Bill Text: CA AB2422 | 2021-2022 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: California State University: investments.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2022-09-25 - Chaptered by Secretary of State - Chapter 530, Statutes of 2022. [AB2422 Detail]

Download: California-2021-AB2422-Introduced.html

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CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 2422

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Introduced by Assembly Member McCarty

February 17, 2022

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An act to amend Section 89726 of the Education Code, relating to the California State University.

LEGISLATIVE COUNSEL'S DIGEST

AB 2422, as introduced, McCarty. California State University: investment committee.

Existing law establishes the California State University, under the administration of the Trustees of the California State University, as one of the segments of public postsecondary education in this state. Existing law authorizes the trustees to invest in certain securities and investments only if the trustees have established a committee to provide advice and expertise on investments.

This bill would make a nonsubstantive change to the latter provision.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 89726 of the Education Code is amended to read:

89726.

 (a) (1) The trustees may invest in securities or investments not listed in Section 16430 of the Government Code only if the trustees have established created a committee to provide advice and expertise on investments.

(2) A majority of the members of the committee shall be individuals who have investment expertise and who are not employees of the California State University.

(3) The trustees shall allow the Treasurer to serve as a member of the committee or to appoint a deputy treasurer to serve as a member of the committee.

(b) The total amount invested in securities or investments not listed in Section 16430 of the Government Code shall not exceed the following amounts:

(1) In the fiscal year ending June 30, 2017, two hundred million dollars ($200,000,000).

(2) In the fiscal year ending June 30, 2018, four hundred million dollars ($400,000,000).

(3) In the fiscal year ending June 30, 2019, six hundred million dollars ($600,000,000).

(4) In the fiscal year ending June 30, 2020, and each fiscal year thereafter, 30 percent of all moneys invested pursuant to Sections 89724 and 89725.

(c) (1) The trustees shall receive an investment performance report quarterly and distribute an annual report to the Legislature, in compliance with Section 9795 of the Government Code, and the Department of Finance.

(2) The investment performance reports shall include investment returns, comparisons to benchmarks, holdings, market values, and fees.

(d) Any additional moneys earned through investments in securities or investments not listed in Section 16430 of the Government Code shall be used only for capital outlay or maintenance, and shall not be used for ongoing operations.

(e) The trustees shall not submit a request to the Department of Finance or the Legislature for any funds to compensate for investment loss resulting from investments in securities or investments not listed in Section 16430 of the Government Code.

(f) The trustees shall not cite investment loss resulting from investments in securities or investments not listed in Section 16430 of the Government Code to justify approval of an increase in student tuition or fees. No increase in tuition or reduction in course sections offered shall be adopted because of investment losses sustained as a result of this section.