Bill Tracker

AB 1912 (Rodriguez) Public employees retirement: joint powers agreements: liability

Status:Chaptered by Secretary of State - Chapter 909, Statutes of 2018
The Joint Exercise of Powers Act generally authorizes 2 or more public agencies, by agreement, to jointly exercise any common power. Under the act, if the an agency is not one or more of the parties to the agreement but is a public entity, commission, or board constituted pursuant to the agreement, the debts, liabilities, and obligations of the agency are the debts, liabilities, and obligations of the parties to the agreement, unless the agreement specifies otherwise. 
The act also authorizes a party to a joint powers agreement to separately contract for, or assume responsibilities for, specific debts, liabilities, or obligations of the agency.
This bill would eliminate that authorization, and would specify that if an agency to established by a joint powers agreement participates in, or contracts with, a public retirement system, member agencies, both current and former to the agreement, would be required to mutually agree as to the apportionment of the agency’s retirement obligations among themselves, provided that the agreement equals the total retirement liability of the agency. 
Would also require the board, in cases in which the member agencies are unable to mutually agree to apportionment, to apportion the retirement liability of the agency to each member agency, as specified. 
Would also provide that if a judgment is rendered against an agency or a party to the agreement for a breach of its obligations to the retirement system, the time within which a claim for injury may be presented or an action commenced against the other party that is subject to the liability determined by the judgment begins to run when the judgment is rendered.
The provisions would apply retroactively to all parties, both current and former, to the joint powers agreement.

Amended 06/26/2018

Amended 07/02/2018


More Info:Legislative Website Info
Last Updated:October 2, 2018