BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 2122|
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THIRD READING
Bill No: SB 2122
Author: Ortiz (D)
Amended: 5/26/00
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 5-0, 4/24/00
AYES: Ortiz, Haynes, Karnette, Lewis, Soto
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Joint Retirement System Investment Advisory
Panel
SOURCE : State Controller
DIGEST : This bill states that the Public Employees'
Retirement System and the State Teachers' Retirement System
are authorized and encouraged to cooperate and share
information that may assist them in developing and
implementing appropriate investment strategies, with the
advice of investment experts, as specified. The bill
specifies that confidential information or documents
relating to investments in the possession of either system
would not lose their confidential status due to the fact
that the information or documents are shared with the other
system or with investment advisors. Deletes obsolete
provisions
ANALYSIS : Existing language in the State Constitution,
pursuant to Proposition 162 (adopted in 1992), provides
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that pension boards such as the PERS and STRS Boards of
Administration "?shall have plenary authority and fiduciary
responsibility for investment monies and administration?."
of the retirement systems (Section 17 of Article XVI).
"Plenary" is defined by Funk and Wagnalls as, "Full in all
respects or requisites; entire; absolute; complete."
It is the intent of this bill to authorize and encourage
the Public Employees' Retirement System and the State
Teachers' Retirement System to regularly cooperate and
share information that may assist both systems in
developing and implementing appropriate investment
strategies, with the advice of investment experts selected
by the systems who are willing to share their knowledge and
expertise.
Notwithstanding any other provision of law, confidential
information or documents relating to investments in the
possession of the Public Employees' Retirement System or
the State Teachers' Retirement System shall not lose their
confidential status due to the fact that the information or
documents are shared with the other system or with
investment advisors selected by the systems to advise on
asset allocation, active verses passive management, or
other investment issues of mutual interest and concern.
Nothing in this chapter shall be construed to authorize the
release or sharing of documents or information in violation
of federal law or the terms of a contract.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/26/00)
State Controller (source)
American Federation of State, County and Municipal
Employees(AFSCME)
ARGUMENTS IN SUPPORT : According to the sponsor of the
bill, the intent in proposing this bill is to accomplish
the following:
1.To improve the working relationship in the investment
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area between the PERS and STRS boards, and
2.To provide both boards advice from key professionals in
the investment field in high level policy issues such as
asset allocation and investment policy.
TSM:jk 5/26/00 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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