BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 637|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
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                                    CONSENT


          Bill No:  SB 637
          Author:   Senate Public Employment and Retirement Committee
          Amended:  As introduced
          Vote:     21

           
           SEN. PUBLIC EMPLOYMENT & RETIREMENT COMM.  :  5-0, 4/11/11
          AYES:  Negrete McLeod, Walters, Gaines, Padilla, Vargas


           SUBJECT  :    Los Angeles County Retirement Association:  
          Board of 
                      Investments subpoena power

           SOURCE  :     Los Angeles County Employees Retirement 
          Association


           DIGEST  :    This bill provides the Los Angeles County Board 
          of Investments with the power to issue subpoenas.  Since 
          1965, all boards of retirements in the 1937 Act County 
          Employees Retirement Law have had this authority.

           ANALYSIS  :    

           Existing Law

           1.Creates the 1937 Act County Employees Retirement Law ('37 
            Act), which governs 20 independent county retirement 
            associations, including the Los Angeles County Employees' 
            Retirement Association (LACERA).

          2.Specifies that a county retirement association board may 
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            issue subpoenas and may delegate authority to issue 
            subpoenas to the retirement administrator.

          3.Authorizes a separate and independent Board of 
            Investments in addition to the Board of Retirement to 
            govern LACERA.

          This bill provides the LACERA Board of Investments with the 
          power to issue subpoenas.

           Comments

           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 LACERA, 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 LACERAs interests could not be obtained through 
          other means.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  4/12/11)

          Los Angeles County Employees Retirement Association 
          (source)



          CPM:cm  4/12/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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