Current Legislation

Current Legislation
2019 Legislation

Overview
Assembly Bill

AB 33 (Bonta) – Private Prison Divestment

Prohibits the CalSTRS and CalPERS boards from making additional or new investments or renewing existing investments of public employee retirement funds in a private prison company, as defined, and requires liquidation of such investments on or before July 1, 2020, subject to the fiduciary duty of the boards. Requires the boards to engage with those companies to establish if the company is transitioning its business model to another industry. Also indemnifies present, former and future board members, officers and employees of and investment managers under contract with those retirement systems for actions related to the bill.

  • Version: Introduced 12/3/2018
  • Sponsor: Author
  • Location: Assembly PE&R Committee
  • Board Position: Oppose
Assembly Bill

AB 181 (Rodriguez) – Emerging Managers Report

Requires the CalSTRS and CalPERS boards to submit an annual report to the Legislature on the status of achieving appropriate objectives and initiatives regarding participation of emerging managers within the retirement systems’ investment portfolios. The report must include the names of all emerging managers providing investment portfolio or asset management services and the amount managed by each emerging manager.

  • Version: Amended 3/25/2019
  • Sponsor: Author
  • Location: Senate Rules Committee
  • Board Position: Support
Assembly Bill

AB 462 (Rodriguez) – Emerging Managers Report

Requires the CalSTRS and CalPERS boards to submit an annual report to the Legislature on the status of achieving appropriate objectives and initiatives regarding participation of emerging managers within the retirement systems’ investment portfolios.  The report must include the names of all emerging managers providing investment portfolio or asset management services and the amount managed by each emerging manager.

  • Version: Amended 5/21/2019
  • Sponsor: Author
  • Location: Senate Rules Committee
  • Board Position: Support
Assembly Bill

AB 644 (PE&R) – Housekeeping Bill

Makes various technical, conforming or minor changes to the Teachers’ Retirement Law to facilitate efficient administration of the State Teachers’ Retirement Plan, which includes the Defined Benefit Program, the Defined Supplement Program and the Cash Balance Benefit Program.

  • Version: Chaptered (Chapter 96, Statutes of 2019)
  • Sponsor: CalSTRS
  • Location: Signed by Governor
  • Board Position: Sponsor
Assembly Bill

AB 706 (Low) – Sick Leave Transfer for Community College Faculty

Removes the three-year limit within which an academic employee of a community college district must transfer unused sick leave to another employer. Upon retirement, unused sick leave is reported to CalSTRS, converted to service credit and included in the calculation of the member’s lifetime benefit.

  • Version: Chaptered (Chapter 100, Statutes of 2019)
  • Sponsor: Faculty Association of California Community Colleges
  • Location: Signed by Governor
  • Board Position: Neutral
Assembly Bill

AB 1320 (Nazarian) – Turkish Investment Vehicle Divestment

Prohibits the CalSTRS and CalPERS boards from making additional or new investments or renewing existing investments in any investment vehicle issued or owned by the government of Turkey, immediately upon passage of a federal law that imposes sanctions on the government of Turkey for failure to acknowledge its responsibility for the Armenian Genocide, and requires divestment from such investments within 18 months of the passage of such a federal law, subject to the fiduciary duty of the boards. 

Requires the boards, within one year of the passage of such a federal law, to report to the Legislature any investments in a Turkish investment vehicle and other specified information.

Also indemnifies present, former and future board members, officers and employees of and investment managers under contract with those retirement systems for actions related to the bill.

Also provides for repeal of its provisions on the earlier of either a determination that the government of Turkey has officially acknowledged its responsibility for the Armenian Genocide or January 1, 2025.

  • Version: Amended 6/27/2019
  • Sponsor: Author
  • Location: Senate Appropriations Committee
  • Board Position: Oppose
Assembly Bill

AB 1452 (O’Donnell) – Membership Clean-Up Bill

Makes minor and conforming changes to provisions regarding membership in the Defined Benefit (DB) Program and participation in the Cash Balance (CB) Benefit Program resulting in the following:

  • Consistent membership dates for persons who mandate into DB membership based on their employment status.
  • Clarification of benefit program participation for persons employed by an employer that offers the CB Benefit Program.

 

  • Version: Amended 3/26/2019
  • Sponsor: CalSTRS
  • Location: Senate Appropriations Committee
  • Board Position: Sponsor
House of Representatives Bill

HR 624 (Waters-CA) – Promoting Transparent Standards for Corporate Insiders Act

Directs the Securities and Exchange Commission (SEC) to carry out a study of Rule 10b5-1 and consider certain types of amendments that may clarify and enhance existing prohibitions against insider trading and the potential impacts of such amendments. The bill also requires the SEC to report the findings to Congress and revise regulations consistent with the results of the study.

  • Version: Amended 1/16/2019
  • Sponsor: Author
  • Location: Senate Banking, Housing and Urban Affairs Committee
  • Board Position: Support