DEPARTMENT
OF
AUDITS
AND
ACCOUNTS
270 Washington Street, S.W., Suite 1-156
Atlanta, Georgia 30334-8400
270 Washington Street, S.W., Suite 1-156
Atlanta, Georgia 30334-8400
Russell W.
Hinton
State Auditor
(404) 656-2174
State Auditor
(404) 656-2174
March
27, 2008
The Honorable Bill Heath,
ChairmanSenate Retirement
Committee
State Capitol, Room 109
Atlanta, Georgia 30334
State Capitol, Room 109
Atlanta, Georgia 30334
SUBJECT: State
Auditor’s
Certification
Substitute to House Bill 255
(LC 21 9925S)
Substitute to House Bill 255
(LC 21 9925S)
Dear Chairman
Heath:
This
substitute bill would amend general provisions relating to restrictions and
prohibitions on membership in public retirement or pension systems.
Specifically, this bill would expand the definition of the term ‘public
employment related crime’ to include any felony offense related to the
person’s public employment in Georgia, as provided under the laws of this
State, any other state, or the United States. This expanded definition would
only apply to persons who first or again become members of a public retirement
system on or after July 1, 2008.
This
substitute bill would also amend the provisions relating to penalties imposed on
employees who are convicted of ‘public employment related crimes.’
Currently, employees convicted of such crimes forfeit all rights and benefits
under and membership in any public retirement system in which the employee is a
member. If this substitute bill is enacted, employees who are convicted of a
‘public employment related crime’ would have their benefits,
including any survivor’s benefits if applicable, reduced by an amount
equal to three times the economic impact of the crime. Employees would not
receive any benefits until such amount has been forfeited. If an employee has
not begun receiving retirement benefits, the deduction shall commence at the
time such benefits would normally begin. This substitute bill provides that
‘benefits’ shall not include a refund of employee contributions
without interest.
Additionally,
this substitute bill would provide for certain notifications of a conviction of
any person for a ‘public employment related crime.’ Upon
conviction, the prosecuting attorney would be required to notify the
defendant’s former employer and any public retirement system in which he
or she knows the convicted public employee to be an active, inactive, or retired
member.
Finally,
this substitute bill defines ‘economic impact of a public related
crime’ to mean the total of the economic gain to the perpetrator of an
employment related crime and the economic loss to the public entity. This bill
then specifies that an administrative law judge within the Office of State
Administrative Hearings would be responsible for determining the economic impact
of the crime. Under the provisions of this bill, the respective board of
trustees must initiate such hearing no later than 30 days after receiving
notification of an employee’s conviction.
This is to certify that this
substitute bill is a nonfiscal bill as defined in the Public Retirement Systems
Standards
Law.
Respectfully,
/s/ Russell W.
Hinton
State Auditor
State Auditor
RWH/cs