BILL ANALYSIS ACA 12 Page 1 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 Page 2 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