CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 457

Introduced by Senators Portantino and Wilk
(Principal coauthor: Senator Borgeas)
(Coauthor: Senator Archuleta)

February 16, 2021

An act to add Section 22338 to the Education Code, and to add Section 20140 to the Government Code, relating to retirement.


LEGISLATIVE COUNSEL'S DIGEST


SB 457, as introduced, Portantino. Public employee retirement systems: investment portfolios: divestment from Turkey.
The California Constitution grants the retirement board of a public employee retirement system plenary authority and fiduciary responsibility for investment of moneys and administration of the retirement fund and system. The California Constitution qualifies this grant of powers by reserving to the Legislature the authority to prohibit investments if it is in the public interest and the prohibition satisfies standards of fiduciary care and loyalty required of a retirement board. Existing law prescribes specified duties for the boards of administration of the Public Employees’ Retirement System and the State Teachers’ Retirement System in connection with investment in specified countries and, under certain conditions, limits the authority of the boards to invest in those countries.
This bill would require the boards of administration of the Public Employees’ Retirement System and the State Teachers’ Retirement System to provide employers that are school districts and cities that participate in the systems an option to elect an investment portfolio that does not contain investment vehicles that are issued or owned by the government of the Republic of Turkey.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 22338 is added to the Education Code, to read:

22338.
 The board shall provide an employer that is a school district an option to elect an investment portfolio that does not contain investment vehicles that are issued or owned by the government of the Republic of Turkey.

SEC. 2.

 Section 20140 is added to the Government Code, to read:

20140.
 The board shall provide a school employer that is a school district or a city participating the system by contract an option to elect an investment portfolio that does not contain investment vehicles that are issued or owned by the government of the Republic of Turkey.