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AB 27

Revises provisions relating to the Public Employees' Retirement System. (BDR 23-436)

2025 Regular Session

Expands a PERS exemption to allow certain retired members to take full-time public employment or contracts with small cities/counties without pension suspension, with employer cont

(Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed.)
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Bill Summary · AB 27

AB 27 — Summary and Key Effects

Note on documents: The packet includes two different measures labeled “AB 27.” The primary bill history and “As Introduced” language in the legislative actions relate to a Nevada Public Employees’ Retirement System (PERS) bill (BDR 23‑436). Several committee documents in the packet, however, contain text for a California tax bill titled “AB 27” dealing with income‑tax and benefits treatment of Chiquita Canyon landfill payments. Both are summarized below; the Nevada PERS measure is treated as the principal bill given the bill title and procedural history.

Nevada — Public Employees’ Retirement System (PERS) amendment (BDR 23‑436)

Purpose / intent

To expand an existing exemption that permits retired PERS members to accept certain public employment or independent contracts without suspension of their retirement allowances, targeted at small cities and counties to improve recruitment and retention of experienced personnel.

Key provisions

  • Adds an exemption to NRS 286.520 allowing a retired PERS member to accept full‑time employment or an independent contract with a public employer that is:
    • A city with population < 25,000, or
    • A county with population < 100,000,
    • Provided the retired person previously was not employed by (or contracted with) that employer.
  • Conditions on the exemption:
    • The public employer must not already employ or contract with more than four retired members who hold this exemption.
    • The retired member must not reenroll in the PERS (i.e., stay retired).
  • Employer contributions:
    • The public employer must pay contributions to PERS at the total contribution rate that the employer would pay for a comparable active employee, including the employer‑paid portion of the employee contribution.
  • Other statutory cross‑references remain in effect (notifications to PERS, earnings caps where applicable, short emergency recall provisions, and previously existing exempt categories).

Who is affected

  • Retired PERS members considering employment with small cities/counties.
  • Small city and county employers (may gain access to retired talent but incur additional pension‑related contribution costs).
  • PERS actuarial and funding situation could be modestly affected depending on uptake.

Fiscal and procedural notes

  • Fiscal note: “Effect on Local Government: May have Fiscal Impact. Effect on the State: Yes.”
  • Legislative history: Prefiled Nov 13, 2024; referred to Government Affairs; proceeded through committees with amendments and re‑referrals. Final status in the packet: “(Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed.)” (i.e., no further action permitted under that rule at present).

Potential impacts / considerations

  • Likely to help understaffed small local governments recruit experienced professionals.
  • Employers face higher payroll costs (employer contribution at full rate) and potential administrative burdens.
  • PERS funding/actuarial impacts depend on number of retirees using the exemption and contribution practices.

California (alternate packet material) — Tax exclusions for Chiquita Canyon elevated‑temperature landfill event payments

(Contained in multiple committee digests in the packet; included here for completeness.)

Purpose

Exclude from state gross income certain payments made to individuals as compensation for losses or relocation related to the Chiquita Canyon elevated‑temperature landfill event, and exclude those payments from means‑tested benefit/resource calculations.

Key provisions

  • Adds Revenue & Taxation Code sections (17157.5 and 24309.9) to exclude from gross income any “Chiquita Canyon elevated temperature landfill event payment” received on or after March 1, 2024, for taxable years beginning Jan 1, 2024 and before Jan 1, 2029. Inoperative Dec 1, 2029.
  • Defined payments include compensation for loss, damages, expenses, relocation, loss in real property value, closing costs, inconvenience, etc., paid by federal/state/local agencies or Waste Connections, Inc. (and related entities).
  • Adds Welfare & Institutions Code section (10010) to ensure such payments are not counted as income or resources for eligibility/benefit amount determinations under means‑tested programs (CalWORKs, CalFresh, Medi‑Cal, childcare, and guaranteed income pilots), to the extent permitted by federal law.
  • Immediate effect as a tax levy; includes statutory findings and limited performance indicators.

Who is affected

  • Residents who receive Chiquita Canyon‑related compensation.
  • Taxpayers and recipients of means‑tested benefits in the affected area.
  • State and local administrators implementing eligibility rules.

If you want, I can:
- Provide a side‑by‑side comparison of the Nevada PERS language and current NRS provisions showing exact statutory changes; or
- Draft a short fiscal/actuarial impact memo estimating costs under plausible uptake scenarios for the Nevada PERS exemption.

Compiled from official sources — confirm details with the bill’s official record.

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