SB 300

Bill Subjects

Abstract

The California Constitution grants the retirement board of a public retirement system plenary authority and fiduciary responsibility for investment of moneys and administration of the 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 the public retirement system's board. Existing law establishes the Joint Legislative Budget Committee to ascertain facts and make recommendations to the Legislature and to the houses thereof concerning the state budget, the revenues and expenditures of the state, the organization and functions of the state, its departments, subdivisions and agencies, and such matters as may be provided for in the Joint Rules of the Senate and Assembly, and grants the committee the authority to appoint a legislative analyst who is also referred to as the Legislative Auditor or Legislative Analyst. This bill would require the Legislative Analyst to prepare a pension fiscal impact analysis on any measure introduced on or after January 1, 2024, that is referred to the Senate Labor, Public Employment and Retirement Committee, or any successor committee, as specified, and that requires a public retirement system to take prescribed action, including the divestiture of an existing investment. The bill would require the California Actuarial Advisory Panel and the affected public retirement system to provide assistance to the Legislative Analyst in preparing the analysis. By requiring the boards of local public retirement systems to take specified actions, this bill would impose a state-mandated local program. The bill would require the Legislative Analyst to develop specified criteria, including, at a minimum, the likely short-term and long-term costs to the General Fund, as prescribed. This bill would prohibit a member of the Legislature from presenting any measure for which the Legislative Analyst must prepare a pension fiscal impact analysis under the bill's provisions until the Legislative Analyst posts the completed analysis on its website and transmits it to the legislative committee. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.