To: opinion@sacbee.com
From: James McRitchie <jm@perswatch.net>
Subject: Re "Backlogged agency put on 'short leash" (June 6th)
One of the 77 pending cases at the Office of Administrative Law (OAL) involves conflict of interest policies put in place by the California Public Employees Retirement System. William Crist, author of the policies and President of the Board of Administration announced "there has been no evidence or even suspicion of corruption by any CalPERS fiduciaries because of political contributions or gifts. Nevertheless, we have taken the extreme measure of banning political contributions and requiring the fullest disclosure possible."
Of course these actions were taken only after the Bee and another paper reported deals involving relatives and former board members, personal bankruptcies, gifts, high living, extensive travel and campaign contributions funded by those doing business with CalPERS. The Board's policies may appease some critics but they have little impact, since most board members can continue to accept gifts but never did raise campaign funds.
When I petitioned the Board to adopt the policies as regulations so that members would have a meaningful opportunity to comment and seek amendments, such a limitation on the value of gifts, I was informed by their General Counsel that the policies relate "only to the internal management of the state agency." Matters involving only "internal business" are not required to go through the adoption process. However, in a letter to Pension&Investments (a trade publication), their Chief of Public Affairs, notes the policy "requires that contractors or those seeking to do business with CalPERS must report any solicitation attempts by any board member, candidate for board office, senior manager, or fiduciary."
Apparently the policy is strictly internal when it comes to members seeking application of the law to CalPERS but includes essential external elements when such an interpretation helps CalPERS' public image. Even though the CalPERS policies are clearly "underground" rules, members will have to wait more than a year before OAL will make a determination. In the meantime, William Crist continues his hypocritical leadership at CalPERS. Please keep up your excellent reporting.
Jim McRitchie
Candidate for the CalPERS Board
Contact: 
jm@perswatch.net