BILL NUMBER: AB 736	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Cooley

                        FEBRUARY 25, 2015

   An act to amend Section 22212.5 of the Education Code, relating to
state teachers' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 736, as introduced, Cooley. State teachers' retirement:
executive positions.
   The Teachers' Retirement Law creates the State Teachers'
Retirement System and State Teachers' Retirement Plan for the purpose
of providing teachers and other specified employees with financially
sound retirement plans. The law provides for the administration of
the system and the plan by the Teachers' Retirement Board and
authorizes the board to appoint employees as necessary for those
purposes. The law requires the board to fix the compensation of
specified executive and managerial positions, including chief
executive officer, chief investment officer, and general counsel.
   This bill would additionally require the board to fix the
compensation of the chief operating officer and chief financial
officer.
   Existing law prohibits, among others, a chief of staff, deputy
chief executive officer, or an equivalent senior management position,
for a period of 2 years after leaving that position, from appearing
before or communicating with the board for the purpose of influencing
actions or proceedings, for compensation, as specified.
    This bill would remove that restriction from the positions listed
above and instead apply the restriction to the chief operating
officer and individuals who held career executive assignment
positions that reported directly to either the chief executive
officer or the chief operating officer.
   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 22212.5 of the Education Code is amended to
read:
   22212.5.  (a) Except as otherwise provided in subdivision (d),
this section shall apply to the following positions in the system:
chief executive officer,  chief operating officer, chief
financial officer,  system actuary, general counsel, chief
investment officer, and other investment officers and portfolio
managers whose positions are designated managerial pursuant to
Section 18801.1 of the Government Code.
   (b) Notwithstanding Sections  19816,  19825,
19826, 19829, and 19832 of the Government Code, the board shall fix
the compensation for the positions specified in subdivision (a). In
so doing, the board shall be guided by the principles contained in
Sections 19826 and 19829 of the Government Code, consistent with its
fiduciary responsibility to its members to recruit and retain highly
qualified and effective employees for these positions.
   (c) 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 those positions 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 of the Government Code. 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.
   (d) An individual who held a position designated in subdivision
(a),  or  was a member of the board,  a
chief of staff, a deputy chief executive officer, chief financial
officer, or was in an equivalent senior management position,
  or was in a career executive assignment position that
reported directly to either the chief executive officer or the chief
operating 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 by making any oral
or written communication to the board, 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.