BILL NUMBER: SB 1271	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 5, 2010

INTRODUCED BY   Senator Romero

                        FEBRUARY 19, 2010

    An act to add Section 7508.2 to the Government Code,
relating to public retirement plans.   An act to add
Section 87314 to the Government Code, relating to the Political
Reform Act of 1974. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1271, as amended, Romero.  Public retirement plans:
conflicts of interest.   Political Reform Act of 1974:
conflict of interest codes.  
   The Political Reform Act of 1974 requires each state and local
government agency to adopt and promulgate a conflict of interest code
that establishes conflict of interest standards for designated
employees of that agency and requires those employees to file
statements of economic interest disclosing specified personal
financial information. The act further requires specified public
officials, including officials who manage public investments, to also
file statements of economic interest, but does not require those
officials to be specifically enumerated in the agency's conflict of
interest code.  
   This bill would require a public retirement board, commission, or
agency to attach to its conflict of interest code an appendix that
lists each position for which an individual occupying that position
is required to file a statement of economic interests as a public
official who manages public investments, as defined. The bill would
further require the board, commission, or agency to post the appendix
on its Internet Web site.  
   This bill would impose a state-mandated local program by creating
additional responsibilities for local governmental agencies. 

   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.  
   The Political Reform Act of 1974, an initiative measure, provides
that the Legislature may amend the act to further the act's purposes
upon a 2/3 vote of each house and compliance with specified
procedural requirements.  
   This bill would declare that it furthers the purposes of the act.
 
   The Political Reform Act requires state and local government
agencies to adopt and promulgate a Conflict of Interest Code.
Regulations found in the California Code of Regulations constitute
the California Public Employees' Retirement System's Conflict of
Interest Code.  
   This bill would codify those regulations and make them applicable
to all public retirement boards. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: yes. State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 87314 is added to the 
 Government Code   , to read:  
   87314.  (a) A public retirement board, commission, or agency shall
attach to its Conflict of Interest Code an appendix entitled "Agency
Positions that Manage Public Investments for Purposes of Section
87200 of the Government Code." The appendix shall list each position
with the board, commission, or agency for which an individual
occupying the position is required to file a Statement of Economic
Interests as a public official who manages public investments within
the meaning of Section 87200. The board, commission, or agency shall
post the appendix on its Internet Web site in a manner that makes it
easily identifiable and accessible by persons who view that Web site.

   (b) (1) For purposes of this section, "public official who manages
public investments" includes a salaried or unsalaried member of a
committee, board, commission, or other entity that exists as, or
within, a governmental agency and that possesses decisionmaking
authority.
   (2) A committee, board, commission, or other entity possesses
decisionmaking authority for purposes of this section if any of the
following apply:
   (A) The entity may make a final governmental decision.
   (B) The entity may compel a governmental decision or prevent a
governmental decision, either by virtue of possessing exclusive power
to initiate the decision or by having veto authority that may not be
overridden.
   (C) The entity makes substantive recommendations that are, and
over an extended period of time have been, regularly approved,
without significant amendment or modification, by another public
official or governmental agency.
   (3) A committee, board, commission, or other entity does not
possess decisionmaking authority for purposes of this section if it
is formed for the sole purpose of researching a subject and preparing
a report or recommendation for submission to another governmental
entity that has final decisionmaking authority. 
   SEC. 2.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code. 
   SEC. 3.    The Legislature finds and declares that
this bill furthers the purposes of the Political Reform Act of 1974
within the meaning of subdivision (a) of Section 81012 of the
Government Code.  
  SECTION 1.    Section 7508.2 is added to the
Government Code, to read:
   7508.2.  (a) The purpose of this Conflict of Interest Code is to
facilitate the disclosure of the economic interests of public
officials serving any public retirement system that may be materially
affected by the actions of the retirement boards in which they
participate.
   (b) Designated employees, consultants, board members, and
candidates shall file statements of economic interests with the
retirement board's filing officer. With respect to certain employees
and officials such as board members who are determined to manage
public investments, within the meaning of Section 87200, the
retirement system shall make and retain a copy and forward the
original of these statements to the Fair Political Practices
Commission. Public officials who manage investments are listed for
clarity in the appendix of Section 560 of Title 2 of the California
Code of Regulations. Unlike the designated employees, these officials'
reporting obligations are not limited by reference to a reporting
category.
   (c) This provision incorporates by reference Sections 560 and
18730 of Title 2 of the California Code of Regulations, and any
amendments to it duly adopted by the Fair Political Practices
Commission. Those regulations along with the attached appendix in
which officials and employees are designated and disclosure
categories are set forth, constitute the Conflict of Interest Code
for all public retirement boards.