BILL NUMBER: AB 1163	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 6, 2014

INTRODUCED BY   Assembly Member Levine

                        FEBRUARY 22, 2013

   An act to  amend   add  Section 
20090 of   20100 to  the Government Code, relating
to public employees' retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1163, as amended, Levine. Public Employees' Retirement System:
Board of Administration:  composition.  
education. 
    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  and its
powers and duties  .  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   require the Board of administration of PERS
to adopt an education policy, as specified, for its members, and
would require all board members to receive a minimum of 24 hours of
board member education within the first 2 years of assuming office
and for every subsequent 2-year period in which the person serves on
the board. The bill would require the board to maintain a record of a
board member's compliance with the policy and to post the policy and
  an annual report on board member compliance on the
retirement system's Internet Web site  .
   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) 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.
   (g) One person representing the public, appointed jointly by the
Speaker of the Assembly and the Senate Committee on Rules.
   (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. 
   SECTION 1.    Section 20100 is added to the 
 Government Code   , to read: 
   20100.  The board shall adopt a policy for providing education to
board members. The policy, at a minimum, shall do the following:
   (a) Identify appropriate topics for board member education, which
may include, but are not limited to, the following:
   (1) Fiduciary responsibilities.
   (2) Ethics.
   (3) Pension fund investments and investment program management.
   (4) Actuarial matters.
   (5) Pension funding.
   (6) Benefits administration.
   (7) Disability evaluation.
   (8) Fair hearings.
   (9) Pension fund governance.
   (10) New board member orientation.
   (b) Establish a means for determining the programs, training, and
educational sessions that qualify as board member education.
Educational seminars sponsored by the state or national public
pension fund organizations and seminars sponsored by accredited
academic institutions shall be deemed to meet board member education
requirements.
   (c) Require that all board members receive a minimum of 24 hours
of board member education within the first two years of assuming
office and for every subsequent two-year period the board member
continues to hold membership on the board.
   (d) Require the board to maintain a record of board member
compliance with the policy. The policy and an annual report on board
member compliance shall be placed on the system's Internet Web site.