BILL NUMBER: SB 2122 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 24, 2000
INTRODUCED BY Senator Ortiz
FEBRUARY 25, 2000
An act to repeal, add, and repeal Chapter 21.4 (commencing with
Section 7515) of Division 7 of Title 1 of the Government Code,
relating to public retirement fund investments.
LEGISLATIVE COUNSEL'S DIGEST
SB 2122, as amended, Ortiz. Joint Retirement System Investment
Advisory Board Panel .
The California Constitution provides that the retirement boards of
public pension or retirement systems have plenary authority over the
assets of the system their respective
systems , subject to their fiduciary duties to the systems'
members.
This bill would establish the Joint Retirement System Investment
Advisory Board Panel that would
be authorized to make recommendations to
and provide advice to, and facilitate the sharing of
information between, the Public Employees' Retirement System
and the State Teachers' Retirement System, as specified. The
provisions of the bill would be repealed on January 1, 2004.
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 Joint
Retirement System Investment Advisory Board
Panel Act of 2000.
SEC. 2. Chapter 21.4 (commencing with Section 7515) of Division 7
of Title 1 of the Government Code is repealed.
SEC. 3. Chapter 21.4 (commencing with Section 7515) is added to
Division 7 of Title 1 of the Government Code, to read:
CHAPTER 21.4. JOINT RETIREMENT SYSTEM INVESTMENT ADVISORY
BOARD PANEL
7515. The Joint Retirement System Investment Advisory
Board Panel is hereby established. As used in
this chapter, "board" "panel" shall
mean the Joint Retirement System Investment Advisory Board.
The board Panel. The panel shall consist of:
(a) The Governor.
(b) The Treasurer.
(c) The Controller.
(d) Two of the elected members of the Board of
Administration of the Public Employees' Retirement System.
(e) Two members of the Teachers' Retirement Board.
(e) Two of the members of the Teachers' Retirement Board described
in paragraphs (5) to (10), inclusive, of subdivision (a) of Section
22200 of the Education Code.
(f) Six investment professionals.
7516. The board (a) The members of the
panel described in subdivisions (d) and (e) Section 7515 shall serve
for a term of one year. No person shall serve a subsequent term
until all other eligible members of his or her respective retirement
board have served on the panel.
(b) The members of the panel described in subdivision (f) of
Section 7515 shall be appointed by the Treasurer and the Controller,
jointly, for a term of two years, subject to Senate confirmation, and
may be reappointed to serve subsequent or consecutive terms at the
discretion of the Treasurer and the Controller, subject to Senate
confirmation. Each of those members shall be experienced in the
field of investments and shall have served, or shall be serving, as a
senior officer or member of the board of an insurance company,
banking corporation, or other financial or investment organization
authorized to do business in California.
(c) No member of the panel described in subdivision (f) of Section
7515 shall have any direct personal involvement or economic interest
in any financial transaction with the State Teachers' Retirement
System or the Public Employees' Retirement System while the member
serves on the panel or for one year after the expiration or earlier
termination of the member's term on the panel.
7517. (a) The members of the panel, other than the members
described in subdivision (f) of Section 7515, shall annually elect a
chairperson of the panel.
(b) The panel shall meet no less than quarterly, but may meet at
the call of the chairperson. Panel members are required to attend
meetings; however, the Governor, the Treasurer, and the Controller
may designate a representative to attend meetings and to act in his
or her stead.
(c) Notwithstanding any other provision of law, the members of the
panel shall receive no salary, compensation, or reimbursement for
expenses related to their service on the panel. The panel shall not
employ any permanent staff.
(d) Any expenses incurred by the panel shall be paid in equal
shares by the State Teachers' Retirement System and the Public
Employees' Retirement System.
7518. (a) Subject to and consistent with the provisions of
Section 17 of Article XVI of the California Constitution, the panel
shall not establish investment policies for the Public
Employees' Retirement System and or the
State Teachers' Retirement System, but may make
recommendations to those systems with respect to the following:
(a) Active versus passive investments.
(b) Asset allocation.
7517. , instead, shall do the following:
(1) Review asset allocations and make recommendations to those
systems at least once a year prior to the asset allocation workshops
of those systems.
(2) Analyze, from a strategic perspective, active versus passive
management of investments and give advice to the respective systems
as appropriate.
(3) Facilitate information sharing and education between the
governing boards of the two systems relating to investment policy to
avoid historical problems in these areas.
7519. This chapter shall remain in effect only until
January 1, 2004, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2004, deletes or
extends that date.