Louisiana 2012 Regular Session

Louisiana House Bill HB10 Latest Draft

Bill / Chaptered Version

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ACT No. 479
Regular Session, 2012
HOUSE BILL NO. 10
BY REPRESENTATIVES LIGI, ABRAMSON, ADAMS, ARNOLD, BILLIOT, STUART
BISHOP, BROADWATER, BROSSETT, BURFORD, TIM BURNS,
CHAMPAGNE, CHANEY, DANAHAY, DIXON, EDWARDS, GAINES,
GAROFALO, GISCLAIR, GUINN, HARRIS, HARRISON, HAVARD, HENRY,
HENSGENS, HOFFMANN, HOLLIS, HOWARD, JONES, KLECKLEY, NANCY
LANDRY, LEGER, LORUSSO, MORENO, ORTEGO, PEARSON, PYL ANT,
REYNOLDS, RITCHIE, SCHRODER, SEABAUGH, ST. GERMAIN, TALBOT,
THIBAUT, THOMPSON, WHITNEY, AND WILLMOTT
AN ACT1
To amend and reenact the heading of Subpart L of Part II of Chapter 4 of Subtitle I of Title2
11 of the Louisiana Revised Statutes of 1950 and to enact R.S.11:272(E) and 293,3
relative to retirement benefits; to provide relative to public servants  who are4
members, former members, or retirees of public retirement systems; to provide for5
eligibility to receive such benefits; to provide relative to forfeiture of a portion of6
retirement benefits by such persons who are convicted of certain felonies related to7
their offices; to provide relative to amounts awarded to spouses or dependents; to8
provide relative to restitution; to provide relative to the rights of spouses and former9
spouses; to provide relative to the employer and employee contributions made on10
behalf of such persons; to require the Department of Public Safety and Corrections11
and the secretary of state to report such office-related felonies; and to provide for12
related matters.13
Notice of intention to introduce this Act has been published14
as provided by Article X, Section 29(C) of the Constitution15
of Louisiana.16
Be it enacted by the Legislature of Louisiana:17
Section 1. The heading of Subpart L of Part II of Chapter 4 of Subtitle I of Title 1118
of the Louisiana Revised Statutes of 1950 is hereby amended and reenacted and19
R.S.11:272(E) and 293 are hereby enacted to read as follows:20 ENROLLEDHB NO. 10
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§272.  Early retirement eligibility1
*          *          *2
E. Notwithstanding any provision of law to the contrary, service credit3
originally earned on or before September 1, 1985, in a retirement system named in4
Subsection A of this Section shall be utilized to determine applicability of the5
provisions of Subsection B of this Section, even if the member received a refund of6
contributions for such service, provided that the member has repaid the refund prior7
to application for retirement.8
*          *          *9
SUBPART L.  APPLICABILITY OF CERTAIN COURT ORDERS10
LEGAL DETERMINATIONS11
*          *          *12
§293.  Forfeiture of retirement benefits; public corruption crimes13
A. As used in this Section, the following words or phrases shall have the14
following meanings:15
(1) "Conviction" or "convicted" means a criminal conviction, guilty plea, or16
plea of nolo contendere that is final, and all appellate review of the original trial17
court proceedings is exhausted.18
(2) "Public corruption crime" means a state or federal felony committed on19
or after January 1, 2013, in which the sentencing judge finds the public servant acted20
willfully and in the course and scope of his official capacity and the evidence21
establishes either of the following:22
(a) The public servant realized or attempted to realize a financial profit or23
a financial gain for himself or for a third party.24
(b)  The public servant committed any criminal sexual act with or upon the25
person of a minor, and there was a direct association between the public servant and26
the minor related to the public servant's employment.27
(3) "Public retirement system" means any state, statewide, or any local28
public retirement system, plan, or fund.29 ENROLLEDHB NO. 10
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(4) "Public servant" means a public employee or an elected official as1
defined in R.S. 42:1102 who is a member, former member, deferred retirement2
option plan participant, or retiree under the provisions of any public retirement3
system and who meets any of the following criteria:4
(a) His first employment making him eligible for membership in a public5
retirement system began on or after January 1, 2013.6
(b) He was employed in a position making him eligible for membership in7
a public retirement system prior to January 1, 2013, but he terminated his service8
prior to that date and is reemployed in such a position on or after that date.9
(c) He assumes an elective office on or after January 1, 2013, and by virtue10
of that service or previous public service he is eligible for membership in a public11
retirement system.12
B.(1) Following  the conviction of a public corruption crime, the sentencing13
court shall determine if the conviction warrants forfeiture as provided in this14
Subsection or garnishment as provided in R.S. 11:292. In order to determine the15
appropriate remedy the sentencing court shall review the following factors:16
(a)  The nature of the offense.17
(b) The prior service of the public servant and the appropriateness of any18
mitigating factors.19
(2)(a) If the court determines that forfeiture is appropriate, the court may20
order the forfeiture of the public servant's right to receive any benefit or payment of21
any kind under this Title except a return of the amount contributed by the public22
servant to the retirement system without interest, subject to Subparagraph (b) of this23
Paragraph.24
(b)  If the court orders the public servant to make restitution to the state or25
any political subdivision of the state for monetary loss incurred as a result of the26
public corruption crime for which he is convicted, the court may order restitution to27
be paid from the amount contributed by the public servant to the retirement system.28
(c) Subject to the requirements of Paragraph (3) of this Subsection, the court29
may award to the member's spouse, dependent, or former spouse, as an alternate30 ENROLLEDHB NO. 10
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payee, some or all of the amount that, but for the order of forfeiture under1
Subparagraph (a) of this Paragraph, may otherwise be payable.  Upon order of the2
court, the retirement system shall provide information concerning the member's3
membership that the court considers relevant to the determination of the amount of4
an award under this Subparagraph. The system shall also calculate the spousal share5
of the public servant's benefit for the sentencing court in accordance with existing6
community property law. Any dependent's share shall be calculated in the same7
manner as a spousal share. In determining the award, the court shall consider the8
totality of the circumstances, including but not limited to:9
(i) The role, if any, of the member's spouse, dependent, or former spouse in10
connection with the crime.11
(ii) The degree of knowledge, if any, possessed by the member's spouse,12
dependent, or former spouse in connection with the crime.13
(3) An award ordered under Subparagraph (2)(c) of this Subsection may not14
require the retirement system to:15
(a) Provide a type or form of benefit or an option not otherwise provided by16
the retirement system.17
(b)  Provide increased benefits determined on the basis of actuarial value.18
(c) Take an action contrary to the system's governing laws or plan provisions19
other than the direct payment of the benefit awarded to the spouse, dependent, or20
former spouse.21
(4)  All of the convicted public servant's service credit attributable to22
employer contributions and interest on those contributions that are not otherwise23
assigned pursuant to Subparagraph (2)(c) of this Subsection shall be forfeited, and24
any dollar amount of such employer contributions and interest, together with any25
funds in the individual's deferred retirement option plan account, shall be applied to26
reducing the balance of the unfunded accrued liability of the system in a manner27
determined by the system's board of trustees. If the system has no unfunded accrued28
liability, the employer contributions and interest shall revert to the system's trust.29 ENROLLEDHB NO. 10
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C. Notwithstanding the provisions of Subsection B of this Section, survivor1
benefits being received by the surviving unmarried spouse, the surviving minor2
child, or the surviving physically or mentally handicapped child who is entitled to3
a survivor benefit of a deceased public servant convicted of a public corruption crime4
shall be based solely on the amount of the public servant's benefit forfeited to the5
retirement system and shall not be based on any amount remitted to the public6
servant.7
D.  No provision of this Section shall impinge on any judicially recognized8
community property interest of a current or former spouse.9
E. Each public retirement system shall create an attestation form explaining10
the provisions of this Section and shall provide such attestation form to each11
employing agency.  Each employing agency shall provide every public servant with12
such attestation form and such public servant shall be required to sign the form13
indicating that  he  has read it and understands the contents thereof.14
F.(1)  A parish prosecutor shall inform the secretary of the Department of15
Public Safety and Corrections in writing when a conviction for a state public16
corruption crime is entered against a person who the prosecutor knows, or has reason17
to believe, is a member of a public retirement system and who is subject to the18
provisions of this Section.  The secretary shall compile such information and19
transmit it to the appropriate public retirement system.20
(2) The secretary of state, upon being notified by a United States attorney of21
a felony conviction for a federal public corruption crime, whether or not such22
conviction qualifies as a conviction as defined by this Section, shall promptly23
transmit to each public retirement system information pertaining to such conviction.24
G. The provisions of this Section shall apply only to benefits earned on or25
after January 1, 2013.26 ENROLLEDHB NO. 10
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Section 2. This Act shall take effect and become operative if and when the proposed1
amendment of Article X of the Constitution of Louisiana contained in the Act which2
originated as House Bill No. 9 of this 2012 Regular Session of the Legislature is adopted at3
a statewide election and becomes effective.4
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: