BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 769
                                                                  Page  1

          Date of Hearing:   May 4, 2011

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL 
                                      SECURITY
                              Warren T. Furutani, Chair
                  AB 769 (Hueso) - As Introduced:  February 17, 2011
           
          SUBJECT  :   Public employment: benefits.

           SUMMARY  :   Prohibits a person who is appointed to any state 
          board or commission, on and after January 1, 2012, from becoming 
          a member of the California Public Employees' Retirement System 
          (CalPERS) or the California State Teachers' Retirement System 
          (CalSTRS) and caps the salary for anyone appointed to a state 
          board or commission at the amount received by a member of the 
          Legislature who is not in a leadership position.  

           EXISTING LAW  specifically excludes board members of the State 
          Compensation Insurance Fund from membership in CalPERS.  
          Individuals who are exempt from civil service and directly 
          appointed by the Governor, Attorney General, Lieutenant 
          Governor, Controller, Secretary of State, Treasurer or 
          Superintendent of Public Instruction are also excluded from 
          CalPERS membership unless they elect to become a member.

           FISCAL EFFECT  :   Unknown.

           COMMENTS  :   According to the author, "Statewide there are more 
          than 300 boards and commissions playing a variety of roles.  
          Roles vary from governing the particular organization, 
          appointing powers, approving annual budgets, and surprisingly 
          setting their own salaries and compensation.  The use of state 
          boards and commissions has come under considerable criticism 
          over compensation.

          "This bill will ensure that members of state boards and 
          commissions are not overcompensated for their work.  This is 
          achieved by putting salaries and pensions for boards and 
          commissions on par with the benefits received by the California 
          Legislature.  This is a good government bill that is intended to 
          help restore the public trust."

          SB 63 (Strickland), Chapter 21, Statutes of 2009, abolished the 
          Integrated Waste Management Board.  According to the author, 
          "Critics of state boards and scored a notable win in 2009 when 








                                                                  AB 769
                                                                  Page  2

          the Integrated Waste Management Board shut down.  The Department 
          of Resources and Recycling and Recovery assumed the 
          responsibilities of the former board.  The Integrated Waste 
          Management Board was criticized for employing ex-lawmakers, 
          gubernatorial assistants and others with political connections 
          that were paid more than $100,000 a year for part-time work." 









           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916) 
          319-3957