BILL NUMBER: AB 1913 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 22, 2010
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member Davis
FEBRUARY 16, 2010
An act to add Section 20139 to to add and
repeal Sec tion 22204.5 of the Education Code, and to add
and repeal Section 20139 of the Government Code, relating to
retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 1913, as amended, Davis. Retirement: pension fund.
The Public Employees' Retirement Law creates the Public Employees'
Retirement Fund, which is a trust fund created and administered
solely for the benefit of the members and retired members of this
system and their survivors and beneficiaries. The Board of
Administration of the Public Employees' Retirement System has the
exclusive control of the administration and investment of the
retirement fund.
The Teachers' Retirement Law establishes the State Teachers'
Retirement System in order to provide a financially sound plan for
the retirement, with adequate retirement allowances, for teachers in
public schools of the state, teachers in schools supported by the
state, and other persons employed in connection with the schools. The
plan and the system are administered by the Teachers' Retirement
Board.
This bill would require the board Board of
Administration of the Public Employees' Retirement System
and the Teachers' Retirement Board , on or before January 1,
2012, until January 1, 2016, to adopt a policy
that sets forth a goal to utilize report annu
ally to the Legislature the ethnicity and gender of
emerging investment managers, as defined, to manage 10% of
its total investment portfolio who participate in
managing its portfolio of fund management contracts, as specified.
The bill would also require the board to develop and include in the
report plans and strategies to increase the participation of emerging
investment managers until they manage at least 10% of the board's
actively managed portfolio .
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) The California Public Employees' Retirement System, the nation'
s largest pension fund, and the California State Teachers' Retirement
System, together, have approximately $328 billion in assets under
their management.
(b) Women- and minority-owned businesses are not reflected among
pension fund asset managers to the same extent as they are
represented in the population of the United States which is 51
percent female and 25 percent nonwhite. Currently, participation by
these groups in California pension fund asset management continues to
be disproportionately low based on limited available state-level
data.
(c) As the nation's leader in attracting private equity capital
and advancing innovation, California should also be the leader in
encouraging equal opportunity in our state pension fund utilization
of emerging investment managers.
SEC. 2. Section 22204.5 is added to the
Education Code , to read:
22204.5. (a) On or before January 1, 2012, the board shall
annually report comprehensively and aggregately on the ethnicity and
gender of the emerging investment managers who participate in
managing its portfolio of fund management contracts, including all
asset classes. The report shall identify the investment firm
ownership composition, including the portfolio value amount and
ethnic and gender breakdowns. The report shall separately include a
percentage breakdown by ethnicity and gender of investment officer
composition of contracted portfolio management firms.
(b) The board shall develop and include in the annual report to
the Legislature plans and strategies to increase the participation of
emerging investment managers until they manage at least 10 percent
of the board's actively managed portfolio.
(c) "Emerging investment manager" means a qualified investment
adviser who is a woman or a member of a minority group and who
manages an investment portfolio of at least ten million dollars
($10,000,000), but less than one billion dollars ($1,000,000,000).
(d) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
SEC. 3. Section 20139 is added to the
Government Code , to read:
20139. (a) On or before January 1, 2012, the board shall annually
report comprehensively and aggregately on the ethnicity and gender
of the emerging investment managers who participate in managing its
portfolio of fund management contracts, including all asset classes.
The report shall identify the investment firm ownership composition,
including the portfolio value amount and ethnic and gender
breakdowns. The report shall separately include a percentage
breakdown by ethnicity and gender of investment officer composition
of contracted portfolio management firms.
(b) The board shall develop and include in the annual report to
the Legislature plans and strategies to increase the participation of
emerging investment managers until they manage at least 10 percent
of the board's actively managed portfolio.
(c) "Emerging investment manager" means a qualified investment
adviser who is a woman or a member of a minority group and who
manages an investment portfolio of at least ten million dollars
($10,000,000), but less than one billion dollars ($1,000,000,000).
(d) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
SECTION 1. Section 20139 is added to the
Government Code, to read:
20139. (a) On or before January 1, 2012, the board shall adopt a
policy that sets forth a goal to utilize emerging investment managers
to manage 10 percent of its total investment portfolio. This policy
shall include quantifiable goals for the management of assets in
specific asset classes by emerging investment managers.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Disadvantaged business enterprise" means small business
concerns that are at least 51 percent owned and controlled by
socially and economically disadvantaged individuals.
(2) "Emerging investment manager" means a qualified investment
adviser that manages an investment portfolio of at least ten million
dollars ($10,000,000) but less than one billion dollars
($1,000,000,000) and is a disadvantaged enterprise.