BILL NUMBER: AB 873	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 20, 2011
	AMENDED IN ASSEMBLY  APRIL 14, 2011

INTRODUCED BY   Assembly Member Furutani
   (Coauthor: Assembly Member Allen)

                        FEBRUARY 17, 2011

   An act to add Sections 87408, 87409, and 87410 to the Government
Code, relating to the Political Reform Act of 1974.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 873, as amended, Furutani. Political Reform Act of 1974:
postgovernment employment restrictions.
   The Public Employees' Retirement Law creates the Public Employees'
Retirement Fund, which is a trust fund created and administered
solely for the benefit of the members and retired members of this
system and their survivors and beneficiaries. The Board of
Administration of the Public Employees' Retirement System (PERS) has
the exclusive control of the administration and investment of the
retirement fund.
   The Teachers' Retirement Law establishes the State Teachers'
Retirement System (STRS) in order to provide a financially sound plan
for the retirement, with adequate retirement allowances, for
teachers in public schools of the state, teachers in schools
supported by the state, and other persons employed in connection with
the schools. The plan and the system are administered by the
Teachers' Retirement Board.
   The Political Reform Act of 1974 imposes specified restrictions on
the postgovernment employment activities of elected state officers
and designated employees of state administrative agencies, including
prohibiting those individuals from representing another person, by
means of an appearance or communication, before a state
administrative agency for the purpose of influencing specified
actions for a period of one year after leaving state service.
   This bill would prohibit members of the Board of Administration of
PERS, members of the Teachers' Retirement Board, and specified
officers and employees of PERS and STRS from engaging in certain
employment activities after leaving service with PERS or STRS.
Specifically, the bill would prohibit those individuals from
representing another person, by means of an appearance or
communication, before PERS or STRS for the purpose of influencing
specified actions for a period of 4 years after leaving service with
PERS or STRS. The bill would also prohibit those individuals from
 aiding, advising, consulting with, or  assisting a business
entity, for a period of 2 years after leaving service with PERS or
STRS,  to perform, implement, or execute a contract if the
individuals participated in awarding, negotiating, or administering a
contract of greater than $10,000,000 with that business entity
within 2 years prior to leaving service with PERS or STRS 
 in obtaining the award of, or in negotiating, a contract or
contract amendment with PERS or STRS  . In addition, the bill
would prohibit those individuals from accepting compensation for
providing services as a placement agent, for a period of 10 years
after leaving service with PERS or STRS, in connection with
investments or other business of PERS or STRS.
   Existing law makes a knowing or willful violation of the Political
Reform Act of 1974 a misdemeanor and subjects offenders to criminal
penalties.
   This bill would impose a state-mandated local program by creating
additional crimes.
   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 no reimbursement is required by this
act for a specified reason.
   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.

   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 87408 is added to the Government Code, to read:

   87408.  (a) A member of the Board of Administration of the Public
Employees' Retirement System, an individual in a position designated
in subdivision (a) or (e) of Section 20098  or in an
equivalent senior management position  , or an information
technology or health benefits manager with a career executive
assignment designation with the Public Employees' Retirement System,
for a period of four years after leaving that office or position,
shall not, for compensation, act as an agent or attorney for, or
otherwise represent, any other person, except the state, by making a
formal or informal appearance before, or an oral or written
communication to, the Public Employees' Retirement System, or an
officer or employee thereof, if the appearance or communication is
made for the purpose of influencing administrative or legislative
action, or influencing an action or proceeding involving the
issuance, amendment, awarding, or revocation of a permit, license,
grant, or contract, or the sale or purchase of goods or property.
   (b) A member of the Teachers' Retirement Board, an individual in a
position designated in subdivision (a) or (d) of Section 22212.5 of
the Education Code, or an information technology manager with a
career executive assignment designation with the State Teachers'
Retirement System, for a period of four years after leaving that
office or position, shall not, for compensation, act as an agent or
attorney for, or otherwise represent, any other person, except the
state, by making a formal or informal appearance before, or an oral
or written communication to, the State Teachers' Retirement System,
or an officer or employee thereof, if the appearance or communication
is made for the purpose of influencing administrative or legislative
action, or influencing an action or proceeding involving the
issuance, amendment, awarding, or revocation of a permit, license,
grant, or contract, or the sale or purchase of goods or property.
  SEC. 2.  Section 87409 is added to the Government Code, to read:
   87409.  (a) A member of the Board of Administration of the Public
Employees' Retirement System, an individual in a position designated
in subdivision (a) or (e) of Section 20098  or in an
equivalent senior management position  , or an information
technology or health benefits manager with a career executive
assignment designation with the Public Employees' Retirement System,
for a period of two years after leaving that office or position,
shall not  , for compensation, aid, advise, consult with, or
 assist a business entity  to perform, implement, or
execute a contract if, during the period of two years prior to
leaving that office or position, the individual participated, as an
official or employee of the Public Employees' Retirement System, in
the award, negotiation, or administration of a contract, or an
amendment to a contract, that has or had a value of greater than ten
million dollars ($10,000,000) and to which that business entity is or
was a party.   in obtaining the award of, or in
negotiating, a contract or contract amendment with the Public
Employees' Retirement System. 
   (b) A member of the Teachers' Retirement Board, an individual in a
position designated in subdivision (a) or (d) of Section 22212.5 of
the Education Code, or an information technology manager with a
career executive assignment designation with the State Teachers'
Retirement System, for a period of two years after leaving that
office or position, shall not  , for compensation, aid, advise,
consult with, or  assist a business entity  to perform,
implement, or execute a contract if, during the period of two years
prior to leaving that office or position, the individual
participated, as an official or employee of the State Teachers'
Retirement System, in the award, negotiation, or administration of a
contract, or an amendment to a contract, that had a value of greater
than ten million dollars ($10,000,000) and to which that business
entity was or is a party.   in obtaining the award of,
or in negotiating, a contract or contract amendment with the State
Teachers' Retirement System. 
   (c) For purposes of this  section:  
   (1) "Administration of a contract" means the management,
direction, or oversight of a contract, including evaluation of the
contractor's performance.  
   (2) "Business entity" has the same meaning as set forth in Section
82005, and includes a parent or subsidiary of a business entity.
 
   (3) A contract to which a business entity is or was a party has a
value of greater than ten million dollars ($10,000,000) if the
business entity received or will receive more than ten million
dollars ($10,000,000) in revenue during the term of the contract as a
result of the contract. 
    (4)     Notwithstanding
paragraph (3), with respect to a business entity that is an external
manager and that receives a performance fee, a contract to which the
business entity is or was a party is presumed to have a value of
greater than ten million dollars ($10,000,000) if the external
manager managed or manages fifty million dollars ($50,000,000) or
more in an investment fund or managed or manages, pursuant to
contract, a portfolio of securities or other assets valued at two
hundred fifty million dollars ($250,000,000) or more.  
section, "business entity" has the same meaning as set forth in
Section 82005, and includes a parent or subsidiary of a business
entity. 
  SEC. 3.  Section 87410 is added to the Government Code, to read:
   87410.  (a) A member of the Board of Administration of the Public
Employees' Retirement System or an individual in a position
designated in subdivision (a) or (e) of Section 20098, for a period
of 10 years after leaving that office or position, shall not accept
compensation for providing services as a placement agent in
connection with investments or other business of the Public Employees'
Retirement System  or the State Teachers' Retirement System
 .
   (b) A member of the Teachers' Retirement Board or an individual in
a position designated in subdivision (a) or (d) of Section 22212.5
of the Education Code, for a period of 10 years after leaving that
office or position, shall not accept compensation for providing
services as a placement agent in connection with investments or other
business of the State Teachers' Retirement System  or the Public
Employees' Retirement System  .
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
  SEC. 5.  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.