BILL NUMBER: SB 294	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 24, 2011

INTRODUCED BY   Senator Price

                        FEBRUARY 14, 2011

   An act  to add and repeal Section 22228 of the Education Code,
and to add and repeal Section 20136 of the Government Code, 
relating to public employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 294, as amended, Price. Public employees' retirement: emerging
investment managers.
   The Public Employees' Retirement Law creates the Public Employees'
Retirement Fund, which is a trust fund created and administered
solely for the benefit of the members and retired members of this
system and their survivors and beneficiaries. The Board of
Administration of the Public Employees' Retirement System has the
exclusive control of the administration and investment of the
retirement fund.
   The Teachers' Retirement Law establishes the State Teachers'
Retirement System in order to provide a financially sound plan for
the retirement, with adequate retirement allowances, for teachers in
public schools of the state, teachers in schools supported by the
state, and other persons employed in connection with the schools. The
plan and the system are administered by the Teachers' Retirement
Board.
   This bill would  declare the intent of the Legislature to
enact legislation to increase the participation of emerging
investment managers relating to investments managed by the Public
Employees' Retirement System and the State Teachers' Retirement
System   require the Board of Administration of the
Public Employees' Retirement System and the Teachers' Retirement
Board to each provide a 5-year strategic plan, as specified, to
expand the participation of emerging investment managers across all
asset classes. The bill would require each of the boards to submit an
annual report to the Legislature, until January 1, 2018, with
benchmarks regarding the progress of the strategic plan. The bill
would require the boards to define "emerging investment manager" for
purposes of these provisions by regulation  .
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 22228 is added to the 
 Education Code   , to read:  
   22228.  (a) The board shall provide a five-year strategic plan,
commencing August 1, 2012, to expand the participation of emerging
investment managers across all asset classes. The plan shall include
a 15-percent participation goal of emerging investment managers.
   (b) The board shall submit a report to the Legislature, commencing
March 1, 2014, and each March 1 thereafter, with benchmarks
regarding the progress of the strategic plan. The report shall be
submitted in compliance with Section 9795 of the Government Code.
   (c) The board shall define the term "emerging investment manager"
for purposes of this section by regulation.
   (d) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SEC. 2.    Section 20136 is added to the  
Government Code   , to read:  
   20136.  (a) The board shall provide a five-year strategic plan,
commencing August 1, 2012, to expand the participation of emerging
investment managers across all asset classes. The plan shall include
a 15-percent participation goal of emerging investment managers.
   (b) The board shall submit a report to the Legislature, commencing
March 1, 2014, and each March 1 thereafter, with benchmarks
regarding the progress of the strategic plan. The report shall be
submitted in compliance with Section 9795 of the Government Code.
   (c) The board shall define the term "emerging investment manager"
for purposes of this section by regulation.
   (d) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.  
  SECTION 1.    It is the intent of the Legislature
to enact legislation to increase the participation of emerging
investment managers relating to investments managed by the Public
Employees' Retirement System and the State Teachers' Retirement
System.