HLS 12RS-343 ORIGINAL Page 1 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2012 HOUSE BILL NO. 54 BY REPRESENTATIVE PEARSON RETIREMENT/STATE SYSTEMS: Provides relative to membership on the boards of state retirement systems AN ACT1 To amend and reenact R.S. 11:511, 822(A) and (B), 1162(A), and 1164, relative to state2 retirement systems; to provide relative to the membership of the boards of trustees3 of the Louisiana State Employees' Retirement System, the Teachers' Retirement4 System of Louisiana, and the Louisiana School Employees' Retirement System, and5 to provide for related matters.6 Notice of intention to introduce this Act has been published7 as provided by Article X, Section 29(C) of the Constitution8 of Louisiana.9 Be it enacted by the Legislature of Louisiana:10 Section 1. R.S. 11:511, 822(A) and (B), 1162(A), and 1164 are hereby amended and11 reenacted to read as follows:12 §511. Composition of board of trustees13 The board of trustees shall consist of twelve members, as follows:14 (1) The chairman of the Retirement Committee of the House of15 Representatives, ex officio, or his designee.16 (2) The chairman of the Retirement Committee of the Senate, ex officio, or17 his designee.18 (3) The treasurer of the state of Louisiana, ex officio, or his designee.19 (4) The commissioner of administration, ex officio, or his designee.20 HLS 12RS-343 ORIGINAL HB NO. 54 Page 2 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (5) Six trustees who shall be active employees and members of the system1 with at least ten years of creditable service and who shall be elected by the members2 of the system for a term of four years to succeed members whose terms expire under3 rules and regulations adopted by the board to govern the elections. However, those4 trustees whose terms begin on or after January 1, 1998, shall be eligible to serve only5 three consecutive four-year terms, to include any term served as an active or retired6 member. Upon the completion of the third consecutive four-year term, the trustee7 shall be ineligible for a fourth consecutive term of office. An active member who8 retires while serving on the board shall be allowed to remain on the board for the9 remainder of the term for which elected. The director, assistant directors, chief10 investment officer, and other employees of the staff of the system shall be ineligible11 for membership on the board, and no member of the board elected under this Section12 shall be eligible for one of these positions for a period of two years after the13 termination of their service on the board. No department in the executive branch of14 state government, as more particularly described in Title 36 of the Louisiana Revised15 Statutes of 1950, as amended and revised, may have more than two trustees serving16 on the board at the same time. The candidate or candidates who have received the17 highest and next highest vote tallies, and who do not violate the prohibition against18 more than two trustees serving from the same department, shall be declared the19 elected trustee or trustees.20 (5) (6) Three trustees who are retired members of the system and who shall21 represent the retired members of the system. The retired trustees shall be elected by22 the retired members of the system for a term of four years. However, those trustees23 whose terms begin on or after January 1, 1998, shall be eligible to serve only three24 consecutive four-year terms, to include any term served as an active or retired25 member. Upon the completion of the third consecutive four-year term, the trustee26 shall be ineligible for a fourth consecutive term of office. The election shall be held27 in accordance with the rules adopted by the board to govern the elections of trustees.28 Vacancies shall be filled in accordance with R.S. 11:512.29 HLS 12RS-343 ORIGINAL HB NO. 54 Page 3 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. * * *1 §822. Members of board of trustees; appointment or election; terms of office;2 vacancies; compensation3 A. The board shall consist of such trustees as follows:4 (1) The state superintendent of public education, or his first assistant,5 appointed pursuant to Article IV, Section 13 of the Louisiana Constitution of 1974,6 ex officio, or his designee.7 (2) One voting member representing the members paid by school food8 service funds shall be elected by a majority of said the members for a four-year term.9 (3) The state treasurer, ex officio, or his designee.10 (4) The commissioner of administration, ex officio, or his designee.11 (5) The chairman of the Retirement Committee of the House of12 Representatives of the Louisiana Legislature, ex officio, or his designee.13 (5) (6) The chairman of the Retirement Committee of the Senate of the14 Louisiana Legislature, ex officio, or his designee.15 (6) (7) One voting member representing the state colleges and universities16 at large shall be elected by a majority of the members of the Teachers' Retirement17 System of Louisiana employed by the colleges and universities of the state for a18 four-year term.19 (7) (8) One voting member from and to represent each of seven districts, to20 be elected by a majority of the members employed in the respective districts to a21 four-year term, except those members who are employed by the state colleges and22 universities and who elect a representative under Paragraph (6) (7) of this Subsection23 and those members paid by school food service funds and who elect a representative24 under Paragraph (2) of this Subsection and who shall not be a parish or city25 superintendent of schools. The seven districts shall be composed of parishes as26 follows:27 (a) District 1: Ascension, St. James, St. John the Baptist, St. Charles,28 Jefferson, Plaquemines, St. Bernard.29 HLS 12RS-343 ORIGINAL HB NO. 54 Page 4 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (b) District 2: Washington, St. Tammany, Orleans.1 (c) District 3: East Baton Rouge, Iberville, Assumption, Lafourche,2 Terrebonne.3 (d) District 4: Caddo, Bossier, Webster, Claiborne, De Soto DeSoto, Red4 River, Bienville, Lincoln, Sabine, Natchitoches.5 (e) District 5: Union, Morehouse, West Carroll, East Carroll, Jackson,6 Ouachita, Richland, Madison, Caldwell, Franklin, Tensas, Catahoula, Concordia,7 West Feliciana, East Feliciana, St. Helena, Livingston, Tangipahoa.8 (f) District 6: Winn, Grant, LaSalle, Vernon, Rapides, Avoyelles,9 Beauregard, Allen, Evangeline, St. Landry, Pointe Coupee, Jefferson Davis, St.10 Martin, West Baton Rouge.11 (g) District 7: Calcasieu, Acadia, Cameron, Vermilion, Lafayette, Iberia, St.12 Mary.13 (8) (9) Two voting members to represent the retired teachers shall be elected14 by a majority of those voting retired members of the Teachers' Retirement System15 of Louisiana for a four-year term.16 (9) (10) One voting member, who shall be a parish or city superintendent of17 schools, shall be elected by all parish and city superintendents of schools in18 Louisiana, for a four-year term.19 B. There shall be no restriction as to type of employment or position held as20 a qualification for any member seeking election under Paragraphs (6) through (8) of21 Subsection A (A)(7) through (9) of this Section; however, an elected member of the22 board who has served at least twelve months of his term shall be eligible to continue23 as a member of the board following the effective date of his retirement from the24 system, until the expiration of the term for which he was elected; however, no25 elected member of the board shall be eligible to continue as a member of the board26 after December thirty-first following any change in his principal residence,27 employment, or status which would otherwise render him ineligible to become a28 candidate for the position to which he was previously elected.29 HLS 12RS-343 ORIGINAL HB NO. 54 Page 5 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. * * *1 §1162. Members of board of trustees; appointment or election; terms of office;2 vacancies; compensation3 A. The board shall consist of eleven trustees, as follows:4 (1) President of the Louisiana School Bus Operators' Association, ex officio.5 (2) Chairman of the Appropriations Retirement Committee of the House of6 Representatives, ex officio, or his designee.7 (3) Chairman of the Retirement Committee of the Senate, ex officio, or his8 designee.9 (4) The secretary of state, ex officio , or his designee.10 (5) The state treasurer, ex officio, or his designee.11 (6) The commissioner of administration, ex officio, or his designee.12 (6)(a) (7)(a) Four members of the system shall be elected by the members13 of the retirement system for a term of four years each, according to such rules and14 regulations as the board of trustees shall adopt to govern such elections. Except as15 otherwise provided in this Paragraph, each board member shall be a resident of the16 district represented. The districts will elect a member for a four-year term with the17 elections staggered so as to elect one member each year. Participation in the18 Deferred Retirement Option Plan shall not cause a member to be ineligible for19 candidacy in an election for the active member position on the board of trustees.20 Any member of this system who is elected to serve as a representative of the active21 members on the board of trustees and who, after such election, either commences22 participation in the Deferred Retirement Option Plan or retires shall not have his23 term of office as a trustee affected by either of those events.24 (b) Beginning March 1, 1997, and until December 31, 2008, the districts25 shall be composed of the following parishes:26 (i) District 1: Assumption, Jefferson, Lafourche, Orleans, Plaquemines, St.27 Bernard, St. Charles, St. James, St. John the Baptist, and Terrebonne.28 HLS 12RS-343 ORIGINAL HB NO. 54 Page 6 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (ii) District 2: Ascension, East Baton Rouge, East Feliciana, Iberville,1 Lafayette, Livingston, St. Helena, St. Martin, St. Tammany, Tangipahoa,2 Washington, West Baton Rouge, and West Feliciana.3 (iii) District 3: Bienville, Bossier, Caddo, Caldwell, Catahoula, Claiborne,4 Concordia, DeSoto, East Carroll, Franklin, Jackson, LaSalle, Lincoln, Madison,5 Morehouse, Ouachita, Red River, Richland, Tensas, Union, Webster, West Carroll,6 and Winn.7 (iv) District 4: Acadia, Allen, Avoyelles, Beauregard, Calcasieu, Cameron,8 Evangeline, Grant, Iberia, Jefferson Davis, Natchitoches, Pointe Coupee, Rapides,9 Sabine, St. Landry, St. Mary, Vermilion, and Vernon.10 (c) Each member elected pursuant to this Paragraph who takes office on or11 after January 1, 2009, shall be elected from districts composed as provided in this12 Subparagraph. Each member serving on December 31, 2008, who was elected to13 represent a district as provided in Subparagraph (b) of this Paragraph shall represent14 the district as provided in this Subparagraph having the same number designation as15 the district as provided in Subparagraph (b) of this Paragraph from which the16 member was elected until the expiration of his term of office, whether or not he is17 a resident of the district as provided in this Subparagraph. Each successor of a18 member serving on December 31, 2008, who was elected to represent a district as19 provided in Subparagraph (b) of this Paragraph shall be elected from the district as20 provided in this Subparagraph having the same number designation and shall be a21 resident of the district as provided in this Subparagraph. On January 1, 2009, and22 thereafter, the districts shall be composed of the following parishes:23 (i) District 1: Assumption, Iberia, Iberville, Jefferson, Lafayette, Lafourche,24 Orleans, Plaquemines, St. Bernard, St. Charles, St. James, St. John the Baptist, St.25 Martin, St. Mary, and Terrebonne.26 (ii) District 2: Ascension, East Baton Rouge, East Feliciana, Livingston, St.27 Helena, St. Tammany, Tangipahoa, Washington, West Baton Rouge, and West28 Feliciana.29 HLS 12RS-343 ORIGINAL HB NO. 54 Page 7 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (iii) District 3: Bienville, Bossier, Caddo, Caldwell, Catahoula, Claiborne,1 Concordia, East Carroll, Franklin, Jackson, Lincoln, Madison, Morehouse, Ouachita,2 Richland, Tensas, Union, Webster, and West Carroll.3 (iv) District 4: Acadia, Allen, Avoyelles, Beauregard, Calcasieu, Cameron,4 Desoto DeSoto, Evangeline, Grant, Jefferson Davis, LaSalle, Natchitoches, Pointe5 Coupee, Rapides, Red River, Sabine, St. Landry, Vermilion, Vernon, and Winn.6 (7) (8) Two retired members elected at large by the retirees of the retirement7 system, provided the members' terms of office are for the same duration, but8 staggered so that the beginning and ending years of each member's term are not on9 the same year, and the member's terms and elections shall be governed according to10 rules and regulations adopted by the board of trustees.11 * * *12 §1164. Voting power of trustees; votes necessary for action of board 13 Each trustee shall be entitled to one vote in the board. Five Six votes shall14 be necessary for a decision by the trustees at any meeting of the board.15 Section 2. This Act shall become effective on June 30, 2012; if vetoed by the16 governor and subsequently approved by the legislature, this Act shall become effective on17 June 30, 2012, or on the day following such approval by the legislature, whichever is later.18 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Pearson HB No. 54 Abstract: Adds the commissioner of administration or his designee to the boards of the La. State Employees' Retirement System (LASERS), Teachers' Retirement System of La. (TRSL), and La. School Employees' Retirement System (LSERS) and authorizes the appointment of designees for all ex officio members of these boards of trustees. Present law provides relative to the membership of the boards of LASERS, TRSL, and LSERS. Proposed law adds the commissioner of administration or his designee to the boards of LASERS, TRSL, and LSERS. Present law provides for various ex officio members of the board of each retirement system and authorizes some ex officio members to designate someone to serve for them. Proposed law authorizes the remaining ex officio members to name a designee and makes other changes as follows: HLS 12RS-343 ORIGINAL HB NO. 54 Page 8 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. LASERS: the chairmen of the House and Senate retirement committees and the treasurer are authorized to name a designee. TRSL: the treasurer and the state superintendent of education are authorized to name a designee. Proposed law also removes specific reference to the superintendent designating his first assistant. LSERS: the treasurer, the secretary of state, and the chairman of the Senate Retirement Committee are authorized to name a designee. Proposed law also replaces the chairman of the House Appropriations Committee with the chairman of the House Retirement Committee and authorizes the latter to name a designee. Effective June 30, 2012. (Amends R.S. 11:511, 822(A) and (B), 1162(A), and 1164)