BILL ANALYSIS                                                                                                                                                                                                    



                                                                  ACA 12
                                                                  Page  1

          Date of Hearing:   September 6, 2001

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Carole Migden, Chairwoman

                    ACA 12 (Papan) - As Introduced:  June 6, 2001 

          Policy Committee:                              ElectionsVote:8-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill proposes voter approval of a constitutional amendment  
          allowing legislators to accrue retirement benefits if they were  
          a member of a public retirement system prior to their election.

           FISCAL EFFECT  

          1)One-time General Fund costs of about $220,000 for printing the  
            text of the measure and arguments for and against the measure  
            in the voter pamphlet.

          2)Unknown additional costs to public pensions.  Costs would  
            depend on the number of legislators with prior membership in  
            public pension systems, the number of years of service in  
            those systems, and the type of retirement benefits available  
            in those systems.

           COMMENTS  

           1)Purpose  .  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  








                                                                  ACA 12
                                                                  Page  2

            state government."   

           2)Background  .  Proposition 140, which this measure seeks to  
            amend, was approved by the voters in the 1990 statewide  
            general election.  Proposition 140 imposed legislative term  
            limits and prohibited legislators from participating in state  
            retirement systems.  ACA 12 (Papan), Res. Chapter 83, Statutes  
            of 2000, which was placed on the November 2000 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%.  

           3)Related Legislation  .  A companion measure to this bill, AB  
            1190 (Papan), pending in the Assembly Banking and Finance  
            Committee, makes various changes relating to reciprocity of  
            retirement benefits between public retirement systems.   
            According to the author's office, these changes would be  
            necessary upon approval of ACA 12 because existing law imposes  
            time limits that could prevent reciprocity between  
            legislators' retirement systems.  

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916)319-2081