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AB-2745 Public retirement fund investments: national security.(1999-2000)

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AB2745:v97#DOCUMENT

Amended  IN  Assembly  May 01, 2000
Amended  IN  Assembly  May 09, 2000

CALIFORNIA LEGISLATURE— 1999–2000 REGULAR SESSION

Assembly Bill
No. 2745


Introduced  by  Assembly Member Kaloogian
(Coauthor(s): Assembly Member Baldwin, Bock, Briggs, Correa, Firebaugh, Honda, House, Knox, Maddox, Oller, Pescetti)
(Coauthor(s): Senator Polanco)

February 25, 2000


An act to add Section 7513.6 to the Government Code, relating to public retirement fund investments.


LEGISLATIVE COUNSEL'S DIGEST


AB 2745, as amended, Kaloogian. Public retirement fund investments: national security.
Under the California Constitution, the retirement boards of public pension or retirement systems have plenary authority over the investment of pension funds, subject to their fiduciary duties to the members of the system; however, the Legislature may prohibit specified investments when it is in the public interest to do so and when specified fiduciary standards are satisfied.
This bill, the California State Investment Transparency and Disclosure Act, would state legislative concerns and encourage the Teachers’ Retirement Board and the Board of Administration of the Public Employees’ Retirement System not to invest in foreign companies that pose a threat to national security, as specified, and would require the respective boards to investigate and report annually to the Legislature regarding their investments in international corporations doing business in countries meeting specified criteria.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 This act shall be known, and may be cited as, the California State Investment Transparency and Disclosure Act.

SEC. 2.

 (a) The Legislature is concerned about foreign companies that pose threats to national security through terrorism or the proliferation of weapons of mass destruction, as documented by the federal Department of State.
(b) The Teachers’ Retirement Board and the Board of Administration of the Public Employees’ Retirement System are encouraged, pursuant to the fiduciary standards prescribed by Section 17 of Article XVI of the California Constitution and related statutes, not to invest in foreign companies that pose those threats.

SEC. 3.

 Section 7513.6 is added to the Government Code, to read:

7513.6.
 On or before January 15 of each year, the Teachers’ Retirement Board and the Board of Administration of the Public Employees’ Retirement System, respectively, shall investigate publicly-available publicly available information and report to the Legislature regarding the extent to which the assets of the State Teachers’ Retirement System and the Public Employees’ Retirement System are invested, or were invested during the prior 12 months, in international corporations doing business in countries that are on the Department of State’s list of terrorist-sponsoring nations or the Department of the Treasury’s list of Foreign Asset Controls, or that are currently under sanctions by the United States. Controls.