HomeMy WebLinkAboutCity Council Position on Legislation Pending Before the Stat Dept. ID AD-15-014 Page 1 of 4
Meeting Date: 5/1/2017
-"''�, 'r�'r}✓�'2) .�_—.e2-r!U CvO••1�1N�'LL� J`�Ctry '_�i�
/725�19 /ff> s?lLJY`— &iJ
CITY OF HUNTINGTON BEACH
REQUEST FOR. CITY COUNCIL ACTION
MEETING DATE: 5/1/2017
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Antonia Graham, Assistant to the City Manager
SUBJECT: City Council Position on Legislation Pending Before the State Legislature as
Recommended by the City Council Intergovernmental Relations Committee
(I RC)
Statement of Issue:
On April 26, 2017, the Intergovernmental Relations Committee met to discuss Federal and State
legislation. This action requests the City Council authorization for the Mayor to sign City position
letters on pending Federal and State legislation.
Financial Impact:
There is no fiscal impact at this time.
Recommended Action:
A) Approve a City position Support in concept on House Resolution No. 472 — Safe Recovery
and Community Empowerment Act;
B) Approve a City position of Support on Senate Constitutional Amendment 1: No Secure
Choice Ballot;
C) Approve a City position of Support on Senate Constitutional Amendment 8: California Rule;
D) Approve a City position of Support on Senate Constitutional Amendment 10: Pension
Transparency;
E) Approve a City position of Support on SB 32 (Moorlach) — Public Employees' Pension
Reform Act of 2018;
F) Approve a City position of Support on SB 454 (Moorlach) — Retiree Healthcare Reform;
G) Approve a City position of Support on SB 681 (Moorlach) — Local Pension Control;
H) Approve a position of Oppose on AB 1129 (Stone) Coastal Structures Beach Access and
Protection;
1) Approve a position of Support on AB 629 (Harper) Alcoholic Beverage Licences: Art
Galleries;
J) Approve a position of Support on SB 242 (Skinner) PACE Consumer Protections; and
K) Approve a position of Oppose on AB 1250 (Jones-Sawyer) Counties and Cities: Contracts
for Personal Services
Alternative Action(s):
There is no fiscal impact.
H13 -75- Item 5. - I
Dept. ID AD-15-014 Page 2 of 4
Meeting Date: 5/1/2017
Analysis:
On Wednesday, April 26, 2017, the Intergovernmental Relations Committee met to discuss pending
Federal and State legislation. The Committee reviewed the 2017 State Legislative Matrix provided
by the City's State Advocate, Townsend Public Affairs (TPA). The Committee members chose to
take the following positions on pending legislation.
Support - House Resolution No. 472 - Safe Recovery and Community Empowerment
Act
This bill amends the Fair Housing Act to provide that nothing in federal law relating to
protections for persons with disabilities prohibits a local, state, or federal government body
from: (1) requiring a reasonable minimum distance between residential recovery facilities
within a particular area zones for residential housing if such requirement is necessary to
preserve the residential character of the area and allows for some of such facilities to be
located within such area; and (2) requiring that such a facility obtain an operating license or
use permit or satisfy a set of consumer protection standards, which may include a maximum
capacity requirement.
The Committee voted to support this bill in concept as it does not properly address the
problem of sober living homes because it fails to address the Americans with Disabilities
Act.
Support- Senate Constitutional Amendment 1 - Retirement Savings
This amendment would neither prevent nor prohibit the Secure Choice Program from being
establishes or operated. This measure merely ensures that the California taxpayers do not
cover the costs and/or unfunded liabilities for a state-run retirement system for private sector
employees.
Support - Senate Constitutional Amendment 8 - Public Employees Retirement
Benefits
This amendment would give the Legislature and the public pension systems the ability to
adjust public employees' retirement benefit formulas on a prospective basis.
Support - Senate Constitutional Amendment 10 - Public Employee Retirement
Benefits
This amendment does not prohibit public employees from receiving additional retirement
benefits; it simply requires voter approval before they are increased.
Support - SIB 32 (Moorlach) - Public Employees' Pension Reform Act of 2018 This bill
will specifically establish a Citizens' Pension Oversight Committee to review pensions year-
by-year and report to the public on actual pension costs and obligations, base final
compensation for all public employees on an average of five years of highest years' salary,
prohibit or freeze the ability for cost of living adjustments until CalPERS and CaISTRS are
100% funded, require pension boards to create a defined benefit/defined contribution hybrid
pension plan for new employees who opt into the system, require that any employee who
separates from the state pension system for a different job and returns after more than one
year be re-classified in that pension system as a new employee, and many more reforms.
Support- SIB 454 (Moorlach) - Retiree Healthcare Reform
This bill requires the Annual OPEB Cost (AOC) be 100% funded, eliminates the Other Post-
Employment Benefits (OPEB) 50/50 cost-share-split between the state and its employees,
and requires 100% of the benefit be paid by the state. SB 454 also requires all state
employees to use the 80/80 formula for basic health benefit plan premiums.
Support- SIB 681 (Moorlach) Local Pension Control
Item 5. - 2 HB -76-
Dept. ID AD-15-014 Page 3 of 4
Meeting Date: 5/1/2017
This bill will give local jurisdictions the ability to leave their contracts with CalPERS without
being excessively charged or penalized.
Oppose - AB 1129 (Stone) — Coastal Structures Beach Access and Protection
This act requires the permitting of revetments, breakwaters, groins, harbor channels,
seawalls, cliff retaining walls, and other such construction that alters natural shoreline
processes when required to serve coastal-dependent uses or to protect existing structures
or public beaches in danger from erosion and when designed to eliminate or mitigate
adverse impacts on local shoreline sand supply. The bill would also require that permitted
construction of those structures be consistent with the policies of the act, including policies
regarding protection of public access, shoreline ecology, natural landforms, and other
impacts on coastal resources, and would define the term "existing structure." The act would
require any person wishing to perform or undertake any development in the coastal zone, to
obtain a coastal development permit.
Support - AB 629 (Harper) —Alcoholic Beverages: Licenses: Art Galleries
This bill would provide that a license or permit is not needed for an art gallery to provide
wine and beer to patrons, for consumption on gallery premises, subject to specified
conditions, including that the price of wine and beer is not included in the sales price of any
piece of art or merchandise sold by the gallery.
Support - SB 242 (Skinner) — PACE Administration Consumer Protections
This bill adds requirements to program administrators related to notification of key contract
terms and eligible improvement measures as approved by the sponsoring agency. This bill
also adds limits to contractors to prevent advertising and soliciting property owners, or
receiving cash payments or incentives. These improvements will strengthen the program
and provide for needed consumer protections.
Oppose - AB 1250 (Jones-Sawyer) — Counties and Cities: Contracts for Personal
Services
This bill would establish specific standards for the use of personal services contracts by
counties and cities. The bill beginning in 2018 would allow a county or county agency, or
city or city agency, to contract for personal services currently or customarily performed by
county employees, as applicable, when specified conditions are met. Among other things,
the bill would require the county or city to clearly demonstrate that the proposed contract will
result in actual overall cost savings to the county or city and also to show that the contract
does not cause the displacement of county or city workers.
The Intergovernmental Relations Committee approved a support position on Senate Constitutional
Amendment 1, Senate Constitutional Amendment 8, Senate Constitutional Amendment 10, Senate
Bill 32, Senate Bill 454, Senate Bill 681, AB 629, and SB 242. Council Member hardy voted No on
Support for Senate Constitutional Amendment 8. The Committee approved an oppose position on
AB 1129 and AB 1250.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Improve quality of life
Attachment(s):
1. House Resolution 472
HB -77- Item 5. - 3
Dept. ID AD-15-014 Page 4 of 4
Meeting Date: 5/1/2017
2. Fact Sheet— Senate Constitutional Amendment 1
3. Fact Sheet— Senate Constitutional Amendment 8
4. Fact Sheet — Senate Constitutional Amendment 10
5. SB 32 — Public Employees' Pension Reform Act of 2018
6. SB 454 — Retiree Healthcare Reform
7. SB 681 — Local Pension Control
8. AB 1129 — Coastal Structures Beach Access and Protection
9. AB 629 — Alcoholic Beverages Licenses: Art Galleries
10.SB 242 — PACE Administration Consumer Protections
11.AB 1250 — Counties and Cities Contracts for Personal Services
Item 5. - 4 HB -78-
ATTAC H M E N T # 1
I
III-MI CoNGhEss Ho R. 472
1.S�, sr��lo
To amend the Fwi- Honsin', A(,t to better protect persons with
and cornrrmnitWIS.
IN THE HOUSE OF REPRESENTATIVES �
J,N-NoARY 12, 2017
Mr. (for himself, Mr. MOULTON, All-S. MI:NH \AVAL'rE S of Colifornia, 1\1r.
CAL��,.x'h, AMr. Hu1,.v Eia, llr. I m,(--E of California, and Mi% RCIlI;R, �
ABAcHEK) introduced the E'o,llow-in bill; which wn.� referri'd to the Com-
mittee on the Judicial'N-
A SILL
To amend the Fair Housing Act to better protect persons
«pith disabilities and conlnnulities.
I Be it enacted by the Sen.ate and House of Represenla-
2 tines of the United States of Anw?? ?1'ca, in Cortg�ress assentbled,
3 SECTION 1. SHORT TITLE.
4 This Act rrlav be cited as the "ScIf'e Recovery a.nd
5 Cominunity Erlrpoiverrnent Act".
Item 5. - 32 HB 06-1 -
2
1 SEC. 2. ZONING AND LICENSING OF RESIDENTIAL RECOV-
2 ERY FACILITIES.
3 The Fair Honsing Act (42 U.S.C. 3601 et seq.) is
4 amended by inserting after section 807 (42 U.S.Ce 3607)
5 the follo«ving:
6 "SEC. S07A. Nothing M this title, or other Federal
7 la«-, relating to protections for persons «pith disabilities,
8 prohibits any local, State, or Federal aM ernnlent body-
9 frorn
10 "(1) requiring by law, r eg-t la,tlon, or ordinance
11 a reasonable iliuunnunl distance betvwexl residential
12 reeove]"IT facilities «it1 n a particula ° area zoned for
13 residential housing, pro-tided that the limitation-
14 "(A) is necessary- to preset-ve the residen-
15 tial eliar•acter of the zoned area; and
16 "(B) allows for some reside-titia reeol'Terl,
17 facilities to be located Within the zoned area;
18 and
19 "(2) requiring- that a. residential recoi-erg- facil-
20 itv, and its oNvrler or operator-
21 "(A) obtain an operating license or use
22 permit; or
23 "(B) satisfy,, a, set of eonsui,ner protection
24 standards, "Tl>icll niav include a maximum ca-
25 pacity regnireinent.".
•HR 472 IH
HB -10 7- Item 5. - 33
3
1 SEC. 3. RESIDENTIAL RECOVERY FACILITY RESIDENTS'
2 BILL OF RIGHTS.
3 Residential re
co_ver_ facilities recei-6ing dir•eet or indi-
4 sect pa,Pnents or reinibursenlents or other rernur��erations
5 from Medicare, Medicaid, or an-\7 other Federal healthcare
6 progratu or V-ia pri-\Tate insurance purchased on a Federal
7 elcha.rige or suhsidi2ed b�T the Federal Governrrient, for ei-
8 ther housing, reco-\-er-\T services, or testing or iilonitoring
9 for- drugs or alcohol, shall ensure the follm"ing:
10 (1 ) Each residential reco-\-er-\T facilit_\T resident
11 residing in the home or recei-Ving addiction trea.t-
12 meat serwices be pro-tided a safe li-6rrg environment
13 connpletel-v free fi�om illicit drugs, alcohol, firearms,
14 hara.ssrnexit, abuse, oi- harm.
15 (2) Residential recovery facility residents live in
16 a licensed, or registered residence that has com-
17 nutted to fotlo-wing standards approw(l h.y States
18 and localities, if such standards are in place.
19 SEC. 4. DEFINITIONS.
20 Section h02 of the Fair Housing Act (42 U.S.C.
21 3602) is amended b_\7 adding to the end the folloNi in-:
22 "(p) `Current, illegal use of a controlled substance'
23 rnean.s the discrete, occasional, frequent, or ongoing illegal
24 use of a controlled substance at the preser'A ti.rne, or in
25 the reasoriahly- recent past.
•HR 472 rH
Item 5. - 34 HB -108-
4
1 "(q) `Residential recover facility' uiea,ns a residence
2 that pro6des housing to individuals in recovery frorri drug
3 or alcohol addiction with the promise of providing a clean
4 and sober enviromnent in return for direct or indirect pay-
5 ment to an mi-ner, operator, or compensated staff person,
6 vnchiding pa-\Trnent to a. third f)arty, a pohtioii of wlilch is
7 then prodded to the residential re
cover17 facility o«lier or
8 operator for their ser-,-ices.".
O
•HR 472 IH
HB -<«9- Item 5. - 35
ATTACHMENT #2
CAPITO1-OP FICE ,�' {' fg gg [�� �¢7L'p} COMMITTEES
STATE CAPITOL �� Ci( C-4, -G C/ LlC�6-i--C- JUDICIARY
SACR.AMENTO.CA 95814 .+�GI�L l-$V A�`4C �►% VICE CH:,tt7
19167 6SI-4037
BUDGET&FISCAL REVIEW
DISTR.-CT OFFICE SI` GOVERNANCE&FINANCE
940 SOUTH COAST DR.
SUITE ISS ; PUBLIC EMPLOYMENT AND
COSTA MESA,CA 92626 RETIREMENT
?
,..;� ;
t714i 662-6050
�y..
SENATOR
JOHN M. W. MOORLACH
THIRTY-SEVENTH SENATE DISTRICT
FACT SHEET
Senate Constitutional Amendment 1 — No Secure Choice Bailout
BILL SUMMARY SUPPORT
Senate Constitutional Amendment 1 would prohibit • None on file
California taxpayer funds from being used to fund
the newly created California Secure Choice OPPOSITION
Retirement Savings Program (SB 1234, 2016),
aside from initial startup costs for the program, as None on file
anticipated in the statute. This measure will neither
prevent nor prohibit the Secure Choice program
from being established or operating. This measure CONTACT
merely ensures that California taxpayers do not
cover the costs and/or unfunded liabilities for a Eric Dietz, Policy Consultant
state-run retirement system for private-sector eric.dietz@sen.ca.gov, (916) 651-4037
employees.
Proponents of this program claimed that no state
money would be used to fund Secure Choice.
Because statute can be changed with a simple
piece of legislation, this measure has been
introduced as a constitutional amendment to
ensure that promise is kept and no extra financial
burden is passed along to California taxpayers.
ISSUE BACKGROUND
Senate Bill 1234 (De Leon, Chapter 804, statutes of
2016) created the Secure Choice Retirement
Savings Program, a defined contribution, individual
retirement account (IRA) that mandates private
employees participate through payroll deduction
into a retirement savings account managed by the
state. The program requires employees to
contribute up to 8% of their salary into their newly
established personal retirement plan.
Item 5. - 30 H B -104-
ATTACHMENT #3
CAPITOL O r]CE GOMA�ITTEES
STATE CAPITOL }'� } JUDICIARY
SACRAMENTO.CA 95814 Cfalt f orYrt '� '^'� VICE CHAIR
!9161 6S1 4037
BUDGET&FISCAL REVIEW
sr�
�IsrrlCr or--FILE �" 91. GOVERNANCE&FINANCE
940 SOUTH COAST DR.
Q;l {irr ; PUBLIC EMPLOYMENT AND
SUITE 18S cn+` •. ,"
COSTA MESA,CA 92626
[714 y 662-fi050r�t��'y RETIREMENT
U a
a,�;_... .r�i^Sr
vecn>
SENATOR
JOHN M. W. MOORLACH
THIRTY-SEVENTH SENATE DISTRICT
FACT SHEET
Senate Constitutional Amendment 8 —"California Rule"
pension plans to reasonably reduce future benefits will
SUMMARY help keep plans sustainable and keep local governments
Senate Constitutional Amendment 8 gives the legislature solvent.
and public pension systems the ability to adjust public
employees' retirement benefit formulas on a prospective California's public pension systems currently have over
basis.' $202 billion in unfunded liabilities.Z The California Public
Employees' Retirement System (CaIPERS), the nation's
BACKGROUND largest public pension fund, has not reached its assumed
The "California Rule" was created by judicial fiat when the rate of return for several years.' For the 2015-16 fiscal
California Supreme Court issued an opinion in 1955 on year, CalPERS planned for a 7.5% rate of return, but only
Allen v. City of Long Beach. The Court ruled that future managed to achieve 0.6%.4 This shortfall equals nearly$28
pension benefits can be changed, but only if a comparable billion in liability—equal to almost 20%of Governor
or better benefit is offered.This means public employees' Brown's general fund budget.
benefits become a vested right at the moment of hire.
Essentially benefits can only ratchet up and never be CalPERS has fallen nearly$50 billion short in the last two
decreased in the public sector. years on its investment returns; California has an
unfunded liability of$77 billion for retiree medical
Since then, in order to provide a sustainable pension healthcare, and the recently released state budget shows
system, municipalities have attempted to change vested that we have a $1.6 billion deficit.5 6 Therefore, it is more
employee benefits but have been unsuccessful—until last important than ever for us to find a way to minimize the
year when the California 1"District Court of Appeal ruled state's massive pension obligations.
in the Morin Association of Public Employees v. Morin
County Employees'Retirement Association case ("Marin SCA 8 gives us that ability.
Decision"). In a truly forward-thinking decision,the Court
found that public retirement benefits can be reduced. SUPPORT
• None on file
This decision was appealed by the Marin Association of
Public Employees and ultimately granted review by the OPPOSITION
California Supreme Court.The high court has not yet • None on File
scheduled a hearing date.
CONTACT
THIS BILL Eric Dietz, Policy Consultant
California needs to clarify the state's constitution and eric.dietz@sen.ca.gov, (916) 651-4037
provide tools to strengthen its fiscal integrity. SCA 8 gives
pension systems the ability to change benefits going 2 CalPERS 2015-16 CARF, CaISTRS 2016 CARF, UC Retirement
forward. It does not eliminate pension benefits already Plan Actuarial Valuation Report 2014
earned by a public employee.The employee is entitled to 'CalPERS 2015-16 CARF
every benefit accrued to the point of the change. Allowing 4 CalPERS 2015-16 CARF
' http: www.ocregister.com/articles/announced-737337-
office-billion.html
1 Marin Assn.of Public Employees v. Marin County 6 http://www.sco.ca.gov/Content-
Employees' Retirement Assn., 2 Cal. App. 5th 674 HEM _1 05_cages/ARD/AV Report June 30 2016�df Item 5. — 3 1
ATTAC H M E N T #4
CA ITC:-O=FIC.:E C;OVMITT-E-5
STATE CAPITOL E '6r'c '@-4''4- ;q' 'g"t�g 1T� �y.4 t;y"(/_'a� JLJDICIARY
SACRAMENTO.CA 95814 C-C � 4ix 1l CC^� L $d �, -G-A C-E#,5� VICE C'!Ar
t9167 651-4037
BUDGE-T&FtSCAL.REVIEW
6l5TR!,C7 OFFICE o D'i--3 GOVERNANCE&FINANCE
940 SOUTH COAST DR.
SUITE 185 /." z `& PUBLIC EMPLOYMENT AND
COSTA MESA CA c1121526 I�Y k RETIREME^
,. t
SENATOR
JOHN M. W. MOORL-ACH
THIRTY-SEVENTH SENATE DISTRICT
FACT SHEET
Senate Constitutional Amendment 10 — Public Pension Transparency
BILL SUMMARY that any increase to pension benefits must also be
passed with a two-thirds voter approval from the
Senate Constitutional Amendment (SCA) 10 will prohibit electorate of the applicable jurisdiction.
public employers from increasing retirement benefits
for their employees without two-thirds voter approval. This constitutional amendment does not prohibit public
employees from receiving additional retirement
ISSUE BACKGROUND benefits. SCA 10 simply requires approval from the very
taxpayers who are going to be responsible for paying
Growing unfunded public pension obligations will have the generous public employee retirement benefits such
serious ramifications for future generations unless as increased retirement formula, cost-of-living
changes are made to California's public employee adjustments, and reduced retirement age.
retirement systems. California has more unfunded RELATED LEGISLATION
liabilities than any other state.'
Recent reforms were a great start to addressing
• Measure 1, Orange County. Passed in 2008 with
California's pension crisis; but substantial changes are over 75%voter approval.
still needed. Additionally,taxpayers who bear a
• Measure B, San Jose. Passed in 2012 with nearly
significant cost of public employee pensions should 70%voter approval.
have a voice if those costs are increased. • Proposition B, San Diego. Passed in 2012 with over
65% voter approval.
It is certainly in the interest of all Californians to • California Public Employees' Pension Reform Act of
encourage pensions that provide reasonable retirement 2013.
benefits for our public workers. It is also very important • California Public Vote on Pensions Initiative (2016).
to provide a fair, workable plan to pay down the Proposed constitutional amendment, failed to make
accumulated pension debt as quickly as possible—and 11/8/2016 ballot.
to reduce future obligations. By requiring two-thirds
voter approval for increased retirement benefits the SUPPORT
legislature would be taking a very important step
toward fiscal responsibility.
• None on file
THIS BILL CO-AUTHORS
Unions negotiate with elected officials for increased • None on file
retirement benefits and pay raises. This bill requires CONTACT
https://www.alec.org/app/uploads/2016/10/2016-10-13 Eric Dietz Policy Consultant
Unaccountable-and-Unaffordable.pdf(page 8) eric.dietzsen.ca.gav, (916) 651-4037
FIB -10-3- Item 5. - 29
ATTACHMENT #5
AMENDED IN SENATE MARCH 2, 2017
SENATE BILL No. 32
Introduced by Senator Moorlach
December 5, 2016
An act to amend Section 22217 of the Education Code, and to amend
Sections 7522.34 and 20228 of, to add Sections 7512.5, 20140, 20141,
20418. and 20818 to, and to add Article 5 (commencing with Section
7523) to Chapter 21 of Division 7 of Title 1 of, the Government Code,
relating to public employees'-reii retirement, and making an
appropriation therefor:
LEGISLATIVE COUNSEL'S DIGEST
SB 32, as amended, Moorlach. .
California Public Employees'Pension Reform Act of 2018.
(1) The Public Employees' Retirement Law creates the Public
Employees'Retirement System (PERS), and the Teachers'Retirement
Law creates the State Teachers' Retirement System (STRS), for the
provision of service, disabilio} and other benefits to members. Existing
law vests the Teachers' Retirement Board, which administers STRS,
and the Board ofAdministrati.on of PERS with fiduciary responsibility
over the assets of their respective retirement systems and requires the
boards to, among other things, employ public accountants who are not
in public employment to audit the financial statements of the systems,
as specified.
This bill would create the Citizens'Pension Oversight Committee to
serve in an advisory role to the Teachers'Retirement Board and the
Board ofAdministration of'PERS. The bill would require the committee,
on or before Janua7T 1, 2019, and annually thereafter, to review the
actual pension costs and obligations of PERS and STRS and report on
98
Item 5. - 8 H13 .82_
SB 32 —2—
these costs and obligations to the public and would require reports of
audits of STRS and PERS conducted by the public accountants described
above to be filed with the committee for this purpose.
(2) Under the Public En7ployees'Retirement Law, benefits provided
by PERS are funded by employer and employee contributions and
investment returns. Existing law requires the Board of Administration
of PERS to set and adjust employer contribution rates in relation to the
system's actuarial liability and provides for the deposit of employer
contributions into the Public Employees' Retirement Fund,, a
continuously appropriated fund. Existing law authorizes the board to
adopt a funding period of 30 years to amortize unfunded accrued
actuarial obligations for current and prior service for the purpose of
determining employer contribution rates for contracting agencies and
school employers and to adopt an amortization period of 40 years for
any unfunded actuarial liability for the benefits applicable to all state
miscellaneous members and all state peace officerfirefighter members.
This bill would require the board to determine what the level of the
unfunded liability ofPERS was in 1980 and would further require the
board to reduce the unfunded liability of PERS to that level, to be
achieved by 2030, with the goal offully funding PERS. The bill, in any
year in which the unfunded actuarial liability of PERS is greater than
zero, would require the board to increase the employer contribution
rate otherwise provided by law for the state, contracting agencies, and
school employers by 10 percent. By increasing deposits into a
continuously appropriated fund, the bill would make an appropriation.
(3) Existing law prescribes different benefit formulas for members
of PERS depending on a mentber's classification and date of entry into
the system, among other factors.
This bill would require the Board of Administration of PERS, on or
before January 1, 2019, to develop and submit to the Legislature for
approval a hybrid plan consisting of defined benefit and defined
contribution components, as specified, and would require the plan to
be applied to members who elect to be subject to the plan or who are
first employed by the state, a contracting agency, or a school employer
and become members of the system on or after the approval of the plan
by the Legislature. The bill would further require the board, on or
before January 1, 2019, to review the duties of officers and employees
in positions included in the safety member classification pursuant to
certain provisions of the Public Employees' Retirement Law and
reclassify the positions according to specified criteria. The bill would
98
HB -83)- Item 5. - 9
—3— SB 32
apply this reclassification to persons who are first employed by the
state and become state members of PERS on or after January 1, 2018.
(4) The California Public Employees 'Pens ion Reform Act of 2013
(PEPRA), on and after January 1, 2013, requires a public retirement
system, as defined, to modify its plan or plans to comply with the act
and, among other provisions, provides that the pensionable
compensation oj'a new member of the system is the normal monthly
rate ofpay or base pay of the member paid in cash to similarly situated
members, as specified. PEPRA also requires the final compensation
used to determine a retirement benefit to be paid to the new member to
be the highest average annual pensionable compensation earned by
the member during a period of at least 36 consecutive months, or at
least 3 consecutive school years if applicable, as specified
This bill would prohibit a public retirement board from deeming
certain forms of pay to be pensionable compensation and would make
related legislative findings and declarations.
This bill would enact the California Public Employees' Pension
Reform Act of 2018 (PEPRA 2018). The bill, for an individual who
becomes a member of'any public retirement system, as defined,for the
first time on or after January 1, 2018, and who was not a member of
any other public retirement system prior to that date, would require the
final compensation used to determine the Member's retirement benefits
to be the highest annual pensionable compensation earned by the
member during a period of at least 60 consecutive months, or at least
S consecutive school years if applicable, as specified The bill would
also provide that if the member leaves the employment of a public
employer participating in a public retirement system for other
employment, as specified, and is subsequently reemployed by the public
employer at least one year later, the, member will be subject to the same
benefits, contributions, and other terms and conditions applicable to
an individual who becomes a member of the public retirement system
for the first time on the date of the member's return,for service rendered
on or after that date.
(5) Existing law provides for the application oj' cost of living
adjustments to allowances paid to persons retired under, or survivors
or beneficiaries of members or persons retired under, various public
retirement systems.
The bill, as part of PEPR-A 2018, would prohibit a public retirement
system from making a cost of living adjustment to any allowance payable
to, or on behalf of, a person retired under the system, or to any survivor
98
Item 5. - 10 hB -84-
SB 32 —4—
or beneficiary of a member or person retired under the system,for any
year beginning on or after January 1, 2018, in which PERS or STRS is
not fully funded.
in the state, with speeified exeeptions-
This bill would state the inteetnt o4fthe —legislature to enaet legisla
Vote: majority. Appropriation: eyes. Fiscal committee: rre
yes. State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 22217 of the Education Code is amended
2 to read:
3 22217. (a) The board shall employ a certified public accountant
4 or public accountant, who is not in public employment, to audit
5 the financial statements of the system. The costs of the audit shall
6 be paid from the income of the retirement fund. The audit shall be
7 made annually and the audit report shall be incorporated into the
8 annual report filed with the Governor and the Legislature pursuant
9 to Section 22324. A copy of the audit report shall also be filed
10 with the Citizens'Pension Oversight Committee created by Section
11 7512.5 of the Government Code.
12 (b) These audits shall not be duplicated by the Department of
13 Finance or the State Auditor. The system shall be exempt from a
14 pro rata general administrative charge for auditing.
15 SEC. 2. Section 7512.5 is added to the Government Code, to
16 read.•
17 7512.5. (a) The Citizens' Pension Oversight Committee is
18 hereby created. The committee shall serve in an advisory role to
19 the Board of Administration of the Public Employees'Retirement
20 System and the Teachers'Retirement Board. The committee shall
21 consist of no more than nine members, and no less than five
22 members,jointly appointed by the Board of.Administration of the
23 Public Employees' Retirement System and the Teachers'
24 Retirement Board from persons with experience in fiduciafy
98
HB -�� Item 5. - 11
-5— SB 32
1 matters who do not receive benefits from the Public Employees'
2 Retirement System or the State Teachers'Retirement System.
3 (b) On or before January 1, 2019, and annually thereafter, the
4 committee shall review the actual pension costs and obligations
5 of the Public Employees' Retirement System and the State
6 Teachers' Retirement System and report on these costs and
7 obligations to the public. As part of this review, the committee
8 shall review the audit reports filed with the committee pursuant
9 to Section 22217 of the Education Code and Section 20228 of this
10 code.
11 SEC. 3. Section 7522.34 of the Government Code is amended
12 to read:
13 7522.34. (a) "Pensionable compensation" of a new member
14 of any public retirement system means the normal monthly rate
15 of pay or base pay of the member paid in cash to similarly situated
16 members of the same group or class of employment for services
17 rendered on a full-time basis during normal working hours,
18 pursuant to publicly available pay schedules, subject to the
19 limitations of subdivision (c).
20 (b) Compensation that has been deferred shall be deemed
21 pensionable compensation when earned rather than when paid.
22 (c) Notwithstanding any other law,"pensionable compensation"
23 of a new member does not include the following:
24 (1) Any compensation determined by the board to have been
25 paid to increase a member's retirement benefit under that system.
26 (2) Compensation that had previously been provided in kind to
27 the member by the employer or paid directly by the employer to
28 a third party other than the retirement system for the benefit of the
29 member and which was converted to and received by the member
30 in the form of a cash payment.
31 (3) Any one-time or ad hoc payments made to a member.
32 (4) Severance or any other payment that is granted or awarded
33 to a member in connection with or in anticipation of a separation
34 from employment,but is received by the member while employed.
35 (5) Payments for unused vacation,annual leave, personal leave,
36 sick leave, or compensatory time off, however denominated,
37 whether paid in a lump sum or otherwise, regardless of when
38 reported or paid.
39 (6) Payments for additional services rendered outside of normal
40 working hours, whether paid in a lump sum or otherwise.
98
Item 5. - 12 1113 -86-
SB 32 —6—
1 (7) Any employer-provided allowance, reimbursement, or
2 payment, including, but not limited to, one made for housing,
3 vehicle, or uniforms.
4 (8) Compensation for overtime work, other than as defined in
5 Section 207(k) of Title 29 of the United States Code.
6 (9) Employer contributions to deferred compensation or defined
7 contribution plans.
8 (10) Any bonus paid in addition to the compensation described
9 in subdivision (a).
10 (11) Any other form of compensation a public retirement board
l 1 determines is inconsistent with the requirements of subdivision
12 (a).
13 (12) Any other form of compensation a public retirement board
14 determines should not be pensionable compensation.
15 (13) (A) Any form of compensation identified that has been
16 agreed to be nonpensionable pursuant to a memorandum of
17 understanding for state employees bound by the memorandum of
18 understanding. The state employer subject to the memorandum of
19 understanding shall inform the retirement system of the excluded
20 compensation and provide a copy of the memorandum of
21 understanding.
22 (B) The state employer may determine if excluded compensation
23 identified in subparagraph (A) shall apply to nonrepresented state
24 employees who are aligned with state employees subject to the
25 memorandum of understanding described in subparagraph (A).
26 The state employer shall inform the retirement system of the
27 exclusion of this compensation and provide a copy of the public
28 pay schedule detailing the exclusion.
29 (d) (1) The Legislature finds and declares that "normal monthly
30 rate of pay or base pay," as used in subdivision (a), does not
31 include, and was not intended to include, incentive pay; educational
32 pay,premium pay, special assignment pay, or holiday pay.
33 (2) Pursuant to paragraph (1), a public retirement board shall
34 not deem incentive pay, educational pay, premium pay, special
35 assignment pay, or• holiday pay to be a form of compensation
36 consistent with subdivision (a).
37 SEC, 4. Article 5 (connnencing with Section 7523) is added to
38 Chapter 21 of Division 7 of Title 1 of the Government Code, to
3 9 read:
98
HB -87- Item 5. - 13
—7— SB 32
1
2 Article 5. California Public Employees'Pension Reform Act
3 of 2018
4
5 7523. This article shall be known, and may be cited, as the
6 California Public Employees'Pension Reform Act of 2018.
7 7523.05. For the purposes of this article:
8 (a) "Member" means a public employee who is a member of a
9 public retirement system.
10 (b) "New member as ofJanuary 1, 2018," means an individual
11 who becomes a member of any public retirement system for the
12 first time on or after January 1, 2018, and who was not a member
13 of any other public retirement system prior to that date.
14 (c) "Public employee" means an officer, including one who is
15 elected or appointed, or an employee of a public employee:
16 (d) (1) "Public employer" includes:
17 (A) The state and every state entity, including, but not limited
18 to, the Legislature,, the judicial branch, includingjudicial officers,
19 and the California State University.
20 (B) Any political subdivision of the state, or agency or
21 instrumentality of the state or subdivision of the state, including,
22 but not limited to, a city, county, city and county, school district,
23 community college district, joint powers authority, joint powers
24 agent); and any public agency, authority, board, commission, or
25 district.
26 (C) Any charter school that elects or is required to participate
27 in a public retirement system.
28 (2) Notwithstanding paragraph (1), "public employer" does
29 not include an entity described in Section 9 of Article IX of, or
30 Section 4 or.5 of ArticleX1 of, the California Constitution, except
31 to the extent that the entity elects to make this article, or any section
32 thereof, applicable to the entity.
33 (e) (1) "Public retireenentsystem"meansthePublicEmployees'
34 Retirement System, the State Teachers' Retirement System, the
35 Legislators' Retirement System, the Judges' Retirement System,
36 the Judges' Retirement System 11, county and district retirement
37 systems created pursuant to the County Employees Retirement
38 Law of 1937 (Chapter 3 (commencing with Section 31450) ofPart
39 3 of Division 4 of Title 3), independent public retirement systems,
40 and to individual retirement plans offered by public employers.
98
Item 5. - 14 HB -88-
SB 32 —8-
1 (2) Notwithstandingparagraph (1), "public retirement system"
2 does not include a retirement system created by an entity described
3 in Section 9 of Article IX of, or Section 4 or 5 of Article XI of, the
4 California Constitution, except to the extent that the entity elects
5 to make this article, or any section thereof, applicable to the entil)�
6 7523.10. Notwithstanding Section 7522.32 or any other law,
7 for the purposes of determining a retirement benefit to be paid to
8 a new member as of-January 1, 2018, of a public retirement system,
9 final compensation shall mean the highest average annual
10 pensionable compensation earned by the member during a period
1 1 of at least 60 consecutive months, or at leastfive consecutive school
12 years if applicable, immediately preceding his or her retirement
13 or last separation from service if earlier, or during any other
14 period ofat least 60 consecutive months, or at leastfive consecutive
15 school years ifapplicable, during the members applicable service
16 that the member designates on the application,for retirement.
17 7523.20. Notwithstanding any other law, except as otherwise
18 required by Section 9 of Article I of the California Constitution,
19 a public retirement system shall not make a cost of living
20 adjustment to any allowance payable to, or on behalf of, a person
21 retired under the system, or to any survivor or beneficiary of a
22 member or person retired under the system,for any year beginning
23 on or after January 1, 2018, in which either of the following is
24 true:
25 (a) The unfunded actuarial liability of' the State Teachers'
26 Retirement System, as determined by the Teachers' Retirement
27 Board, is greater than zero.
28 (b) The unfunded actuarial liability of the Public Employees
29 Retirement System, as determined by the Board of Administration
30 of the Public Employees'Retiremeni System, is greater than zero.
31 7523.30. Notwithstanding any other law, a new member as of
32 January 1, 2018, of a public retirement system who, on or after
33 January 1, 2018, leaves the employment of a public employer
34 participating in the public retirement system for employment with
35 an employer that does not participate in the public retirement
36 system and who is subsequently reemployed by the same public
37 employer at least one year after he or she left, shall, upon the date
38 of his or her reemployment be subject to the same benefits,
39 contributions, and other terms and conditions applicable to all
40 individual who becomes a member of the public retirement system
98
I
HB -89- Item 5, - 15
—9— SB 32
1 for the first time on that date,for service rendered on or after that
2 date.
3 SEC. 5. Section 20140 is added to the Government Code, to
4 read.-
5 20140. (a) On or before January 1, 2019, the board shall
6 develop and submit to the Legislature.for approval a hybrid plan
7 that consists of the following:
8 (1) A defined benefit component that utilizes low-risk
9 investments.
10 (2) A defined contribution component under which an
11 employee's contributions will be matched by employer
12 contributions up to a certain percent.
13 (b) Notwithstanding any other law, a member who is first
14 employed by the state, a contracting agency, or a school employer
15 and becomes a member of the system on or after the approval of
16 the hybrid plan by the Legislature shall participate in the hybrid
17 plan.
18 (c) A member not described in subdivision (b) may elect to
19 participate in the hybrid plan.
20 SEC. 6. Section 20141 is added to the Government Code, to
21 read:
22 20141. The board shall determine what the level of the
23 unfunded liability of the system was in 1980 and shall reduce the
24 unfunded liability of the system to that level., to be achieved by
25 2030, with the goal offully funding the system.
26 SEC. 7. Section 20228 of the Government Code is amended to
27 read:
28 20228. The board shall annually employ a certified public
29 accountant,who is not in public employment,to audit the financial
30 statements of this system.The costs of the audit shall be paid from
31 the income of the retirement fund. The audit shall be made
32 annually. The board shall file a copy of the audit report with the
33 Governor, the Secretary of the Senate, the Chief Clerk of the
34 Assembly. Assembly, and the Citizens' Pension Oversight
35 Committee.
36 The board, for purposes of Section 7504, may file internally
37 prepared financial statements with the Controller within six months
38 of the end of the fiscal year, and shall file independently audited
39 financial statements as soon as they are available.
9s
Item 5. - 16 H 13 -90-
SB 32 —10—
1 The annual audits of the financial statements of the system shall
2 not be duplicated by the Department of Finance or the State
3 Auditor.
4 This section does not affect the ability of the State Auditor or
5 the Department of Finance to conduct other types of audits of the
6 system as otherwise authorized by statute. This system shall be
7 exempt from a pro rata general administrative charge for auditing.
8 SEC. 8. Section 20418 is added to the Government Code, to
9 read:
10 20418. (a) On or before January 1, 2019, the board shall
1 1 review the duties of officers and employees in positions included
12 in the safety member classification pursuant to this article and
13 shall reclassify the positions, for the purposes of the system, as
14 follows:
15 (1) "Patrol member;" "state peace of member"
16 or "state safety ineinbei,"for positions with principal duties that
17 place the employee or officer in the position in harm's way. The
18 board shall not reclassify a position as `patrol member," "state
19 peace officer/firefighter member," or "state safety member" on
20 the sole basis that the position involves law enforcement.
21 (2) "State miscellaneous member"or "state industrial member"
22 for positions not described in paragraph (1).
23 (b) Notwithstanding this article or any other law, the
24 reclassification ofpositions pursuant to subdivision (a)shall apply
25 to any person who is first employed by the state and becomes a
26 state member of the system on or after January 1, 2018.
27 SEC. 9. Section 20818 is added to the Government Code, to
28 read:
29 20818. Notwithstanding any other law, in any year in which
30 the unfunded actuarial liability of the system is greater than zero,
31 the board shall increase the employer contribution rate otherwise
32 provided by law for the state, contracting agencies, and school
33 employers by 10 percent.
34 SECTION 1. it is the intent of the Legislattire to enae
35 legislation to festtme the publie employee pension tefonit begun
36 .
O
9s
Hg -91- Item 5. - 17
ATTACHMENT #6
AMENDED IN SENATE APRIL 6, 2017
SENATE BILL No. 454
Introduced by Senator Moorlach
February 16, 2017
An act to amend Section 22944.5 of, and to add Sections ''�4
22871.4, 22874.5, and 22944.7 to, the Government Code, relating to
state public employment.
LEGISLATIVE COUNSEL'S DIGEST
SB 454, as amended,Moorlach.Public employee's employees'health
benefits.
The Public Employees' Medical and Hospital Care Act(PEMHCA),
which is administered by the Board of Administration of the Public
Employees' Retirement System, prescribes methods for calculating the
state employer contribution for postemployment health care benefits
for eligible retired public employees and their families and for the
vesting of these benefits.PEMHCA requires the employer contribution
for an employee or annuitant who is in employed
by the state or retired from state service to be adjusted by the Legislature
in the annual Budget Act, as specified. PEMHCA prescribes different
ways of calculating the employer contributions for employees and
annuitants depending on date of hire, years of service, and bargaining
unit.
This bill, for state employees who are first employed and become
members of the retirement system on or after January 1, 2018, would
limit the employer contribution for annuitants to 80% of the weighted
average of the health benefit plan premiums for an active employee
enrolled for '�self alone, during the benefit year to which the
formula is applied, for the 4 health benefit plans with the largest state
98
Item 5. - 18 1-113 _92_
SB 454 —2—
civil service enrollment, as specified. The bill would similarly limit the
employer contribution for an enrolled family member of an annuitant
to 80% of the weighted average of the additional premiums required
for enrollment of those family members during the benefit year to which
the formula is applied and would provide the same limit on employer
contributions for annuitants enrolled in Medicare health benefit plans.
The bill would provide that if its provisions are in conflict with regard
to an employee covered by a memorandum of understanding, the
memorandum of understanding would control until it expires. The bill
would prescribe the percentage of the employer contribution payable
for postemployment health benefits based on the number of completed
years of credited state service at retirement, with 50%after 15 credited
years of service and 100% after 25 or more years of service, for an
employee of the state, the California State University, and the
Legislature, who is employed by the state for the first time and who
becomes a state member of the Public Employees'Retirement System
on or after January 1, 2018.
PEMHCA establishes the Public Employees' Contingency Reserve
Fund for the purpose of funding health benefits and funding
administrative expenses. PEMHCA establishes the Annuitants' Health
Care Coverage Fund, which is continuously appropriated, for the
purpose of prefunding health care coverage for annuitants, including
administrative costs. PEMHCA defines"prefunding"for these purposes.
Existing law requires the state and employees of State Bargaining Unit
2, 7, 9, 10, or 12 to prefund retiree health care with the goal of reaching
a 50% cost sharing of normal costs by July 1, 2019, and prescribes
schedules of contribution percentages in this regard. For the state and
employees of State Bargaining Unit 6, the date for reaching the goal is
July 1, 2018.
This bill would require the state, on and after January 1, 2018, to
assume all responsibility for prefunding retiree health care. The bill
would require the state to prefund retiree health care for state employees,
annuitants, and their beneficiaries with the goal of paying 100% of the
actuarially detennined normal costs by July 1, 2019. The bill would
require the state to pay unfunded liabilities that have accrued for retiree
health care for state employees, annuitants, and their beneficiaries, as
reported by the Controller, as specified, with the goal of paying 50%
of the actuarially determined cost of these liabilities by January 1,2022,
and 100% of the actuarially detennined cost of these liabilities by
January 1, 2026. The bill would require the Controller, by January 10
98
HB -93- Item 5. - 19
—3 — SB 454
of each year, to provide a report to specified committees of the
Legislature that shows, for that year, the actuarially determined normal
cost and the unfunded liability of retiree health care for state employees,
annuitants, and their beneficiaries and a calculation of the amounts
necessary to ineet the goals described above.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of'the State of California do enact as follows:
1 SECTION 1. Section 22871.4 is added to the Government
2 Code, to read:
3 22871.4. (a) Notwithstanding any other law, the employer
4 contribution for employees hired one or after January 1, 2018,
5 shall be as described in subdivision (b). This section shall not be
6 construed to create eligibility for an employee who otherwise does
7 not receive a state contribution for postemployment health care.
8 (b) Effective January 1, 2018, the employer contribution for
9 each employee shall be an amount equal to 80 percent of the
10 weighted average of the basic health benefit plan premiums for an
1 1 active state civil service employee enrolled for self-alone, during
12 the benefit year to which the formula is applied, for the four basic
13 health benefit plans that had the largest active state civil service
14 enrollment,excluding family members,during the previous benefit
15 year. For each employee with enrolled family members, the
16 employer shall contribute an additional 80 percent of the weighted
17 average of the additional premiums required for enrollment of
18 those family members,during the benefit year to which the formula
19 is applied, in the four basic health benefit plans that had the largest
20 active state civil service enrollment, excluding family members,
21 during the previous benefit year.
22 (c) The employer contribution provided under this section is
23 not applicable unless and until the effective date of the employee's
24 enrollment in an approved health benefit plan.
25 (d) If the provisions of this section are in conflict with regard
26 to an employee covered by a memorandum of understanding
27 reached pursuant to Section 3517.5 or Chapter 12 (commencing
28 with Section 3560) of Division 4 of Title 1, the memorandum of
29 understanding shall be controlling until it expires,
98
Item 5. - 20 HB -94-
SB 454 —4—
1 S-CG. 2. Seet-ion 229443 of the 6avenm-rent Code is ame;�IIe
2 to read:
3 2-2944.5. (a) (1) The state arid employees in State Barg g
4 >
5
6 normal eosts for both employer and employees by ittly 1,
7 (2) The state and employees in State Bargaining Unit 6 sliall
8 preftttid retiree health eare,
9 eost sharing of aettafially determined normal eosts for both
10 .
11 (3) The state and employees in the jttdieial bfaneh shall pre
12 retiree health eafe,
13 sharing of aetttafially detemined normal eosts for both employer
14 and employees by ittly 1, 2017.
15 (b) (1) The employees in State Bargaining Unit 9 shall make
16 eontribtttions to pfeftmd retiree health eare based on the folio 11 i"t,
17 sehedttle, and the state shall make a rnatehing eontribution:
18 , 0.5 pefeent of pensionable
19 eompertsatiort.
20 , an additional 0.5 pereent for a total
21 .
22 , an additional 1.0 pereent for a total
23 employee eontribution 42.0 pereent of pensionable eompensation.
24 (2) The employees in State Bar.gaining Unit 10 shall make
25
26 .
27 , 0.7 pereent of pensionable
28 .
29 , an additional 0.7 pefeent for a total
30 employee eontribution of 4.4 pefeetit of pensionable
31 , 2019, an additional 1.4 pereent for a total
32 employee eontfibtftion 42.8 pefeent of pensionable eornpertsatiott.
33 (3) The employees in State Bargaining Unit 6 shall make
34 eontfibutions to prefttnd retiree health eare based on the folio i-1:1
35 sehedttle, and the state shall make a matehing eontribution:
36 , 1.3 pefeent of pensionable
37 eompensatiott.
38 , an additional 1.33 pefeent for a total
39 employee eontribution oF2.6 pereent ofpensionabi ott-.
98
HB _y;_ Item 5. - 21
-5— SB 454
1 , an additional 1.4 pereent for a total
2 employee eontribtttion of 4.0 pereent ofpensionable eompensaW%jil.
J (4) The state employees in the jttdieial braneh shall mak-e
4 eonttibtttions to prefttnd retiree health eafe based on the folio-vving
5 .
6 , 1.5 pereent of pensionable
7 .
8 .
9
10 eompensation. The additional amount shall be detefmitied by-the
11 Direetor of Finanee no latef than Apfil 1, 2017, based on the
12 .
13 (G) This paragraph does not apply to a jttdge who is sttbjeet to
14
15 .
16 (5) The employees in State Bafgaitting Unit 1-2 shall make
17 eontributions to preftmd retiree health eafe based on the folio
18 sehedttle, and the state shall make a matehing eontfibtttion:
19 , 1.9 pereent of pensionable
20
21 ,
22 .
23 ,
24 .
25 (6) The employees in State Bargaining Unit, 22 sh-all make
26
27 sehedttle, and the state shall make a tttateiiing eontribtttion:
28 , 0.7 pereent of pensionable
29 .
30 ,
31 employee eontribtftion of 1.3 pereent ofpensionaH Ott.
32 , 2019,
JJ
34 (7) The employees in State Bargaining Unit 7 shafl tnakle
35
36 sehedttle, and the state sliall make a tnatehing eotitribtttion:
37 , 1.3 pefeent of pensionable
38 .
39 , an additional 1.4 pereent for a total
40 employee eontfibtftion of 2.7 pereent of pensionable eompensation.
98
Item 5. - 22 HB -96-
SB 454 —6—
1 ,
2 employee eontribution oF4.0 pereent ofpensionable eompensation.
J (e) This seetion only applies to employees who are eligible fo
4 .
5
6 in the Annttitants' Healft.. Cafe Coverage Fttnd and shall m
7
8
9
10
11
12 eontfolliti withott fttfthef legislative aetion, exeept that if those,
13
14
15
16 (f) This seetion shall also apply to a state efnployee related to
17
18 " in subdivision (e�-�
19 Section 35+3
20
21 eafe fof state etnployees, annuttants, and theif benefieiafies shall
22 be the responsibility of the state pttfsuant to Seetion 22944.7-.
23 SEC. 2. Section 22874.5 is added to the Government Code, to
24 read.•
25 22874.5. (a) Notwithstanding Sections 22870, 22871, 22873,
26 and 22874, a state employee, defined by subdivision (c) of Section
27 3513, an employee of the California State University; or an
28 employee of the Legislature, who is employed by the state for the
29 first time, and lvho becomes a state member of the system on or
30 after January 1, 2018, shall not receive any portion of the employer
31 contribution payable for annuitants unless the person is credited
32 with 15 years of state service at the time of retirement.
33 (b) The percentage of the employer contribution payable for
34 postemployment health benefits for an employee subject to this
35 section shall be based on the completed years of credited state
36 service at retirement as shown in the follolving table:
37
.58 fears of Service Contribution Credited Years Percentage
39 of Employer Contribution
40 15........................ ........................................... 50
ys
xB -97- Item 5. - 23
-7— SB 454
1 16.................................................................... 55
2 17.................................................................... 60
3 18.................................................................... 65
4 19................... ................................................ 70
5 20................ .......................I........................... 75
6 21.... ......... .....................................I.......... 80
7 22...............................................I................,... 85
8 23.................................................................... 90
9 24................................................I................... 95
10 25 or more...................................................... 100
11
12 (c) This section shall apply only to state employees who retire
13 for service. For purposes of this section, "state service" means
14 service rendered as an employee of the state or an appointed or
15 elected officer of the state for compensation.
16 SEC. 3. Section 22944.5 of the Government Code is amended
17 to read:
18 22944.5. (a) (1) The state and employees in State Bargaining
19 Unit 2, 7, 8, 9, 10, 13, 18, or 19 shall prefund retiree health care,
20 with the goal of reaching a 50-percent cost sharing of actuarially
21 detennined normal costs for both employer and employees by July
22 1, 2019.
23 (2) The state and employees in State Bargaining Unit 6 shall
24 prefund retiree health care, with the goal of reaching a 50-percent
25 cost sharing of actuarially determined nonnal costs for both
26 employer and employees by July 1, 2018.
27 (3) The state and employees in the judicial branch shall prefund
28 retiree health care, with the goal of reaching a 50-percent cost
29 sharing of actuarially detennined normal costs for both employer
30 and employees by July 1, 2017.
31 (4) The state and employees in State Bargaining Unit 1, 3, 4,
32 11, 12, 14, 15, 17, 20, or 21 shall prefund retiree health care, with
33 the goal of reaching a 50-percent cost sharing of actuarially
34 determined nonnal costs for both employer and employees by July
35 1, 2020.
36 (b) (1) The employees in State Bargaining Unit 9 shall make
37 contributions to prefund retiree health care based on the following
38 schedule, and the state shall make a matching contribution:
39 (A) Effective July 1, 2017, 0.5 percent of pensionable
40 compensation.
98
Item 5. - 24 H B -98-
SB 454 —8-
1 (B) Effective July 1, 2018, an additional 0.5 percent for a total
2 employee contribution of 1.0 percent of pensionable compensation.
3 (C) Effective July 1, 2019, an additional 1.0 percent for a total
4 employee contribution of 2.0 percent of pensionable compensation.
5 (2) The employees in State Bargaining Unit 10 shall make
6 contributions to prefund retiree health care based on the following
7 schedule, and the state shall make a matching contribution:
8 (A) Effective July 1, 2017, 0.7 percent of pensionable
9 compensation.
10 (B) Effective July 1, 2018, an additional 0.7 percent for a total
11 employee contribution of 1.4 percent of pensionable compensation.
12 (C) Effective July 1, 2019, an additional 1.4 percent for a total
13 employee contribution of 2.8 percent of pensionable compensation.
14 (3) The employees in State Bargaining Unit 6 shall make
15 contributions to prefund retiree health care based on the following
16 schedule, and the state shall make a matching contribution:
17 (A) Effective July 1, 2016, 1.3 percent of pensionable
18 compensation.
19 (B) Effective July 1, 2017, an additional 1.3 percent for a total
20 employee contribution of 2.6 percent of pensionable compensation.
21 (C) Effective July 1, 2018, an additional 1.4 percent for a total
22 employee contribution of 4.0 percent of pensionable compensation.
23 (4) The state employees in the judicial branch shall make
24 contributions to prefund retiree health care based on the following
25 schedule, and the state shall make a matching contribution:
26 (A) Effective July 1, 2016, 1.5 percent of pensionable
27 compensation.
28 (B) Effective July 1, 2017, up to an additional 1.5 percent for
29 a total employee contribution of up to 3.0 percent of pensionable
30 compensation. The additional amount shall be determined by the
31 Director of Finance no later than April 1, 2017, based on the
32 actuarially determined nonnal costs identified in the state valuation.
33 (C) This paragraph does not apply to a judge who is subject to
34 Chapter 11 (commencing with Section 75000) or Chapter 11.5
35 (commencing with Section 75500) of Title 8.
36 (5) The employees in State Bargaining Unit 12 shall make
37 contributions to prefund retiree health care based on the following
38 schedule, and the state shall make a matching contribution:
39 (A) Effective July 1, 2017, 1.5 percent of pensionable
40 compensation.
98
H B -99- Item 5. - 25
-9— SB 454
1 (B) Effective July 1, 2018, an additional 1.0 percent for a total
2 employee contribution of 2.5 percent of pensionable compensation.
3 (C) Effective July 1, 2019, an additional 1.0 percent for a total
4 employee contribution of 3.5 percent of pensionable compensation.
5 (D) Effective July 1, 2020, an additional 1.1 percent for a total
6 employee contribution of 4.6 percent of pensionable compensation.
7 (6) The employees in State Bargaining Unit 2 shall make
8 contributions to prefund retiree health care based on the following
9 schedule, and the state shall make a matching contribution:
10 (A) Effective July 1, 2017, 0.7 percent of pensionable
11 compensation.
12 (B) Effective July 1, 2018, an additional 0.6 percent for a total
13 employee contribution of 1.3 percent of pensionable compensation.
14 (C) Effective July 1, 2019, an additional 0.7 percent for a total
15 employee contribution of 2.0 percent of pensionable compensation.
16 (7) The employees in State Bargaining Unit 7 shall make
17 contributions to prefund retiree health care based on the following
18 schedule, and the state shall make a matching contribution:
19 (A) Effective July 1, 2017, 1.3 percent of pensionable
20 compensation.
21 (B) Effective July 1, 2018, an additional 1.4 percent for a total
22 employee contribution of 2.7 percent of pensionable compensation.
23 (C) Effective July 1, 2019, an additional 1.3 percent for a total
24 employee contribution of 4.0 percent of pensionable compensation.
25 (8) The employees in State Bargaining Unit 1, 3, 4, 11, 14, 15,
26 17, 20, or 21 shall make contributions to prefund retiree health
27 care based on the following schedule, and the state shall make a
28 matching contribution:
29 (A) Effective July 1, 2018, 1.2 percent of pensionable
30 compensation.
37 (B) Effective July 1, 2019, an additional 1.1 percent for a total
32 employee contribution of 2.3 percent of pensionable compensation.
33 (C) Effective July 1, 2020, an additional 1.2 percent for a total
34 employee contribution of 3.5 percent of pensionable compensation.
35 (9) The employees in State Bargaining Unit 8 shall make
36 contributions to prefund retiree health care based on the following
37 schedule, and the state shall make a matching contribution:
38 (A) Effective July I, 2017, 1.5 percent of pensionable
39 compensation.
98
Item 5. - 26 HB -100-
SB 454 —to—
(B) Effective July 1, 2018, an additional 1.5 percent for a total
2 employee contribution of 3.0 percent of pensionable compensation.
3 (C) Effective July 1, 2019, an additional 1.4 percent for a total
4 employee contribution of 4.4 percent of pensionable compensation.
5 (10) The employees in State Bargaining Unit 13 shall make
6 contributions to prefund retiree health care based on the following
7 schedule, and the state shall make a matching contribution:
8 (A) Effective July 1, 2017, 1.3 percent of pensionable
9 compensation.
10 (B) Effective July 1, 2018, an additional 1.3 percent for a total
l 1 employee contribution of 2.6 percent of pensionable compensation.
12 (C) Effective July 1, 2019, an additional 1.3 percent for a total
13 employee contribution of 3.9 percent of pensionable compensation.
14 (11) The employees in State Bargaining Unit 18 shall make
15 contributions to prefund retiree health care based on the following
16 schedule, and the state shall make a matching contribution:
17 (A) Effective July 1, 2017, 1.3 percent of pensionable
18 compensation.
19 (B) Effective July 1, 2018, an additional 1.3 percent for a total
20 employee contribution of 2.6 percent of pensionable compensation.
21 (C) Effective July 1, 2019, an additional 1.4 percent for a total
22 employee contribution of 4.0 percent of pensionable compensation,
23 (12) The employees in State Bargaining Unit 19 shall make
24 contributions to prefund retiree health care based on the following
25 schedule, and the state shall make a matching contribution:
26 (A) Effective July 1, 2017, 1.0 percent of pensionable
27 compensation.
28 (B) Effective July 1, 2018, an additional 1.0 percent for a total
29 employee contribution of 2.0 percent of pensionable compensation.
30 (C) Effective July 1, 2019, an additional 1.0 percent for a total
3 l employee contribution of 3.0 percent of pensionable compensation.
32 (c) This section only applies to employees who are eligible for
33 health benefits, including permanent intermittent employees.
34 (d) Contributions paid pursuant to this section shall be deposited
35 in the Annuitants' Health Care Coverage Fund and shall not be
36 refundable under any circumstances to an employee or his or her
37 beneficiary or survivor.
38 (e) If the provisions of this section are in conflict with the
39 provisions of a memorandum of understanding reached pursuant
40 to Section 3517.5, the memorandum of understanding shall be
98
H B -l 01- Item 5. - 27
—l l — SB 454
1 controlling without further legislative action, except that if those
2 provisions of a memorandum of understanding require the
3 expenditure of funds, the provisions shall not become effective
4 unless approved by the Legislature in the annual Budget Act.
5 (f) This section shall also apply to a state employee related to
6 a bargaining unit described in subdivision (a) who is excepted
7 from the definition of "state employee" in subdivision (c) of
8 Section 3513.
9 (g) On and after January 1, 2018, the prefunding of retiree
10 health care for state employees, annuitants, and their beneficiaries
11 shall be the responsibility of the state pursuant to Section 22944.7.
12 SEC. :11
13 SEC. 4. Section 22944.7 is added to the Government Code, to
14 read:
15 22944.7. (a) Notwithstanding Section 22944.5 or any other
16 law, on and after January 1, 2018, the state shall assume all
17 responsibility for prefunding retiree health care.
18 (b) The state shall prefund retiree health care for state
19 employees, annuitants, and their beneficiaries with the goal of
20 paying 100 percent of the actuarially determined normal costs by
21 July 1, 2019.
22 (c) The state shall pay unfunded liabilities that have accrued for
23 retiree health care for state employees, annuitants, and their
24 beneficiaries, as reported by the Controller in subdivision (d) with
25 the goal of paying 50 percent of the actuarially determined cost of
26 these liabilities by January 1, 2022, and 100 percent of the
27 actuarially determined cost of these liabilities by January 1, 2026.
28 (d) (1) On or before January 10 each year, the Controller shall
29 provide to the Assembly Committee on Budget and the Senate
30 Committee on Budget and Fiscal Review a report that shows, for
31 that year,the actuarially determined normal cost and the unfunded
32 liability of retiree health care for state employees, annuitants, and
33 their beneficiaries and a calculation of the amounts necessary to
34 meet the goals described in subdivisions (b) and (c).
35 (2) The report provided pursuant to this subdivision shall be
36 submitted in compliance with Section 9795.
O
98
Item 5. - 28 HB -102-
ATTACHMENT #7
AMENDED IN SENATE APRIL l 7, 2017
SENATE BILL No. 681
Introduced by Senator Moorlach
February 17, 2017
An act to add Section 20570.1 to the Gol,ernment Code, relating to
public employees'retirement.
LEGISLATIVE COUNSEL'S DIGEST'
SB 681, as amended, Moorlach. Public employees'
retirement: contracting agencies: termination.
The Public Employees'Retirement Law creates the Public Employees'
Retirement System (PERS), which provides a defined benefit to its
members based on age at retirement, service credit, and final
compensation. That law authorizes any public agency to make its
employees members of PERS by contracting with the Board of
Administration of PERS. Existing law provides for the termination of
a contract, including requiring the board to enter, upon request, into a
prescribed agreement with the terminating agency relating to the
calculation of final compensation for employees and related necessary
adjustments in the employer's contribution.
This bill wouldstate the intent of the Legislatttfe to sttbseqtteftt4y
liabilities.atflend this bill to inelttde pfevisiotts to allow the goveming body of a
p4lie ageney that eontraets with PERS for employee retirement benefits
'LU, iet mit tate tts eontraet with the system in a mannef that does not restilt
termtnattng its eontfaet to ha-ve the ability to withdraw its assets paid
into the system with the same rote ofretttrn, and to ensttre that a p4lie
ageney that terminates its eontraet, vv,ith the system shall 1�.1111CUII
require the Board of
98
HB -79- Item 5. - 5
SB 681 —2—
Administration ofPERS to allow a contracting agency to terminate its
contract with the system in a manner that does not result in excessive
costs or penalties to the contracting agency, allows the contracting
agency to withdraw its net assets paid into the system less payments
made to its members and their beneficiaries, and ensures that the
contracting agency remains responsible for its unfunded liabilities so
that those liabilities are not shifted onto other PERS members or
employers. Before a contracting agency would be eligible to terminate
its contract, the bill would require a contract to have been in effect for
at least 5 years and meet other notice and approval requirements. The
bill also would require the agreement between the contracting agency
and the board to contain provisions to protect the interests of the system,
and would require a contracting agency, before terminating its contract,
to determine how termination would affect the health care benefits of
its members and also to determine the federal tax ranlifications
associated with its decision. The bill would contain related legislative
findings.
Vote: majority. Appropriation: no. Fiscal committee: eyes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. It is the intent of the Legislature to
2 amend this meastire to itielude proviistions as follows: do the
3 following:
4 (a) T--� A- llow the governing body of a public agency that
5 contracts with the Public Employees' Retirement System (PERS)
6 for employee retirement benefits to terminate its contract with the
7 system in a marmer that does not result in excessive costs or
8 penalties to the public agency.
9 (b) Allow a public agency that terminates its contract
10 with the system to have the ability to withdraw its net assets paid
1 1 into the
12 in the withdrawal.a system, less payments made to its members and
13 their beneficiaries.
14 (c) tee-Ensure that a public agency that terminates its
15 contract with the system shall remain responsible for any of its
16 unfunded liabilities for employee retirement benefits so that those
17 liabilities are not shifted onto other participants in PERS.
98
Item 5. - 6 HB -80-
—3— SB 681
1 SEC. 2. Section 20570.1 is added to the Government Code, to
2 read:
3 20570.1. (a) Notwithstanding any other law, the board shall
4 allow a contracting agency to terminate its contract with the system
5 in a manner that does all of the following:
6 (1) Does not result in excessive costs or penalties to the
7 contracting agency.
8 (2) Allows the contracting agency to withdraw its net assets
9 paid into the system, less payments made to its members and their
10 beneficiaries.
11 (3) Ensures that the contracting agency remains responsible
12 for its unfunded liabilities for employee retirement benefits so that
13 those liabilities are not shifted onto other participants in the
14 system.
15 (b) For a contracting agency to be eligible to terminate its
16 contract, the contract shall be in effect for at least five years and
17 approved by an ordinance or resolution adopted by the governing
18 body of the contracting agency. The governing body may terminate
19 the contract by the adoption of a resolution giving notice of
20 intention to terminate, and by the adoption, not less than one year
21 thereafter by the affirmative vote of two-thirds of the members of
22 the governing body, of an ordinance or resolution terminating the
23 contract. Upon board approval, termination shall be effective on
24 the date designated in the ordinance or resolution terminating the
25 contract.
26 (c) The agreement between the contracting agency and the
27 board shall contain provisions to protect the interests of the system,
28 including provisions for determining the amount, time, and manner
29 of transfer of cash or securities, or both, to be transferred to the
30 contracting agency representing the value of the contacting
31 agency's interests in the retirement fund and its employees'
32 interests based on accumulated contributions and accumulated
33 rate of return, to be credited to the agency and its employees.
34 (d) A contacting agency, before terminating its contact with
35 the system, shall determine how termination would affect the health
36 care benefits of its members and also shall determine the federal
37 tax ramifications associated with its decision.
O
98
HB -81- Item 5. - 7
ATTACHMENT #8
AMENDED 1N ASSEMBLY MARCH 9, 2017
CALIFORNIA LEGISLATURE-2017-18 REGULAR SESSION
ASSEMBLY BILL No. 1.129
Introduced by Assembly Member Mark Stone
February 17, 2017
An act to amend Seetio 3'030 Sections 30235, 30624, and 30821
of the Public Resources Code, relating to coastal resources.
LEGISLATIVE COUNSEL'S DIGEST
AB 1129, as amended,Mark Stone. r..'46_._.". Goastal r,m....i—i-.
Coastal resources: structures: beach access and protection.
Existing law, the California CoastalAct of 1976,provides for planning
and regulation of development in the coastal zone, as defined The act
specifies planning and managenient policies for the location of new
residential, commercial,, and industrial development in the coastal zone.
The act requires the permitting of revetments, breakwaters, groins,
harbor channels, seawalls, cliff retaining walls, and other such
construction that alters natural shoreline processes when required to
serve coastal-dependent uses or to protect existing structures or public
beaches in danger from erosion and when designed to eliminate or
mitigate adverse inipacts on local shoreline sand supply.
This bill would also require that the permitted construction of those
structures be consistent with the policies of the act, including policies
regarding protection of public access, shoreline ecology, natural
landforms, and other inipacts on coastal resources, and would define
the terni "existing structure"for the purposes of those provisions.
The act requires any person wishing to pef forni or undertake any
development in the coastal zone, as defined, to obtain a coastal
development permit, but eaenipts from those requirements specified
98
Item 5. - 36 HB -1 10-
AB 1129 —2—
emergency projects undertaken, carried out, or approved by a public
agency, as prescribed.
This bill would sped that any emergency permit issued under those
provisions is a temporary authorization intended to allow the minimum
amount of temporary development necessary to address the identified
emergency, and minimize any potential harm or adverse coastal impacts
related to addressing the emergency. The bill would sped that any
subsequent development that is carried out that is beyond the scope of
the emergency permit shall require a coastal development permit and
is not subject to emergency authorization granted under those
provisions.
The act imposes specified civil penalties on a person, including a
landowner, who is in violation of the public access provisions of the
act for each violation of the act.
This bill would additionally impose those civil penalties on a person,
including a landowner, who has an unpermitted shoreline protection
structure on his or her property located in the coastal zone.
The r i:t r noastal, et i 976 ti: hes the n i:F r k i
ofthe eommission with regard to the administration and implementation
of the
Vote: majority. Appropriation: no. Fiscal committee: neyes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. (a) The Legislature finds and declares all of the
2 following:
3 (1) California beaches provide recreation opportunities for
4 residents across the state, as well as visitors from around the
5 world.
6 (2) The coastal economy is based upon the maintenance of
7 precious natural areas, beaches,parks, and urban areas as tourist
8 destinations, and their economic benefit to the state depends on
9 protection of their scenic and recreational value.
10 (3) As climate change occurs, much of'the coast is under threat
1 I due to sea level rise and amplified coastal erosion.
98
HB -I l l- Item 5, - 37
—3— AB 1129
1 (4) The economic and environmental health of human and
2 natural coastal communities depends on their resilience and their
3 ability to survive and rebound from adverse effects.
4 (5) In response to erosion and storm events, Californians have
5 built seawalls, revetments, and other armoring structures along
6 more than 10 percent of'California's coast.
7 (6) Coastal armoring structures placed on eroding beaches
8 prevent coastal ecosystems from migrating inland and cutoffsand
9 supply by preventing natural erosion processes. The placement of
10 these structures on coastal lands also causes beaches to narrow
11 and eventually disappear, diminishing coastal habitat.
12 (7) Coastal armoring limits beach access, impedes coastal
13 recreation, and causes increased erosion to neighboringproperties.
14 (8) A variety of alternatives to coastal armoring exist that use
15 natural features and processes to protect property. While these
16 nature-based alternatives have been shown to cost less or about
17 the same as armoring they also have the additional benefit of
18 restoring and enhancing the natural character of the coast and
19 ensuring coastal beach access for the public.
20 (b) It is therefore the intent of the Legislature to provide clear
21 direction and enhanced authority to the California Coastal
22 Commission to maximize the use ofnatural infrastructure to protect
23 the state's coastline, while minimizing the use of coastal armoring
24 and its related negative impacts.
25 SEC. 2. Section 30235 of the Public Resources Code is
26 amended to read.
27 30235. (a) Revetments, breakwaters, groins,harbor channels,
28 seawalls, cliff retaining walls, and other such construction that
29 alters natural shoreline processes shall be permitted when required
30 to serve coastal-dependent uses or to protect an existing struetures
31 or publie beaehes structure or public beach in danger from erosion
32 and when that construction is (1) designed to eliminate or mitigate
33 adverse impacts on local shoreline sander supply, and (2)
34 consistent with the policies of this division, including policies
3 5 pertaining to protection ofpublic access, shoreline ecology, natural
36 landforms, and other impacts on coastal resources. Existing marine
37 structures causing water stagnation contributing to pollution
38 problems and fishkills should be phased out or upgraded where
39 feasible.
98
Item 5. - 38 KB -1 l 2-
AB 1129 —4—
1 (b) For purposes of this section, and consistent with existing
2 practice, "existing structure" means a structure that is legally
3 authorized and in existence as ofdanuary 1, 1977.
4 SEC. 3. Section 30624 of the Public Resources Code is
5 amended to read.-
6 30624. (a) The commission shall provide, by regulation, for
7 the issuance of coastal development permits by the executive
8 director of the commission or, where the coastal development
9 permit authority has been delegated to a local government pursuant
10 to Section 30600.5, by an appropriate local official designated by
11 resolution of the local government without compliance with the
12 procedures specified in this chapter in cases of emergency, other
13 than an emergency provided for under Section 30611, and for the
14 following nonemergency developments: improvements to any
15 existing structure; any single-family dwelling; any development
16 of four dwelling units or less within any incorporated area that
17 does not require demolition; any other developments not in excess
18 of one hundred thousand dollars(S 100,000) other than any division
19 of Iand; and any development specifically authorized as aprincipal
20 permitted use and proposed in an area for which the land use
21 portion of the applicable local coastal program has been certified.
22 That permit for nonemergency development shall not be
23 effective until after reasonable public notice and adequate time for
24 the review off the issuance has been provided.
25 (b) If one-third of the appointed members of the commission
26 so request at the first meeting following the issuance of—suek that
27 permit by the executive director,that issuance shall not be effective,
28 and, instead, the application shall be processed in accordance with
29 the commission's procedures for permits and pursuant to the
30 provisions of this chapter.
31 (c) Any permit issued by a local official pursuant to the
32 provisions of this section shall be scheduled on the agenda of the
33 governing body of the local agency at its first scheduled meeting
34 after that permit has been issued. If, at that meeting, one-third of
35 the members of that governing body so request, the permit issued
36 by the local official shall not go into effect and the application for
37 a coastal development permit shall be processed by the local
38 government pursuant to Section 30600.5.
39 (d) No monetary limitations shall be required for emergencies
40 covered by the provisions of this section.
98
KB -1 13- Item 5, - 39
—5— AB 1129
1 (e) (1) An emergency permit issued under this section is a
2 temporary authorization intended to allow the minimum amount
3 of temporary development necessary to address the identified
4 emergency, and minimize any potential harm or adverse coastal
5 impacts related to addressing the emergency. Any subsequent
6 development that is carried out that is beyond the scope of the
7 emergency permit shall require a coastal development permit and
8 is not subject to the emergency authorization granted under this
9 section.Any development in the coastal zone that is covered under
10 an emergency authorization granted pursuant to this section shall
1 1 be removed at the end of the terra of the permit unless authorized
12 by a subsequent coastal development permit or a determination
13 that no permit is needed, and any area affected by the development
14 shall be restored to its prior condition.
15 (2) Any violation of paragraph (1) shall constitute a knowing
16 and intentional violation of this division, subject to any penalties
17 provided in Article 2 (commencing with Section 30820) of Chapter
18 9.
19 SEC 4. Section 30821 of the Public Resources Code is
20 amended to read:
21 30821. (a) In addition to any other penalties imposed pursuant
22 to this division,a person,including a landowner, who is in violation
23 of the public access provisions of this division division, or who
24 has an unpermitted shoreline protection structure, such as a
25 seawall, revetment, retaining wall, or other like structure, on his
26 or her proper-h) located in the coastal zone, is subject to an
27 administrative civil penalty that may be imposed by the
28 commission in an amount not to exceed 75 percent of the amount
29 of the maximum penalty authorized pursuant to subdivision (b) of
30 Section 30820 for each violation. The administrative civil penalty
31 may be assessed for each day the violation persists, but for no more
32 than five years.
33 (b) All penalties imposed pursuant to subdivision (a) shall be
34 imposed by majority vote of the commissioners present in a duly
35 noticed public hearing in compliance with the requirements of
36 Section 30810, 30811, or 30812.
37 (c) In determining the amount of civil liability, the commission
38 shall take into account the factors set forth in subdivision (c) of
39 Section 30820,
98
Item 5. - 40 H B -1 14-
AB 1129 —6—
1 (d) A person shall not be subject to both monetary civil liability
2 imposed under this section and monetary civil liability imposed
3 by the superior court for the same act or failure to act. If a person
4 who is assessed a penalty under this section fails to pay the
5 administrative penalty, otherwise fails to comply with a restoration
6 or cease and desist order issued by the commission in connection
7 with the penalty action, or challenges any of these actions by the
8 commission in a court of law, the commission may maintain an
9 action or otherwise engage in judicial proceedings to enforce those
10 requirements and the court may grant any relief as provided under
I 1 this chapter.
12 (e) If a person fails to pay a penalty imposed by the commission
13 pursuant to this section, the commission may record a lien on the
14 property in the amount of the penalty assessed by the commission.
15 This lien shall have the force, effect, and priority of a judgment
16 lien.
17 (f) In enacting this section, it is the intent of the Legislature to
18 ensure that unintentional, minor violations of this division that
19 only cause de minimis harm will not lead to the imposition of
20 administrative penalties if the violator has acted expeditiously to
21 correct the violation.
22 (g) "Person," for the purpose of this section, does not include
23 a local government, a special district, or an agency thereof, when
24 acting in a legislative or adjudicative capacity.
25 (h) Administrative penalties pursuant to subdivision (a) shall
26 not be assessed if the property owner corrects the violation
27 consistent with this division within 30 days of receiving written
28 notification from the commission regarding the violation, and if
29 the alleged violator can correct the violation without undertaking
30 additional development that requires a permit under this division.
31 This 30-day timeframe for corrective action does not apply to
32 previous violations of permit conditions incurred by a property
33 owner.
34 (i) The commission shall prepare and submit,pursuant to Section
35 9795 of the Government Code, a report to the Legislature by
36 January 15, 2019, that includes all of the following:
37 (1) The number of new violations reported annually to the
38 commission from January 1, 2015, to December 31, 2018,
39 inclusive.
98
HB -1 15- Item 5. - 41
-7— AB 1129
1 (2) The number of violations resolved from January 1,2015,to
2 December 31, 2018, inclusive.
3 (3) The number of administrative penalties issued pursuant to
4 this section, the dollar amount of the penalties, and a description
5 of the violations from January 1, 2015, to December 31, 2018,
6 inclusive.
7 0) Revenues derived pursuant to this section shall be deposited
8 into the Violation Remediation Account of the Coastal
9 Conservancy Fund and expended pursuant to Section 30823.SECTION
10
12
13 members
14
15 .
16
17 .
18 , and the Speaker 4the
19 .
20
22 region and one member who is ftom the sotth eentfal eoast fegivi 1.
23 The Speaker ofthe Assembly shall seleet one member who is froi
24
25 eett3t region. The Sena ittee on n..les shall otte
26
27 who is ftorn the south euusi tegion. For pttfposes ofthis divistort,
28 these regions are defined as followK
29 ,
30 1T. ffl lot and >,,l,.r,l,.ein
o.
31
32 Sonorna and Marin and the City and Gottrity of San Ffaneisee,.
33 (3) The eentfal eoast region eonsists of the Counties of San
34 Mateo, Santa Gndz, ftnd
35
36Ventura.
37
38 Angeles and Orange.
39
40 Diego.
98
Item 5. - 42 xB -1 16-
AB 1129 —8—
1
2 ,
3and work dife tly wit'li, eotiftnitmities in the state that are
4 , high levels Of
5 politttion and issttes of. envifonmental jttstiee, ineittding,
6 limited to,
7
8
9
10
11 available after janttar. ,
O
98
JJB -117- Item 5. - 43
ATTAC H M E N T #9
z
s
AB 629
a ASSEMBLYMAN MATTHEW HARPER
Art Galleries
SUMMARY OF PROPOSED BILL: have to have a Non-Profit act as an umbrella to
This bill would allow an art gallery to provide apply for the TUP).
wine and beer to patrons, for consumption on
the gallery premises, without a license or permit, Because the galleries need a TUP every time they
as long as the price of alcohol is not included in want to serve beer or wine, it would require
the sales price of any piece of art or merchandise them to apply for a TUP for the 300 plus days
sold by the gallery. that they are open.
PROBLEM & NEED FOR BILL: This is over burdensome as a gallery cannot
predict when an individual would like to visit a
Background: gallery and enjoy a glass of wine to either
The art season in Laguna Beach flourishes year celebrate a purchase or just to enjoy the art over
round with First Thursdays Art Walk (FTAW). a beverage with the artists and fans of the art.
This educational monthly art event, held on the
first Thursday of every month from 6 - 9pm, Recent Reform:
celebrates the diverse cultural art scene of Currently, ABC provides that no license or
Laguna Beach and is free to the public. permit is required for the serving of alcoholic
beverages in a limousine, hot air balloon,
This non-profit organization is committed to seasonal business, or at beauty salons and
supporting the member galleries; serving the barber shops. All of which can serve to clients
community by cultivating an appreciation for the aged 21 and over, provided there is no extra fee
arts; and providing a high quality educational charged for the beverage.
experience for art students through the annual
Mentoring Program with Laguna College of Art + Need for legislation:
Design. Galleries throughout California offer
complementary alcoholic beverages to their
During the art walk coffee, tea, water, wine and customers at no charge. However, by providing
beer are served for the enjoyment of the art. such beverages without an ABC license, these
establishments are in conflict with state and
Problems: local alcohol licensing requirements.
Currently, according to Alcohol Beverage Control
(ABC), art galleries are not allowed to serve AB 629 is needed because most art galleries are
alcoholic beverages without a one-day liquor small, mom and pop operations which seek to
license that has been approved by the Laguna provide an enjoyable experience for their
Beach Police Department in conjunction with a customers; unfortunately, such businesses
Temporary Use Permit (TUP) from the City of currently serving alcoholic beverages face
Laguna Beach. potential sanctions for their actions.
In order for the art galleries to obtain a TUP, For More Information
they have to be a member of FTAW or have Contact: Madeleine Cooper
another Non-Profit represent them as a gallery Phone: (91.6) 319-2074
(meaning, a gallery has no authority to receive a Email: Madeleine.Cooper@asm.ca.gov
TUP fora gallery opening or for any event and
Item 5. - 44 HB -1 I g-
ATTACHMENT # 10
AMENDED IN SENATE APRIL 26, 2017
AMENDED IN SENATE APRIL 17, 2017
AMENDED IN SENATE MARCH 20, 2017
SENATE BILL No. 242
Introduced by Senator Skinner
February 6, 2017
An act to add Chapter 29.1 (commencing with Section 5900)to Part
3 of Division 7 of the Streets and Highways Code, relating to the
Property Assessed Clean Energy program.
LEGISLATIVE COUNSEL'S DIGEST
S13 242, as amended, Skinner. Property Assessed Clean Energy
program: program administrator.
Existing law authorizes applicants, defined as including specified
public agencies,entities administering Property Assessed Clean Energy
(PACE) financing programs on behalf of and with the written consent
of public agencies, or financial institutions, to assist property owners
in financing the installation of distributed generation renewable energy
sources, electric vehicle charging infrastructure, or energy or water
efficiency improvements through the issuance of PACE bonds that are
secured by voluntary contractual assessments, voluntary special taxes,
or special taxes on property.
The bill would require a program administrator that administers a
PACE program on behalf of a public agency to comply with certain
requirements when approving an assessment contract for the installation
of an eligible measure, as well as the administration of that contract,
including requiring the contract to comply with specified criteria and
requirements.The bill would require a program administrator to obtain
96
SB 242 —2—
a sworn declaration of income containing specified financial information
from each property owner, and would provide that a declarant who
willfully states as true a material fact on that declaration that he or she
knows to be false be subject to a civil penalty of a specified amount.
The bill would require a program administrator to underwrite an
assessment contract, and would prohibit a program administrator from
approving an assessment contract if it determines that the property
owner is unlikely to be able to make payments on that contract. The
bill would require a program adyn nisi:atof administrator, before a
PACE assessment is consummated and in addition to other disclosures,
to provide an oral confirmation of the key terms of an assessment
contract with the property owner or an authorized representative of the
property
Mall the owner. The bill would require a program
administrator for each PACE Program that it administers to establish
and make publicly available an eligible measure list that has been
approved by the sponsoring public agency, and would prohibit the
program administrator from approving PACE assessments for a measure
that is not included on that list, unless the program administrator
establishes a custom measure in accordance with specified requirements.
The bill would prohibit a contractor or other 3rd party from advertising
the availability of an assessment contract that is administered by a
program administrator, or from soliciting property owners on behalf of
the program administrator,unless specified requirements are met. The
bill would prohibit a program administrator from providing direct or
indirect cash payments or anything of a material value to a contractor
or 3rd party that is in excess of the actual price charged to the property
owner for the sale or installation of measures financed by an assessment
contract, except for reimbursement of expenses as provided. The bill
would also prohibit a program administrator from providing direct or
indirect cash payments or anything of a material value to a property
owner that is explicitly conditioned upon the property owner entering
into the assessment contract. The bill would prohibit a program
administrator from making any representation as to the tax deductibility
of an assessment contract,unless that representation is consistent with
applicable state and federal law. The bill would prohibit a program
administrator from providing information that discloses the maxi-Me
PAGE assessment amount f6r whieh a pfoperty has been appfove
96
-3— SB 242
specified information relating to the property
owner or the property.
The bill would require a program
administrator, for each
PACE program that it administers, to submit a report, at least annually,
to the public agency that contains specified information regarding that
program.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Chapter 29.1 (commencing with Section 5900)
2 is added to Part 3 of Division 7 of the Streets and Highways Code,
3 to read:
4
5 CHAPTER 29.1. CLEAN ENERGY ASSESSMENT CONTRACTS
6
7 Article 1. General Provisions
8
9 5900. The provisions of this article shall apply exclusively to
10 residential real property with three or fewer units.
11 5901. The provisions of this chapter shall not apply to any
12 public agency.
13 5902. For purposes of this chapter:
14 (a) "Ancillary work" means the improvement of real property
15 made in connection with the installation of a measure.
16 (b) "Assessment contract" means an agreement entered into
17 between one of mofe all property owners of record on real property
18 and a public agency in which,for voluntary contractual assessments
19 imposed on the real property, the public agency provides a PACE
20 assessment for the installation of one or more measures on the real
21 property in accordance with a PACE program.
22 (c) "Custom measure" means a measure that is not on the
23 eligible measure list of a program administrator for a PACE
24 program.
96
SB 242 —4—
1 (d) "Eligible measure list" means, for each PACE program, a
2 list of all measures other than custom measures that have been
3 approved for a PACE assessment by a program administrator.
4 (e) "Energy utility" means an "electrical corporation" as
5 defined in Section 218, a "gas corporation"as defined in Section
6 222, a "local publicly owned electric utility"as defined in Section
7 224.3, of the Public Utilities Code, and a local publicly owned gas
8 utility. "Energy utility"also means a community choice aggregator
9 or other entity, other than an electrical corporation or gas
10 corporation, approved by the Public Utilities Commission to
11 administer programs providing energy-efficiency-related services
12 or incentives for eligible solar energy systems to end users using
13 moneys collected by an electrical corporation or gas corporation
14 from ratepayers or moneys made available pursuant to Section
15 748.5 of the Public Utilities Code.
16 (ej
17 (0 "Measure"means one or more improvements on real property
18 that may be made pursuant to an assessment contract under a PACE
19 program.
20 ff)
21 (g) "PACE assessment"
22
23
24 has the same meaning as `Property Assessed Clean Energy Bond"
25 or "PACE Bond" as defined in Section 26054 of the Public
26 Resources Code.
27 f g-
28 (h) "PACE program" means a program in which financing is
29 provided for the installation of measures on real property and
30 funded through the use of property assessments, as well as other
31 program components defined in this section, established pursuant
32 to any of the following:
33 (1) Chapter 29 (commencing with Section 5898.10) of Part 3
34 of this code.
35 (2) The Mello-Roose Community Facilities Act of 1982(Chapter
36 2.5 (commencing with Section 53311) of Part 1 of Division 2 of
37 Title 5 of the Government Code).
38 (3) A charter city's constitutional authority under Section 5 of
39 Article XI of the California Constitution.
40 (4t)
96
—5— SB 242
1 (i) "Program administrator" means an entity administering a
2 PACE program on behalf of, and with the written consent of, a
3 public agency.
4 6) "Property owner"means an owner of record on the property
5 subject to the PACE assessment.
6
7 (k) "Public agency" means a city, county, city and county,
8 municipal utility district,community services district,community
9 facilities district,joint powers authority,sanitary district,sanitation
10 district,or water district, as defined in Section 20200 of the Water
11 Code,that has established or participates in a PACE program,and
12 utilizes a program administrator.
13 (l) "Public water system"has the same meaning as defined in
14 subdivision (h) of Section 116275 of the Health and Safety Code.
15
16 Article 2. Assessment Contract Requirements
17
18 5910. A program administrator shall not submit, present, or
19 otherwise approve for signature by a public agency an assessment
20 contract unless that assessment contract complies with paragraphs
21 (1)and(2)of subdivision(e)of Section 53328.1 of the Government
22 Code and Sections 5898.16 and 5898.17 of this code, and the
23 following additional criteria are met:
24 (a) All property taxes for the property that will be subject to the
25 assessment contract are current for the previous three years or
26 since the current owner acquired the property, whichever period
27 is shorter.
28 (b) The property that will be subject to the assessment contract
29 has no recorded involuntary liens in excess of one thousand dollars
30 ($1,000).
31 (c) The property that will be subject to the assessment contract
32 has no notices of default outstanding.
33 (d) Any property owner that will execute the assessment contract
34 is not a party to any bankruptcy proceeding.
35 (e) The property owner that will execute the assessment contract
36 is current on all mortgage debt that is secured by the property that
37 will be subject to the assessment contract.
38 (f) The property owner that will execute the assessment contract
39 is the title holder of record on the property that will be subject to
40 the assessment contract.
96
1
SB 242 —6—
1 (g) The property that will be subject to the assessment contract
2 is within the geographical boundaries of the applicable PACE
3 program.
4 (h) The PACE assessment will be for less than 15 percent of
5 the current market value of the property, up to the first seven
6 hundred thousand dollars ($700,000) of the current market value
7 of the property, and for less than 10 percent of the remaining
8 current market value of the property above seven hundred thousand
9 dollars ($700,000). Market value for purposes of this subdivision
10 shall be determined in
11 accordance with subdivision (c) of Section 5898.17 of the Streets
12 and Highways Code.
13 (1) The total PACE assessment and mortgage-related debt on
14 the property subject to the assessment contract will not exceed the
15 market value of the property. Market value for purposes of this
16 subdivision shall be determined in
17 mattttef. accordance with subdivision(c)of Section 5898.17 of the
18 Streets and Highways Code.
19 0) The maximum term of the assessment contract shall not
20 exceed the useful life of the measure being installed. The program
21 administrator shall determine useful life for purposes of this
22 subdivision based upon credible third-party standards or
23 certification criteria that have been established by appropriate
24 government agencies or nationally recognized standards and
25 testing organizations.
26 (k) The property owner agfees shall agree to place the lien on
27 the title report, and shall agree to notify the program administrator
28 if the property owner has authorized additional PACE assessments
29 on the same subject property. The failure of a property owner to
30 comply with this subdivision shall entitle the program administrator
31 to recover from the property owner the amount of any funds that
32 the program administrator has advanced to or on behalf of that
33 property owner.
34 5911. A program administrator shall obtain a sworn declaration
35 of income and debt obligations from each property owner seeking
36 an assessment contract. A declarant that willfully states as true
37 any material fact he or she knows to be false shall be subject to a
38 civil penalty of up to ten thousand dollars ($10,000). Any public
39 prosecutor may bring a civil action to impose the civil penalty.
40 The program administrator shall underwrite each assessment
96
-7— SB 242
1 contract to determine the property owner's ability to make
2 payments on that assessment contract. A program administrator
3 shall not approve an assessment contract if it determines that the
4 property owner is unlikely to be able to make all payments on the
5 assessment contract.
6 5912. (a) Before a pfogfnm administrator authorizes -m
7 eontraetor to ea rertee wofk to ittsaal a fneasure, PACE
8 assessment is consummated, in addition to providing the written
9 disclosure pursuant to Section 5898.17 of the Streets and Highways
10 Code, the program administrator shall make an oral confirmation
11 of the key terms of the assessment contract with at least one
12 property owner or authorized representative of the property owner.
13 That oral confirmation shall include, but is not limited to, all of
14 the following information:
15 (1) The measure being installed is being financed by a PACE
16 assessment.
17 (2) The total estimated annual costs the property owner will
18 have to pay under the assessment contract, including applicable
19 fees.
20 (3) The estimated date that the first payment will be due.
21 (4) The term of the assessment contract.
22 (5) That payments on the assessment contract will be made
23 through taxes assessed on the real property and paid either directly
24 to the county assessor's office or through the property owner's
25 mortgage impound account.
26 (6) That the property will be subject to a lien during the term
27 of the assessment contract.
28 (7) That the property owner understands and affirms the
29 financial information that he or she has provided, and that he or
30 she has the financial means to make payments on the assessment
31 contract in addition to their other expenses.
32 (8) That the program administrator does not provide tax advice,
33 and that the property owner should seek professional tax advice
34 if he or she has questions regarding the impact on the PACE
35 assessment or assessment contract.
36 (9) That the obligations under the assessment contract may(A)
37 remain on the property or(B)be required to be paid in full before
38 the property owner sells or refinances the property.
96
1
SB 242 —8—
1 (b) The program administrator shall comply with both of the
2 following when giving the oral confirmation described in
3 subdivision(a):
4 (1) The program administrator shall record the oral confirmation
5 in an audio format in accordance with applicable ems. laws, and
6 shall obtain acknowledgment from the person to whom the
7 confirmation is given of the confirmation.
8 (2) The program administrator may not comply with the
9 requirement in subdivision (a) through the use of a prerecorded
10 message, or other similar device or method.
11 5913. A program administrator may not waive or defer the first
12 payment on an assessment contract. A property owner's first
13 assessment payment shall be due no later than the tax year
14 following the ealendatax year in which the installation of the
15 measure is completed.
16
17 Article 3. Eligible projects; Contractor Oversight; Transfer of
18 Bonds
19
20 5920. (a) A program administrator shall not offer a PACE
21 assessment for a measure that is not both of the following:
22 (1) Permanently affixed to real property.
23 (2) Consistent with criteria of the PACE program through which
24 the assessment contract is made available.
25 (b) Before a
26 eommenee- wefk to ns�'�an�aea e;- PACE assessment is
27 consummated, the program administrator or contractor shall
28 confirm that the measure is included on the applicable eligible
29 measures list or has been approved as a custom measure pursuant
30 to subdivision (c) of Section 5921.
31 5921. (a) For each PACE program that it administers, a
32 program administrator shall establish,maintain,and make publicly
33 available an eligible measure list that has been approved by the
34 sponsoring public agency, and shall establish suitable procedures
35 for the inclusion, maintenance, and removal of information
36 included on the eligible measure list. The eligible measure list
37 shall at minimum include the following information for each
38 measure appearing on that list:
39 (1) A name or description.
96
—9— SB 242
1 (2) Eligibility criteria, including performance thresholds,
2 certification requirements, and installation criteria.
3 (3) Expected useful life. The program administrator shall
4 determine useful life for purposes of this subdivision based upon
5 credible third party standards or certification criteria that have
6 been established by appropriate government agencies or nationally
7 recognized standards and testing organizations.
8 (b) A measure shall not be included on an eligible measure list
9 unless the program administrator has determined that the measure
10 complies with both of the following:
11 (1) It is consistent with the scope of the PACE program.
12 (2) It meets one or more standards or certification criteria that
13 have been established by appropriate government agencies, such
14 as the United States Department of Energy, the United States
15 Environmental Protection Agency, and the California Energy
16 Commission, or by appropriate and credible third-party private
17 organizations that publish generally acceptable standards with
18 respect to the measure.A measure may comply with this paragraph
19 if it is an improvement eligible for rebate by at least one public
20 utility, energy utility, orpublic water system thatprovides services
21 to that property owner
22 (c) A program administrator may offer PACE assessments for
23 a measure not included in the eligible measure list if that
24 administrator does both of the following:
25 (1) Establishes, maintains, and makes publicly available an
26 application process, that has been approved by the sponsoring
27 public agency, to permit a contractor or property owner to request
28 a PACE assessment for a custom measure.
29 (2) Establishes, maintains, and makes publicly available
30 guidelines, that have been approved by the sponsoring public
31 agency, by which the program administrator shall review and
32 approve the application for a custom measure. Those guidelines
33 shall identify minimum requirements and criteria that must be met
34 in order for a custom measure to be approved, and shall be
35 consistent with subdivision(b).
36 (d) A PACE assessment shall not be used for ancillary work
37 unless both of the following requirements are met:
38 (1) The scope of the ancillary work is directly related to and
39 necessary for the installation of a measure.
96
SB 242 —10—
1 (2) The cost of the ancillary work does not exceed the cost of
2 the eligibles measure, and the total amount financed
3 including both the eligible measure and the ancillary work does
4 not exceed 15 percent of the market value of the property subject
5 to the PACE assessment.
6 5922. A program administrator shall not permit contractors or
7 other third parties to advertise the availability of assessment
8 contracts that are administered by the program administrator, or
9 to solicit property owners on behalf of the program administrator,
10 unless both of the following requirements are met:
11 (a) The contractor or third parry maintains in good standing an
12 appropriate license from the Contractors State Licensing Board,
13 as well as any other permits, licenses, or registrations required for
14 engaging in its business in the jurisdiction where it operates, and
15 maintains the required bond and insurance coverage pursuant
16 thereto.
17 (b) The program administrator obtains the contractor or third
18 parry's written agreement that the contractor or third parry will act
19 in accordance with applicable advertising and marketing laws and
20 regulations, and all other applicable law.
21 5923. (a) Except as provided for in subdivision(b),a program
22 administrator shall not provide any direct or indirect cash payment
23 or other thing of material value to a contractor or third party in
24 excess of the actual price charged by that contractor or third party
25 to the property owner for the sale and installation of one or more
26 measures financed by an assessment contract.
27 (b) A program administrator is permitted to reimburse
28 documented expenses to a contractor or third party for approved
29 cobranded advertising and marketing campaigns and collateral,
30 leads, reasonable enteftaittment expenses, training, and training
31 events.
32 (c) A program administrator shall not provide any direct cash
33 payment or other thing of value to a property owner explicitly
34 conditioned upon that property owner entering into an assessment
35 contract.
36 5924. A program administrator shall not make any
37 representation as to the tax deductibility of an assessment contract
38 unless that representation is consistent with the Internal Revenue
39 Service,or applicable state tax agency,representations,statements,
40 or opinions with regard to the tax treatment of PACE assessments.
96
SB 242
1 5925. A program administrator shall not provide to a contractor
2 or third party engaged in soliciting assessment contracts on its
3 behalf any information that discloses the fflaXtfnttffl n^G
4 .
5 amount of PACE financing a property owner is eligible for; or the
6 amount of equity in the property, or any other indication of the
7 maximum or potential amount offinancing available to a property
8 owner.
9 5926. This chapter does not prevent a program administrator,
10 at its discretion and sole expense,from doing any of the following:
11 (a) Assigning to a third party its right to close, fund, or
12 administer an assessment contract.
13 (b) Securitizing its interest in bonds issued pursuant to one or
14 more assessment contracts.
15 (c) Purchasing, selling, assigning, or taking assignment of an
16 interest in bonds issued pursuant to one or more assessment
17 contracts, or securities backed by assessment contracts.
18
19 Aft ele 4- Fofbeafanee
20
21
22 ,
23
24 payment f6rbeafanee of the PAGE assessment f6f the satne te.r.M.,
25
26
27 months.
28
29 Article-5-.4. Reporting
30
31 5931. (a) For each PACE program that it administers, a
32 program administrator shall submit a report at least annually to
33 the public agency that shall contain the following information:
34 (1) The number of properties that received PACE assessments.
35 (2) The aggregate dollar amount of PACE assessments received.
36 .
37 (3) The average dollar amount of PACE assessments received.
38 (4) The categories of installed measures whether energy or
39 water efficiency, renewable energy, or seismic improvements and
96
SB 242 —12—
1 the percentage of assessments represented by each category type
2 on a number and dollar basis.
3 (4)
4 (5) Rates of defaul atiel delinquener. including the number of
5 parcels defaulted and defaulted amount and the number of years
6 in default for each property within the jurisdictional boundaries
7 of the public agency.
8 (5) Data peftaining to homeownef eligibility.
9 (6) Estimated amount of energy savtttgs. savings as expressed
10 in monetary and energy use savings.
11 (7) Estimated amount of renewable energy produced.
12 (8) Estimated amount of waterer savings as expressed
13 in monetary and energy use savings.
14 (9) Estimated amount of greenhouse gas emissions reductions.
15 (10) Estimated number of jobs created.
16 (b) The program administrator shall make available to the public
17 agency all methodologies and supporting assumptions or sources
18 relied upon in the report.
19 (c) All reports submitted pursuant to this section shall include
20 only aggregate data, and shall not include any nonpublic personal
21 information.
O
96
ATTACHMENT # 11
AMENDED IN ASSEMBLY APRIL 25, 2017
AMENDED IN ASSEMBLY APRIL 17, 2017
AMENDED IN ASSEMBLY APRIL 4, 2017
CALIFORNIA LEGISLATURE-2017-i8 REGULAR SESSION
ASSEMBLY BILL No. 1250
Introduced by Assembly Member Jones-Sawyer
February 17, 2017
An act to add Sections 31000.10, 31000.1 1, 37103.1, and 37103.2
to the Government Code, relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 1250, as amended, Jones-Sawyer. Counties and cities: contracts
for personal services.
Existing law authorizes the board of supervisors of a county to contract
for special services on behalf of various public entities with persons
who are specially trained,experienced, expert,and competent to perform
the special services, as prescribed. These services include financial,
economic, accounting, engineering, legal, and other specified services.
Existing law also authorizes legislative bodies of cities to contract with
any specially trained and experienced person, firm, or corporation for
special services and advice in financial, economic, accounting,
engineering, legal, or administrative matters.
This bill would establish specific standards for the use of personal
services contracts by counties and cities. Beginning January 1, 2018,
the bill would allow a county or county agency, or a city or city agency,
to contract for personal services currently or customarily performed by
county employees, as applicable, when specified conditions are met.
Among other things, the bill would require the county or city to clearly
96
HB -121- Item 5. - 47
AB 1250 —2—
demonstrate that the proposed contract will result in actual overall costs
savings to the county or city and also to show that the contract does not
cause the displacement of county or city workers.The bill would require
a contract entered into under these provisions to specify that it may be
terminated upon material breach, if notice is provided, as specified.
Additionally, the bill would require the county or city to provide an
orientation to employees of the contractor who would perform services
pursuant to the contract
, and would establish liability provisions fo
employment law violations and ttn in the eottrse o
, among other conditions. The bill
would require that the county or city conduct a cost-benefit analysis
prior to entering into the contract and would require the prospective
contractors to reimburse the cost of the analysis. The bill would also
require the county or city to conduct an audit of the contract to
determine whether cost savings have been realized and would require
the contractor to reimburse the cost of the audit. The bill would impose
additional disclosure requirements for contracts exceeding $100,000
$5,000,000 annually, would exempt certain types of contracts from its
provisions, and would require each county or city to maintain on its
Internet Web site a searchable database of all of its contracts exceeding
S100,000. $5,000,000. By placing new duties on local government
agencies, the bill would impose a state-mandated local program.
The bill also would provide that its provisions are severable.
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, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to the statutory
provisions noted above.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
1 SECTION 1 . Section 3 1000.10 is added to the Government
2 Code, to read:
3 31000.10. The purpose of this section and Section 31000.11
4 is to establish standards for the use of personal services contracts
5 by counties.
96
Item 5. - 48 H B -122-
—3— AB 1250
1 (a) If otherwise permitted by law, a county or county agency
2 may contract for personal services currently or customarily
3 perfonned by county employees when all the following conditions
4 are met:
5 (1) The board of supervisors or county agency clearly
6 demonstrates that the proposed contract will result in actual overall
7 cost savings to the county for the duration of the entire contract
8 as compared with the county's actual costs of providing the same
9 services, provided that:
10 (A) In comparing costs, there shall be included the county's
11 additional cost of providing the same service as proposed by a
12 contractor. These additional costs shall include the salaries and
13 benefits of additional staff that would be needed and the cost of
14 additional space, equipment, and materials needed to perform the
15 function.
16 (B) In comparing costs,there shall not be included the county's
17 indirect overhead costs unless these costs can be attributed solely
18 to the function in question and would not exist if that function was
19 not performed in county service. Indirect overhead costs shall
20 mean the pro rata share of existing administrative salaries and
21 benefits, rent, equipment costs, utilities, and materials.
22 (C) In comparing costs, there shall be included in the cost of a
23 contractor providing a service any continuing county costs that
24 would be directly associated with the contracted function. These
25 continuing county costs shall include, but not be limited to, those
26 for inspection, supervision, and monitoring.
27 (2) Proposals to contract out work shall not be approved solely
28 on the basis that savings will result from lower contractor pay rates
29 or benefits. Proposals to contract out work shall be eligible for
30 approval if the contractor's wages are at the industry's level and
31 do not significantly undercut county pay rates.
32 (3) The contract does not cause the displacement of county
33 employees. "Displacement"includes layoff,demotion, involuntary
34 transfer to a new class, involuntary transfer to a new location
35 requiring a change of residence, and time base reductions.
36 "Displacement" does not include changes in shifts or days off or
37 reassignment to other positions within the same class and general
38 location.
39 (4) The contract does not cause vacant positions in county
40 employment to remain unfilled.
96
HIS -1 23)_ Item 5. - 49
AB 1250 —4—
1 (5) The contract does not adversely affect the county's
2 affirmative action efforts.
3 (6) The savings shall be large enough to ensure that they will
4 not be eliminated by private sector and county cost fluctuations
5 that could normally be expected during the contracting period.
6 (7) The amount of savings clearly justifies the size and duration
7 of the contracting agreement.
8 (8) The contract is awarded through a publicized, competitive
9 bidding process. The county shall reserve the right to reject any
10 and all bids or proposals.
11 (9) The contract includes specific provisions pertaining to the
12 qualifications of the staff that will perform the work under the
13 contract, as well as assurance that the contractor's hiring practices
14 meet applicable nondiscrimination, affirmative action standards.
15 (10) The potential for future economic risk to the county from
16 potential contractor rate increases is minimal.
17 (11) The contract is with a finn. "Firm" means a corporation,
18 partnership, nonprofit organization, or sole proprietorship.
19 (12) The potential economic advantage of contracting is not
20 outweighed by the public's interest in having a particular function
21 performed directly by county government. Before executing a
22 contract for personal services under this section, the county shall
23 demonstrate that outsourcing the particular functions at issue is in
24 the public interest, addressing the cost of the contract, the cost of
25 administering the contract, the effect on the quality of services
26 provided to the public, and any other relevant circumstances.
27 (13) The contract shall provide that it may be terminated at any
28 time by the county without penalty if there is a material breach of
29 the contract and notice is provided at least 30 days before
30 termination.
31 (14) The county shall provide an orientation to employees of
32 the contractor who will perform services pursuant to the contract.
33 The orientation shall include, but is not limited to, all of the
34 following:
35 (A) A description of the services to be provided pursuant to the
36 contract.
37 (B) A description of the function and goals of the public agency
38 responsible for providing the services in the absence of the contract.
96
Item 5. - 50 HB -124-
-5— AB 1250
1 (C) Any applicable rules governing provision of the services
2 and how the employee may report violations of applicable rules
3 or contractual requirements.
4 (15) The eottnty shall be jointly and sevefally liable with the
5 eontraetor and any of its sttbeontraetors for:
6
7 the eontfaet,
8 bargaining .
9 v y
10 .
11 (�
12 (15) If the contract is for personal services in excess of one
13 hundred thousand dollars($100,000) annually,all ofthe following
14 shall occur:
15 (A) The county shall require the contractor to disclose all of the
16 following information as part of its bid, application, or answer to
17 a request for proposal:
18 (i) A description of all charges, claims, or complaints filed
19 against the contractor with any federal, state,or local administrative
20 agency during the prior 10 years.
21 (ii) A description of all civil complaints filed against the
22 contractor in any state or federal court during the prior 10 years.
23 (iii) A description of all state or federal criminal complaints or
24 indictments filed against the contractor, or any of its officers,
25 directors, or managers, at any time.
26 (iv) A description of any debarments of the contractor by any
27 public agency or licensing body at any time.
28 (v) The total compensation, including salaries and benefits, the
29 contractor provides to workers performing work similar to that to
30 be provided under the contract.
31 (vi) The total compensation,including salaries,benefits,options,
32 and any other form of compensation, provided to the five highest
33 compensated officers, directors, executives, or employees of the
34 contractor.
35 (vii) Any other information the county deems necessary to
36 ensure compliance with this section.
37 (B) Prior to entering into the contract,the county shall conduct,
38 and make public, a -o cost-benefit analysis considering the
39 potential impact of outsourcing the work covered by theme
40 ineluding, bttt not limited to: contracts The analysis shall include:
96
HB -125- Item 5. - 51
AB 1250 —6—
1 (1) The potential loss of employment opportunities within the
2 county and resultant loss of income to workers.
3 (ii) The eeenomie impact on local businesses if consumer
4 spending power is reduced as a result of reduced wages under the
5 contract.
6 (iii) The impact on the county's ability to provide social services
7 and the effect of any reduction in social services on county
8 residents.
9
10 . - -- -
11 (iv) Potential impacts on the environment, if any.
12 (C) Prospective contractors shall reimburse the county for the
13 cost of the cost-benefit analysis.
14 (G�
15 (D) The contract shall provide that the county is entitled to
16 receive a copy of any records related to the contractor's or any
17 subcontractor's performance of the contract, and that any of those
18 records shall be subject to the California Public Records Act
19 (Chapter 3.5 (commencing with Section 6250) of Division 7 of
20 Title 1). In furtherance of this subdivision, contractors and any
21 subcontractors shall maintain records related to performance of
22 the contract that ordinarily would be maintained by the county in
23 performing the same functions.
24
25 (E) The county shall include in the contract specific,measurable
26 performance standards and provisions for a performance audit by
27 the county, or an independent auditor approved by the county, to
28 detennine whether the performance standards are being met and
29 whether the contractor is in compliance with applicable laws and
30 regulations. The county shall not renew or extend the contract prior
31 to receiving and considering the audit report.
32 (E)
33 (F) (1) The contract shall include provisions for an audit by
34 the county, or an independent auditor approved by the county, to
35 determine whether and to what extent the anticipated cost savings
36 have actually been realized. The county shall not renew or extend
37 the contract before receiving and considering the audit report.
38 (2) The contractor shall reimburse the county for the cost of the
39 audit.
96
Item 5. - 52 1113 -126-
-7— AB 1250
1 (b) This section does not preclude a county from adopting more
2 restrictive rules regarding the contracting of public services.
3 (c) When otherwise pennitted by law, the absence of any
4 requirement of subdivision (a) shall not prevent personal services
5 contracting when any of the following conditions are met:
6 (1) The contract is for anew county function and the Legislature
7 has specifically mandated or authorized the performance of the
8 work by independent contractors.
9 (2) The contract is between the count} and anothergovernment
10 entity for services to be performed by employees of the other
1 1 government entity.
12 (2)
13 (3) The services contracted cannot be performed satisfactorily
14 by county employees, or are of such a highly specialized or
15 technical nature that the necessary expert knowledge, experience,
16 and ability are not available among county employees.
17 (3�
18 (4) The services are incidental to a contract for the purchase or
19 lease of real or personal property. Contracts under this criterion,
20 known as "service agreements," shall include, but not be limited
21 to, agreements to service or maintain office equipment or
22 computers that are leased or rented.
23 (4)
24 (5) The legislative, administrative, or legal goals and purposes
25 cannot be accomplished through the utilization of county
26 employees. Contracts are permissible under this criterion to protect
27 against a conflict of interest or to ensure independent and unbiased
28 findings in cases where there is a clear need for a different,outside
29 perspective. These contracts shall include, but not be limited to,
30 obtaining expert witnesses in litigation.
32 (6) The nature of the work is such that the standards of this part
33 for emergency appointments apply. These contracts shall conform
34 with Section 31000.4.
35 (6)
36 (7) Public entities or officials need private counsel because a
37 conflict of interest on the part of the county counsel's office
38 prevents it from representing the public entity or official without
39 compromising its position.These contracts shall require the written
40 consent of the county counsel.
96
HB -127- Item 5. - 53
AB 1250 —8-
2 (8) The contractor will provide equipment, materials, facilities,
3 or support services that could not feasibly be provided by the
4 county in the location where the services are to be performed.
5 f8)
6 (9) The contractor will conduct training courses for which
7 appropriately qualified county employee instructors are not
8 available,provided that permanent instructor positions in academies
9 or similar settings shall be filled by county employees.
10 �}
1 1 (10) The services are of such an urgent,temporary,or occasional
12 nature that the delay incumbent in their implementation by county
13 employees would frustrate their very purpose.
14 (d) All persons who provide services to a county under
15 conditions constituting an employment relationship shall be
16 employed directly by the county.
17 (e) (1) Except as provided in paragraph (2), this section shall
18 apply to all counties, including counties that have adopted a merit
19 or civil service system.
20 (2) This section does not apply to a charter county fonned
21 pursuant to Section 3 of Article XI of the California Constitution.
22 (f) (1) This section does not apply to any contract for services
23 described in Section 4525 or 4529.10.
24 (2) This section does not apply to any contract that is subject
25 to Chapter 1 (commencing with Section 1720)of Part 7 of Division
26 2 of the Labor Code.
27 (3) This section does not apply to a contract for public transit
28 services, including paratransit services, if the county's transit
29 services are fully funded by Federal Transit Administration
30 assistance and the county is thereby subject to the guidelines
31 established in FTA Circular 4220.1 F or any subsequent guidelines
32 or revisions issued by the Federal Transit Administration.
33 (g) This section shall apply to personal services contracts entered
34 into, renewed, or extended on or after January 1, 2018.
35 SEC. 2. Section 31000.11 is added to the Government Code,
36 to read:
37 31000.11. (a) Each county shall maintain on its Internet Web
38 site a searchable database of all contracts of an annual value in
39 excess of five million
96
Item 5. - 54 HB _128_
-9— AB 1250
1 dollars (b5,000,000) entered into pursuant to Section 31000.10.
2 The database shall include, but is not limited to, the following:
3 (1) A description of the services provided under the contract.
4 (2) The name of the agency, department, or division responsible
5 for providing the service in the absence of the contract.
6 (3) The name of the contractor and any subcontractors providing
7 services under the contract.
8 (4) The effective and expiration dates of the contract.
9 (5) The annual amount paid pursuant to the contract to the
10 contractor in the past three fiscal years and the current fiscal year,
1 1 including the funding source for all amounts paid.
12 (6) The annual amount expected to be paid pursuant to the
13 contract to the contractor in the next three fiscal years.
14 (7) The total projected cost of the contract for all fiscal years
15 and the funding source for all amounts to be paid.
16 (8) The names of the employees of the contractor and any
17 subcontractors providing services pursuant to the contract and their
18 hourly pay rates, and the total number of full-time equivalent
19 positions involved in performing the services under the contract.
20 (9) The names of any workers providing services pursuant to
21 the contract as independent contractors and the compensation rates
22 for such workers.
23 (b) The infonnation identified in subdivision (a) shall be
24 compiled in an annual service contractor expenditure budget
25 accompanying the county budget, reflecting all spending on
26 personal services contracts by the county.
27 SEC. 3. Section 37103.1 is added to the Government Code, to
28 read:
29 37103.1. The purpose of this section and Section 37103.2 is
30 to establish standards for the use of personal services contracts by
31 cities.
32 (a) If otherwise pennitted by law, a city or city agency may
33 contract for personal services currently or customarily performed
34 by city employees when all the following conditions are met:
35 (1) The city council or city agency clearly demonstrates that
36 the proposed contract will result in actual overall cost savings to
37 the city for the duration of the entire contract as compared with
38 the city's actual costs of providing the same services, provided
39 that:
96
KB -129_ Item 5. - 55
AB 1250 —10—
1 (A) In comparing costs, there shall be included the city's
2 additional cost of providing the same service as proposed by a
3 contractor. These additional costs shall include the salaries and
4 benefits of additional staff that would be needed and the cost of
5 additional space, equipment, and materials needed to perform the
6 function.
7 (B) In comparing costs, there shall not be included the city's
8 indirect overhead costs unless these costs can be attributed solely
9 to the function in question and would not exist if that function was
10 not performed in city service. Indirect overhead costs shall mean
I 1 the pro rata share of existing administrative salaries and benefits,
12 rent, equipment costs, utilities, and materials.
13 (C) In comparing costs, there shall be included in the cost of a
14 contractor providing a service any continuing city costs that would
15 be directly associated with the contracted function. These
16 continuing city costs shall include, but not be limited to, those for
17 inspection, supervision, and monitoring.
18 (2) Proposals to contract out work shall not be approved solely
19 on the basis that savings will result from lower contractor pay rates
20 or benefits. Proposals to contract out work shall be eligible for
21 approval if the contractor's wages are at the industry's level and
22 do not significantly undercut city pay rates.
23 (3) The contract does not cause the displacement of city
24 employees. "Displacement" includes layoff, demotion, involuntary
25 transfer to a new class, involuntary transfer to a new location
26 requiring a change of residence, and time base reductions.
27 "Displacement" does not include changes in shifts or days off or
28 reassignment to other positions within the same class and general
29 location.
30 (4) The contract does not cause vacant positions in city
31 employment to remain unfilled.
32 (5) The contract does not adversely affect the city's affirmative
33 action efforts.
34 (6) The savings shall be large enough to ensure that they will
35 not be eliminated by private sector and city cost fluctuations that
36 could normally be expected during the contracting period,
37 (7) The amount of savings clearly justifies the size and duration
38 of the contracting agreement.
96
Item 5. - 56 H Q _ ;0_
-11 — AB 1250
1 (8) The contract is awarded through a publicized, competitive
2 bidding process. The city shall reserve the right to reject any and
3 all bids or proposals.
4 (9) The contract includes specific provisions pertaining to the
5 qualifications of the staff that will perform the work under the
6 contract, as well as assurance that the contractor's hiring practices
7 meet applicable nondiscrimination, affirmative action standards.
8 (10) The potential for future economic risk to the city from
9 potential contractor rate increases is minimal.
10 (l 1) The contract is with a firm. "Firm" means a corporation,
1 1 partnership, nonprofit organization, or sole proprietorship.
12 (12) The potential economic advantage of contracting is not
13 outweighed by the public's interest in having a particular function
14 performed directly by city government.Before executing a contract
15 for personal services under this section,the city shall demonstrate
16 that outsourcing the particular functions at issue is in the public
17 interest, addressing the cost of the contract, the cost of
18 administering the contract, the effect on the quality of services
19 provided to the public, and any other relevant circumstances.
20 (13) The contract shall provide that it maybe terminated at any
21 time by the city without penalty if there is a material breach of the
22 contract and notice is provided at least 30 days before tennination.
23 (14) The city shall provide an orientation to employees of the
24 contractor who will perfornl services pursuant to the contract.The
25 orientation shall include,but is not limited to, all of the following:
26 (A) A description of the services to be provided pursuant to the
27 contract.
28 (B) A description of the function and goals of the public agency
29 responsible for providing the services in the absence of the contract.
30 (C) Any applicable rules governing provision of the services
31 and how the employee may report violations of applicable rules
32 or contractual requirements.
(15) The eity shall be jointly and sevefally liable with the
34 eontraetor and any of its subeontfaetofs f-of
35
36 ,
37
38
39
40
96
HB -1;1- Item 5. - 57
AB 1250 —12—
1 �
2 (15) If the contract is for personal services in excess of one
3 hundred thousand dollars($100,000)annually, all of the following
4 shall occur:
5 (A) The city shall require the contractor to disclose all of the
6 following information as part of its bid, application, or answer to
7 a request for proposal:
8 (i) A description of all charges, claims, or complaints filed
9 against the contractor with any federal, state,or local administrative
10 agency during the prior 10 years.
11 (ii) A description of all civil complaints filed against the
12 contractor in any state or federal court during the prior 10 years.
13 (iii) A description of all state or federal criminal complaints or
14 indictments filed against the contractor, or any of its officers,
15 directors, or managers, at any time.
16 (iv) A description of any debarments of the contractor by any
17 public agency or licensing body at any time.
18 (v) The total compensation, including salaries and benefits, the
19 contractor provides to workers performing work similar to that to
20 be provided under the contract.
21 (vi) The total compensation,including salaries,benefits,options,
22 and any other form of compensation, provided to the five highest
23 compensated officers, directors, executives, or employees of the
24 contractor.
25 (vii) Any other information the city deems necessary to ensure
26 compliance with this section.
27 (B) Prior to entering into the contract, the city shall conduct,
28 and make public, a study o cost-benefit analysis considering the
29 potential impact of outsourcing the work covered by the eontraet,
30 ineluding, bttt not limited to: contract. The analysis shall include:
31 (i) The potential loss of employment opportunities within the
32 city and resultant loss of income to workers.
33 (ii) The—ere impact on local businesses if consumer
34 spending power is reduced as a result of reduced wages under the
35 contract.
36 (iii) The impact on the city's ability to provide social services
37 and the effect of any reduction in social services on city residents.
38
39 . -1 V - a, -- -.
40 (iv) Potential impacts on the environment, if any.
96
Item 5. - 58 BB -132-
-13— AB 1250
1 (C) Prospective contractors shall reimburse the city for the cost
2 of the cost-benefit analysis.
3 (£H
4 (D) The contract shall provide that the city is entitled to receive
5 a copy of any records related to the contractor's or any
6 subcontractor's performance of the contract, and that any such
7 records shall be subject to the California Public Records Act
8 (Chapter 5 (commencing with Section 6250)of Division 7 of Title
9 1). In furtherance of this subdivision, contractors and any
10 subcontractors shall maintain records related to performance of
11 the contract that ordinarily would be maintained by the city in
12 performing the same functions.
l3 �
14 (E) (1) The city shall include in the contract specific,
15 measurable performance standards and provisions for a
16 performance audit by the city, or an independent auditor approved
17 by the city, to determine whether the performance standards are
18 being met and whether the contractor is in compliance with
19 applicable laws and regulations. The legislative body shall not
20 renew or extend the contract prior to receiving and considering
21 the audit report.
22 (2) The contractor shall reimburse the city for the cost of the
23 audit.
24 fH
25 (F) The contract shall include provisions for an audit by the
26 city, or an independent auditor approved by the city, to determine
27 whether and to what extent the anticipated cost savings have
28 actually been realized. The city shall not renew or extend the
29 contract before receiving and considering the audit report.
30 (b) This section does not preclude a city from adopting more
31 restrictive rules regarding the contracting of public services.
32 (c) When otherwise permitted by law, the absence of any
33 requirement of subdivision (a) shall not prevent personal services
34 contracting when any of the following conditions are met:
35 (1) The contract is for a new city function and the Legislature
36 has specifically mandated or authorized the performance of the
37 work by independent contractors.
38 (2) The services contracted cannot be performed satisfactorily
39 by city employees, or are of such a highly specialized or technical
96
H13 -133- Item 5. - 59
AB 1250 —14—
l nature that the necessary expert knowledge,experience, and ability
2 are not available among city employees.
3 (3) The services are incidental to a contract for the purchase or
4 lease of real or personal property. Contracts under this criterion,
5 known as "service agreements," shall include, but not be limited
6 to, agreements to service or maintain office equipment or
7 computers that are leased or rented.
8 (4) The legislative, administrative, or legal goals and purposes
9 cannot be accomplished through the utilization of city employees.
10 Contracts are pennissible under this criterion to protect against a
l 1 conflict of interest or to ensure independent and unbiased findings
12 in cases where there is a clear need for a different, outside
13 perspective. These contracts shall include, but not be limited to,
14 obtaining expert witnesses in litigation.
15 (5) The nature of the work is such that the standards of this title
16 for emergency appointments apply. These contracts shall conform
17 with Section 45080.
18 (6) Public entities or officials need private counsel because a
19 conflict of interest on the part of the city attorney's office prevents
20 it from representing the public entity or official without
21 compromising its position.These contracts shall require the written
22 consent of the city attorney.
23 (7) The contractor will provide equipment,materials, facilities,
24 or support services that could not feasibly be provided by the city
25 in the location where the services are to be performed.
26 (8) The contractor will conduct training courses for which
27 appropriately qualified city employee instructors are not available,
28 provided that permanent instructor positions in academies or similar
29 settings shall be filled by city employees.
30 (9) The services are of such an urgent, temporary,or occasional
31 nature that the delay incumbent in their implementation by city
32 employees would frustrate their very purpose.
33 (d) All persons who provide services to a city under conditions
34 constituting an employment relationship shall be employed directly
35 by the city.
36 (e) (1) Except as provided in paragraph (2), this section shall
37 apply to all cities, including cities that have adopted a merit or
38 civil service system.
39 (2) This section does not apply to a charter city formed pursuant
40 to Section 3 of Article XI of the California Constitution.
96
Item 5. - 60 HB -134_
-15— AB 1250
1 (f) (1) This section does not apply to any contract for services
2 described in Section 4525 or 4529.10.
3 (2) This section does not apply to any contract that is subject
4 to Chapter 1 (commencing with Section 1720)of Part 7 of Division
5 2 of the Labor Code.
6 (3) This section does not apply to a contract for public transit
7 services, including paratransit services, if the county's transit
8 services are fully funded by Federal Transit Administration
9 assistance and the county is thereby subject to the guidelines
10 established in FTA Circular 4220.1 F or any subsequent guidelines
1 1 or revisions issued by the Federal Transit Administration.
12 (g) This section shall apply to personal services contracts entered
13 into, renewed, or extended on or after January 1, 2018.
14 SEC. 4. Section 37103.2 is added to the Government Code, to
15 read:
16 37103.2. (a) Each city shall maintain on its Internet Web site
17 a searchable database of all contracts of an annual value in excess
18 of five million dollars
19 ($5,000,000) entered into pursuant to Section 37103.1. The
20 database shall include, but is not limited to, the following:
21 (1) A description of the services provided under the contract.
22 (2) The name of the agency,department,or division responsible
23 for providing the service in the absence of the contract.
24 (3) The name of the contractor and any subcontractors providing
25 services under the contract.
26 (4) The effective and expiration dates of the contract.
27 (5) The annual amount paid pursuant to the contract to the
28 contractor in the past three fiscal years and the current fiscal year,
29 including the funding source for all amounts paid.
30 (6) The annual amount expected to be paid pursuant to the
31 contract to the contractor in the next three fiscal years.
32 (7) The total projected cost of the contract for all fiscal years
33 and the funding source for all amounts to be paid.
34 (8) The names of the employees of the contractor and any
35 subcontractors providing services pursuant to the contract and their
36 hourly pay rates, and the total number of full-time equivalent
37 positions involved in performing the services under the contract.
38 (9) The names of any workers providing services pursuant to
39 the contract as independent contractors and the compensation rates
40 for such workers.
96
HB -135- Item 5. - 61
AB 1250 —16-
1 (b) The information identified in subdivision (a) shall be
2 compiled in an annual service contractor expenditure budget
3 accompanying the county budget, reflecting all spending on
4 personal services contracts by the county.
5 SEC. 5. The provisions of this act are severable. If any
6 provision of this act or its application is held invalid,that invalidity
7 shall not affect other provisions or applications that can be given
8 effect without the invalid provision or application.
9 SEC. 6. If the Commission on State Mandates determines that
10 this act contains costs mandated by the state, reimbursement to
11 local agencies and school districts for those costs shall be made
12 pursuant to Part 7 (commencing with Section 17500) of Division
13 4 of Title 2 of the Government Code.
O
96
Item 5. - 62 HB -136-
O
IOU CITY OF HUNTINGTON BEACH
Interdepartmental Memo
TO: Honorable Mayor and City Councilmembers
FROM: Antonia Graham, Assistant to the City Manager
DATE: May 1, 2017
SUBJECT: Supplemental Communication for Agenda Item#5—City Council Position on Legislation
Pending Before the State Legislature as Recommended by the City Council Intergovernmental
Relations Committee (IRC).
There is a correction to Attachment#10—the bill attached to the Agenda Item should have been Senate Bill 242 instead
Assembly Bill 252 was attached. The correct bill is attached to this Supplemental Communication.
SUPPLEMENTAL
COMMUNICATION
Mealing Date:
Agenda Item no.. .�
1
AMENDED IN ASSEMBLY FEBRUARY 28, 2017
CALIFORNIA LEGISLATURE-2017—i8 REGULAR SESSION
ASSEMBLY BILL No. 252
Introduced by Assembly Member Ridley-Thomas
(Coauthors:Assembly Members Baker, Bigelow, Mathis, Steinorth,
Waldron, Chdvez, and Low)
(Coauthors: Senators Berryhill, Hill, and Bradford)
January 31, 2017
An act to add and repeal Section 7284.8 of the Revenue and Taxation
Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 252, as amended, Ridley-Thomas. Local gove ent: taxation:
prohibition: video streaming services.
Existing law authorizes counties, cities, and othe local agencies to
impose various taxes and fees in connection with ctivity or property
within those jurisdictions. The California Const' ution also authorizes
a charter city to levy local taxes to raise reve es for local purposes,
subject to restrictions imposed by that city's harter or preemption in
matters of statewide concern.
This bill, until January 1, 2023, would rohibit the imposition by a
city, city and county, or county, includ' g a chartered city, city and
county, or county, of a tax on video stir aming services, including, but
not limited to, any tax on the sale or e of video streaming services or
any utility user taxes. tax on video reaming services.
This bill would make a legislati e finding and declaration regarding
the statewide concern of the romotion of uniformity in access
throughout the state to video s earning services.
Revised 3-14-17—See last page 98
uB _11 g_ Iten1 5. - 45
AB 252 —2—
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 7284.8 is added to the Revenue and
2 Taxation Code, to read:
3 7284.8. (a) A city, city and county, or county, including a
4 chartered city, city and county, or county, shall not impose any
5 tax on video streaming services, including, but not limited to, any
6 tax on the sale or use of video streaming services or any utility
7 users taxon video streaming services.
8 (b) For purposes of this section,"video streaming service"ineans
9 the provision of video content sent in compressed fon
10 over the Internet and displayed by the viewer in real time for a fee
1 I on a subscription basis.
12 (c) The Legislature finds and declares that the promo,' n of
13 uniformity in access throughout the state to video str aming
14 services is a matter of statewide concern and, therefore is not a
15 municipal affair as that tenn is used in Section 5 of Article XI of
16 the California Constitution.
17 (d) This section shall become inoperative on Jan ary 1, 2023,
18 and shall be repealed as of that date.
19
20
21 REVISIONS:
22 Heading—Line 4.
23
O
98
t
d
Item 5. - 46 Hg -120-