Bill Text: CA AB205 | 2013-2014 | Regular Session | Chaptered

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Bill Title: Public employees' retirement: pension fund management.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Passed) 2013-10-12 - Chaptered by Secretary of State - Chapter 766, Statutes of 2013. [AB205 Detail]

Download: California-2013-AB205-Chaptered.html

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BILL NUMBER: AB 205	CHAPTERED
	BILL TEXT

	CHAPTER  766
	FILED WITH SECRETARY OF STATE  OCTOBER 12, 2013
	APPROVED BY GOVERNOR  OCTOBER 12, 2013
	PASSED THE SENATE  AUGUST 26, 2013
	PASSED THE ASSEMBLY  MAY 13, 2013

INTRODUCED BY   Assembly Member Pan

                        JANUARY 30, 2013

   An act to amend Section 7514.2 of the Government Code, relating to
public employees' retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 205, Pan. Public employees' retirement: pension fund
management.
   The County Employees Retirement Law of 1937 authorizes counties to
establish retirement systems, as specified, in order to provide
pension benefits to county, city, and district employees. The
California Constitution confers upon the retirement boards of public
retirement systems plenary authority and fiduciary responsibility for
the investment of moneys of those systems. Existing law authorizes
the Board of Administration of the Public Employees' Retirement
System and the Teachers' Retirement Board of the State Teachers'
Retirement System, consistent with their fiduciary duties and the
standard for prudent investment, to prioritize investment in an
in-state infrastructure project over a comparable out-of-state
infrastructure project.
   This bill would extend the authorization to prioritize investment
in an in-state infrastructure project, as described above, to the
board of retirement or the board of investments of a retirement
system established pursuant to the County Employees Retirement Law of
1937.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7514.2 of the Government Code is amended to
read:
   7514.2.  (a) As used in this section, the following definitions
shall apply:
   (1) "Board" means the Board of Administration of the Public
Employees' Retirement System, the Teachers' Retirement Board, or the
board of retirement or board of investments of a retirement system
established pursuant to the County Employees Retirement Law of 1937
(Chapter 3 (commencing with Section 31450) of Part 3 of Division 4 of
Title 3).
   (2) "Infrastructure" includes, but is not limited to,
telecommunications, power, transportation, ports, petrochemical, and
utilities.
   (b) A board may, subject to and consistent with its fiduciary
duties and the standard for prudent investment set forth in Section
20190 of this code, Section 22203 of the Education Code, and Section
17 of Article XVI of the California Constitution, prioritize
investment in an in-state infrastructure project over a comparable
out-of-state project.
   (c) The Legislature encourages each board to prioritize investment
in in-state infrastructure projects over alternative out-of-state
infrastructure projects if the investments in the in-state projects
are consistent with the board's fiduciary duties to minimize the risk
of loss and to maximize the rate of return.
   (d) Nothing in this section shall require a board to take action
that is inconsistent with its plenary authority and fiduciary
responsibilities, as described in Section 17 of Article XVI of the
California Constitution.