To: public_affairs@calpers.ca.gov
From: James McRitchie <jm@corpgov.net>
Subject: Petition for adoption of regulations
Cc: Kayla_Gillan@CalPERS.CA.GOV, cmathias@oal.ca.gov
Date: Sat, 21 Feb 1998 16:11:35 -0800
Dear Mr. Crist:
This is a petition under the provisions of Government Code, section 11340.6.
I applaud the Board's recent adoption of policies designed to reduce conflicts of interest by prohibiting specified political contributions, the solicitation of contributions, and monthly reporting of gifts. However, I am concerned the System's ability to enforce such policies may be jeopardized by the failure to adopt these policies as "regulations." Government Code, section 11340.5(a) provides that "No state agency shall issue, utilize, enforce, or attempt to enforce any guideline, criterion, bulletin, manual, instruction, order, standard of general application, or other rule, which is a regulation as defined in subdivision (g) of Section 11342, unless the guideline, criterion, bulletin, manual, instruction, order, standard of general application, or other rule has been adopted as a regulation and filed with the Secretary of State pursuant to this chapter."
In addition, I would like the Board to consider several amendments to the adopted policies and would hope these would be carefully considered through the public notice process. For example, during the meeting of the Benefits and Program Administration Committee it was apparent the intent of the Board was to use the term "fiduciary" to apply both to the Board and to certain staff members as well. However, the California Constitution, Article XVI, Section 17(a) clearly delineates the board of administration as the "sole and exclusive" fiduciary over the assets of the system. Therefore, in order for the prohibition to apply to staff I believe a broader term must be chosen or added to the term "fiduciary." In addition, as I mentioned at the Benefits and Program Administration Committee meeting, I believe your policy regarding reporting of gifts is in conflict with the provisions of section 19990(f) of the Government Code.
Therefore, I am requesting the Board to formally adopt policies announced in a press release dated February 19, 1998 (see http://www.calpers.ca.gov/whatshap/news/releases/recent/pr19980219a.htm) as regulations. The Board has authority to adopt these regulations under the provisions of section 20120 of the California Public Employees' Retirement Law.
If you have any questions regarding this petition, please contact me via e-mail at jm@corpgov.net.
Sincerely,
Jim McRitchie
CalPERS Member
cc: Board of Administration
Contact: 
jm@perswatch.net