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Home My WebLink AboutMINUTES - 05091995 - 1.47 TO: BOARD OF SUPERVISORS 5 Contra r ^'. c FROM: Costa Phil Batchelor, County Administrator � .'. �p -., . .... oQ County DATE: May 4 1995 sueJEcr: LEGISLATION: AB 1021 (Tucker) — REMOVES THE AUDITOR AND TREASURER AS SIGNATORIES ON RETIREMENT FUND CHECKS AND LEAVES THE DESIGNATION nF STQNATiiRF. THORTTV TO THE RF.TTRF.MF.NT gnAnn SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ADOPT a position in OPPOSITION to AB 1021 by Assemblyman Tucker which would remove the Auditor and Treasurer as signatories on Retirement Fund checks and leave the designation of signature authority to the Retirement Board. BACKGROUND: The existing County Employee Retirement Law of 1937 requires all warrants, checks and electronic fund transfers to be signed or authorized by the Treasurer, at least one other member of the Retirement Board, and the County Auditor. In addition, current law allows the County Treasurer the option, with the approval of the Retirement Board, to authorize a trust company or trust department of any state or national bank to process and issue benefit payments by check or electronic fund transfer. AB 1021 would remove the County Treasurer as a required signature on Retirement Fund warrants, checks, and electronic fund transfers. Instead, it would require that at least two Retirement Board officers or employees, designated by the Retirement Board, be authorized to sign warrants, checks, and electronic fund transfers . In addition, the Treasurer's discretion about the use of a trust company is eliminated and the County Treasurer, upon direction from the, Retirement Board, would be required to authorize a trust company to process and issue benefit payments by check or electronic fund transfer, in which case the County Auditor would also be removed as a required signature on Retirement Fund checks . CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON Mays 1995 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. ATTESTED MAY 9 `e995 Contact: County Administrator PHIL BATCHELOR.CLERK OF THE BOARD OF cc: Treasurer-Tax Collector SUPERVISORS AND COUNTY ADMINI TRATOR Auditor-Controller Retirement Administrator Les Spahnn; Heim, Noack, Kelly & &pahnn DEPUTY -2- The Treasurer points out that, as amended April 6, 1995, the Retirement Board would be in a position to name its own officers and employees as the only signatures on Retirement Fund checks and could further direct the use of a trust company, thereby removing both the Treasurer and Auditor from any oversight of the use of retirement funds . The Treasurer opposes AB 1021 and is requesting that the Board of Supervisors also oppose AB 1021 . This office concurs in this recommendation. OFFICE OF COUNTY TREASURER-TAX COLLECTOR CONTRA COSTA COUNTY 625 COURT STREET, ROOM 100-102 MARTINEZ, CA 94553 DATE: April 11, 1995 TO: Phil Batchelor, County Administrator FROM: Alfred P. Lomeli, Treasurer-Tax Collector SUBJECT: AB 1021 AB 1021 reads in part ". . . The County Employee Retirement Law of 1937 requires all warrants, checks and electronic fund transfers to be signed or authorized by the Treasurer, at least one other member of the Retirement Board, and the County Auditor. This bill would authorize warrants, checks, and electronic fund transfers to be signed or authorized by officers or employees designated by the Retirement Board . . ." The passage of this bill would eliminate the checks and balances of the County Treasurer and Auditor over the Retirement system. As it stands, all of the warrants, checks and electronic wire transfers have to be signed by the Treasurer, one member of the Retirement Board and the County Auditor. By directing the Treasurer to open an account with a trust company, the only people who would be authorized to sign on this account would be two officers or employees as designated by the Retirement Board. Therefore, all controls as we know them today would be lost. I ark,governed under Government Section 27000 which reads 'The County Treasurer shall receive and keep safely all money belonging to the county and other money directed by law to be paid to him and apply and pay it out, rendering the account as required by law." The questions is: Is the retirement money County money or retirement money? I feel that it is a trust fund and like all trust funds, they belong in the County treasury. I would urge you to join us and have CSAC join the California Association of County Treasurers and Tax Collectors (CACTTC) to help defeat this bill. APL:gm AMENDED IN ASSEMBLY APRIL 6, 1995 CALIFORNIA LEGISLATURE-1995-96 REGULAR SESSION ASSEMBLY BILL No. 1021 j Introduced by Assembly Member Tucker February 233, 1995 i An act to amend Section 31590 of the Government Code, relating to county retirement systems. j LEGISLATIVE COUNSEL'S DIGEST AB 1021, as amended, Tucker. County. employee retirement: funds. The County Employee Retirement Law of 1937 requires all warrants, checks, and electronic fund transfers to be signed or authorized by the treasurer, at least one other member of the retirement board, and the county auditor. This bill would authorize warrants, checks, and electronic fund transfers to be signed or authorized by 2 board officers or employees designated by the retirement board. 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 31590 of the Government Code 2 is amended to read: 3 31590. (a) All warrants, checks, and electronic fund 4 transfers drawn on the retirement fund shall be signed or 5 authorized by the at least two board officers or 98 AB 1021 — 2 - 1 employees, designated by the board. The authorization ' . 2 may be by blanket authorization of all warrants, checks, 3 or.electronic fund transfers appearing on a list or register, 4 or may be by a standing order to draw warrants, checks, -:5 ,11' or :electronic fund transfers, which..shall be good 'until ,,6:—.:revoked. A warrant, check, or-electronic fund transferis 7 not valid until it is signed or authorized, numbered, and 8 recorded by the county auditor, except as provided in ':.. 9 su 'vlslon (c) 10. (b) Any person entitled to the receipt of benefits may 11 authorize the payment of the benefits to be directly 12 deposited by ele..ctronic fund .-transfer into the person's 13 account at the financial institution of the person's choice 14 'under a program for direct deposit by electronic transfer established,.by, the treasurer_ The,:,direct.--deposit,.:shalI 16 discharge the system's obligation in respect to that 17 payment.... . 18•' : (c) The treasurer,with t-�e ft a€upon direction 19 from the board of retirement; shall authorize a trust X20 company or trust department of any state or national 21 bank authorized ' toconduct , the �business..of a trust 22�:'°company`m"this state,or the Federal Reserve Bank of San 23 'Trancisco or any branch thereof within `this .state, to 14 -process an issue benefitpayments by check`or electronic 25 fund transfer: Q� 98