BILL NUMBER: AB 2364	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 26, 2004
	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 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.  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   it is necessary that  this act take effect
immediately.