BILL ANALYSIS                                                                                                                                                                                                    



                                                                    SB 2122
                                                                    Page  1

          Date of Hearing:   August 9, 2000

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                              Carole Migden, Chairwoman

                     SB 2122 (Ortiz) - As Amended: May 26, 2000 

          Policy Committee:                               
          P.E.R&S.S.Vote:6-0

          Urgency:     No                   State Mandated Local  
          Program:NoReimbursable:           

           SUMMARY  :

          This bill authorizes and encourages CalPERS and CalSTRS to  
          cooperate and share information that may assist each agency in  
          developing appropriate investment strategies. 

           FISCAL EFFECT  :

          Negligible fiscal impact.

           COMMENTS  :

           1)Background  . The California Constitution (Section 17 of Article  
            XVI) gives the boards of public retirement systems plenary  
            authority and fiduciary responsibility over their respective  
            investment and administrative decisions.  State law provides  
            CalPERS and CalSTRS general guidelines for the investment of  
            their funds.

           2)Purpose.   This bill is intended to allow professionals in both  
            retirement boards to share information on asset allocation  
            decisions and investment policy, without breaching  
            confidentiality standards.  Earlier versions of this bill  
            would have established a Joint Retirement System Investment  
            Advisory Board to provide a formal structure for information  
            sharing between the two retirement boards.


           Analysis Prepared by  :    Stephen Shea / APPR. / (916) 319-2081