BILL NUMBER: AB 2745	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   MAY 9, 2000
	AMENDED IN ASSEMBLY   MAY 1, 2000

INTRODUCED BY   Assembly Member Kaloogian
   (Coauthors:  Assembly Members Baldwin, Bock,  House
  Briggs, Correa, Firebaugh, Honda, House, Knox  ,
Maddox, Oller, and Pescetti)
    (Coauthor:  Senator Polanco) 

                        FEBRUARY 25, 2000

   An act to add Section 7513.6 to the Government Code, relating to
public retirement fund investments.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2745, as amended, Kaloogian.  Public retirement fund
investments: national security.
   Under the California Constitution, the retirement boards of public
pension or retirement systems have plenary authority over the
investment of pension funds, subject to their fiduciary duties to the
members of the system; however, the Legislature may prohibit
specified investments when it is in the public interest to do so and
when specified fiduciary standards are satisfied.
   This bill, the California State Investment Transparency and
Disclosure Act, would state legislative concerns and encourage the
Teachers' Retirement Board and the Board of Administration of the
Public Employees' Retirement System not to invest in foreign
companies that pose a threat to national security, as specified, and
would require the respective boards to investigate and report
annually to the Legislature regarding their investments in
international corporations doing business in countries meeting
specified criteria.
   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.  This act shall be known, and may be cited as, the
California State Investment Transparency and Disclosure Act.
  SEC. 2.  (a) The Legislature is concerned about foreign companies
that pose threats to national security through terrorism or the
proliferation of weapons of mass destruction, as documented by the
federal Department of State.
   (b) The Teachers' Retirement Board and the Board of Administration
of the Public Employees' Retirement System are encouraged, pursuant
to the fiduciary standards prescribed by Section 17 of Article XVI of
the California Constitution and related statutes, not to invest in
foreign companies that pose those threats.
  SEC. 3.  Section 7513.6 is added to the Government Code, to read:
   7513.6.  On or before January 15 of each year, the Teachers'
Retirement Board and the Board of Administration of the Public
Employees' Retirement System, respectively, shall investigate
 publicly-available   publicly available 
information and report to the Legislature regarding the extent to
which the assets of the State Teachers' Retirement System and the
Public Employees' Retirement System are invested, or were invested
during the prior 12 months, in international corporations doing
business in countries that are on the Department of State's list of
terrorist-sponsoring nations or the Department of the Treasury's list
of Foreign Asset  Controls, or that are currently under
sanctions by the United States.   Controls.