BILL NUMBER: AB 17 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 5, 2012
AMENDED IN SENATE JUNE 15, 2012
AMENDED IN ASSEMBLY JANUARY 13, 2012
AMENDED IN ASSEMBLY MAY 11, 2011
INTRODUCED BY Assembly Member Davis
DECEMBER 6, 2010
An act to add and repeal Section 22204.5 of the Education
amend Section 71253 of the Water Code, relating
to retirement municipal water districts, and
declaring the urgency thereof, to take effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
AB 17, as amended, Davis. Retirement: pension fund
management. Municipal water districts: board of
directors.
Existing law, the Municipal Water District Law of 1911, authorizes
the formation of a municipal water district to acquire and sell
water. Existing law generally requires the board of directors of a
municipal water district to consist of 5 members who hold office for
a term of 4 years from and after the date of the director taking
office and until the election and qualification of the director's
successor. Under existing law, except as prescribed, directors take
office at the time county officers take office, at 12 o'clock noon on
the first Monday after the January 1st succeeding their election.
Existing law establishes certain dates during which elections are
to be held each year, including the first Tuesday after the first
Monday in November of each year.
This bill would specify that directors elected to office at an
election held on the first Monday in November to take office at the
time county officers take office, on the first Monday after January 1
succeeding their election. This bill would further specify that a
director elected at an election held at a date other than the
above-mentioned November date shall take office 30 days following the
date of certification of the results of that election.
This bill would declare that it is to take effect immediately as
an urgency statute.
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 Teachers' Retirement Board, on or
before August 1, 2013, and annually each August 1 thereafter, to
aggressively participate in a legislative hearing on ethnic and
gender diversity in regards to the investment managers with whom it
has contracted in the immediately preceding fiscal year, and who
participate in managing its portfolios of external fund management
contracts, as specified. The bill would also require the board, on or
before August 1, 2013, and annually each August 1 thereafter, to
participate in a legislative hearing on the ethnicity and gender of
the brokerage firms with which it has contracted in the immediately
preceding fiscal year, and that provide brokerage services to the
fund's internally and externally managed investment management firms,
as specified. The bill would also require the board, on or before
August 1, 2013, and annually each August 1 thereafter, to participate
in a legislative hearing for the purpose of developing a plan and
strategy for participation of emerging investment managers and
emerging brokerage firms. The bill would provide for the repeal of
these provisions on January 1, 2018. The bill would also make related
findings and declarations.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes no .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 71253 of the Water
Code i s amended to read:
71253. (a) Except for the directors elected
at the formation election, directors elected to office at an
election held on a date specified in subdivision (d) of Section 1000
of the Elections Code shall take office at the time provided by
Section 24200 of the Government Code for county officers
to take office.
(b) Directors elected to office at an election held on a date
other than that specified in subdivision (d) of Section 1000 of the
Elections Code shall take office 30 days following the date of
certification of the results of that election.
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 to ensure the integrity of municipal water district
elections, it is necessary that this act take effect immediately.
SECTION 1. The Legislature finds and declares
all of the following:
(a) The California State Teachers' Retirement System has
approximately $130 billion in assets under its management.
(b) 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 and emerging brokerage firms.
SEC. 2. Section 22204.5 is added to the
Education Code, to read:
22204.5. (a) (1) On or before August 1, 2013, and annually on or
before each August 1 thereafter, the board shall aggressively
participate in a legislative hearing on ethnic and gender diversity
in regards to the investment managers with whom it has contracted in
the immediately preceding fiscal year, and who participate in
managing its portfolio of external fund management contracts,
including all asset classes in which the fund has assets allocated.
The board shall testify in the legislative hearing on the ownership
composition of any privately owned investment firm, including ethnic
and gender breakdowns as well as the portfolio value amount and asset
class managed, in addition to fees paid to each investment manager.
The board shall discuss in the legislative hearing the percentage
breakdown by ethnicity and gender of investment officer composition
of contracted portfolio management firms. The board shall further
testify regarding strategic plans of promoting existing underlying
emerging managers from manager of manager structures to direct
mandates.
(2) On or before August 1, 2013, and annually on or before each
August 1 thereafter, the board shall also aggressively participate in
a legislative hearing on the ethnicity and gender of the brokerage
firms with which it has contracted in the immediately preceding
fiscal year, and which provide brokerage services to the fund's
internally and externally managed investment management firms in
addition to the commissions paid for trading equity securities and
par value traded for fixed income by product to each brokerage firm
utilized by the fund.
(b) On or before August 1, 2013, and annually on or before each
August 1 thereafter, the board shall also aggressively participate in
a legislative hearing for the purpose of developing a plan and
strategy for participation of emerging investment managers who manage
internally and externally managed assets in each asset class, and
emerging brokerage firms that execute securities on organized
exchanges as selected agents. Any percentages provided by the board
shall be used as a reporting threshold only, and not as a basis upon
which to contract with any given emerging investment manager or
emerging brokerage firm.
(c) The board shall define the terms "emerging investment manager"
and "emerging brokerage firm" through an administrative process for
purposes of this section.
(d) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.