Bill Text: CA AB736 | 2015-2016 | Regular Session | Chaptered
Bill Title: State teachers' retirement: executive positions.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Passed) 2016-09-24 - Chaptered by Secretary of State - Chapter 553, Statutes of 2016. [AB736 Detail]
Download: California-2015-AB736-Chaptered.html
BILL NUMBER: AB 736 CHAPTERED
BILL TEXT
CHAPTER 553
FILED WITH SECRETARY OF STATE SEPTEMBER 24, 2016
APPROVED BY GOVERNOR SEPTEMBER 24, 2016
PASSED THE SENATE AUGUST 24, 2016
PASSED THE ASSEMBLY AUGUST 30, 2016
AMENDED IN SENATE AUGUST 19, 2016
AMENDED IN SENATE MAY 10, 2016
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, 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 provide the duty to fix the compensation of
specified executive and managerial positions, described above,
applies to a single position in the various job categories. The bill
would additionally require the board to fix the compensation of a
chief operating officer and a chief financial officer. The bill would
impose specified limits on the annual percentage increase in salary
paid to a person who served in either of those positions on January
1, 2016, and who does not separate from service in that position
prior to the date on which the increase is applied.
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.
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: a
chief executive officer, a chief operating officer, a chief financial
officer, a system actuary, a general counsel, a 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 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. The annual percentage increase in
salary that may be paid pursuant to this section to a person who
served as chief financial officer or as chief operating officer on
January 1, 2016, and who does not separate from service in that
position prior to the date on which the increase is applied, shall
not exceed either of the following:
(1) Ten percent for the 2017-18 fiscal year.
(2) Five percent for any fiscal year subsequent to 2017-18.
(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), was a member of the board, 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.
