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SB-300 Public employees’ retirement: fiscal impact: information. (2023-2024)



Current Version: 05/03/23 - Amended Senate

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SB300:v98#DOCUMENT

Amended  IN  Senate  May 03, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 300

Introduced by Senator Seyarto
(Coauthors: Senators Niello, Ochoa Bogh, and Wilk)

February 02, 2023

An act to add Section 20005 Sections 7513.2 and 9144.5 to the Government Code, relating to public employees’ retirement.


LEGISLATIVE COUNSEL'S DIGEST


SB 300, as amended, Seyarto. Public employees’ retirement: fiscal impact: information.
The Public Employees’ Retirement Law (PERL) establishes the Public Employees’ Retirement System (PERS) and sets forth the provisions for its administration and the delivery of benefits to its members. Existing law establishes PERS’ Board of Administration and grants management and control of PERS to the board. The California Constitution grants the board retirement board of a public retirement system plenary authority and fiduciary responsibility for investment of moneys and administration of the retirement fund and system. the system. The California Constitution qualifies this grant of powers by reserving to the Legislature the authority to prohibit investments if it is in the public interest and the prohibition satisfies standards of fiduciary care and loyalty required of the board. public retirement system’s board.
Existing law establishes the Joint Legislative Budget Committee to ascertain facts and make recommendations to the Legislature and to the houses thereof concerning the state budget, the revenues and expenditures of the state, the organization and functions of the state, its departments, subdivisions and agencies, and such matters as may be provided for in the Joint Rules of the Senate and Assembly, and grants the committee the authority to appoint a legislative analyst who is also referred to as the Legislative Auditor or Legislative Analyst.
This bill would require any bill, the Legislative Analyst to prepare a pension fiscal impact analysis on any measure introduced on or after January 1, 2024, that is referred to the Senate Labor, Public Employment and Retirement Committee and relates to PERS to include a fiscal impact analysis from the Legislative Analyst’s Office that describes the fiscal impact of the bill on PERS and what the outcome of the bill would be if implemented. Committee, or any successor committee, as specified, and that requires a public retirement system to take prescribed action, including the divestiture of an existing investment. The bill would require the California Actuarial Advisory Panel and the affected public retirement system to provide assistance to the Legislative Analyst in preparing the analysis. By requiring the boards of local public retirement systems to take specified actions, this bill would impose a state-mandated local program. The bill would require the Legislative Analyst to develop specified criteria, including, at a minimum, the likely short-term and long-term costs to the General Fund, as prescribed.
This bill would prohibit a member of the Legislature from presenting any measure for which the Legislative Analyst must prepare a pension fiscal impact analysis under the bill’s provisions until the Legislative Analyst posts the completed analysis on its website and transmits it to the legislative committee.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 7513.2 is added to the Government Code, to read:

7513.2.
 Notwithstanding any other provision of law, before a Member of the Legislature may present in a legislative committee of the Senate any measure for which the Legislative Analyst must prepare a pension fiscal impact analysis pursuant to Section 9144.5, the Legislative Analyst shall post the completed analysis publicly on its website and transmit it to the legislative committee.

SEC. 2.

 Section 9144.5 is added to the Government Code, to read:

9144.5.
 (a) The Legislative Analyst shall prepare a pension fiscal impact analysis on any measure introduced on or after January 1, 2024, that is referred to the Senate Labor, Public Employment and Retirement Committee, or any successor committee of the Senate that becomes responsible for the same jurisdictional remit related to pensions, and that requires any of the following of a public retirement system as defined pursuant to subdivision (j) of Section 7522.04:
(1) The cessation of, or prohibition from, investing in a particular asset or asset class.
(2) The divestiture of an existing investment.
(3) The imposition of any required activity that requires the pension board of trustees to assess whether the activity is consistent with the board’s fiduciary duty.
(4) The study, investigation, or research of any activity described in paragraphs (1) to (3), inclusive.
(b) In preparing the analysis required in subdivision (a), the Legislative Analyst shall have the assistance of the California Actuarial Advisory Panel established pursuant to Section 7507.2 and the affected public retirement system.
(c) The Legislative Analyst shall develop criteria to include in the analysis required in subdivision (a), but, at a minimum, shall include the effect the measure would have on the public retirement system’s funding status, employer and employee contribution rates, the state’s contribution rate, if any, and the likely costs to the General Fund of implementing the measure's provisions.
(d) When displaying the costs to the General Fund, the Legislative Analyst shall segment the information by short-term and long-term impact.
(e) For purposes of this section, the following definitions apply:
(1) “Long term” means 10 fiscal years after the measure’s effective date or a similar period recommended by the California Actuarial Advisory Panel.
(2) “Short term” means three fiscal years beginning with the fiscal year of the measure’s effective date.

SEC. 3.

 No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.
SECTION 1.Section 20005 is added to the Government Code, to read:
20005.

Notwithstanding any other law, any bill, introduced on or after January 1, 2024, that is referred to the Senate Labor, Public Employment and Retirement Committee and relates to PERS shall include a fiscal impact analysis from the Legislative Analyst’s Office that describes the fiscal impact of the bill on PERS and what the outcome of the bill would be if implemented.