BILL NUMBER: AB 1735	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 19, 2012

INTRODUCED BY   Assembly Member Wieckowski

                        FEBRUARY 16, 2012

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1735, as amended, Wieckowski. State teachers' retirement:
executive and managerial positions.
   The State Teachers' Retirement Law, which is administered by the
Teachers' Retirement Board, prescribes a comprehensive system of
rights and benefits for its members, including disability benefits,
retirement benefits  ,  and  ,  death
benefits. Existing law requires the Teachers' Retirement Board to fix
the compensation of specified executive and managerial positions,
including  that of  the chief executive officer, system
actuary, general counsel, chief investment officer, and other
investment officers and portfolio managers whose positions are
designated as managerial, and to whom specified procedures and
 conflict of interest   conflict-of-interest
 provisions apply.
   This bill would add the positions of chief operating officer and
chief financial officer to those positions for which the board is
required to fix the compensation  and would make the individuals
holding those positions subject to those conflict-of-interest
provisions. The bill would also prohibit the salaries of the chief
operating officer and chief financial officer from exceeding 150
percent of the prevailing salary for the Governor, as specified. The
bill would additionally remove the position of chief of staff from
those positions that are subject to conflict-of-interest provisions
that limit postemployment   appearances before, or
communication to, the board  .
   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)  (1)    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. 
   (2) The salary for the chief operating officer and the chief
financial officer fixed pursuant to paragraph (1) shall not exceed
150 percent of the prevailing salary for the Governor, as established
by the California Citizens Compensation Commission. 
   (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, 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.