SLS 19RS-92 ENGROSSED 2019 Regular Session SENATE BILL NO. 9 BY SENATOR PETERSON Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. STATE EMPLOYEE RET. Removes future employees of the Regional Transit Authority from the system and state civil service. (6/30/19) 1 AN ACT 2 To amend and reenact R.S. 48:1655(N) and 1656(2), relative to the employees of the 3 Regional Transit Authority; to provide for classification of the employees; to provide 4 for membership in the Louisiana State Employees' Retirement System; to provide for 5 calculation of and payments for certain unfunded accrued liability attributable to the 6 authority; to provide for an effective date; and to provide for related matters. 7 Notice of intention to introduce this Act has been published. 8 Be it enacted by the Legislature of Louisiana: 9 Section 1. R.S. 48:1655(N) and 1656(2) are hereby amended and reenacted to read 10 as follows: 11 §1655. Board of commissioners; membership; terms 12 * * * 13 N.(1) Notwithstanding any other provisions of law to the contrary, the 14 authority shall not be considered an instrumentality of the state for purposes of 15 Article X, Section 1(A) of the Constitution of Louisiana. No employee of the 16 authority hired on or after July 1, 2019, shall be included in the state civil 17 service system or the Louisiana State Employees' Retirement System. Page 1 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 9 SLS 19RS-92 ENGROSSED 1 (2)(a) All permanent employees of the authority hired on or before June 30, 2 2019, other than the commissioners, the secretary, the treasurer, the general counsel, 3 the general manager and his assistant shall be classified employees in the state civil 4 service system and as such shall be eligible to participate in the Louisiana State 5 Employees' Retirement System; however, no part-time employee shall participate in 6 group insurance or retirement benefits; and, further provided, that the Authority 7 benefits. The authority shall pay the employer's share of all contributions to such 8 system. Consultants or other persons or groups furnishing services under contract, 9 including but not limited to managerial, engineering, planning, or legal services, 10 shall not be a part of the state civil service system regardless of the length of their 11 contracts or the nature of the services rendered. 12 (b) Notwithstanding any other provision of law to the contrary, the 13 authority shall remit to the Louisiana State Employees' Retirement System that 14 portion of the unfunded accrued liability existing on June 30, 2019, attributable 15 to the authority. The amount due shall be determined by the actuary employed 16 by the retirement system and shall be amortized over ten years. The amount 17 shall be paid in equal monthly payments, in the same manner as regular payroll 18 payments to the retirement system. 19 §1656. General powers 20 The authority shall have all powers necessary or convenient to accomplish 21 the aforesaid purposes, including but not limited to the following: 22 * * * 23 (2) The power to appoint, select, and employ officers, agents, and employees, 24 including engineering, architectural, and construction experts, fiscal agents and 25 attorneys, to contract for the services of individuals or organizations not employed 26 full time by the authority but who are engaged primarily in the rendition of personal 27 services and not the sale of goods or merchandise, including but not limited to the 28 services of attorneys, accountants, engineers, architects, consultants, and advisors, 29 allowing them suitable compensation. Except as provided in Subsection N of Section Page 2 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 9 SLS 19RS-92 ENGROSSED 1 1655 R.S. 48:1655(N), all personnel of the authority shall be employed in 2 accordance with the constitutional provisions and rules and regulations pertaining 3 to the state classified service and full-time employees of the authority shall be 4 eligible to participate in the State Employees' Retirement System. 5 * * * 6 Section 2. This Act shall become effective on June 30, 2019; if vetoed by the 7 governor and subsequently approved by the legislature, this Act shall become effective on 8 June 30, 2019, or on the day following such approval by the legislature, whichever is later. The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Margaret M. Corley. DIGEST SB 9 Engrossed 2019 Regular Session Peterson Present law provides for the Regional Transit Authority (RTA). Present law further provides that all permanent employees of the RTA shall be classified employees in the state civil service system and as such shall be eligible to participate in the Louisiana State Employees' Retirement System (LASERS). Proposed law retains present law for all permanent employees hired on or before June 30, 2019. Present law (La. Const. Art. X, Sec. 1(A)) establishes the state civil service. Provides that regardless of the source of funding used to pay for their employment, employees of certain entities including the state and any state instrumentality are in the state civil service. Proposed law retains present law and provides that the RTA shall not be considered to be an instrumentality of the state for purposes of Article X, Section 1(A). Provides that all employees of the authority, hired on or after July 1, 2019, shall not be included in the state civil service system or LASERS. Proposed law requires the RTA to remit that portion of LASERS' unfunded accrued liability existing on June 30, 2019, attributable to the RTA. Proposed law further provides that the amount due shall be determined by the actuary employed by LASERS and shall be amortized over ten years. Present law provides for the general powers of the RTA, including the power to hire employees and to contract for services. Proposed law retains present law. Present law specifies that, except as provided in present law, all personnel of the RTA shall be employed in accordance with the constitutional provisions and rules and regulations pertaining to the state classified service. Proposed law retains present law. Present law provides that full-time employees of the RTA shall be eligible to participate in Page 3 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 9 SLS 19RS-92 ENGROSSED LASERS. Proposed law deletes present law. Effective June 30, 2019. (Amends R.S. 48:1655(N) and 1656(2)) Page 4 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.