Bill Text: CA AB1919 | 2009-2010 | Regular Session | Amended
Bill Title: Retirement: pension fund management.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2010-08-19 - Read second time. To third reading. Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(c). [AB1919 Detail]
Download: California-2009-AB1919-Amended.html
BILL NUMBER: AB 1919 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 18, 2010
AMENDED IN SENATE AUGUST 2, 2010
AMENDED IN SENATE JUNE 21, 2010
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member Davis
FEBRUARY 16, 2010
An act to amend Section 27585 of the Government Code,
relating to local government. An act to add Section
22204.5 to the Education Code, and to add Section 20139 to the
Government Code, relating to retirement.
LEGISLATIVE COUNSEL'S DIGEST
AB 1919, as amended, Davis. Local government: county
surveyor: survey monument preservation fund.
Retirement: pension fund management.
The Public Employees' Retirement Law creates the Public Employees'
Retirement Fund, which is a trust fund created and administered
solely for the benefit of the members and retired members of this
system and their survivors and beneficiaries. The Board of
Administration of the Public Employees' Retirement System has the
exclusive control of the administration and investment of the
retirement fund.
The Teachers' Retirement Law establishes the State Teachers'
Retirement System in order to provide a financially sound plan for
the retirement, with adequate retirement allowances, for teachers in
public schools of the state, teachers in schools supported by the
state, and other persons employed in connection with the schools. The
plan and the system are administered by the Teachers' Retirement
Board.
This bill would require the Board of Administration of the Public
Employees' Retirement System and the Teachers' Retirement Board to
submit a report annually to the Legislature on the ethnicity and
gender of the investment managers who participate in managing their
portfolios of external fund management contracts, as specified. The
bill would also require these boards to report on the ethnicity and
gender of the brokerage firms that provide brokerage services to
their fund's internally and externally managed investment management
firms, as specified. The bill would also require these boards to
develop and include in the report plans and strategies to increase
the participation of emerging investment managers, as defined, and
emerging brokerage firms, as defined. The bill would also make
related findings and declarations.
Existing law authorizes the board of supervisors of a county to
establish a survey monument preservation fund and to impose a user
fee, not to exceed $10, to be charged and collected by the county
recorder as a condition to the filing or recording of any grant deed
conveying real property except for those grant deeds conveying lots
created by recorded tract maps. Existing law requires that the fees
be forwarded monthly by the county recorder to the county treasurer
for deposit to the fund.
This bill would delete this exemption from the user fee. The bill
would also require, prior to the forwarding of the fee to the county
treasurer, the deduction and retention of an amount not to exceed 5%
for reimbursing the county recorder for expenses incurred in carrying
out these provisions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) The California Public Employees' Retirement System, the nation'
s largest pension fund, and the California State Teachers' Retirement
System, together, have approximately $328 billion in assets under
their management.
(b) As the nation's leader in attracting private equity capital
and advancing innovation, California should also be the leader in
encouraging equal opportunity in our state pension fund utilization
of emerging investment managers and emerging brokerage firms.
SEC. 2. Section 22204.5 is added to the
Education Code , to read:
22204.5. (a) (1) Notwithstanding Section 10231.5 of the
Government Code, the board shall annually report to the Legislature,
comprehensively and aggregately, on the ethnicity and gender of the
investment managers who participate in managing its portfolio of
external fund management contracts, including all asset classes in
which the fund has assets allocated. The report shall identify the
investment firm ownership composition, including ethnic and gender
breakdowns as well as the portfolio value amount and asset class
managed, in addition to fees paid to each investment manager. The
report shall separately include a percentage breakdown by ethnicity
and gender of investment officer composition of contracted portfolio
management firms. The board shall report and testify before the
Legislature regarding strategic plans of promoting existing
underlying emerging managers from manager of manager structures to
direct mandates.
(2) The board shall also annually report, comprehensively and
aggregately, on the ethnicity and gender of the brokerage firms who
provide brokerage services to the fund's internally and externally
managed investment management firms in addition to the commissions
paid for trading equity securities and par value traded for fixed
income by product, to each brokerage firm utilized by the fund. The
board shall be required to highlight within the reports submitted
firms that are at least 51 percent minority owned or women owned, or
both. Annually, the board shall testify at hearings before the
Legislature to discuss the reports required to be submitted by this
section.
(3) The reports required to be submitted by this section shall be
submitted in compliance with Section 9795 of the Government Code.
(b) The board shall develop and include in the annual report to
the Legislature a detailed and verifiable plan and strategy to
increase the participation of emerging investment managers and
emerging brokerage firms, in each asset class, that are internally
and externally managed by investment managers that manage publicly
traded securities. Any percentages provided by the board shall be
used as a reporting threshold only, and not as a basis upon which to
contract with any given emerging investment manager or emerging
brokerage firm.
(c) "Emerging investment manager" means a qualified investment
firm that is at least 51 percent minority or women owned that manages
an investment portfolio of less than ten billion dollars
($10,000,000,000) in publicly traded assets, less than two billion
dollars ($2,000,000,000) in a private equity fund of funds and real
estate partnerships, less than five hundred million dollars
($500,000,000) in REITs, hedge funds, and private equity, and less
than one billion dollars ($1,000,000,000) in a hedge fund of funds.
(d) "Emerging brokerage firm" means a qualified brokerage firm
that is at least 51 percent minority or women owned.
(e) Nothing in this section shall require the board to take action
as described in this section unless the board determines, in good
faith, that the action described in this section is consistent with
the fiduciary responsibilities of the board as described in Section
17 of Article XVI of the California Constitution.
SEC. 3. Section 20139 is added to the
Government Code , to read:
20139. (a) (1) Notwithstanding Section 10231.5, the board shall
annually report to the Legislature, comprehensively and aggregately,
on the ethnicity and gender of the investment managers who
participate in managing its portfolio of external fund management
contracts, including all asset classes in which the fund has assets
allocated. The report shall identify the investment firm ownership
composition, including ethnic and gender breakdowns as well as the
portfolio value amount and asset class managed, in addition to fees
paid to each investment manager. The report shall separately include
a percentage breakdown by ethnicity and gender of investment officer
composition of contracted portfolio management firms. The board shall
report and testify before the Legislature regarding strategic plans
of promoting existing underlying emerging managers from manager of
manager structures to direct mandates.
(2) The board shall also annually report, comprehensively and
aggregately, on the ethnicity and gender of the brokerage firms who
provide brokerage services to the fund's internally and externally
managed investment management firms in addition to the commissions
paid for trading equity securities and par value traded for fixed
income by product, to each brokerage firm utilized by the fund. The
board shall be required to highlight within the reports submitted
firms that are at least 51 percent minority owned or women owned, or
both. Annually, the board shall testify at hearings before the
Legislature to discuss the reports required to be submitted by this
section.
(3) The reports required to be submitted by this section shall be
submitted in compliance with Section 9795 of the Government Code.
(b) The board shall develop and include in the annual report to
the Legislature a detailed and verifiable plan and strategy to
increase the participation of emerging investment managers and
emerging brokerage firms, in each asset class, that are internally
and externally managed by investment managers that manage publicly
traded securities. Any percentages provided by the board shall be
used as a reporting threshold only, and not as a basis upon which to
contract with any given emerging investment manager or emerging
brokerage firm.
(c) "Emerging investment manager" means a qualified person or
investment firm that manages an investment portfolio of less than ten
billion dollars ($10,000,000,000) in publicly traded assets, less
than two billion dollars ($2,000,000,000) in a private equity fund of
funds and real estate partnerships, less than five hundred million
dollars ($500,000,000) in REITs, hedge funds, and private equity, and
less than one billion dollars ($1,000,000,000) in a hedge fund of
funds.
(d) "Emerging brokerage firm" means a qualified brokerage that is
at least 51 percent minority or women owned.
(e) Nothing in this section shall require the board to take action
as described in this section unless the board determines, in good
faith, that the action described in this section is consistent with
the fiduciary responsibilities of the board as described in Section
17 of Article XVI of the California Constitution.
SECTION 1. Section 27585 of the Government Code
is amended to read:
27585. (a) For the limited purpose of financing the survey
monument preservation fund pursuant to Section 27584, the board may
impose a user fee, not to exceed ten dollars ($10), or an amount set
pursuant to Chapter 12.5 (commencing with Section 54985) of Division
2 of Title 5, which shall be charged and collected by the county
recorder, over and above any other fees required by law, as a
condition precedent to the filing or recording of any grant deed
conveying real property. Except as otherwise provided in subdivision
(b), the county recorder shall, after deducting and retaining an
amount not to exceed 5 percent solely for reimbursement of expenses
incurred in carrying out this section, forward the fees monthly to
the county treasurer for deposit to the county survey monument
preservation fund. Following the establishment of the fund, the board
of supervisors may extinguish the fund if a finding is made by the
board that the need for the fund no longer exists.
(b) Notwithstanding subdivision (a) or (c), if a city engineer of
a city with a population of more than 1,500,000 persons conducts the
survey pursuant to Section 27584, any user fees collected pursuant to
subdivision (a) on and after January 1, 1987, with respect to any
grant deed conveying real property located wholly within the city,
shall be transferred monthly by the county recorder to the city
treasurer of the city to reimburse the city for the expenses incurred
by the city engineer in conducting that survey.
(c) Except as provided in subdivision (b), no funds collected by
the county recorder for the survey monument preservation fund shall
be transferred to, or deposited in, any other fund or used for any
other purpose.
