2011 Legislation

Assembly Bill

AB 597 (Eng) – California Financial Literacy Fund

Establishes the California Financial Literacy Fund in the State Treasury and authorizes the Controller to administer the fund and program. States that the purpose of the fund is to enable partnerships with the financial services community and governmental and nongovernmental stakeholders to improve Californians’ financial literacy. Allows the Controller to accept private donations and deposit those donations into the fund, which shall be made available upon appropriation in the annual Budget Act. Requires that funds not appropriated within 18 months of being contributed to the fund be returned in full to the contributor. Prohibits the use of donations to promote or market the financial products of any contributor.

  • Version: Chaptered (Chapter 612, Statutes of 2011)
  • Sponsor: State Controller, New America Foundation
  • Location: Signed by Governor
  • Board Position: Support
Assembly Bill

AB 738 (Hagman) – Public Employment Benefits: Elected Officials

Prohibits a person who is publicly elected to an office of any kind that is less than full time, on and after January 1, 2013, from becoming a member of a retirement system by virtue of that service or acquiring any retirement right or benefit for serving in that elective office.

  • Version: Amended 1/5/12
  • Sponsor: Author
  • Location: Assembly PER&SS Committee
  • Board Position: Oppose, unless amended
Assembly Bill

AB 873 (Furutani) – Prohibition on Employment after Separation from Pension System

Prohibits specified CalSTRS employees from engaging in certain employment activities after leaving service with CalSTRS for a period of four years. Also limits for a period of two years, aiding, advising, consulting with or assisting a business entity in obtaining the award of, or in negotiating, a contract or contract amendment with CalSTRS, if done for compensation.  Prohibits specified CalSTRS employees from accepting compensation for providing services as a placement agent, for a period of 10 years after leaving service with CalSTRS, in connection with CalSTRS investments or other business.

Version: Chaptered (Chapter 551, Statutes of 2011)

Sponsor: State Controller

Location: Signed by Governor

Board Position: Support, if amended

Assembly Bill

AB 982 (Skinner) – Solar Energy Parks Program – Land Exchanges

Requires the State Lands Commission to enter into a memorandum of agreement by April 1, 2012, with the United States Secretary of the Interior to facilitate land exchanges consolidating school land parcels into contiguous holdings for large-scale renewable energy-related projects. Requires the commission, by January 1 of each year, to report to the Legislature on the status of the memorandum of agreement and school land consolidation efforts.

  • Version: Chaptered (Chapter 485, Statutes of 2011)
  • Sponsor: BrightSource Energy
  • Location: Signed by Governor
  • Board Position: Support
Assembly Bill

AB 1151 (Feuer) – Public Retirement Investments in Iran

Requires that any determination by CalSTRS that an action, as specified in the California Public Divest from Iran Act, fails to satisfy the fiduciary duty of the board be made in a properly noticed public hearing of the full board and that proposed findings be made public 72 hours before they are considered by the board.

  • Version: Chaptered (Chapter 441, Statutes of 2011)
  • Sponsor: Author
  • Location: Signed by Governor
  • Board Position: Neutral
Senate Bill

SB 27 (Simitian) – Determination of Final Compensation

Limits the types of compensation included in a member’s final compensation for the purpose of determining retirement benefits and effectively requires all members to have a separation from service of 180 days after retirement.

  • Version: Amended 8/15/11
  • Sponsor: Author
  • Location: Assembly Appropriations Committee
  • Board Position: Support, if amended
Senate Bill

SB 115 (Strickland) – Public Employees Forfeiture of Retirement Benefits

Requires a public officer or employee convicted of a felony to forfeit all rights and benefits under any public retirement system accrued on or after January 1, 2012. Contributions made by the officer or employee to the pension system arising from the forfeited service would be returned to the officer or employee without interest.

  • Version: Introduced 1/19/11
  • Sponsor: Author
  • Location: Senate PE&R Committee Board
  • Position: N/A

 

Senate Bill

SB 294 (Price) – Emerging Investment Managers

Requires CalPERS and CalSTRS to define the term “emerging investment manager” and, beginning August 1, 2012, provide a five-year strategic plan for emerging investment manager participation across all asset classes. Beginning March 1, 2014, and annually thereafter until January 1, 2018, requires the boards to submit an annual report on the progress of the plan to the Legislature.

  • Version: Chaptered (Chapter 701, Statutes of 2011)
  • Sponsor: Author
  • Location: Signed by Governor
  • Board Position: Support
Senate Bill

SB 349 (Negrete McLeod) – Omnibus Bill

Makes various technical changes, small policy changes and conforming modifications to the Teachers’ Retirement Law to facilitate efficient administration of the State Teachers’ Retirement Plan.

  • Version: Chaptered (Chapter 703, Statutes of 2011)
  • Sponsor: CalSTRS
  • Location: Signed by Governor
  • Board Position: Sponsor
Senate Bill

SB 398 (Hernandez) – Placement Agents

Revises the definitions of placement agent and external manager in order to provide clarity to current law, defines “investment fund” and clarifies the criteria that exempts placement agents, as specified, from certain reporting and registration requirements imposed by local governments.

  • Version: Chaptered (Chapter 704, Statutes of 2011)
  • Sponsor: Author
  • Location: Signed by Governor
  • Board Position: Support
Senate Bill

SB 439 (Negrete McLeod) – Gift Limits for Board and Staff

Prohibits CalSTRS board members and specified employees from accepting gifts from any single person who has secured a contract with or submitted a contract proposal to CalSTRS in any calendar year with a total value of more than $50.

  • Version: Enrolled 9/12/11
  • Sponsor: State Controller
  • Location: Vetoed by Governor
  • Board Position: Support, requesting amendments
Senate Bill

SB 523 (Walters) – Public Employment Benefits: Elected Officials

Prohibits a person publicly elected to a local office of any kind on and after January 1, 2012, from becoming a member of a retirement system by virtue of that service or acquiring any retirement right or benefit for serving in that elective office.

  • Version: Amended 3/22/11
  • Sponsor: Author
  • Location: Senate PE&R Committee
  • Board Position: Oppose, unless amended

CalSTRS Analysis:

As amended 3/22/2011

Senate Bill

SB 689 (Harman) – Report on Pensions of $100,00 or More

Requires CalPERS, CalSTRS and the University of California Retirement System, on or before July 1, 2012,  each establish and maintain an Internet Web site that allows the public to access specified information about any retired member who receives a pension of $100,000 or more annually and specified information regarding the costs of postretirement health care benefits.

  • Version: Amended 4/26/11
  • Sponsor: Author
  • Location: Senate PE&R Committee
  • Board Position: Neutral, note concerns
Senate Bill

SB 696 (Lieu) – California Financial Literacy Initiative

Authorizes the creation of the California Financial Literacy Fund and allows the Controller to accept private donations into the fund to support partnerships between various stakeholders to improve California’s financial literacy.

  • Version: Introduced 2/18/11
  • Sponsor: Author
  • Location: Senate Banking and Financial Institutions Committee 
  • Board Position: Support
Senate Bill

SB 861 (Corbett) – Public Contracts: Conflict Minerals from Congo

Prohibits a scrutinized company, as defined, from bidding or submitting a proposal for a state contract for goods or services, if the company has had a final judgment filed against them by the U.S. Securities and Exchange Commission related to the Democratic Republic of Congo and conflict minerals disclosure.

  • Version: Chaptered (Chapter 715, Statutes of 2011)
  • Sponsor: Enough!, International Corporate Accountability Roundtable
  • Location: Signed by Governor
  • Board Position: Neutral
Senate Bill

SB 903 (Anderson) – Public Retirement Investments in Iran

Provides that any determination by CalSTRS that an action relating to selling or transferring specified investments in Iran would be a breach of fiduciary duty be made in a public hearing of the full board after proper public notice and provide an opportunity for public comment.

  • Version: Amended 7/1/11
  • Sponsor: Author
  • Location: Assembly Appropriations Committee
  • Board Position: Oppose