BILL NUMBER: AB 1042	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 30, 2011
	PASSED THE ASSEMBLY  MAY 12, 2011
	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Allen

                        FEBRUARY 18, 2011

   An act to amend Section 20098 of the Government Code, relating to
public employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1042, Allen.  Public employees' retirement.
   The Public Employees' Retirement Law (PERL) vests the management
and control of the Public Employees' Retirement System in the Board
of Administration. PERL requires the board to appoint and fix the
compensation of an executive officer, a general counsel, a chief
actuary, a chief investment officer, and other investment officers
and portfolio managers, as specified.
   This bill would additionally require the board to appoint and fix
the compensation of a chief financial officer.


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

  SECTION 1.  Section 20098 of the Government Code is amended to
read:
   20098.  (a) The board shall appoint and, notwithstanding Sections
19816, 19825, 19826, 19829, and 19832 shall fix the compensation of
an executive officer, a general counsel, a chief actuary, a chief
investment officer, a chief financial officer, and other investment
officers and portfolio managers whose positions are designated
managerial pursuant to Section 18801.1.
   (b) The executive officer, deputy executive officers, and the
assistant executive officers may administer oaths.
   (c) When fixing the compensation for the positions specified in
subdivision (a), the board shall be guided by the principles
contained in Sections 19826 and 19829, consistent with its fiduciary
responsibility to its members to recruit and retain highly qualified
and effective employees for these positions.
   (d) When a position specified in subdivision (a) is filled through
a general civil service appointment, it shall be filled from an
eligible list based on an examination that was held on an open basis,
and tenure in the position shall be subject to the provisions of
Article 2 (commencing with Section 19590) of Chapter 7 of Part 2 of
Division 5 of Title 2. In addition to the causes for action specified
in that article, the board may take action under the article for
causes related to its fiduciary responsibility to its members,
including the employee's failure to meet specified performance
objectives.
   (e) An individual who held a position designated in subdivision
(a), or was a member of the board, a deputy executive officer, or an
assistant executive officer, shall not, for a period of two years
after leaving that position, for compensation, act as agent or
attorney for, or otherwise represent, any other person, except the
state, by making any formal or informal appearance before, or any
oral or written communication to, the Public Employees' Retirement
System, or any officer or employee thereof, if the appearance or
communication is made for the purpose of influencing administrative
or legislative action or any action or proceeding involving the
issuance, amendment, awarding, or revocation of a permit, license,
grant, contract, or sale or purchase of goods or property.