ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

 

HB 2631: PSPRS; local boards; duties; consolidation

Sponsor:  Representative Blackman, LD 6

Committee on Government

Overview

Makes various changes to statutes relating to local boards and the Public Safety Personnel Retirement System (PSPRS), the Elected Officials Retirement Plan (EORP) and the Corrections Officer Retirement Plan (CORP).

History

The administration of and responsibility for making the provisions of PSPRS and CORP effective for each employer are vested in a local board.  Current statute outlines the various departments and state agencies that must have a local board and the membership of such boards.  A local board must have the powers as necessary to fulfill certain duties.  The duties of a local board include the following:

1)    To decide all questions of eligibility for membership, service credits and benefits and the amount, manner and time of payment of benefits;

2)    To prescribe procedures that must be followed by claimants in filing benefits applications;

3)    To make a determination on the right of any claimant to a benefit and to allow the claimant or board of trustees, or both, a right to a rehearing on the original determination; and

4)    To request and receive information from employers and members that is necessary for the proper administration of the system (A.R.S. §§ 38-847, 38-893).

Provisions

EORP

1.    Requires, upon request by the board of trustees, an employer to submit any paperwork, data, reports or other materials for any reason, including eligibility determinations and proper administration of the plan. (Sec. 1)

Local Boards (PSPRS & CORP)

2.    Stipulates that, within 180 days after appointment or election, each board member must complete local board training as prescribed by the board of trustees. (Sec. 2, 5)

3.    Removes the power of a local board to decide on questions of service credits and benefits and to determine the amount, manner and time of payment of any benefits. (Sec. 2, 5)

4.    Adds disability and in the line of duty death benefits to the powers and duties of determination of a local board. (Sec. 2, 5)

5.    Repeals current statute that states that the granting and approval of relief for a party by a local board is considered final and binding and removes language relating to the requested relief violating the internal revenue code. (Sec. 2, 5)

6.    Requires a local board to adopt rules to adjudicate claims and disputes. (Sec. 2, 5)

7.    Specifies that the rules of a local board, at a minimum, must incorporate the model uniform rules for local board procedure that are issued by the board of trustees. (Sec. 2, 5)

8.    Authorizes the board of trustees to require additional records from the local board or employer or require that the local board conduct a rehearing on certain matters. (Sec. 2, 5)

9.    Allows a claimant to apply for or the board of trustees to require a rehearing before the local board within time periods prescribed in statute. (Sec. 2, 5)

10.  Asserts that any limitation period for the board of trustees to require a rehearing on a local board decision does not apply if a decision violates the internal revenue code. (Sec. 2, 5)

11.  Instructs a local board secretary, within 180 days after election, to complete local board training as prescribed by the board of trustees, including open meeting laws, legal review, ethics and fiduciary responsibilities and duties. (Sec. 2, 5)

12.  Removes language specifying that legal counsel employed by a local board is independent of the employer and any employee organization or member. (Sec. 2)

13.  Requires each local board to hire an independent legal counsel who is not contracted with or an employee of the employer or any employee organization or member. (Sec. 2, 5)

14.  Directs the legal counsel of a local board to complete local board training within 180 days after appointment as prescribed by the board of trustees that includes open meeting laws, legal review, ethics and fiduciary responsibilities and duties. (Sec. 2, 5)

15.  Stipulates that an employer and a local board are required to submit any data, reports, paperwork or other materials that are requested by the board of trustees for any reason, including local board action or inaction or to investigate a complaint regarding a local board. (Sec. 2, 5)

16.  Specifies that a local board has 60 days to take corrective action if the board of trustees notifies the local board of noncompliance based on an audit or investigation by the board of trustees. (Sec. 2, 5)

17.  Authorizes the board of trustees to act on behalf of the local board until the matter is resolved if the local board fails to take adequate corrective action. (Sec. 2, 5)

18.  Designates the board of trustees or its designee to work with the local board members to take the appropriate corrective actions to bring the local board and its membership, policies and procedures into compliance. (Sec. 2, 5)

Local Board Consolidation (PSPRS & CORP)

19.  Allows a local board to enter into an intergovernmental agreement with other local boards to consolidate the boards for the employers. (Sec. 3, 6)

20.  Prescribes that the consolidated local board must work with the board of trustees to ensure the following:

a)    The new board is duly empaneled; and

b)    All appointments or elections for local board members are completed in a timely manner. (Sec. 3, 6)

21.  States that the consolidated local board must have all of the responsibilities and duties of a local board. (Sec. 3, 6)

22.  Asserts that the consolidated local board will decide eligibility for membership and disability and in the line of duty death benefits. (Sec. 3, 6)

23.  Directs all consolidated local board members, independent legal counsel and secretary to complete local board training as prescribed by the board of trustees within 180 days after appointment or election. (Sec. 3, 6)

24.  Provides that the independent legal counsel of the local board may not be contracted with or employed by the employer or any employee organizations or member of the plan. (Sec. 3, 6)

Uniform Medical Review

25.  Requires the local board secretary, within 10 days after the receipt of an application for disability benefits or in the line of duty death benefits, to submit the application to the administrator. (Sec. 3)

26.  Stipulates that the administrator or designee must review the findings after a local board has made a determination on the application or the application is deemed granted for disability or in the line of duty death benefits. (Sec. 3)

27.  Authorizes the administrator to contract with medical professionals to review such applications. (Sec. 3)

28.  Maintains that the board of trustees or administrator may require additional records from the local board or the employer or may require a rehearing to be conducted on the matter. (Sec. 3)

29.  Establishes that the decision is subject to judicial review if the board of trustees disagrees with the decision of the local board after a rehearing. (Sec. 3)

Retirement Benefits

30.  Directs each employer to submit the retirement application to the board of trustees within ten days of receiving a completed retirement application from a member. (Sec. 3)

31.  Requires the board of trustees or its designee to decide all questions of eligibility for service credits and retirement benefits and the amount, manner and time of payment of the retirement benefits. (Sec. 3)

32.  Asserts that the board of trustees or its designee must contact the employer and applicant to resolve any discrepancies in the information received before the start date of the benefits. (Sec. 3)

33.  Allows the board of trustees to require a review or rehearing on actions or omissions of local boards. (Sec. 4)

Miscellaneous

34.  Includes email as a method for the actions of a local board to be given to the applicant-board of trustees. (Sec. 2)

35.  Defines employer, member, administrator and local board. (Sec. 3)

36.  Makes technical and conforming changes. (Sec. 2, 4, 5)

37.  ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteContains a delayed effective date of January 1, 2021. (Sec. 7)

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