BILL ANALYSIS
ACA 12
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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
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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