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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. These provisions qualify 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 the Public Employees' Retirement System (PERS) and the State Teachers' Retirement System (STRS) from making certain new investments or renewing existing investments of public employee retirement funds, including in a thermal coal company, as defined. Existing law provides that a board is not required to take any action regarding those investments unless the board determines in good faith that the action is consistent with the board's fiduciary responsibilities established in the California Constitution. This bill would state that its purpose is to require the boards of PERS and STRS to contract with the University of California Labor Centers to conduct an independent study to determine the impacts on public employee retirement funds of prohibiting the board of a public pension or retirement system, as defined, from investing in development projects in California that do not provide labor standards protections for workers. The bill would require the study and a report of its findings to be completed and provided to the Legislature and the Department of Finance by January 1, 2028, as specified. The bill would provide that a board is not required to take action pursuant to this provision unless it determines in good faith that the action is consistent with the board's fiduciary responsibilities established in the California Constitution.
Introduced
Feb 21, 2025
Last Action
Jan 29, 2026
Session
CA 20252026
Sponsors
1 primary · 0 co
Read third time. Passed. Ordered to the Senate. (Ayes 50. Noes 9. Page 3879.)
In Senate. Read first time. To Com. on RLS. for assignment.
Read second time. Ordered to third reading.
Assembly Rule 63 suspended. (Page 3806.)
Read second time and amended. Ordered returned to second reading.
From committee: Amend, and do pass as amended. (Ayes 10. Noes 4.) (January 22).
In committee: Set, first hearing. Referred to suspense file.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (January 14). Re-referred to Com. on APPR.
In committee: Set, first hearing. Hearing canceled at the request of author.
Re-referred to Com. on P. E. & R.
From committee chair, with author's amendments: Amend, and re-refer to Com. on P. E. & R. Read second time and amended.
Referred to Com. on P. E. & R.
Read first time.
From printer. May be heard in committee March 24.
Introduced. To print.
Get a plain-English explanation of what this bill does, who it affects, and why it matters.
In Senate. Read first time. To Com. on RLS. for assignment.