive review process and until the
contract or preferred vendor list expires.
3. Vendors to adhere to any policy adapted by the school
employer or joint committee regarding communications and
marketing of financial products to employees.
Additionally, this bill requires a school employer that
elects to exercise the authority to submit a report, as
specified, to the Legislature on or before January 1, 2017.
This bill has a sunset date of January 1, 2018.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
PQ:k 8/27/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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