BILL NUMBER: AB 2364	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 24, 2004
	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   state  pension systems, and
declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2364, as amended, Correa.   Public   State
 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   state
 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   state  pension systems may, subject to and
consistent with their fiduciary duties and the standard for prudent
investment set forth in  Section 20190 of this code and 
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.   Any credit
enhancement program shall comply with the requirements of Section 503
of the Internal Revenue Code. 
  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  state  retirement
systems may establish credit enhancement programs during this period
of fiscal crisis, it is necessary that this act take effect
immediately.