California Legal Brief

The Rule of Bishop v. San Diego County Employees Retirement Association is that a public employee suffers a "conviction" within the meaning of Government Code section 7522.74 when the employee pleads guilty to or is found guilty of a job-related felony, regardless of whether the court later reduces the offense to a misdemeanor under Penal Code section 17(b), under circumstances where the employee pleaded guilty to a felony charge before any reduction occurred.

Appeal from judgment after writ petition denial in Superior Court, San Diego County.

Defendant Appellant was Rolf Bishop — the former County of San Diego employee who pleaded guilty to a felony violation of Government Code section 1090 (conflict of interest law).

Plaintiff Respondent was San Diego County Employees Retirement Association — the pension system administrator that forfeited Bishop's pension benefits after his felony plea.

The suit sounded in administrative mandate seeking reinstatement of forfeited pension benefits. No cross-claims.

The key substantive facts leading to the suit were Bishop worked for San Diego County for seven and a half years until terminated in November 2020. In December 2021, he was charged with felony violation of section 1090 (conflict of interest). In May 2022, Bishop pleaded guilty to the felony charge. In August 2022, SDCERA notified Bishop his pension benefits were forfeited under Government Code section 7522.74. In March 2023, at sentencing, the criminal court placed Bishop on probation and reduced the charge to a misdemeanor under Penal Code section 17(b)(3). Bishop requested reinstatement of his pension benefits, which SDCERA denied.

The procedural result leading to the Appeal: The trial court denied Bishop's petition for writ of administrative mandate, ruling that section 7522.74 precluded reinstatement of his forfeited pension benefits.

The key question(s) on Appeal: 1. Whether a public employee suffers a "conviction" within the meaning of section 7522.74 when adjudicated guilty by plea or verdict, or only when there has been both adjudication of guilt and entry of judgment thereon. 2. What effect, if any, should be given to the criminal court's reduction of Bishop's felony to a misdemeanor under Penal Code section 17(b)(3).

The Appellate Court held that a public employee is "convicted" of a felony under section 7522.74 upon pleading guilty to or being found guilty of the felony charge, and that pension benefits remain forfeited notwithstanding subsequent reduction of the felony to a misdemeanor under Penal Code section 17(b), because the reduction operates prospectively only and does not retroactively undo the forfeiture determination made when the employee stood convicted of a felony.

The case is inapplicable when the employee's conviction is reversed and that decision becomes final (as provided in section 7522.74(h)), or when the employee was never adjudicated guilty of a felony in the first place, or when the reduction to misdemeanor occurs before any forfeiture determination is made.

The case leaves open whether different timing of the misdemeanor reduction (such as if it occurred before SDCERA's forfeiture determination) would yield a different result, and whether other post-conviction relief beyond reversal might affect pension forfeiture determinations.