BILL ANALYSIS                                                                                                                                                                                                    



                                                                  ACA 12
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          Date of Hearing:   August 28, 2001

                ASSEMBLY COMMITTEE ON ELECTIONS, REAPPORTIONMENT AND  
                              CONSTITUTIONAL AMENDMENTS
                                John Longville, Chair
                    ACA 12 (Papan) - As Introduced:  June 6, 2001
           
          SUBJECT  :   Legislature: retirement.

           SUMMARY  :   Authorizes a legislator to accrue pension or  
          retirement benefits as a result of his or her service in the  
          Legislature if the person was a member of a public retirement  
          system prior to election to the Legislature.  Makes minor,  
          technical changes to existing law.

           EXISTING LAW  prohibits the accrual of pension or retirement  
          benefits as a result of service in the Legislature, other than  
          federal social security benefits, by Members of the Legislature  
          elected or serving after November 1, 1990.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Purpose of the Bill  :  According to the author, "[t]he  
            inability of Legislators to participate in a retirement plan  
            deprives their family of receiving any benefits, including  
            death benefits should the member pass away unexpectedly. . . .  
            Many Legislators come from public service backgrounds.  For  
            instance, many of the current members have . . . served our  
            communities diligently as teachers, civil servants or elected  
            officials at the municipal and county levels.  By continuing  
            their public service as state Legislators, members have  
            demonstrated their commitment to solving [society's] problems  
            and making government work for their constituents.  As such,  
            Legislators should be able to participate in the same  
            retirement plan that is available to those employed by the  
            state government."

           2)Proposition 140 (1990)  :  Approved by voters in the 1990  
            statewide general election, Proposition 140 imposed  
            legislative term limits and prohibited legislators from  
            participating in state retirement systems.  This measure seeks  
            to amend Section 4.5 of Article IV of the California  
            Constitution, which was added by Proposition 140.








                                                                  ACA 12
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           3)Proposition 33 (2000)  :  ACA 12 (Papan), Res. Chapter 83,  
            Statutes of 2000, which was placed on the 2000 statewide  
            general election ballot as Proposition 33, would have  
            authorized legislative participation in the Public Employees'  
            Retirement System.  Proposition 33 was rejected by voters by a  
            margin of 61% to 39%.

           4)Related Legislation  :  A companion measure to this bill, AB  
            1190 (Papan), pending in the Assembly Banking and Finance  
            Committee, makes various changes to sections of the Government  
            Code relating to reciprocity of retirement benefits between  
            public retirement systems.  According to the author's office,  
            these changes would be necessary upon approval of this measure  
            because existing law imposes time limits that could prevent  
            reciprocity between legislators' retirement systems as  
            authorized by this measure.

           5)Approval by Voters  :  As a constitutional amendment, this  
            measure will need voter approval in order to take effect.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Ethan Jones / E., R. & C. A. / (916)  
          319-2094