Amended IN Assembly March 28, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1487Introduced by Assembly Member RodriguezFebruary 17, 2017 An act to amend Section 20460 of add Section 20640 to the Government Code, relating to public employees retirement. LEGISLATIVE COUNSEL'S DIGESTAB 1487, as amended, Rodriguez. Public Employees Retirement System. System: limited term appointments.Existing law, the The Public Employees Retirement Law (PERL), (PERL) establishes the Public Employees Retirement System (PERS), which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. PERL vests the Board of Administration of PERS with management and control of the system, and authorizes the board to employ certain managerial staff including an executive officer. PERL authorizes a public agency and a school employer to contract to make its their employees members of PERS, but prohibits a public agency from doing so within 3 years of termination of a previous contract. PERS. PERL establishes the compensation earnable by members of the system, defined as the members payrate and special compensation, which includes out-of-class pay for state members.This bill would make nonsubstantive changes in the provisions regarding public agency participation in PERS by contract, as described above. prohibit an out-of-class appointment by a contracting agency or school employer from exceeding 960 hours each fiscal year. The bill would define out-of-class appointment to mean an appointment to an upgraded position or higher classification by the governing body to a vacant position for a limited duration. The bill would specify that compensation for a limited duration position under these circumstances would be pursuant to a collective bargaining agreement. The bill would require an employer who violates this provision to make payments to the system for treble the amount of money that otherwise would have been paid in the form of employee and employer contributions, as specified, and to provide reimbursement for administrative expenses, as determined by the executive officer.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 20640 is added to the Government Code, to read:20640. (a) An out-of-class appointment by a contracting agency employer or a school employer shall not exceed a combined total of 960 hours in each fiscal year.(b) The compensation for an appointment described in subdivision (a) shall be pursuant to a collective bargaining agreement.(c) An employer who violates this section shall pay to the system the following:(1) An amount of money equal to three times the employee and employer contributions during the period or periods for the upgraded position or higher classification.(2) Reimbursement for administrative expenses incurred in responding to this situation, to the extent the employer is determined by the executive officer of the system to be at fault.(d) The member shall bear no liability, obligations, or expense as a result of the unlawful actions of the employer with respect to this section.(e) For purposes of this section, out-of-class appointment means an appointment of an employee to an upgraded position or higher classification by the governing body to a vacant position for a limited duration.(f) For purposes of this section, vacant position refers to a position that is vacant during recruitment for a permanent appointment. Vacant position does not refer to a position that is temporarily available due to another employees leave of absence.SECTION 1.Section 20460 of the Government Code is amended to read:20460.A public agency may participate in and make all or part of its employees members of this system by contract entered into between its governing body and the board pursuant to this part. However, a public agency shall not enter into the contract within three years of termination of a previous contract for participation. Amended IN Assembly March 28, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1487Introduced by Assembly Member RodriguezFebruary 17, 2017 An act to amend Section 20460 of add Section 20640 to the Government Code, relating to public employees retirement. LEGISLATIVE COUNSEL'S DIGESTAB 1487, as amended, Rodriguez. Public Employees Retirement System. System: limited term appointments.Existing law, the The Public Employees Retirement Law (PERL), (PERL) establishes the Public Employees Retirement System (PERS), which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. PERL vests the Board of Administration of PERS with management and control of the system, and authorizes the board to employ certain managerial staff including an executive officer. PERL authorizes a public agency and a school employer to contract to make its their employees members of PERS, but prohibits a public agency from doing so within 3 years of termination of a previous contract. PERS. PERL establishes the compensation earnable by members of the system, defined as the members payrate and special compensation, which includes out-of-class pay for state members.This bill would make nonsubstantive changes in the provisions regarding public agency participation in PERS by contract, as described above. prohibit an out-of-class appointment by a contracting agency or school employer from exceeding 960 hours each fiscal year. The bill would define out-of-class appointment to mean an appointment to an upgraded position or higher classification by the governing body to a vacant position for a limited duration. The bill would specify that compensation for a limited duration position under these circumstances would be pursuant to a collective bargaining agreement. The bill would require an employer who violates this provision to make payments to the system for treble the amount of money that otherwise would have been paid in the form of employee and employer contributions, as specified, and to provide reimbursement for administrative expenses, as determined by the executive officer.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Amended IN Assembly March 28, 2017 Amended IN Assembly March 28, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 1487 Introduced by Assembly Member RodriguezFebruary 17, 2017 Introduced by Assembly Member Rodriguez February 17, 2017 An act to amend Section 20460 of add Section 20640 to the Government Code, relating to public employees retirement. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST AB 1487, as amended, Rodriguez. Public Employees Retirement System. System: limited term appointments. Existing law, the The Public Employees Retirement Law (PERL), (PERL) establishes the Public Employees Retirement System (PERS), which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. PERL vests the Board of Administration of PERS with management and control of the system, and authorizes the board to employ certain managerial staff including an executive officer. PERL authorizes a public agency and a school employer to contract to make its their employees members of PERS, but prohibits a public agency from doing so within 3 years of termination of a previous contract. PERS. PERL establishes the compensation earnable by members of the system, defined as the members payrate and special compensation, which includes out-of-class pay for state members.This bill would make nonsubstantive changes in the provisions regarding public agency participation in PERS by contract, as described above. prohibit an out-of-class appointment by a contracting agency or school employer from exceeding 960 hours each fiscal year. The bill would define out-of-class appointment to mean an appointment to an upgraded position or higher classification by the governing body to a vacant position for a limited duration. The bill would specify that compensation for a limited duration position under these circumstances would be pursuant to a collective bargaining agreement. The bill would require an employer who violates this provision to make payments to the system for treble the amount of money that otherwise would have been paid in the form of employee and employer contributions, as specified, and to provide reimbursement for administrative expenses, as determined by the executive officer. Existing law, the The Public Employees Retirement Law (PERL), (PERL) establishes the Public Employees Retirement System (PERS), which provides a defined benefit to members of the system, based on final compensation, credited service, and age at retirement, subject to certain variations. PERL vests the Board of Administration of PERS with management and control of the system, and authorizes the board to employ certain managerial staff including an executive officer. PERL authorizes a public agency and a school employer to contract to make its their employees members of PERS, but prohibits a public agency from doing so within 3 years of termination of a previous contract. PERS. PERL establishes the compensation earnable by members of the system, defined as the members payrate and special compensation, which includes out-of-class pay for state members. This bill would make nonsubstantive changes in the provisions regarding public agency participation in PERS by contract, as described above. prohibit an out-of-class appointment by a contracting agency or school employer from exceeding 960 hours each fiscal year. The bill would define out-of-class appointment to mean an appointment to an upgraded position or higher classification by the governing body to a vacant position for a limited duration. The bill would specify that compensation for a limited duration position under these circumstances would be pursuant to a collective bargaining agreement. The bill would require an employer who violates this provision to make payments to the system for treble the amount of money that otherwise would have been paid in the form of employee and employer contributions, as specified, and to provide reimbursement for administrative expenses, as determined by the executive officer. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 20640 is added to the Government Code, to read:20640. (a) An out-of-class appointment by a contracting agency employer or a school employer shall not exceed a combined total of 960 hours in each fiscal year.(b) The compensation for an appointment described in subdivision (a) shall be pursuant to a collective bargaining agreement.(c) An employer who violates this section shall pay to the system the following:(1) An amount of money equal to three times the employee and employer contributions during the period or periods for the upgraded position or higher classification.(2) Reimbursement for administrative expenses incurred in responding to this situation, to the extent the employer is determined by the executive officer of the system to be at fault.(d) The member shall bear no liability, obligations, or expense as a result of the unlawful actions of the employer with respect to this section.(e) For purposes of this section, out-of-class appointment means an appointment of an employee to an upgraded position or higher classification by the governing body to a vacant position for a limited duration.(f) For purposes of this section, vacant position refers to a position that is vacant during recruitment for a permanent appointment. Vacant position does not refer to a position that is temporarily available due to another employees leave of absence.SECTION 1.Section 20460 of the Government Code is amended to read:20460.A public agency may participate in and make all or part of its employees members of this system by contract entered into between its governing body and the board pursuant to this part. However, a public agency shall not enter into the contract within three years of termination of a previous contract for participation. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Section 20640 is added to the Government Code, to read:20640. (a) An out-of-class appointment by a contracting agency employer or a school employer shall not exceed a combined total of 960 hours in each fiscal year.(b) The compensation for an appointment described in subdivision (a) shall be pursuant to a collective bargaining agreement.(c) An employer who violates this section shall pay to the system the following:(1) An amount of money equal to three times the employee and employer contributions during the period or periods for the upgraded position or higher classification.(2) Reimbursement for administrative expenses incurred in responding to this situation, to the extent the employer is determined by the executive officer of the system to be at fault.(d) The member shall bear no liability, obligations, or expense as a result of the unlawful actions of the employer with respect to this section.(e) For purposes of this section, out-of-class appointment means an appointment of an employee to an upgraded position or higher classification by the governing body to a vacant position for a limited duration.(f) For purposes of this section, vacant position refers to a position that is vacant during recruitment for a permanent appointment. Vacant position does not refer to a position that is temporarily available due to another employees leave of absence. SECTION 1. Section 20640 is added to the Government Code, to read: ### SECTION 1. 20640. (a) An out-of-class appointment by a contracting agency employer or a school employer shall not exceed a combined total of 960 hours in each fiscal year.(b) The compensation for an appointment described in subdivision (a) shall be pursuant to a collective bargaining agreement.(c) An employer who violates this section shall pay to the system the following:(1) An amount of money equal to three times the employee and employer contributions during the period or periods for the upgraded position or higher classification.(2) Reimbursement for administrative expenses incurred in responding to this situation, to the extent the employer is determined by the executive officer of the system to be at fault.(d) The member shall bear no liability, obligations, or expense as a result of the unlawful actions of the employer with respect to this section.(e) For purposes of this section, out-of-class appointment means an appointment of an employee to an upgraded position or higher classification by the governing body to a vacant position for a limited duration.(f) For purposes of this section, vacant position refers to a position that is vacant during recruitment for a permanent appointment. Vacant position does not refer to a position that is temporarily available due to another employees leave of absence. 20640. (a) An out-of-class appointment by a contracting agency employer or a school employer shall not exceed a combined total of 960 hours in each fiscal year.(b) The compensation for an appointment described in subdivision (a) shall be pursuant to a collective bargaining agreement.(c) An employer who violates this section shall pay to the system the following:(1) An amount of money equal to three times the employee and employer contributions during the period or periods for the upgraded position or higher classification.(2) Reimbursement for administrative expenses incurred in responding to this situation, to the extent the employer is determined by the executive officer of the system to be at fault.(d) The member shall bear no liability, obligations, or expense as a result of the unlawful actions of the employer with respect to this section.(e) For purposes of this section, out-of-class appointment means an appointment of an employee to an upgraded position or higher classification by the governing body to a vacant position for a limited duration.(f) For purposes of this section, vacant position refers to a position that is vacant during recruitment for a permanent appointment. Vacant position does not refer to a position that is temporarily available due to another employees leave of absence. 20640. (a) An out-of-class appointment by a contracting agency employer or a school employer shall not exceed a combined total of 960 hours in each fiscal year.(b) The compensation for an appointment described in subdivision (a) shall be pursuant to a collective bargaining agreement.(c) An employer who violates this section shall pay to the system the following:(1) An amount of money equal to three times the employee and employer contributions during the period or periods for the upgraded position or higher classification.(2) Reimbursement for administrative expenses incurred in responding to this situation, to the extent the employer is determined by the executive officer of the system to be at fault.(d) The member shall bear no liability, obligations, or expense as a result of the unlawful actions of the employer with respect to this section.(e) For purposes of this section, out-of-class appointment means an appointment of an employee to an upgraded position or higher classification by the governing body to a vacant position for a limited duration.(f) For purposes of this section, vacant position refers to a position that is vacant during recruitment for a permanent appointment. Vacant position does not refer to a position that is temporarily available due to another employees leave of absence. 20640. (a) An out-of-class appointment by a contracting agency employer or a school employer shall not exceed a combined total of 960 hours in each fiscal year. (b) The compensation for an appointment described in subdivision (a) shall be pursuant to a collective bargaining agreement. (c) An employer who violates this section shall pay to the system the following: (1) An amount of money equal to three times the employee and employer contributions during the period or periods for the upgraded position or higher classification. (2) Reimbursement for administrative expenses incurred in responding to this situation, to the extent the employer is determined by the executive officer of the system to be at fault. (d) The member shall bear no liability, obligations, or expense as a result of the unlawful actions of the employer with respect to this section. (e) For purposes of this section, out-of-class appointment means an appointment of an employee to an upgraded position or higher classification by the governing body to a vacant position for a limited duration. (f) For purposes of this section, vacant position refers to a position that is vacant during recruitment for a permanent appointment. Vacant position does not refer to a position that is temporarily available due to another employees leave of absence. A public agency may participate in and make all or part of its employees members of this system by contract entered into between its governing body and the board pursuant to this part. However, a public agency shall not enter into the contract within three years of termination of a previous contract for participation.