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AB-2364 State pension systems: credit enhancement.(2003-2004)

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Assembly Bill No. 2364
CHAPTER 266

An act to add Section 7514.3 to the Government Code, relating to state pension systems, and declaring the urgency thereof, to take effect immediately.

[ Filed with Secretary of State  August 23, 2004. Approved by Governor  August 23, 2004. ]

LEGISLATIVE COUNSEL'S DIGEST


AB 2364, Correa. State pension systems: credit enhancement.
Existing law declares that the retirement boards of public pension and retirement systems have fiduciary responsibility over the assets of the public pension or retirement system.
This bill would authorize state pension systems to establish credit enhancement programs to assist issuers of municipal and public finance debt, as specified.
The bill would declare that it is to take effect immediately as an urgency statute.

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


SECTION 1.

 Section 7514.3 is added to the Government Code, to read:

7514.3.
 Notwithstanding any other provision of law, state pension systems may, subject to and consistent with their fiduciary duties and the standard for prudent investment set forth in Section 20190 of this code and Section 17 of Article XVI of the California Constitution, establish credit enhancement programs to assist entities of state and local government and other issuers of municipal and public finance debt to secure more favorable financing terms through a variety of types of credit enhancement including, but not limited to, enhancement of the credit of bonds, notes, and other indebtedness. Any credit enhancement program shall comply with the requirements of Section 503 of the Internal Revenue Code.

SEC. 2.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order that state retirement systems may establish credit enhancement programs during this period of fiscal crisis, it is necessary that this act take effect immediately.