BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 637
                                                                  Page  1

          Date of Hearing:   June 8, 2011

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL 
                                      SECURITY
                              Warren T. Furutani, Chair
             SB 637 (P.E. & R. Com.) - As Introduced:  February 18, 2011

           SENATE VOTE  :   40-0
           
          SUBJECT  :   County employees' retirement: board of investment: 
          powers.

           SUMMARY  :   Provides the Board of Investment of the Los Angeles 
          County Employees Retirement Association (LACERA) with the power 
          to issue subpoenas.

           EXISTING LAW  :

          1)Authorizes the board of retirement in counties operating 
            retirement systems pursuant to the County Employees Retirement 
            Law of 1937 ('37 Act) to issue subpoenas.  The board of 
            retirement may delegate authority to issue subpoenas to the 
            retirement administrator.

          2)Allows, in any '37 Act county in which the assets of the 
            retirement system exceed $800 million, the board of 
            supervisors to establish a board of investments which is 
            responsible for all investment of the retirement system.  
            LACERA is currently the only county with a board of 
            investment.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   Since 1965, all '37 Act boards of retirement have 
          had the authority to 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.








                                                                  SB 637
                                                                  Page  2


          LACERA is the only '37 Act retirement system that also has a 
          separate and independent board of investment.  The LACERA board 
          of retirement does not oversee matters under the purview of the 
          board of investment.  Currently, the power to issue subpoenas is 
          not specified in law for the LACERA board of investment.  
          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."





           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Los Angeles County Employees Retirement Association (Sponsor)
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916) 
          319-3957