BILL NUMBER: AB 2429INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Hagman FEBRUARY 24, 2012 An act to add Sections 22119.6 and 22603 to the Education Code, and to amend Sections 20322, 22807, 31553, and 31641 of, and to add Sections 7514.51, 20302, 20890.5, 22926, 31553.5, 31641.5, 45310.2, 50805.5, and 53060.1 to, the Government Code, relating to public employee benefits. LEGISLATIVE COUNSEL'S DIGEST AB 2429, as introduced, Hagman. Public employee benefits: local appointed and elected officials. Existing law authorizes the creation of retirement systems for public employees by counties, cities, and districts. Existing law creates the Public Employees' Retirement System and the State Teachers' Retirement System, which provide a defined benefit to their members based on age at retirement, service credit, and final compensation. Existing law establishes the criteria for membership in the various public employee retirement systems and may exclude certain employment classifications from membership. The California Constitution provides for the division of the state into counties and requires that a county have an elected sheriff, elected district attorney, elected assessor, and elected governing body. Existing law provides for the incorporation of cities in various forms and requires that certain city offices be filled pursuant to elections, as prescribed. Existing law provides for the creation of districts, the governing bodies of which may be elected. This bill would prohibit a person who is appointed or publicly elected to a local office of any kind that is less than full time, as defined, on and after January 1, 2013, from becoming a member of a retirement system by virtue of that service or acquiring any retirement right or benefit for serving in that elective office. The bill would except from this prohibition a person who obtained membership by virtue of holding an appointive or elective local public office prior to January 1, 2013, and remains in that office or is reappointed or reelected to it. The Public Employees' Medical and Hospital Care Act (PEMHCA) provides that an employee or annuitant is eligible to enroll in an approved health benefit plan, as specified. PEMHCA authorizes a contracting agency, as specified, to elect to become subject to the act, along with the agency's employees and annuitants. PEMHCA authorizes a contracting agency to provide benefits to part-time permanent or regular employees who have an appointment of 6 months or longer. The bill would prohibit a contracting agency to provide any benefits under PEMHCA to any person who is first appointed or publicly elected to a local office of any kind that is not full time, on and after January 1, 2013. The bill would also prohibit the legislative body of a public or municipal corporation or district from providing specified benefits to a person who is first appointed or publicly elected to a local office of any kind that is not full time, on and after January 1, 2013, including retirement benefits, health insurance, allowances for a car or home office, and professional or other membership dues. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 22119.6 is added to the Education Code, to read: 22119.6. Notwithstanding any other law, "creditable service" does not include service by a person described in Section 22603 performed in an elective or appointive local office. SEC. 2. Section 22603 is added to the Education Code, to read: 22603. (a) Notwithstanding any other law, a person who is appointed or publicly elected to a local office of any kind that is less than full time, on and after January 1, 2013, shall not become a member of a retirement system established under this chapter by virtue of that service and shall not acquire any retirement right or benefit for serving in that elective office. For purposes of this section, "full time" means the elected or appointed official is required to provide service to the state government, local government, or special district for a minimum of five days and 40 hours a week, exclusive of holidays, or otherwise requires the elected or appointed official to devote his or her entire time and attention to the duties of the office and prohibits any outside employment that would interfere with those duties. Designation of an elective or appointive office as full time shall be enacted by law. (b) This section shall not apply to a person who obtained membership by virtue of holding an elective or appointive local public office prior to January 1, 2013, for so long as he or she holds that office or is reelected or reappointed to that office. SEC. 3. Section 7514.51 is added to the Government Code, to read: 7514.51. (a) Notwithstanding any other law and except as required or permitted by the California Constitution, a person who is appointed or publicly elected to a local office of any kind that is not full time, on and after January 1, 2013, shall not become a member of any retirement system by virtue of that service and shall not acquire any retirement right or benefit for serving in that elective office. For purposes of this section, "full time" means the elected or appointed official is required to provide service to the state government, local government, or special district for a minimum of five days and 40 hours a week, exclusive of holidays, or otherwise requires the elected or appointed official to devote his or her entire time and attention to the duties of the office and prohibits any outside employment that would interfere with those duties. Designation of an elective or appointive office as full time shall be enacted by law. (b) This section shall not apply to a person who obtained membership by virtue of holding an elective or appointive local public office prior to January 1, 2013, for so long as he or she holds that office or is reelected or reappointed to that office. SEC. 4. Section 20302 is added to the Government Code, to read: 20302. (a) Notwithstanding any other law, a person who is appointed or publicly elected to a local office of any kind that is not full time, on and after January 1, 2013, shall not become a member of the system by virtue of that service and shall not acquire any retirement right or benefit for serving in that elective office. For purposes of this section, "full time" means the elected or appointed official is required to provide service to the state government, local government, or special district for a minimum of five days and 40 hours a week, exclusive of holidays, or otherwise requires the elected or appointed official to devote his or her entire time and attention to the duties of the office and prohibits any outside employment that would interfere with those duties. Designation of an elective or appointive office as full time shall be enacted by law. (b) This section shall not apply to a person who obtained membership by virtue of holding an elective or appointive local public office prior to January 1, 2013, for so long as he or she holds that office or is reelected or reappointed to that office. SEC. 5. Section 20322 of the Government Code is amended to read: 20322.(a)Except as otherwise provided in Section 20302: (a) An elective officer is excluded from membership in this system unless the officer files with the board an election in writing to become a member. Upon electing to become a member, the officer may further elect at any time prior to retirement to receive service credit for his or her prior, excluded service by making the contributions as specified in Sections 21050 and 21051. (b) As used in this part, "elective officer" includes any officer of the Senate or Assembly who is elected by vote of the members of either or both of the houses of the Legislature, and any appointive officer of a city or county occupying a fixed term of office, as well as officers of the state or contracting agencies elected by the people, and persons elected to a city council or a county board of supervisors. (c) Notwithstanding any other provision of subdivision (a) or (b), elected or appointed officers of a county superintendent of schools, school district, or community college district, or of a contracting agency, who serve on public commissions, boards, councils, or similar legislative or administrative bodies are excluded from membership in this system. This exclusion shall only apply to those elected or appointed officers, other than city or county officers, who are first elected or appointed to an office on or after July 1, 1994, or who are elected or appointed to a term of office not consecutive with the term of office held on June 30, 1994. For city or county elected or appointed officers, this exclusion shall only apply to those officers who are first elected or appointed to an office on or after January 1, 1997, or who are elected or appointed to a term of office not consecutive with the term of office held on December 31, 1996. This exclusion shall not apply to persons elected to a city council or county board of supervisors. (d) Any person holding the office of city attorney or the office of assistant city attorney, whether employed, appointed, or elected, is excluded from the definition of "elective officer" as defined in subdivision (b). This subdivision shall apply only to persons first employed, elected, or appointed on or after July 1, 1994, or following any break in state service while serving in the office if the office was held on June 30, 1994. (e) In accordance with Section 20125, the board shall be the sole judge of which elected or appointed positions qualify the incumbent as an "elective officer" in this system under this section. (f) Notwithstanding any other provision of law, with respect to elective officers of contracting agencies, payment by a contracting agency of employer contributions and any other amounts for employer paid benefits under this system shall not be construed as receipt of salary or compensation by the elective officer for purposes of any statutory salary or compensation limitation. SEC. 6. Section 20890.5 is added to the Government Code, to read: 20890.5. Notwithstanding any other law, a person described in Section 20302 shall not be credited with service by virtue of serving in a local elective office. SEC. 7. Section 22807 of the Government Code is amended to read: 22807. (a) Notwithstanding subdivision (b) of Section 22772, a contracting agency may, by resolution filed with the board, deem all permanent or regular employees, except members of the State Teachers' Retirement Plan, who have an appointment of six months or longer but are employed less than half-time, to be employees subject to this part. (b) Notwithstanding subdivision (b) of Section 22772, a contracting agency with employees who are members of the State Teachers' Retirement Plan may, by resolution filed with the board, deem any of the following to be employees subject to this part: (1) Regular, permanent, probationary, or temporary employees or substitutes who have an appointment for at least a semester, for six months, or for half of the school year, but are employed less than half-time. (2) Substitutes who have an appointment for 100 days or more in the school year. (3) This section shall not apply to any person who is first appointed or publicly elected to a local office of any kind that is not full time, on and after January 1, 2013. SEC. 8. Section 22926 is added to the Government Code, to read: 22926. Notwithstanding any other law, a contracting agency shall not offer coverage under this part to any person who is first appointed or publicly elected to a local office of any kind that is not full time, on and after January 1, 2013. For purposes of this section, "full time" means the elected or appointed official is required to provide service to the state government, local government, or special district for a minimum of five days and 40 hours a week, exclusive of holidays, or otherwise requires the elected or appointed official to devote his or her entire time and attention to the duties of the office and prohibits any outside employment that would interfere with those duties. Designation of an elective or appointive office as full time shall be enacted by law. SEC. 9. Section 31553 of the Government Code is amended to read: 31553.ElectiveExcept as provided in Section 31553.5, elective officers become members of the retirement association on the first day of the calendar month following the filing of a declaration with the board to become a member, provided, however, that any such elective officer may, within 60 days after the expiration of the officer's term of office or within 60 days after the officer ceases to hold the office, rescind the declaration and withdraw from the retirement association. In such cases, all contributions paid by the member shall be refunded in the same manner as applicable to members terminating service. SEC. 10. Section 31553.5 is added to the Government Code, to read: 31553.5. (a) Notwithstanding any other law, a person who is appointed or publicly elected to a local office of any kind that is not full time, on and after January 1, 2013, shall not become a member of a retirement system established under this chapter by virtue of that service and shall not acquire any retirement right or benefit for serving in that elective office. For purposes of this section, "full time" means the elected or appointed official is required to provide service to the state government, local government, or special district for a minimum of five days and 40 hours a week, exclusive of holidays, or otherwise requires the elected or appointed official to devote his or her entire time and attention to the duties of the office and prohibits any outside employment that would interfere with those duties. Designation of an elective or appointive office as full time shall be enacted by law. (b) This section shall not apply to a person who obtained membership by virtue of holding an elective or appointive local public office prior to January 1, 2013, for so long as he or she holds that office or is reelected or reappointed to that office. SEC. 11. Section 31641 of the Government Code is amended to read: 31641."Service"Except as provided in Section 31641.5, "service" means uninterrupted employment of any person appointed or elected for that period of time: (a) For which deductions are made from his or her earnable compensation from the county or district forsuchthat service while he or she is a member of the retirement association. (b) In military service for which the county or district or member is authorized by other provisions of this chapter to make, and does make, contributions. (c) For which he or she receives credit for county service or for public service or for both pursuant to the provisions of this article. (d) Allowed for prior service. SEC. 12. Section 31641.5 is added to the Government Code, to read: 31641.5. Notwithstanding any other law, a person described in Section 31553.5 shall not be credited with service by virtue of serving in a local elective office. SEC. 13. Section 45310.2 is added to the Government Code, to read: 45310.2. (a) Notwithstanding any other law, a person who is appointed or publicly elected to a local office of any kind that is not full time, on and after January 1, 2013, shall not become a member of a retirement system established under this chapter by virtue of that service and shall not acquire any retirement right or benefit for serving in that elective office. For purposes of this section, "full time" means the elected or appointed official is required to provide service to the state government, local government, or special district for a minimum of five days and 40 hours a week, exclusive of holidays, or otherwise requires the elected or appointed official to devote his or her entire time and attention to the duties of the office and prohibits any outside employment that would interfere with those duties. Designation of an elective or appointive office as full time shall be enacted by law. (b) This section shall not apply to a person who obtained membership by virtue of holding an elective or appointive local public office prior to January 1, 2013, for so long as he or she holds that office or is reelected or reappointed to that office. SEC. 14. Section 50805.5 is added to the Government Code, to read: 50805.5. (a) Notwithstanding any other law, a person who is appointed or publicly elected to a local office of any kind that is not full time, on and after January 1, 2013, shall not become a member of a retirement system established under this chapter by virtue of that service and shall not acquire any retirement right or benefit for serving in that elective office. For purposes of this section, "full time" means the elected or appointed official is required to provide service to the state government, local government, or special district for a minimum of five days and 40 hours a week, exclusive of holidays, or otherwise requires the elected or appointed official to devote his or her entire time and attention to the duties of the office and prohibits any outside employment that would interfere with those duties. Designation of an elective or appointive office as full time shall be enacted by law. (b) This section shall not apply to a person who obtained membership by virtue of holding an elective or appointive local public office prior to January 1, 2013, for so long as he or she holds that office or is reelected or reappointed to that office. SEC. 15. Section 53060.1 is added to the Government Code, to read: 53060.1. (a) The legislative body of an public or municipal corporation or district shall not provide any of the following benefits to a person who is first appointed or publicly elected to a local office of any kind that is not full time, on and after January 1, 2013: (1) Retirement benefits, including, but not limited to, a service pension, a disability pension, and postemployment health care benefits. (2) Health insurance. (3) An allowance for a car or home office. (4) Professional or other membership dues. (b) For purposes of this section, "full time" means the elected or appointed official is required to provide service to the state government, local government, or special district for a minimum of five days and 40 hours a week, exclusive of holidays, or otherwise requires the elected or appointed official to devote his or her entire time and attention to the duties of the office and prohibits any outside employment that would interfere with those duties. Designation of an elective or appointive office as full time shall be enacted by law.