Joel Anderson
- Republican
Author
The California Constitution provides that the Legislature may by statute prohibit retirement board investments if it is in the public interest to do so, and providing that the prohibition satisfies specified fiduciary standards. The California Public Divest from Iran Act prohibits the Public Employees' Retirement System and the State Teachers' Retirement System from investing public employee retirement funds in a company with business operations in Iran that is invested in or engaged in business operations with entities in the defense or nuclear sectors of Iran, or the company is invested or engaged in business operations with entities involved in the development of petroleum or natural gas resources of Iran, and that company is subject to sanctions under federal law, as specified, or the company is engaged in business operations with an Iranian organization that has been labeled as a terrorist organization by the United States government. Existing law requires the Board of Administration of the Public Employees' Retirement System and the Teachers' Retirement Board of the State Teachers' Retirement System to sell or transfer any investments in a company with business operations in Iran, until Iran is removed from the United States Department of State's list of countries that have been determined to repeatedly provide support for acts of international terrorism and the President of the United States determines and certifies that Iran has ceased its efforts to design, develop, manufacture, or acquire a nuclear explosive device or related materials and technology, as specified. Existing law provides that nothing in those provisions requires the Board of Administration of the Public Employees' Retirement System or the Teachers' Retirement Board of the State Teachers' Retirement System to take action as described in those provisions unless the board determines, in good faith, that the action is consistent with the fiduciary responsibilities of the board as described in a specified provision of the California Constitution. This bill would instead provide that nothing in those provisions requires either board to take action described in this section if the board determines, in good faith, that the action would be a breach of the fiduciary responsibilities of the board as described in the provision of the California Constitution. The bill would require that any determination that an action would be a breach of fiduciary duty be made in a public hearing of the full board after proper public notice and an opportunity for public comment. This bill would become operative only if AB 1151 is enacted and takes effect on or before January 1, 2012.
Set, second hearing. Held in committee and under submission.
Set, first hearing. Referred to APPR. suspense file.
Read second time and amended. Re-referred to Com. on APPR.
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (June 28).
From committee: Do pass and re-refer to Com. on JUD. (Ayes 6. Noes 0.) (June 22). Re-referred to Com. on JUD.
Referred to Coms. on P.E., R. & S.S. and JUD.
In Assembly. Read first time. Held at Desk.
Read third time. Passed. (Ayes 39. Noes 0. Page 1180.) Ordered to the Assembly.
Read second time. Ordered to third reading.
From committee: Do pass. (Ayes 9. Noes 0. Page 1014.) (May 16).
Set for hearing May 16.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 861.) (May 3). Re-referred to Com. on APPR.
From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0. Page 809.) (May 2). Re-referred to Com. on JUD.
Set for hearing May 3 in JUD. pending receipt.
Set for hearing May 2.
From printer. May be acted upon on or after March 21.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB903 | HTML |
| 02/18/11 - Introduced | |
| 07/01/11 - Amended Assembly |
| Document | Format |
|---|---|
| No related documents. |
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