California 2021-2022 Regular Session Status: Passed Senate Bipartisan · 26 D · 6 R cosponsors

SB 1328 — Prohibited investments and contracts: Russia and Belarus.

Last action — June 22 hearing postponed by committee.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021-2022 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.

Summary

(1) 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 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, except as specified, would prohibit the boards of specified state and local public retirement systems from making additional or new investments in prohibited companies, as defined, domiciled in Russia or Belarus, as defined, companies that the United States government has designated as complicit in the aggressor countries', as defined, war in Ukraine, or companies that supply military equipment to the aggressor countries, and to liquidate the investments of the board in those companies, as specified. The bill would also require the board, on or before January 1, 2023, and every year thereafter, to file a specified report with the Legislature. The bill would repeal these provisions on specified triggering events. By requiring the boards of local public retirement systems to take specified actions, this bill would impose a state-mandated local program. (2) Existing law specifies the duties of the Treasurer, which include receiving and keeping in the vaults of the State Treasury or depositing in banks or credit unions all moneys belonging to the state, and, except as specified, receiving and keeping in the vaults of the State Treasury or depositing for safekeeping with any federal reserve bank or any branch thereof, or with any trust company or the trust department of any state or national bank located in a city designated as a reserve or central reserve city by the Board of Governors of the Federal Reserve System, bonds and other securities or investments belonging to the state. This bill, except as specified, would prohibit the Treasurer from making additional or new investments or renewing existing investments of state moneys in any investment vehicle in the government of Russia or the government of Belarus that meets certain conditions, or in or from a Russian or Belarusian financial institution currently under sanctions imposed by the United States, as defined and specified. The bill would repeal these provisions on specified triggering events. (3) Existing law specifies how money received into the treasury must be credited and how those state funds are to be used. Existing law prohibits state funds from being used to reimburse a state contractor for costs incurred to assist, promote, or deter union organizing, as defined and specified. Existing law also prohibits state trust moneys from being used to make additional or new investments or to renew existing investments in business firms that engage in discriminatory practices in further of or in compliance with the Arab League's economic boycott of Israel, as defined and specified. This bill, except as specified, would prohibit a state agency, as defined, from making additional or new investments or renewing existing investments of state moneys in any investment vehicle in the government of Russia or the government of Belarus that meets certain conditions, or in or from Russian or Belarusian financial institutions currently under sanctions imposed by the United States, and would require a state agency to liquidate those investments. The bill would also require a state agency to file a specified report with the Legislature and the Governor. The bill would urge companies operating in California and the Regents of the University of California to divest and separate themselves from the government of Russia, Russian financial institutions, Russian businesses, the government of Belarus, Belarusian financial institutions, and Belarusian businesses, and would request companies doing business in California to report their investments in and contracts with the government of Russia, Russian financial institutions, Russian businesses, the government of Belarus, Belarusian financial institutions, and Belarusian businesses, as specified. The bill would repeal these provisions on specified triggering events. (4) Existing law authorizes state agencies to contract for goods, information technology, or services with certain suppliers, as specified. Existing law also makes companies in Sudan involved in certain activities ineligible to bid or submit a proposal for, and forbids them from bidding on or submitting a proposal for, a contract with a state agency for goods or services, as specified. This bill, except as specified, would make a company that conducts business with the government of Russia or the government of Belarus ineligible to bid or submit a proposal for, and would forbid that company from bidding on or submitting a proposal for, a contract with a state agency for goods or services, as defined and specified. The bill would require a state agency to require a company that submits a bid or proposal with respect to a contract for goods or services to certify that the company is not a scrutinized company, as prescribed. The bill would, among other things, make a company that submits a false certification under these provisions liable for a civil penalty, and would require the Department of General Services to report the company to the Attorney General, who would be required to determine whether to bring a civil action against the company, as specified. The bill would repeal these provisions on specified triggering events. (5) 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. (6) This bill would declare that it is to take effect immediately as an urgency statute.

Bill Text

Action History

  1. June 22 hearing postponed by committee.

  2. Referred to Coms. on P.E. & R. and A. & A.R.

  3. In Assembly. Read first time. Held at Desk.

  4. Read third time. Urgency clause adopted. Passed. (Ayes 35. Noes 0. Page 3972.) Ordered to the Assembly.

  5. Read second time. Ordered to third reading.

  6. Read second time and amended. Ordered to second reading.

  7. From committee: Do pass as amended. (Ayes 6. Noes 0. Page 3792.) (May 19).

  8. Set for hearing May 19.

  9. May 2 hearing: Placed on APPR suspense file.

  10. Set for hearing May 2.

  11. From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.

  12. April 25 hearing postponed by committee.

  13. Set for hearing April 25.

  14. April 18 set for first hearing canceled at the request of author.

  15. Set for hearing April 18.

  16. From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0. Page 3252.) (March 29). Re-referred to Com. on APPR.

  17. Set for hearing March 29.

  18. Read second time and amended. Re-referred to Com. on G.O.

  19. From committee: Do pass as amended and re-refer to Com. on G.O. (Ayes 5. Noes 0. Page 3169.) (March 21).

  20. Referral to Com. on JUD. rescinded because of the limitations placed on committee hearings due to ongoing health and safety risks of the COVID-19 virus.

  21. Re-referred to Coms. on L., P.E. & R., G.O., and JUD.

  22. Set for hearing March 21 in L., P.E. & R. pending receipt.

  23. From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  24. Referred to Com. on RLS.

  25. From printer.

  26. Article IV Section 8(a) of the Constitution and Joint Rule 55 dispensed with February 7, 2022, suspending the 30 calendar day requirement.

  27. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 61 co-sponsors · 60 not signed on

Sponsors (1)

Co-sponsors (61)

Not signed on (60)

60 members have not signed on to this bill.

Show all 60 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

3rd Reading SB1328 McGuire et al. Urgency Clause

Passed 35 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 19004
Democratic 13000
Republican 3001
Total 35005
% of votes cast 88%0%0%13%
How each member voted (40)
Member Party Vote
Borgeas — Yea
Roth — Yea
Gonzalez — Yea
Glazer — Yea
Dodd — Yea
Newman — Yea
Wilk — Yea
Atkins — Yea
Bates — Yea
Hueso — Yea
Melendez — Yea
Skinner — Yea
Kamlager — Yea
Eggman — Yea
Portantino — Yea
Min — Yea
Rubio — Yea
Leyva — Yea
Pan — Not Voting
Nielsen — Not Voting
Hertzberg — Not Voting
Wieckowski — Not Voting
Bradford — Yea
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Becker, Josh Democratic Yea
Caballero, Anna M. Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Hurtado, Melissa Democratic Yea
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Not Voting
Ochoa Bogh, Rosilicie Republican Yea

Official roll call →

Do pass as amended

Passed 6 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 4001
Republican 1000
Democratic 1000
Total 6001
% of votes cast 86%0%0%14%
How each member voted (7)
Member Party Vote
Portantino — Yea
Kamlager — Yea
Bradford — Yea
Bates — Yea
Wieckowski — Not Voting
Laird, John Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

Placed on suspense file

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 1000
Republican 1000
Unaffiliated 5000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Kamlager — Yea
Wieckowski — Yea
Bates — Yea
Bradford — Yea
Portantino — Yea
Laird, John Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

Do pass, but first be re-referred to the Committee on [Appropriations]

Passed 13 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Democratic 3000
Unaffiliated 9002
Republican 1000
Total 13002
% of votes cast 87%0%0%13%
How each member voted (15)
Member Party Vote
Glazer — Yea
Nielsen — Yea
Kamlager — Yea
Borgeas — Yea
Wilk — Yea
Hueso — Yea
Bradford — Yea
Dodd — Yea
Rubio — Yea
Melendez — Not Voting
Portantino — Not Voting
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Becker, Josh Democratic Yea
Jones, Brian W. Republican Yea

Official roll call →

Subjects

public-safety finance civil-rights
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Frequently asked questions

What does SB 1328 do?
(1) 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 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, except as specified, would prohibit the boards of specified state and local public retirement systems from making additional or new investments in prohibited companies, as defined, domiciled in Russia or Belarus, as defined, companies that the United States government has designated as complicit in the aggressor countries', as defined, war in Ukraine, or companies that supply military equipment to the aggressor countries, and to liquidate the investments of the board in those companies, as specified. The bill would also require the board, on or before January 1, 2023, and every year thereafter, to file a specified report with the Legislature. The bill would repeal these provisions on specified triggering events. By requiring the boards of local public retirement systems to take specified actions, this bill would impose a state-mandated local program. (2) Existing law specifies the duties of the Treasurer, which include receiving and keeping in the vaults of the State Treasury or depositing in banks or credit unions all moneys belonging to the state, and, except as specified, receiving and keeping in the vaults of the State Treasury or depositing for safekeeping with any federal reserve bank or any branch thereof, or with any trust company or the trust department of any state or national bank located in a city designated as a reserve or central reserve city by the Board of Governors of the Federal Reserve System, bonds and other securities or investments belonging to the state. This bill, except as specified, would prohibit the Treasurer from making additional or new investments or renewing existing investments of state moneys in any investment vehicle in the government of Russia or the government of Belarus that meets certain conditions, or in or from a Russian or Belarusian financial institution currently under sanctions imposed by the United States, as defined and specified. The bill would repeal these provisions on specified triggering events. (3) Existing law specifies how money received into the treasury must be credited and how those state funds are to be used. Existing law prohibits state funds from being used to reimburse a state contractor for costs incurred to assist, promote, or deter union organizing, as defined and specified. Existing law also prohibits state trust moneys from being used to make additional or new investments or to renew existing investments in business firms that engage in discriminatory practices in further of or in compliance with the Arab League's economic boycott of Israel, as defined and specified. This bill, except as specified, would prohibit a state agency, as defined, from making additional or new investments or renewing existing investments of state moneys in any investment vehicle in the government of Russia or the government of Belarus that meets certain conditions, or in or from Russian or Belarusian financial institutions currently under sanctions imposed by the United States, and would require a state agency to liquidate those investments. The bill would also require a state agency to file a specified report with the Legislature and the Governor. The bill would urge companies operating in California and the Regents of the University of California to divest and separate themselves from the government of Russia, Russian financial institutions, Russian businesses, the government of Belarus, Belarusian financial institutions, and Belarusian businesses, and would request companies doing business in California to report their investments in and contracts with the government of Russia, Russian financial institutions, Russian businesses, the government of Belarus, Belarusian financial institutions, and Belarusian businesses, as specified. The bill would repeal these provisions on specified triggering events. (4) Existing law authorizes state agencies to contract for goods, information technology, or services with certain suppliers, as specified. Existing law also makes companies in Sudan involved in certain activities ineligible to bid or submit a proposal for, and forbids them from bidding on or submitting a proposal for, a contract with a state agency for goods or services, as specified. This bill, except as specified, would make a company that conducts business with the government of Russia or the government of Belarus ineligible to bid or submit a proposal for, and would forbid that company from bidding on or submitting a proposal for, a contract with a state agency for goods or services, as defined and specified. The bill would require a state agency to require a company that submits a bid or proposal with respect to a contract for goods or services to certify that the company is not a scrutinized company, as prescribed. The bill would, among other things, make a company that submits a false certification under these provisions liable for a civil penalty, and would require the Department of General Services to report the company to the Attorney General, who would be required to determine whether to bring a civil action against the company, as specified. The bill would repeal these provisions on specified triggering events. (5) 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. (6) This bill would declare that it is to take effect immediately as an urgency statute.
Who sponsors SB 1328?
SB 1328 is sponsored by Rubio, Susan (Democratic), Luz Rivas, Cristina Garcia, Jim Patterson, Wendy Carrillo, McGuire, Mike (Democratic), Cortese, Dave (Democratic), Dodd, Gabriel, Jesse (Democratic), Gipson, Mike A. (Democratic), Archuleta, Bob (Democratic), Becker, Josh (Democratic), Borgeas, Caballero, Anna M. (Democratic), Durazo, Maria Elena (Democratic), Eggman, Hertzberg, Hueso, Hurtado, Melissa (Democratic), Leyva, Min, Newman, Nielsen, Ochoa Bogh, Rosilicie (Republican), Portantino, Stern, Henry I. (Democratic), Umberg, Thomas J. (Democratic), Wiener, Scott D. (Democratic), Aguiar-Curry, Cecilia M. (Democratic), Arambula, Joaquin (Democratic), Bennett, Steve (Democratic), Berman, Marc (Democratic), Bloom, Boerner, Tasha (Democratic), Bryan, Isaac G. (Democratic), Cunningham, Dahle, Megan (Republican), Daly, Davies, Laurie (Republican), Gallagher, James (Republican), Jones-Sawyer, Lackey, Tom (Republican), Lee, Alex (Democratic), Levine, Low, Maienschein, Mayes, McCarty, Mullin, Muratsuchi, Al (Democratic), Nguyen, Petrie-Norris, Cottie (Democratic), Quirk-Silva, Sharon (Democratic), Rubio, Blanca E. (Democratic), Santiago, Ting, Valladares, Suzette Martinez (Republican), Voepel, Waldron, Weber Pierson, M.D., Akilah (Democratic), Wicks, Buffy (Democratic), and Wood.
What is the current status of SB 1328?
This bill died with 2021-2022 Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 1328?
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