California State Employees' Ass'n v. California Public Employees' Retirement System Board of Administration

113 Cal. App. 4th 137, 5 Cal. Rptr. 3d 922, 2003 Daily Journal DAR 12223, 2003 Cal. Daily Op. Serv. 9737, 2003 Cal. App. LEXIS 1671
CourtCalifornia Court of Appeal
DecidedNovember 7, 2003
DocketNo. C042192
StatusPublished
Cited by6 cases

This text of 113 Cal. App. 4th 137 (California State Employees' Ass'n v. California Public Employees' Retirement System Board of Administration) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
California State Employees' Ass'n v. California Public Employees' Retirement System Board of Administration, 113 Cal. App. 4th 137, 5 Cal. Rptr. 3d 922, 2003 Daily Journal DAR 12223, 2003 Cal. Daily Op. Serv. 9737, 2003 Cal. App. LEXIS 1671 (Cal. Ct. App. 2003).

Opinion

Opinion

NICHOLSON, J.

Article XVI, section 17 of the state Constitution prohibits the Legislature from enacting, without a ratifying vote of the electorate, changes in the number, terms and methods of selecting employee members of a public employee retirement system’s governing board. The trial court below concluded the constitutional provision also applied to amendments adopted by the retirement system’s governing board to its regulations establishing procedures for elections required to be held for selecting employee board members. The court granted a petition for writ of mandate ordering a board not to implement such amendments. We conclude the trial court erred and reverse its judgment.

FACTS AND PROCEDURAL HISTORY

In 1931, the Legislature established the California Public Employees Retirement System (PERS), and established the Board of Administration (Board) to manage and control PERS. (Gov. Code, § 20120 (former Gov. Code, § 20103).)1 As early as 1945, the state statute required the Board to be partially composed of employee members of the system. These employee members were to be “elected under the supervision of the board.” (Stats. 1945, ch. 123, § 1, p. 577.)

[140]*140As of July 1, 1991, and at present, state statute requires the Board to be composed of 13 persons, six of whom are employee members of the system. Those six are still to be “elected under the supervision of the board . . . .” (Former § 20100, subd. (g), now § 20090, subd. (g).)2 All Board members serve four-year terms, and elected Board members are entitled to hold office until the end of their terms. (Former §§ 20101, 20102.1, now § 20095.)3

By a 1983 statutory amendment, the Legislature required the Board to develop procedures for electing employee members of the Board. (Stats. 1983, ch. 338, § 1, p. 1534.) That mandate was in effect as of July 1, 1991, and continues in effect today. (§ 20096 (former § 20102).)4 Pursuant to that [141]*141authority, the Board promulgated regulations to establish procedures for those elections. (Cal. Code Regs., tit. 2, § 554 et seq.)

Subsequently, at the November 1992 general election, Californians adopted Proposition 162, a constitutional initiative more commonly known as the California Pension Protection Act of 1992. Proposition 162 amended article XVI, section 17 of the California Constitution to read in relevant part as follows: “(f) With regard to the retirement board of a public pension or retirement system which includes in its composition elected employee members, the number, terms, and method of selection or removal of members of the retirement board which were required by law or otherwise in effect on July 1, 1991, shall not be changed, amended, or modified by the Legislature unless the change, amendment, or modification enacted by the Legislature is ratified by a majority vote of the electors of the jurisdiction in which the participants of the system are or were, prior to retirement, employed.” (Italics added; we will hereafter refer to this provision as Section 17(f).) .)

In 2001, the Board amended its regulations governing the procedures for electing PERS members to the Board. The revised election procedures included the following changes: They required candidates to obtain a majority (rather than a plurality) of votes to be elected, and included provisions for runoff elections if no candidate obtained a majority of votes on the first ballot; prevented a candidate from running for more than one Board member position at any particular election; permitted candidates to reply to the written statements of other candidates; provided for arbitration of controversies concerning the propriety of a candidate’s written statement; and transferred control of election protests from the Board’s general counsel to a protest panel designated by an independent, neutral agent.

CSEA filed a complaint and petition for writ of mandate challenging the validity of the Board’s amendments to its regulations. CSEA objected to the amendments on the ground Section 17(f) prevented the Board from amending its election procedures unless the amendments were ratified by a majority vote of the electors in the jurisdiction in which the system members were employed. It sought declaratory and injunctive relief prohibiting the Board from implementing the amendments unless and until they were ratified.

On August 7, 2002, following trial, the trial court issued judgment in favor of CSEA and granted the requested relief. It reasoned the Board could act only pursuant to power delegated to it by the Legislature, and if the [142]*142Legislature no longer had the power to enact election changes without a ratifying vote of the electorate, then it could not delegate to the Board the power to enact election changes without a ratifying vote.

The Board timely appealed.

DISCUSSION

The Board claims the trial court erred when it determined Section 17(f) applied to its adoption of election procedures. It argues Section 17(f)’s unambiguous language refers to changes adopted only by the Legislature to the manner of selecting Board members and does not apply to changes adopted by the Board to its election procedures. We agree.

Our review is de novo. (Redevelopment Agency v. County of Los Angeles (1999) 75 Cal.App.4th 68, 74 [89 Cal.Rptr.2d 10].) In interpreting a voter initiative such as Proposition 162 and its Section 17(f), “we apply the same principles that govern statutory construction.” (People v. Rizo (2000) 22 Cal.4th 681, 685 [94 Cal.Rptr.2d 375, 996 P.2d 27].) Those principles are as follows: “Where, as here, the issue presented is one of statutory construction, our fundamental task is ‘to ascertain the intent of [in this case, the voters] so as to effectuate the purpose of the statute.’ . . . We begin by examining the statutory language because it generally is the most reliable indicator of legislative intent. . . . We give the language its usual and ordinary meaning, and ‘[i]f there is no ambiguity, then we presume the lawmakers meant what they said, and the plain meaning of the language governs.’ ... If, however, the statutory language is ambiguous, ‘we may resort to extrinsic sources, including the ostensible objects to be achieved and the legislative history.’. . . Ultimately we choose the construction that comports most closely with the apparent intent of the lawmakers, with a view to promoting rather than defeating the general purpose of the statute. . . . Any interpretation that would lead to absurd consequences is to be avoided.” (Allen v. Sully-Miller Contracting Co. (2002) 28 Cal.4th 222, 227 [120 Cal.Rptr.2d 795, 47 P.3d 639], citations omitted.)

Section 17(f)’s language is not ambiguous, and its plain meaning governs our review. The requirement of voter ratification applies only when the Legislature enacts a change, amendment, or modification to the number, terms, or method of selecting or removing Board members. Here, the regulatory amendments were not enacted by the Legislature. Moreover, the amendments did not modify the number, terms or method of selecting or removing Board members as established by the Legislature in sections 20090 and 20095. Section 17(f) thus did not apply to the Board’s actions.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Amalgamated Transit Union v. San Joaqu (In re in Reg'l Transit Dist.)
248 Cal. Rptr. 3d 227 (California Court of Appeals, 5th District, 2019)
Lexin v. Superior Court
222 P.3d 214 (California Supreme Court, 2010)
DiPirro v. BONDO CORPORATION
62 Cal. Rptr. 3d 722 (California Court of Appeal, 2007)
Modesto Irrigation District v. Pacific Gas & Electric Co.
309 F. Supp. 2d 1156 (N.D. California, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
113 Cal. App. 4th 137, 5 Cal. Rptr. 3d 922, 2003 Daily Journal DAR 12223, 2003 Cal. Daily Op. Serv. 9737, 2003 Cal. App. LEXIS 1671, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-state-employees-assn-v-california-public-employees-calctapp-2003.