BILL NUMBER: AB 1163	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Levine

                        FEBRUARY 22, 2013

   An act to amend Section 20090 of the Government Code, relating to
public employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1163, as introduced, Levine. Public Employees' Retirement
System: Board of Administration: composition.
   The California Constitution prohibits changing the composition of
the retirement board of certain public pension systems, including the
number, terms, and method of selection and removal of members,
unless the change is ratified by a majority vote of the electors of
the jurisdiction in which the participants of the pension system are
or were, prior to retirement, employed. Existing law creates the
Board of Administration of the Public Employees' Retirement System
(PERS) for the purpose of governing the system and prescribes the
composition of the board. Existing law requires, among other things,
that one member of the board of administration be a member of the
State Personnel Board, serving at the pleasure of the State Personnel
Board.
   This bill would revise the composition of the Board of
Administration of PERS. The bill would eliminate the position of the
member of the State Personnel Board and would replace that position
with the Director of Finance. The bill would add to the board 2
persons, appointed by the Governor, who are independent, as defined,
and have financial expertise. This provision would not become
operative unless ratified by a majority of voters at a statewide
election. The bill would require the Secretary of State to submit
that provision of the bill to the voters at the next statewide
election.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 20090 of the Government Code is amended to
read:
   20090.  The Board of Administration of the Public Employees'
Retirement System is continued in existence. It consists of: 

   (a) One member of the State Personnel Board, selected by and
serving at the pleasure of the State Personnel Board.  
   (a) The Director of Finance. 
   (b) The Director of Human Resources.
   (c) The Controller.
   (d) The Treasurer.
   (e) An official of a life insurer and an elected official of a
contracting agency, appointed by the Governor. 
   (f) Two persons representing the public, who are independent and
have financial expertise, appointed by the Governor. For the purpose
of this subdivision, "independent" means that neither the person nor
anyone in the person's family is a member of the system, is receiving
or eligible to receive a pension from the system, is a member of an
organization that represents employees with an interest in the
system, or has any material interest in any entity that contracts
with the system.  
   (f) 
    (g)  One person representing the public, appointed
jointly by the Speaker of the Assembly and the Senate Committee on
Rules. 
   (g) 
    (h)  Six members elected under the supervision of the
board as follows:
   (1) Two members elected by the members of this system from the
membership thereof.
   (2) A member elected by the active state members of this system
from the state membership thereof.
   (3) A member elected by and from the active local members of this
system who are employees of a school district or a county
superintendent of schools.
   (4) A member elected by and from the active local members of this
system other than those who are employees of a school district or a
county superintendent of schools.
   (5) A member elected by and from the retired members of this
system.
  SEC. 2.  This act would change the composition of the Board of
Administration of the Public Employees' Retirement System and shall
be operative only upon ratification by the voters at a statewide
election, pursuant to subdivision (f) of Section 17 of Article XVI of
the California Constitution. The Secretary of State shall submit
this act to the voters for approval at the next statewide election.