BILL ANALYSIS                                                                                                                                                                                                    �






          SENATE PUBLIC EMPLOYMENT & RETIREMENT    BILL NO:  SB 637
          Gloria Negrete McLeod, Chair                              
          Hearing date:  April 11, 2011
          SB 637 (Senate PE&R Comm)     as introduced 2/18/11      
          FISCAL:  NO

           LOS ANGELES COUNTY RETIREMENT ASSOCIATION:  BOARD OF 
          INVESTMENTS SUBPOENA POWER
           
           HISTORY  :            

              Sponsor:  Los Angeles County Employees' Retirement 
          Association (LACERA)

              Prior legislation:  AB 2819 (Epple)
                         Chapter 419, Statutes of 1990

           
          SUMMARY  : 

          SB 637 provides the LACERA Board of Investments with the 
          power to issue subpoenas. Since 1965, all boards of 
          retirement in the 1937 Act County Retirement System have had 
          this authority.


           BACKGROUND AND ANALYSIS  :
          
           Existing law  :

            a)  creates the 1937 Act County Employees Retirement Law 
            (37 Act), which governs 20 independent county retirement 
            associations, including LACERA.

            b)  specifies that a county retirement association board 
            may issue subpoenas and may delegate authority to issue 
            subpoenas to the retirement administrator.

            c)  authorizes a separate and independent Board of 
            Investments in addition to the Board of Retirement to 
            govern LACERA.


          Pamela Schneider
          Date:  4/4/11                                          Page 1 










           COMMENTS  :

          1)   Argument in support  

          All 37 Act county retirement association boards may issue 
          subpoenas.  According to the sponsor, this authority is used 
          to subpoena documents and witnesses critical to the Board's 
          oversight and decision making:

               Subpoenas are issued under delegated authority of the 
               Board of Retirement on a regular basis in connection 
               with the processing of disability retirement 
               applications. Typical situations involve compelling 
               witnesses to appear at administrative hearings and 
               obtaining medical records from physicians. This is the 
               only purpose to date for which the Board of Retirement's 
               subpoena power has been exercised.

          LACERA is the only 37 Act retirement association that also 
          has a separate and independent Board of Investments.  The 
          LACERA Board of Retirement does not oversee matters under the 
          purview of the Board of Investments.  Currently, the power to 
          issue subpoenas is not specified in law for the LACERA Board 
          of Investments.  According to the sponsor, the Board of 
          Investments' subpoena power would be limited to 
          investigations related to the investment of system assets, 
          and "would only be used on rare occasions when the records 
          and testimony required to protect LACERA's interests could 
          not be obtained through other means."


          2)   SUPPORT :

               Los Angeles County Employees' Retirement Association, 
          sponsor


          3)   OPPOSITION  :

               None to date



          Pamela Schneider
          Date:  4/4/11                                          Page 2 











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          Pamela Schneider
          Date:  4/4/11                                          Page 3