BILL NUMBER: SB 294	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 9, 2011
	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 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   for  emerging
investment  managers   manager participation
 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: 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   Commencing August 1, 2012,
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.
  for emerging investment manager participation across
all asset classes. 
   (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) Nothing in this section shall require the board to take action
that is not consistent with the fiduciary responsibilities of the
board as described in Section 17 of Article XVI of the California
Constitution.  
   (d) 
    (e)  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   Commencing August 1, 2012,
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.
  for emerging investment manager participation across
all asset classes.
   (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) Nothing in this section shall require the board to take action
that is not consistent with the fiduciary responsibilities of the
board as described in Section 17 of Article XVI of the California
Constitution.  
   (d) 
    (e)  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.