BILL NUMBER: AB 2364	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 12, 2004

INTRODUCED BY   Assembly Member Correa

                        FEBRUARY 19, 2004

   An act  to add Section 7514.3 to the Government Code, 
relating to public pension systems, and declaring the urgency
thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2364, as amended, Correa.  Public pension systems:  credit
enhancement.
   Existing law declares that the retirement boards of public pension
and retirement systems have fiduciary responsibility over the assets
of the public pension or retirement system.
   This bill would  declare the Legislature's intent to
clarify the authority of   authorize  public
pension systems to establish credit enhancement programs  to
assist issuers of municipal and public finance debt, as specified
 .
   The bill would declare that it is to take effect immediately as an
urgency statute.
   Vote:  2/3.  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 clarify the
authority of public pension systems to establish credit 

  SECTION 1.  Section 7514.3 is added to the Government Code, to
read:
   7514.3.  Notwithstanding any other provision of law, public
pension systems may, subject to and consistent with their fiduciary
duties and the standard for prudent investment set forth in Section
17 of Article XVI of the California Constitution, establish credit
 enhancement programs to assist entities  of state and local
government and other issuers of municipal and public finance debt
 to secure more favorable financing terms through a variety of
types of credit enhancement including, but not limited to,
enhancement of the credit of bonds, notes, and other indebtedness,
thereby hastening the state's economic recovery.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order that public retirement systems may establish credit
enhancement programs during this period of fiscal crisis, and thereby
hasten the state's economic recovery, it is necessary that this act
take effect immediately.