BILL NUMBER: SB 1928	AMENDED
	BILL TEXT

	AMENDED IN SENATE   MARCH 27, 2000

INTRODUCED BY   Senator Haynes

                        FEBRUARY 24, 2000

    An act relating to public retirement funds. 
 An act to add Chapter 21.6 (commencing with Section 7521) to
Division 7 of Title 1 of the Government Code, relating to public
retirement fund investments. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1928, as amended, Haynes.  Capital Markets Task Force 
Board  .
   Under existing law, 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.  
   This bill would declare the Legislature's intent to create a
Capital Markets Task Force to oversee and review investments by the
Public Employees' Retirement System and the State Teachers'
Retirement System, as specified.  
   This bill would declare Legislature's concern over investments by
the Public Employees' Retirement System in foreign companies that
promote terrorism, the proliferation of weapons of mass destruction,
and the violation of human rights.  This bill would encourage the
Board of Administration of the Public Employees' Retirement System
and the State Teachers' Retirement Board not to invest in foreign
companies that pose threats to national security and human rights.
This bill would establish the Capitol Markets Task Force Board, which
would make recommendations to the Board of Administration of the
Public Employees' Retirement System and the State Teachers'
Retirement Board regarding national security, human rights, and
social concerns material to the performance of investments. 
   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.  (a) It is the intent of the Legislature  
  SECTION 1.  (a) The Legislature is concerned about recent public
revelations that the Board of Administration of the Public Employees'
Retirement System has invested pension funds in foreign companies
that may pose threats to national security by promoting terrorism and
the proliferation of weapons of mass destruction, and has also
invested in a foreign company that is financially supporting a
dictatorial regime in Sudan that has been accused of abominable human
rights violations, including genocide and slavery.
   (b) The Legislature encourages the Board of Administration of the
Public Employees' Retirement System and the Teachers' Retirement
Board, 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 threats to national
security and fundamental human rights.
  SEC. 2.  Chapter 21.6 (commencing with Section 7521) is added to
Division 7 of Title 1 of the Government Code, to read:

      CHAPTER 21.6.  CAPITAL MARKETS TASK FORCE BOARD

   7521.  The Capital Markets Task Force Board is hereby established.
  As used in this chapter, "board" shall mean the Capital Markets
Task Force Board.  The board shall consist of:
   (a) __________.
   (b) __________.
   (c) __________.
   (d) __________.
   7522.  The board shall make recommendations to the Board of
Administration of the Public Employees' Retirement System and the
Teachers' Retirement Board with respect to the following:
   (a) National security concerns.
   (b) Human rights concerns.
   (c) Social concerns material to the performance of investments.
  that a Capital Markets Task Force shall be created to
oversee pension fund investments by the Public Employees' Retirement
System and the State Teachers' Retirement System.
   (b) The task force shall review potential investments by those
systems in international equity and debt holdings, in order to
identify human rights, national security, and other social concerns
that could be material to the performance of those investments.
   (c) The task force shall be comprised of appointed experts in the
fields of trade and national security.