Bill > A121

Introduced Session

This bill requires the completion of specific certifications by certifying officers of public employers who enroll certain public officers and employees in the Public Employee's Retirement System (PERS). For each enrollment in the PERS of a public officer or employee whose position requires that the officer or employee render professional services as an attorney, engineer, accountant, auditor, physician, or architect, the certifying officer must complete, sign, and submit at the time of enrollment a certification that requires the certifying officer to answer a series of questions for the purpose of verifying that the status of the public officer or employee being enrolled is that of an employee and not an independent contractor. The questions will be based, to the extent appropriate, on the employee test utilized by the federal Internal Revenue Service. The certifying officer must also submit with the certification a copy of the resolution or ordinance adopted by the employer to create the position, the resolution adopted by the employer to appoint the individual to the position, and a copy of the oath of office taken by the individual. The bill also requires this certification to be completed by all certifying officers for all applicable public officers and employees who were enrolled prior to the bill's effective date. The bill prohibits a certifying officer from seeking advice or relying upon representations of the individual who is the subject of the enrollment when completing the certification or when making any decision with regard to the eligibility for enrollment. The certifying officer must seek advice and rely upon representations only from an impartial individual or an employee of the Division of Pensions and Benefits. The bill requires the board of trustees of the PERS to establish an audit program through which it will conduct a continuous review of the various public employers participating in the system for the purpose of ensuring that only eligible officers and employees who render professional services are enrolled in the retirement system. The audit program must be initiated within 60 days following the bill's effective date and the primary focus of the program for the first 12 months must be to verify the eligibility of public officers and employees enrolled prior to the effective date. The provisions of this bill described above are based on the recommendations of the Office of the State Comptroller as set forth in its report of July 17, 2012 entitled "Improper Participation by Professional Service Providers in the State Pension System." In addition, the bill provides for the imposition of civil penalties against a certifying officer or the officer's immediate supervisor who knowingly and willfully violate any provision of law or regulation concerning the enrollment of a public officer or employee in a State-administered retirement system that results in the enrollment or continued enrollment of a public officer, employee, or other person who is ineligible for such enrollment. The penalty will be a fine of $1,000 for an initial violation, $2,500 for a second violation that occurs within 10 years of an initial violation, and $5,000 for a third violation or subsequent violation that occurs within 10 years of an initial violation. The penalty will be collected and enforced in proceedings in accordance with the "Penalty Enforcement Law of 1999" and the rules of court governing actions for the collection of civil penalties.

AI Summary

Committee Categories

Gail Phoebus (R)*,  Parker Space (R)*,  Nancy Muñoz (R), 

Introduced, Referred to Assembly State and Local Government Committee (on 01/27/2016)