SENIOR SENATE PROPOSAL NO. 31

INTRODUCED BY SENIOR SENATOR FAUSTMAN

LEGISLATIVE COUNSEL'S DIGEST

SP 31: RETIREMENT BOARDS.

THE CALIFORNIA CONSTITUTION GRANTS RETIREMENT BOARDS OF PUBLIC PENSION OR RETIREMENT SYSTEMS THE SOLE AND EXCLUSIVE FIDUCIARY RESPONSIBILITY OVER THE ASSETS OF THOSE SYSTEMS. THE CALIFORNIA CONSTITUTION FURTHER GRANTS RETIREMENT BOARDS THE SOLE AND EXCLUSIVE RESPONSIBILITY TO ADMINISTER THOSE SYSTEMS IN A MANNER THAT WILL ASSURE PROMPT DELIVERY OF BENEFITS AND RELATED SERVICES TO THE PARTICIPANTS AND BENEFICIARIES.

THIS MEASURE WOULD MEMORIALIZE THE LEGISLATURE AND THE GOVERNOR TO ENACT LEGISLATION THAT WOULD REQUIRE MEMBER APPROVAL PRIOR TO THE LENDING OF RETIREMENT SYSTEM MONEYS TO THE STATE OF CALIFORNIA AND THAT WOULD REQUIRE THOSE LOANS TO BE PAID BACK AT THE MARKET RATE OF INTEREST WITHIN A MUTUALLY AGREED UPON TIME.

VOTE: MAJORITY.

SP 30: RELATING TO ELDER AND DEPENDENT ADULT ABUSE

WHEREAS, GOVERNMENT BORROWING FROM FUNDS BELONGING TO STATE RETIREES, IN ORDER TO MAKE UP FOR DEFICITS IN ITS BUDGET, HAVE ALWAYS BEEN PAID BACK IN THE PAST; AND

WHEREAS, RETIREES PAID THE REQUIRED AMOUNT INTO THEIR RETIREMENT FUNDS MONTHLY, ALTHOUGH THIS OFTEN WAS A SACRIFICE; AND

WHEREAS, THE FUNDS TAKEN FROM STATE RETIREES, STARTING IN 2008, WILL CAUSE GREAT HARDSHIP, PARTICULARLY AMONG THOSE RETIREES WHO ARE OLDER AND WHO HAVE BEEN RETIRED FOR 10 OR MORE YEARS; AND

WHEREAS, FUNDS BORROWED BY ANY OTHER ENTITY WOULD BE REQUIRED BY LAW TO BE PAID BACK WITHIN A GIVEN PERIOD OF TIME AND WITH INTEREST; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR SENATE AND THE SENIOR ASSEMBLY, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2007 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT THE CALIFORNIA LEGISLATURE, BY CONSTITUTIONAL AMENDMENT OR OTHERWISE, REQUIRE THAT THE GOVERNMENT’S BORROWING OF ANY MONEYS FROM RETIREMENT SYSTEMS BE ON THE BASIS OF GETTING THE APPROVAL OF THE RETIREMENT SYSTEM MEMBERS FIRST; AND BE IT FURTHER

RESOLVED, THAT THE MONEY THEN BE PAID BACK AT THE MARKET RATE OF INTEREST WITHIN A MUTUALLY AGREED UPON TIME; AND BE IT FURTHER

RESOLVED THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE LEGISLATURE AND THE GOVERNOR OF THE STATE OF CALIFORNIA TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER

RESOLVED; THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE PRESIDENT PRO TEMPORE OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, AND THE GOVERNOR OF THE STATE OF CALIFORNIA.

RN20072422806

- 0 -