SB 574, as introduced, Pan. Public records: public investment funds: disclosure.
Existing law, the California Public Records Act, requires state agencies and local agencies to make public records, as defined, available for inspection, subject to specified criteria, and with specified exceptions. Existing law excludes from disclosure specified records of public investment funds, regarding alternative investments, as defined, unless the information in the records has already been publicly released by the keeper of the information. Notwithstanding this exclusion, existing law provides that certain types of information contained in records regarding alternative investments in which public investment funds invest are subject to disclosure under the act, and provides that these records are not to be considered a trade secret exempt from disclosure.
This bill would also subject records with those types of information regarding alternative investments that are in the constructive possession of, or are otherwise accessible or obtainable by, a public investment fund to disclosure under the act and require a public investment fund to obtain and disclose those records.
By increasing the duties of local public investment funds, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 6254.26 of the Government Code is
2amended to read:
(a) Notwithstanding any provision of this chapter or
4other law, the following records regarding alternative investments
5in which public investment funds invest shall not be subject to
6disclosure pursuant to this chapter, unless the information has
7already been publicly released by the keeper of the information:
8(1) Due diligence materials that are proprietary to the public
9investment fund or the alternative investment vehicle.
10(2) Quarterly and annual financial statements of alternative
11investment vehicles.
12(3) Meeting materials of alternative investment vehicles.
13(4) Records containing information regarding the portfolio
14positions in which alternative investment funds invest.
15(5) Capital call and distribution notices.
16(6) Alternative investment agreements and all related documents.
17(b) Notwithstanding subdivision (a), the following information
18contained in records described in subdivision (a) regarding
19alternative investments in which public investment funds invest
20shall be subject to disclosurebegin insert shall be obtained and disclosed by
21a public investment fundend insert pursuant to this chapterbegin insert,end insert and shall not be
22
considered a trade secret exempt from disclosure:
23(1) The name, address, and vintage year of each alternative
24investment vehicle.
25(2) The dollar amount of the commitment made to each
26alternative investment vehicle by the public investment fund since
27inception.
P3 1(3) The dollar amount of cash contributions made by the public
2investment fund to each alternative investment vehicle since
3inception.
4(4) The dollar amount, on a fiscal yearend basis, of cash
5distributions received by the public investment fund from each
6alternative investment vehicle.
7(5) The dollar amount, on a fiscal yearend basis, of cash
8distributions received by the public investment fund plus remaining
9value of partnership
assets attributable to the public investment
10fund’s investment in each alternative investment vehicle.
11(6) The net internal rate of return of each alternative investment
12vehicle since inception.
13(7) The investment multiple of each alternative investment
14vehicle since inception.
15(8) The dollar amount of the total management fees and costs
16paid on an annual fiscal yearend basis, by the public investment
17fund to each alternative investment vehicle.
18(9) The dollar amount of cash profit received by public
19investment funds from each alternative investment vehicle on a
20fiscal year-end basis.
21(c) For purposes of this section, the following definitions shall
22apply:
23(1) “Alternative investment” means an investment in a private
24equity fund, venture fund, hedge fund, or absolute return fund.
25(2) “Alternative investment vehicle” means the limited
26partnership, limited liability company, or similar legal structure
27through which the public investment fund invests in portfolio
28companies.
29(3) “Portfolio positions” means individual portfolio investments
30made by the alternative investment vehicles.
31(4) “Public investment fund” means any public pension or
32retirement system, and any public endowment or foundation.
33(5) “Records” includes public records described in Section
346252 and
records relating to the conduct of the public’s business
35that are in the constructive possession of, or otherwise accessible
36or obtainable by, a public investment fund.
If the Commission on State Mandates determines that
38this act contains costs mandated by the state, reimbursement to
39local agencies and school districts for those costs shall be made
P4 1pursuant to Part 7 (commencing with Section 17500) of Division
24 of Title 2 of the Government Code.
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