BILL NUMBER: SB 294	CHAPTERED
	BILL TEXT

	CHAPTER  701
	FILED WITH SECRETARY OF STATE  OCTOBER 9, 2011
	APPROVED BY GOVERNOR  OCTOBER 9, 2011
	PASSED THE SENATE  MAY 31, 2011
	PASSED THE ASSEMBLY  SEPTEMBER 7, 2011
	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, 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, for emerging
investment 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, regarding the progress of the
strategic plan. The bill would require the boards to define "emerging
investment manager" for purposes of these provisions.


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) Commencing August 1, 2012, the board shall provide a
five-year strategic plan 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, 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.
   (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.
   (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) Commencing August 1, 2012, the board shall provide a
five-year strategic plan 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, 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.
   (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.
   (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.