Assembly Standing Committee on Public Employment and Retirement

Good morning, Members of the Committee and the public. To the Assembly Committee on public employment and retirement. Assemblymember Fung is absent today and there is no substitute. We have two items on AB 3025, Valencia and AJR 11. Davies. AJR 11 is on consent. We will be limiting testimony to two minutes for each and for two witnesses on each side of the Bill. All others may only state their name, organization, if any, and position on the Bill.

Finally, the Assembly has experienced a number of disruptions to Committee and floor proceedings in the last few years. So that everyone is crystal clear. Conduct that disrupts, disturbs or impedes the orderly conduct of this hearing is prohibited. To address any disruptive conduct. I will direct them to stop and warn the individual that if they continue, they may be removed from participating in this hearing or the Capitol. And we will temporarily recess the hearing to address the matter. Thank you in advance for your cooperation. We need to establish a quorum secretary. Please call the roll.

[Roll Call]

And we have a quorum Members. Let's take up the consent calendar first. Is there any Committee Member who wishes to remove AJr 11 from consent calendar? The consent calendar is moved in. Second secretary, please call the roll.

[Roll Call]

Six to zero. That Bill is out. Thank you. Assembly Member Valencia, you're here to present file item number two, AB 3025. I understand that you will be accepting the Committee's proposed amendments. Thank you. The Bill enjoys an aye recommendation from the chair, and the motion is do pass as amended. You may proceed when ready, sir.

Good morning and thank you, Madam Chair. Yes, I will be accepted. Accepting the Committee's amendments. Really appreciate their efforts on the process of this Bill. AB 3025 establishes a process to ensure that county employees receive their negotiated retirement benefits without penalties, even if certain compensation is disallowed. Disallowed compensation processes undermine the promise of a secure retirement and jeopardize the integrity of our county retirement systems.

With me to provide testimony this morning is Mister Doug Saburz, Director of governmental affairs of the California Professional Firefighters, and Jennifer Rowe, advocate on behalf of the Fraternal Order of Police, Orange County.

Thank you. You guys will have two minutes each. Thank you.

Thank you, Madam Chair Members. Doug Subers, on behalf of the California Professional Firefighters, CPF is pleased to co sponsor AB 3025 and like to thank the author for bringing it forward and the Committee for their Work and engagement on this measure. As noted by the author, this measure will create a clear process to address disallowed compensation that occurs on or after January 1, 2024. The structure of this measure is similar to prior policies that have been adopted to address disallowed compensation.

And CalPERS and CalSTRS, we think this is just an appropriate thing to protect the Members of the county employee retirement system. And for those reasons, we'd respectfully request your aye vote thank you.

Madam Chair and Members Jennifer Roe, on behalf of the California Fraternal Order of Police, pleased to be a co sponsor of AB 3025. We believe this corrects the wrong for our retirees, so respectfully request your aye vote.

Thank you, are there any witnesses in support? Please give your name, your position, and your organization.

Madam Chair Members Pat Moran, with Aaron Reed and associates representing the Orange County Employees Association and support.

Good morning, Madam Chair Members. Yvonne Fernandez, California Labor Federation, in support.

Good morning. Janice O'Malley AFSCME California in support. Thank you.

Thank you. Are there any witnesses in opposition? Seeing none. I would like to bring it back to the Committee. I'm Assembly Member Lackey.

Yeah, I just want to request to be a co-author.

Absolutely. Thank you.

Any other Members? Assembly Member of Valencia, I want to thank you, your staff sponsor and supporters, for working with the Committee on Amendments. I agree that we must protect retirees from being financially harmed by a mistake that wasn't their fault and where they had no control. I understand that there may need to be additional changes as this Bill moves forward, and I ask that you work with the Committee staff regarding those changes.

However, I want to be clear that while I'm with you in protecting retirees, the Legislature must protect the ability to continue providing a pension to our dedicated public employees as well as the system that administers them. We will not accept changes that somehow attempt to get around PEPRA, the court's decision on the county employment retirement law that include compensation items towards retirement that are not allowed and not consistent with these laws in that decision. So I thank you guys for the work that you are doing. Would you like to close?

Madam Chair. Concerns are heard loud and clear. Happy to keep the dialogue going and ensure that we could work through all the mechanics. Respectfully ask for a yes vote.

Thank you. Secretary, please call the roll.

[Roll Call]

Well, this was great. We have adjourned.