BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 2122
                                                                  Page  1

          Date of Hearing:   July 5, 2000

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL  
                                      SECURITY 
                                  Lou Correa, Chair
                     SB 2122 (Ortiz) - As Amended:  May 26, 2000

           SENATE VOTE  :   40-0
           
          SUBJECT  :   Retirement systems: investments: information sharing.

           SUMMARY  :   Authorizes and encourages investment information  
          sharing between the Public Employees' Retirement System  
          (CalPERS) and the State Teachers' Retirement System (CalSTRS)  
          without breaching the confidentiality of that information.   
          Specifically,  this bill  :   

          1)Enacts the Joint Retirement System Investment Information  
            Sharing Act of 2000.

          2)Authorizes and encourages CalPERS and CalSTRS to cooperate and  
            share information that may assist them in developing and  
            implementing appropriate investment strategies with the advice  
            of investment experts selected by the systems.

          3)Specifies that confidential information or documents relating  
            to investments in possession of CalPERS and CalSTRS would not  
            lose their confidential status because the information or  
            documents were shared with the other system or the investment  
            advisors.

          4)Deletes obsolete provisions.

           EXISTING LAW  gives CalPERS and CalSTRS general guidelines for  
          the investment of their funds, primarily as directed by the  
          "prudent person" rule.  Additionally, the California  
          Constitution (Section 17 of Article XVI) gives the retirement  
          board of a public pension or retirement system plenary authority  
          and fiduciary responsibility over their respective investment  
          and administrative decisions.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   According to the sponsor, the bill is intended to  
          improve the working relationship in the investment area between  








                                                                  SB 2122
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          the CalPERS and CalSTRS boards, and to provide both boards with  
          advice from key professionals in the investment field in high  
          level policy issues such as asset allocation and investment  
          policy.

















































                                                                  SB 2122
                                                                  Page  3


           REGISTERED SUPPORT / OPPOSITION  :

           Support  

          State Controller Kathleen Connell (Sponsor)
          American Federation of State, County and Municipal Employees
          California School Employees Association
          Public Employees' Retirement System
           
          Opposition  

          None on file.

           Analysis Prepared by  :    Karon Green / P.E., R. & S.S. /  
          (916)319-3957