BILL NUMBER: SB 1928	AMENDED
	BILL TEXT

	AMENDED IN SENATE   APRIL 24, 2000
	AMENDED IN SENATE   MARCH 27, 2000

INTRODUCED BY   Senator Haynes

                        FEBRUARY 24, 2000

   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 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:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  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) __________.   consist of the following elected
officials or their respective designated representatives:
   (a) The Governor.
   (b) The Treasurer.
   (c) The Controller.
   (d) The President pro Tempore of the Senate.
   (e) The Speaker of the Assembly.
   (f) The Minority Leader of the Senate.
   (g) The Minority Leader of the Assembly. 
   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.