BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2628
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          Date of Hearing:   April 23, 2014

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY
                                  Rob Bonta, Chair
                AB 2628 (Mansoor) - As Introduced:  February 21, 2014
           
          SUBJECT  :   County employees' retirement: Orange County.

           SUMMARY  :   Allows the Orange County Board of Supervisors to  
          appoint alternate members to the county board of retirement, as  
          specified.  Specifically,  this bill  : 

          1)Permits the Orange County Board of Supervisors, by resolution  
            adopted by majority vote, to appoint one alternate member for  
            the 4th, 5th, 6th, or 9th retirement board member.

          2)Requires the alternate member to be a qualified elector of the  
            county who is not connected with the county government.

          3)Specifies that the term of office for the alternate member  
            will run concurrently with the term of office of the 9th  
            member.

          4)Prohibits the alternate member from voting as a member of the  
            board unless the 4th, 5th, 6th, or 9th member is absent.  If  
            there is a vacancy, the alternate member will fill that  
            vacancy until a successor qualifies.

          5)Requires that the alternate member have the same compensation  
            for attending a meeting whether or not the 4th, 5th, 6th, or  
            9th member attends the meeting.

          6)Requires the alternate member be entitled to the following:

             a)   The same rights, privileges, responsibilities, and  
               access to closed sessions as the 4th, 5th, 6th, or 9th  
               member.

             b)   The ability to hold positions on committees of the  
               board, as specified, and to participate in deliberations of  
               the board or any of its committees, as specified.

          7)Prohibits the alternate member from serving until service of  
            this type has been approved by the majority of the electors in  








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            the county.

           EXISTING LAW  :

          1)Establishes the County Employees' Retirement Law of 1937 ('37  
            Act), which provides for retirement systems for county and  
            district employees in those counties adopting its provisions.   
            Currently 20 counties operate retirement systems under the '37  
            Act.

          2)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  
               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).

          3)Provides for alternates for all retirement board members  
            except those appointed by the board of supervisors (4th, 5th,  
            6th, and 9th members).

          4)Permits the Contra Costa Board of Supervisors, by resolution  
            adopted by majority vote, to appoint one alternate member for  
            the 4th, 5th, 6th, or 9th retirement board member.

          5)Section 17 of Article 16 of the California Constitution  
            specifies that the composition of public retirement boards  
            that have elected members "?shall not be changed, amended or  
            modified by the Legislature unless the change, amendment or  
            modification enacted by the Legislature is ratified by a  
            majority vote of the electors of the jurisdiction in which the  
            participants of the system are or were, prior to retirement,  








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            employed."

           FISCAL EFFECT  :   This bill is keyed non-fiscal by the  
          Legislative Counsel.

           COMMENTS  :   According to the sponsor, the Orange County Board of  
          Supervisors, "Currently, the Board of Supervisors of the County  
          of Orange is permitted to appoint four members to the board of  
          retirement under the County Employees' Retirement Law of 1937  
          (CERL).  The CERL does not permit the board of supervisors to  
          appoint an alternate for these appointed board members.  In  
          contrast, an alternate is permitted to be appointed for the  
          elected retirement benefits who hold the second, third, seventh  
          and eighth retirement board positions which are the elected  
          retirement board positions.  Failure to have an alternate for  
          appointed retirement board members will hinder the board of  
          retirement if one of the appointed board members is not present.  

           AB 2628 would give the Orange County Board of Supervisors  
          authority to appoint an alternate for the appointed board  
          members with the same rights and privileges as the alternate for  
          elected retirement board members."

          Opponents have raised concerns that this measure is not needed,  
          stating that since the board of supervisor appoints these  
          members, they have the authority to require that they be present  
          for all of the board meetings.  Additionally, opponents point  
          out that to their knowledge, there had been no lack of a quorum  
          for a retirement board meeting in well over 10 years.

          Finally, opponents are concerned that the alternates might only  
          attend a few meetings and, therefore, lack the history and  
          necessary insight to make informed decisions.  Opponents  
          conclude, "Moreover, there is concern that the alternates could  
          vote contrary to the position that may have been taken by the  
          primary appointed member."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Orange County Board of Supervisors (Sponsor)

           Opposition 
           








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          Association of Orange County Deputy Sheriffs
          California Professional Firefighters
          Los Angeles County Professional Peace Officers' Association
          Orange County Employees Association
          Sacramento County Deputy Sheriffs Association
           
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916)  
          319-3957