Adrin Nazarian
- Democratic
Author
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 prohibits the boards of administration of the Public Employees' Retirement System and the State Teachers' Retirement System from making investments in certain countries and in thermal coal companies, as specified, subject to the boards' plenary authority and fiduciary responsibility for investment of moneys and administration of the systems. This bill, upon the passage of a federal law that imposes sanctions on the government of Turkey for failure to officially acknowledge its responsibility for the Armenian Genocide, would prohibit the boards of administration of the Public Employees' Retirement System and the State Teachers' Retirement System from making additional or new investments, or renewing existing investments, of public employee retirement funds in an investment vehicle in the government of Turkey that is issued by the government of Turkey or that is owned by the government of Turkey. The bill would require the boards to liquidate existing investments in the government of Turkey within 18 months of the passage of the above-described federal law. The bill would require these boards to make specified reports to the Legislature and the Governor regarding these actions within one year of the passage of a federal law imposing those sanctions on the government of Turkey and on or before January 1, 2024. The bill would specify that its provisions do not require a board to take any action that the board determines in good faith is inconsistent with its constitutional fiduciary responsibilities to the retirement system. The bill would indemnify from the General Fund and hold harmless the present, former, and future board members, officers, and employees of, and investment managers under contract with, the boards, in connection with actions relating to these investments. The bill would repeal the above-described prohibited investment and reporting provisions on January 1, 2025, or if a determination is made by the board, the Department of State, the Congress of the United States, or another appropriate federal agency that the government of Turkey has officially acknowledged its responsibility for the Armenian Genocide, whichever occurs first.
Approved by the Governor.
Chaptered by Secretary of State - Chapter 459, Statutes of 2019.
Enrolled and presented to the Governor at 3:30 p.m.
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 60. Noes 0. Page 3539.).
In Assembly. Concurrence in Senate amendments pending.
Read third time. Passed. Ordered to the Assembly. (Ayes 33. Noes 0. Page 2804.).
Read second time. Ordered to third reading.
From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 30).
Read second time and amended. Ordered returned to second reading.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (July 2). Re-referred to Com. on APPR.
Read second time and amended. Re-referred to Com. on JUD.
From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (June 26).
Referred to Coms. on L., P.E. & R. and JUD.
In Senate. Read first time. To Com. on RLS. for assignment.
Read third time. Passed. Ordered to the Senate. (Ayes 63. Noes 0. Page 1886.)
Read second time. Ordered to third reading.
From committee: Do pass. (Ayes 14. Noes 0.) (May 16).
Coauthors revised.
In committee: Set, first hearing. Referred to APPR. suspense file.
Read second time and amended.
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 2.) (April 3).
In committee: Set, first hearing. Hearing canceled at the request of author.
From committee chair, with author's amendments: Amend, and re-refer to Com. on P.E. & R. Read second time and amended.
Read first time.
From printer. May be heard in committee March 25.
Introduced. To print.
| Bill Text Versions | Format |
|---|---|
| AB1320 | HTML |
| 02/22/19 - Introduced | |
| 03/18/19 - Amended Assembly | |
| 04/04/19 - Amended Assembly | |
| 06/27/19 - Amended Senate | |
| 08/30/19 - Amended Senate | |
| 09/18/19 - Enrolled | |
| 10/02/19 - Chaptered |
| Document | Format |
|---|---|
| No related documents. |
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