BILL NUMBER: AB 873 CHAPTERED
BILL TEXT
CHAPTER 551
FILED WITH SECRETARY OF STATE OCTOBER 7, 2011
APPROVED BY GOVERNOR OCTOBER 7, 2011
PASSED THE SENATE AUGUST 18, 2011
PASSED THE ASSEMBLY SEPTEMBER 8, 2011
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, 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, 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.
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 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 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 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 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, "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.