BILL ANALYSIS                                                                                                                                                                                                    



                                                                  ACA 12
                                                                  Page  1

          ASSEMBLY THIRD READING
          ACA 12 (Papan)
          As Introduced June 6, 2001
          2/3 vote 

           ELECTIONS           8-3         APPROPRIATIONS      13-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Longville, Bill Campbell, |Ayes:|Migden, Alquist, Aroner,  |
          |     |Cardenas, Horton, Kehoe,  |     |Washington, Corbett,      |
          |     |Leonard, Oropeza, Vargas  |     |Goldberg, Papan, Pavley,  |
          |     |                          |     |Simitian, Thomson,        |
          |     |                          |     |Wesson, Wiggins, Wright   |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Ashburn, Aanestad,        |Nays:|Bates, Ashburn, Correa,   |
          |     |Daucher                   |     |Daucher, Zettel           |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           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  :  According to the Assembly Appropriations  
          Committee analysis:

          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  :  According to the author, "[t]he inability of  








                                                                  ACA 12
                                                                  Page  2

          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."

          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 (Papan), Resolution 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%.

          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.

          As a constitutional amendment, this measure will need voter  
          approval in order to take effect.
           

          Analysis Prepared by  :  Ethan Jones / E., R. & C. A. / (916)  
          319-2094 



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