BILL ANALYSIS �
SB 203
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Date of Hearing: June 8, 2011
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL
SECURITY
Warren T. Furutani, Chair
SB 203 (Correa) - As Introduced: February 8, 2011
SENATE VOTE : 37-3
SUBJECT : County employee retirement: boards.
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). Specifically, this
bill :
1)Renames the alternate member for the 7th member, as specified,
as the "alternate 7th member."
2)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 instead of
just until a successor qualifies.
3)Revises and recasts provisions governing the process for
filling vacancies on both the boards of retirement and boards
of investment to provide the following:
a) For vacancies in the 2nd, 3rd, 7th, 8th (if there is no
alternate retired member), or alternate 7th member
positions, the board is required to cause an election to be
held at the earliest possible date to fill the vacancy.
b) Vacancies in the 2nd, 3rd, or 8th member positions 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.
c) 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, as
specified. The successful candidate will serve for the
duration of the current term.
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d) 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.
e) For vacancies in the 2nd, 3rd, 4th, or 8th member
positions on a board of investments, the board is required
to cause an election to be held at the earliest possible
date to fill the vacancy. Vacancies in the 2nd, 3rd, 4th
and 8th member positions 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.
f) 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.
4)Deletes 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 :
1)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
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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
system (7th member); and,
e) One retired member elected by the retired members of the
system (8th member).
2)Provides for an alternate member who is the candidate for the
7th member from the group of safety members that is not
represented by a board member who received the highest number
of votes for all candidates in that group, as specified.
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 closed sessions as other
specified board members.
3)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, 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.
4)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 nominated member.
FISCAL EFFECT : None.
COMMENTS : According to the author, "There is nothing in the
statute that requires the board of supervisors or board of
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retirement, as applicable, to move expeditiously to fill
vacancies on the board of retirement. This can affect the
ability to obtain a quorum for meetings. It can also affect
proper representation of the various stakeholders of the
retirement system."
Supporters add, "?the rationale for eliminating the potential
limitation on the activities of the alternate members is that
the alternate members have the same fiduciary responsibility
(and liability) as the regular members of the board and,
therefore, must be involved in, and have access to, every aspect
of the board's business so that, when called upon to vote, he or
she is in possession of all of the same information as the
regular board members."
This bill is similar to SB 414 (Correa) from last year which was
vetoed by Governor Schwarzenegger. In his veto message, the
Governor states, in part, "Among other things, this bill
prohibits a county retirement board from limiting the role of an
alternate member's participation in board meetings and
committees. It also mandates that an election to fill board
vacancies be held at the earliest possible date. Both of these
provisions are unnecessarily limiting of the flexibility of
these local entities."
This bill is also similar to AB 2526 (Berryhill) of 2008 which
failed passage in the Senate Public Employment and Retirement
Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
California Retired County Employees Association (Sponsor)
California Judges Association
Opposition
None on file
Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916)
319-3957
SB 203
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