BILL NUMBER: AB 2490	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gatto

                        FEBRUARY 19, 2016

   An act relating to pension system investments.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2490, as introduced, Gatto. Pension system investments.
   The California Constitution grants the retirement board of a
public pension or retirement system plenary authority and fiduciary
responsibility for the investment of moneys and administration of the
system. The constitution authorizes the Legislature to prohibit
certain investments when it is in the public interest to do so and
the prohibition satisfies standards of fiduciary care and loyalty.
Existing law requires the Board of Administration of Public Employees'
Retirement System to provide an annual report to the Governor and
the Legislature regarding its financial statements and investments
for the fiscal year and a quarterly review of system assets to the
Legislature.
   This bill would state the intent of the Legislature to enact
legislation that would require equity firms that contract for
investment services with the Board of Administration of the Public
Employees' Retirement System and other pension systems to provide a
clear accounting of clawbacks owed to the systems and to require the
pension systems to track their clawbacks.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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

  SECTION 1.  It is the intent of the Legislature to enact
legislation that would require the equity firms that contract with
the Board of Administration of the Public Employees' Retirement
System and other pension systems for the purpose of providing
investment services to provide a clear accounting of clawbacks owed
to the systems and to require the pension systems to track their
clawbacks.