BILL NUMBER: SB 104 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 25, 2015
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 9, 2015
An act relating to the Budget Act of 2015.
An act to amend Sections 89724 and 89725 of, and to add Section
89726 to, the Education Code, relating to the California
State University.
LEGISLATIVE COUNSEL'S DIGEST
SB 104, as amended, Committee on Budget and Fiscal Review.
Budget Act of 2015. California State
University: fees: investments.
Existing law authorizes the Treasurer or chief fiscal officer of a
campus of the California State University to invest certain money
received by the California State University in eligible securities
and in investment certificates or withdrawal shares in federal or
state credit unions doing business in this state as long as any money
invested in this manner is fully insured by the National Credit
Union Administration.
This bill would authorize the Treasurer or chief fiscal officer of
a campus of the California State University to invest certain of
those moneys in mutual funds subject to registration by, and under
the regulatory authority of, the United States Securities and
Exchange Commission, or in real estate investment trusts. The bill
would impose specified requirements on the Trustees of the California
State University relating to those types of investments.
Existing law establishes the California State University Special
Projects Fund, which consists of grants, revenues, and funds for the
operation, support, and development of research, workshops,
conferences, institutes, and special projects in the California State
University. Existing law authorizes the Treasurer to invest money
from the fund in eligible securities.
This bill would authorize the Treasurer or chief fiscal officer of
a campus of the California State University to invest the money in
the California State University Special Projects Fund in mutual funds
subject to registration by, and under the regulatory authority of,
the United States Securities and Exchange Commission, or in real
estate investment trusts.
This bill would limit the total amount invested in these mutual
funds and real estate investment trusts to specified amounts for each
fiscal year, until, commencing with the 2019-20 fiscal year, up to
30% of that money could be invested in these asset categories.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2015.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 89724 of the
Education Code is amended to read:
89724. (a) All money received in accordance with the
following shall be appropriated for the support of the California
State University in addition to other amounts as may be appropriated
by the Legislature:
(1) All money received from the sale of California State
University publications.
(2) All money received under an agreement entered into pursuant to
Section 89036.
(3) Except as to the fees and charges specified in subdivisions
(g) and (h) of Section 89721, all money collected as fees from
students of the California State University and received from other
persons under Sections 89030, 89036 to 89039, inclusive, 89700,
89705, 89708, 89709, 89720, and 89721, and money received pursuant to
Section 2080.8 of the Civil Code.
(a)
(b) All money received from the sale of
publications pursuant to Section 90500, all money received under an
agreement entered into pursuant to Section 89036, and, except as to
the fees and charges specified in subdivisions (g) and (h) of Section
89721, all money collected as fees from students in any state
university and from other persons under Section 89030, Sections 89036
to 89040, inclusive, and Sections 89700, 89705, 89708, 89709, 89720,
and 89721, and by reason of Section 2080.9 of the Civil Code, is
hereby appropriated for the support of the California State
University in addition to such other amounts as may be appropriated
therefor by the Legislature. Money received under Sections
89720 and 89721, or received by reason of
pursuant to Section 2080.9 2080.8
of the Civil Code, is appropriated pursuant to subdivision (a)
without regard to fiscal year. Money received by
reason of pursuant to Section 2080.9
2080.8 of the Civil Code shall be used for
student scholarships and loans pursuant to any regulations the
trustees shall provide, and while held pending the grant of a
scholarship or loan, may be invested by the Treasurer upon approval
of the trustees, in those eligible securities listed in Section 16430
of the Government Code. All interest or other earnings received
pursuant to such that investment shall
also be used for those scholarships and loans. Money received
by reason of pursuant to Sections 89720
and 89721 may be invested, upon approval of the trustees, by the
Treasurer or by the chief fiscal officer of a campus of the
California State University, in those eligible securities listed in
Section 16430 of the Government Code Code.
Money received pursuant to Section 2080.8 of the Civil Code, may be
invested, upon approval of the trustees and in
investment certificates or withdrawal shares in federal or state
credit unions which are doing business in this state and which have
their accounts insured accordance with Section 89726,
by the National Credit Union Administration. Any money
so invested or deposited shall be invested or deposited
chief fiscal officer of a campus of the California State
University, in certificates, shares,
mutual funds subject to registration by, and under the regulatory
authority of, the United States Securities and Exchange Commission,
or accounts fully covered by the insurance.
in real estate investment trusts. All interest and other
earnings received pursuant to the investment of money received
by reason of pursuant to Sections 89720
and 89721 shall also be used for such purposes as may be established
by the trustees consistent with the terms and conditions of the
gift, bequest, devise, donation, or agreement under Sections 89720
and 89721. Except as otherwise provided with respect to money
received by reason of pursuant to
Section 2080.9 2080.8 of the Civil Code
and Sections 89720 and 89721 of this code,
89721, all money received pursuant to this section shall
augment the support appropriation to the California State University
for the fiscal year to which the collections apply.
(b)
(c) All money received from the sale or the disposition
of real property acquired by or on behalf of a particular
state university campus of the California State
University by gift, devise, or donation pursuant to Section
89720 or pursuant to the predecessor of that section is hereby
appropriated to the trustees for expenditure for capital outlay for
the acquisition and improvement of real property for the
particular state university, campus, in addition
to any other amounts appropriated therefor by the
Legislature. All money received from the sale or other disposition
of personal property, other than money, acquired by or on behalf of a
particular state university campus of the
California State University by gift, bequest, or donation
pursuant to Section 89720 or pursuant to the
predecessor of that section is hereby appropriated to the trustees
for expenditure for capital outlay for, or the acquisition and
improvement of real or personal property for, the particular
state university, campus, in addition to other
amounts appropriated therefor by the Legislature.
No money shall be expended by the trustees under this subdivision
without the approval of the Director of Finance. The money shall
augment the support or capital outlay appropriation of the California
State University current at the date of issuance of the Controller's
receipt therefor as may be designated by the
trustees prior to their deposit in the State Treasury.
SEC. 2. Section 89725 of the Education
Code is amended to read:
89725. (a) Notwithstanding any
other provision of law to the contrary, grants,
revenues, and funds of any nature received by the trustees for
research, workshops, conferences, institutes, and special projects
from the state, federal government, local government, or private
persons, may be transmitted to the Treasurer and, if transmitted,
shall be deposited in the State Treasury to the credit of
the California State University Special Projects Fund,
which fund is hereby created.
established in the State Treasury.
(b) All such grants,
revenues, and funds deposited in the California State University
Special Projects Fund are hereby
appropriated without regard to fiscal years
year to the trustees for the operation, support, and
development of research, workshops, conferences, institutes, and
special projects in the California State University.
(c) Provision shall be made by the trustees
for reimbursements to the General Fund for the cost of space and
services furnished to projects funded by the California State
University Special Projects Fund.
(d) Notwithstanding any other
provision of the law to the contrary, the trustees shall
have authority to establish the rules and procedures under which the
fund shall operate. All expenditures shall be made in accordance with
the rules and procedures, without prior approval of the Department
of General Services or the Department of Finance. All
expenditures shall receive an annual postaudit by the Audits Division
of the Department of Finance. This requirement for an annual
postaudit shall be effective until July 1, 1992. On and after July 1,
1992, the expenditures Expenditures from the
fund shall be audited as frequently as the Audits Division of
the Department of Finance deems appropriate.
Moneys
(e) (1) Except as
provided in paragraph (2), moneys in the California
State University Special Projects Fund may be invested by the
Treasurer, Treasurer or by the chief fiscal
officer of a campus of the California State University, upon
approval of the trustees trustees, only
in those eligible securities listed in Section
16430 of the Government Code. All interest or other earnings
received pursuant to those investments shall be collected by the
Treasurer and shall be deposited in the State Treasury to the credit
of the California State University Special Projects Fund.
(2) Money received pursuant to Section 2080.8 of the Civil Code,
may be invested, upon approval of the trustees and in accordance with
Section 89726, by the Treasurer or by the chief fiscal officer of a
campus of the California State University, in mutual funds subject to
registration by, and under the regulatory authority of, the United
States Securities and Exchange Commission, or in real estate
investment trusts. All interest or other earnings received pursuant
to those investments shall be collected by the Treasurer and shall be
deposited in the fund.
SEC. 3. Section 89726 is added to the
Education Code , to read:
89726. (a) (1) The trustees may invest in securities or
investments not listed in Section 16430 of the Government Code only
if the trustees have established a committee to provide advice and
expertise on investments.
(2) A majority of the members of the committee shall be
individuals who have investment expertise and who are not trustees.
(3) The trustees shall allow the Treasurer to serve as a member of
the committee or to appoint a deputy treasurer to serve as a member
of the committee.
(b) The total amount invested in securities or investments not
listed in Section 16430 of the Government Code shall not exceed the
following amounts:
(1) In the fiscal year ending June 30, 2017, two hundred million
dollars ($200,000,000).
(2) In the fiscal year ending June 30, 2018, four hundred million
dollars ($400,000,000).
(3) In the fiscal year ending June 30, 2019, six hundred million
dollars ($600,000,000).
(4) In the fiscal year ending June 30, 2020, and each fiscal year
thereafter, thirty percent of all moneys invested pursuant to
Sections 89724 and 89725.
(c) (1) The trustees shall receive an investment performance
report quarterly and distribute an annual report to the Legislature,
in compliance with Section 9795 of the Government Code, and the
Department of Finance.
(2) The investment performance reports shall include investment
returns, comparisons to benchmarks, holdings, market values, and
fees.
(d) Any additional moneys earned through investments in securities
or investments not listed in Section 16430 of the Government Code
shall be used only for capital outlay or maintenance.
(e) The trustees shall not submit a request to the Department of
Finance or the Legislature for any funds to compensate for investment
loss resulting from investments in securities or investments not
listed in Section 16430 of the Government Code.
(f) The trustees shall not cite investment loss resulting from
investments in securities or investments not listed in Section 16430
of the Government Code to justify approval of an increase in student
tuition or fees.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2015.