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The policy change comes less than a week after details were disclosed about business trips taken by recently dismissed chief investment officer Patricia Gerrick as she managed the state's $64 billion retirement system.

"The current time certainly demands more transparency and certain policies that go along with that," Cowell said in an interview with The Associated Press.

Cowell also said top staff now must identify those travel reimbursements on their state ethics disclosure forms as a scholarship or grant received. The rule follows advice received in August from the State Ethics Commission.

Cowell also imposed a "cooling-off" period on herself and top staff. When they leave their jobs they must wait two years before doing business with the State Treasurer's Department, to avoid the appearance of using their influence in the agency to win business.

Cowell dismissed Gerrick earlier this month after they couldn't agree on her proposed resignation. Before leaving her job, Gerrick filed an amended disclosure form stating she had been reimbursed nearly $20,000 for 13 trips in 2008, including visits to New York, San Francisco and Los Angeles.

The treasurer wouldn't discuss Tuesday the reasons for Gerrick's departure, citing state personnel confidentiality laws. A Sept. 9 memo written by Cowell and released late last week said "a review of agency records supported my determination that separation of Ms. Gerrick was appropriate."

One new policy states an employee can't be reimbursed directly from outside investment managers or contractors doing business with the state when they pay for the employee's trip.

Cowell said there have been instances where a staff member received direct reimbursement payments from a third party. She wouldn't comment about Gerrick's trips, again citing personnel confidentiality.

Without the new policy, Cowell said she might not even know if a staff member took a trip and was reimbursed.

"That's not appropriate," she said.

The new policy means the department should receive the payment, which is then forwarded to the employee.

Gerrick said Tuesday in a phone interview that she can't recall receiving a direct payment from an outside investment fund.

Gerrick and Cowell said separately it's common practice for investment managers of public pension funds around the country to be reimbursed for travel to the headquarters of an outside investment fund in which the state invests or to the fund's advisory board meeting.

It's often agreed to in the management contract, part of the "due diligence" state investment managers perform, Cowell said.

State managers already are barred from receiving travel reimbursements from companies that are seeking to do business with the state, according to Cowell.

Gerrick said she still doesn't know what prompted Cowell to ask her to leave.

The treasurer may have just wanted her own person managing the state's massive investments, according to Gerrick, who at $340,000 annually was among the highest paid employees in state government.

Gerrick was hired in 2004 by then-Treasurer Richard Moore.

"The chief investment officer serves at the pleasure of the treasurer," Gerrick said.

Cowell said a formal search for Gerrick's replacement will begin soon. She said she expects the new chief investment officer will be paid in the same range as Gerrick.

"You have to pay market-competitive salaries," Cowell said.