BILL NUMBER: AB 738INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Hagman FEBRUARY 17, 2011 An act to add Sections 22119.6 and 22603 to the Education Code, and to amend Sections 9355.4, 9355.41, 20322, 31553, and 31641 of, and to add Sections 7514.51, 9355.42, 20302, 20890.5, 31553.5, 31641.5, 45310.2, and 50805.5 to, the Government Code, relating to public employees' retirement. LEGISLATIVE COUNSEL'S DIGEST AB 738, as introduced, Hagman. Public employees' retirement: 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. Existing law prohibits Members of the Legislature elected on or after November 1, 1990, from accruing any retirement or pension benefit, provided that other elective officers provided for by the California Constitution may elect to become members of Legislators' Retirement System. 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 publicly elected to an office of any kind, on and after January 1, 2012, 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 also apply these prohibitions to a person who is appointed to fill the term of a person so elected. The bill would except from this prohibition a person who obtained membership by virtue of holding an elective public office prior to January 1, 2012, and remains in that office or is reelected to it. 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 office. SEC. 2. Section 22603 is added to the Education Code, to read: 22603. (a) Notwithstanding any other law, a person who is publicly elected to an office of any kind, on and after January 1, 2012, 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. This section shall apply equally to a person who is appointed to fill the term of a person so elected. (b) This section shall not apply to a person who obtained membership by virtue of holding an elective public office prior to January 1, 2012, for so long as he or she holds that office or is reelected 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 publicly elected to an office of any kind, on and after January 1, 2012, 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. This section shall apply equally to a person who is appointed to fill the term of a person so elected. (b) This section shall not apply to a person who obtained membership by virtue of holding an elective public office prior to January 1, 2012, for so long as he or she holds that office or is reelected to that office. SEC. 4. Section 9355.4 of the Government Code is amended to read: 9355.4.EveryExcept as provided in Section 9355.42, every elective officer of the state whose office is provided for by the California Constitution, except judges, may become a member of this system. Except for judges, every elective officer in office at the time this section becomes effective may, within 90 days after the effective date, file with the board a written election to become a member of this system. Except for judges, every elective officer elected after the effective date of this section may file an election within 90 days after the commencement of the first term of office for which he or she is elected. Upon the filing of the election he or she becomes a member of this system on the first day of the month following the filing of the election. SEC. 5. Section 9355.41 of the Government Code is amended to read: 9355.41.TheExcept as provided in Section 9355.42, the Insurance Commissioner may become a member of this system as provided in this section. An Insurance Commissioner who is elected after January 1, 1994, may file an election within 90 days after the commencement of the term of office for which he or she is elected. Upon the filing of the election he or she becomes a member of this system on the first day of the month following the filing of the election. SEC. 6. Section 9355.42 is added to the Government Code, to read: 9355.42. (a) Notwithstanding any other law, a person who is publicly elected to an office of any kind, on and after January 1, 2012, 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. This section shall apply equally to a person who is appointed to fill the term of a person so elected. (b) This section shall not apply to a person who obtained membership by virtue of holding an elective public office prior to January 1, 2012, for so long as he or she holds that office or is reelected to that office. SEC. 7. Section 20302 is added to the Government Code, to read: 20302. (a) Notwithstanding any other law, a person who is publicly elected to an office of any kind, on and after January 1, 2012, 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. This section shall apply equally to a person who is appointed to fill the term of a person so elected. (b) This section shall not apply to a person who obtained membership by virtue of holding an elective public office prior to January 1, 2012, for so long as he or she holds that office or is reelected to that office. SEC. 8. 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. 9. 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 an elective office. SEC. 10. 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. 11. Section 31553.5 is added to the Government Code, to read: 31553.5. (a) Notwithstanding any other law, a person who is publicly elected to an office of any kind, on and after January 1, 2012, 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. This section shall apply equally to a person who is appointed to fill the term of a person so elected. (b) This section shall not apply to a person who obtained membership by virtue of holding an elective public office prior to January 1, 2012, for so long as he or she holds that office or is reelected to that office. SEC. 12. 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 earnable compensation from the county or district for such service while he 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 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. 13. 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 an elective office. SEC. 14. Section 45310.2 is added to the Government Code, to read: 45310.2. (a) Notwithstanding any other law, a person who is publicly elected to an office of any kind, on and after January 1, 2012, 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. This section shall apply equally to a person who is appointed to fill the term of a person so elected. (b) This section shall not apply to a person who obtained membership by virtue of holding an elective public office prior to January 1, 2012, for so long as he or she holds that office or is reelected to that office. SEC. 15. Section 50805.5 is added to the Government Code, to read: 50805.5. (a) Notwithstanding any other law, a person who is publicly elected to an office of any kind, on and after January 1, 2012, 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. This section shall apply equally to a person who is appointed to fill the term of a person so elected. (b) This section shall not apply to a person who obtained membership by virtue of holding an elective public office prior to January 1, 2012, for so long as he or she holds that office or is reelected to that office. SEC. 16. The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.