BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 203|
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UNFINISHED BUSINESS
Bill No: SB 203
Author: Correa (D)
Amended: 5/31/11
Vote: 21
SEN. PUBLIC EMPLOYMENT & RETIREMENT COMM. : 5-0, 4/11/11
AYES: Negrete McLeod, Walters, Gaines, Padilla, Vargas
SENATE FLOOR : 37-3, 4/25/11
AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon,
Corbett, Correa, De Le�n, DeSaulnier, Dutton, Emmerson,
Evans, Fuller, Gaines, Hancock, Harman, Hernandez, Kehoe,
Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla,
Pavley, Price, Rubio, Runner, Simitian, Steinberg,
Strickland, Vargas, Walters, Wolk, Wright, Wyland, Yee
NOES: Cannella, Huff, La Malfa
ASSEMBLY FLOOR : 62-11, 7/7/11 - See last page for vote
SUBJECT : County retirement boards: alternate
members/elections
SOURCE : California Retired County Employees Association
DIGEST : This bill 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.
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Assembly Amendments allow a single election in order to
fill both the remaining term of a vacant position and the
succeeding term when the remaining term is of six months or
less.
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 association, as follows:
1.The county treasurer.
2.Two general (non-safety) members elected by the general
members of the system (2nd and 3rd members).
3.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).
4.One safety member elected by the safety members of the
system (7th member).
5.One retired member elected by the retired members of the
system (8th member).
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 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 to
closed sessions as other specified board members.
Existing law 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
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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.
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 or her 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.
This bill makes various changes to the process for filling
vacancies on boards of retirement and boards of investment
in counties operating retirement systems under the '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;
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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 7th
member, as specified. The successful candidate will
serve for the duration of the current term;
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.
Prior Legislation
AB 2526 (Berryhill), 2007-08 Session, made various changes
to the process for filling vacancies on boards of
retirement and boards of investment in counties operating
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retirement systems under the '37 Act. (Failed passage in
Senate Public Employment and Retirement Committee)
SB 414 (Correa), 2009-10 Session, made various changes to
the process for filling vacancies on boards of retirement
and boards of investment in counties operating retirement
systems under the '37 Act. Passed the Senate with a vote
of 23-11 on August 19, 2010. The bill was subsequently
vetoed by the Governor Schwarzenegger. In his veto
message, the Governor stated"
"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."
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 7/7/11)
California Retired County Employees Association (source)
ARGUMENTS IN SUPPORT : According to the sponsor, the
California Retired County Employees Association, "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.
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Finally, the bill reduces the costs of elections by
allowing one election to fill both the remaining term of a
vacant position and the succeeding term when the remaining
term is of six months or less.
ASSEMBLY FLOOR : 62-11, 7/7/11
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Dickinson, Feuer,
Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Garrick,
Gatto, Gordon, Hall, Harkey, Hayashi, Roger Hern�ndez,
Hill, Huber, Hueso, Huffman, Jones, Lara, Bonnie
Lowenthal, Ma, Mendoza, Miller, Mitchell, Monning,
Nestande, Pan, Perea, V. Manuel P�rez, Portantino,
Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wieckowski, Williams, Yamada, John A. P�rez
NOES: Donnelly, Grove, Halderman, Jeffries, Knight,
Mansoor, Morrell, Nielsen, Norby, Olsen, Wagner
NO VOTE RECORDED: Davis, Eng, Galgiani, Gorell, Hagman,
Logue, Silva
CPM:cm 7/8/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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