7513.76.
(a) As used in this section:(1) “Board” means the Board of Administration of the Public Employees’ Retirement System or the Teachers’ Retirement Board of the State Teachers’ Retirement System, as applicable.
(2) “Company” means a sole proprietorship, organization, association, corporation, partnership, venture, or other entity, or its subsidiary or affiliate, that exists for profit-making purposes or to otherwise secure economic advantage.
(3) “Investment” means the purchase, ownership, or control of publicly issued stock, corporate bonds, or other debt instruments issued by a company.
(4) “Public employee retirement funds” means the Public Employees’ Retirement Fund described in Section 20062 of this code, and the Teachers’ Retirement Fund described in Section 22167 of the Education Code.
(5) “Private prison company” means a company that generates the majority of its revenue from operating, managing, or contracting as a prison or detention center.
(b) The board shall not make additional or new investments or renew existing investments of public employee retirement funds in a private prison company.
(c) The board shall liquidate investments in a private prison company on or before July 1, 2020. In making a determination to liquidate investments, the board shall constructively engage with the private prison company to establish if the company is transitioning its business model to another industry.
(d) Nothing in this section shall require a board to take action unless the board determines in good faith that the action described in this section is consistent with the fiduciary responsibilities of the board described in Section 17 of Article XVI of the California Constitution.