California 2023-2024 Regular Session Status: Passed Senate 3 D cosponsors

SB 252 — Public retirement systems: fossil fuels: divestment.

Last action — June 19 set for first hearing canceled at the request of author.

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

This bill died with 2023-2024 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This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

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 and the State Teachers' Retirement System from making new investments or renewing existing investments of public employee retirement funds in a thermal coal company, as defined. Existing law requires the boards to liquidate investments in thermal coal companies on or before July 1, 2017, and requires the boards, in making a determination to liquidate investments, to constructively engage with thermal coal companies to establish whether the companies are transitioning their business models to adapt to clean energy generation. Existing law provides that it does not require a board to take any action 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 prohibit the boards of the Public Employees' Retirement System and the State Teachers' Retirement System from making new investments or renewing existing investments of public employee retirement funds in a fossil fuel company, as defined. The bill would require the boards to liquidate investments in a fossil fuel company on or before July 1, 2031. The bill would temporarily suspend the above-described liquidation provision upon a good faith determination by the board that certain conditions materially impact normal market mechanisms for pricing assets, as specified, and would make this suspension provision inoperative on January 1, 2035. The bill would provide that it does not require a board to take any action 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 require the boards, commencing February 1, 2025, and annually thereafter, to file a report with the Legislature and the Governor, containing specified information, including a list of fossil fuel companies of which the board has liquidated their investments. The bill would provide that board members and other officers and employees shall be held harmless and be eligible for indemnification in connection with actions taken pursuant to the bill's requirements, as specified.

Bill Text

Action History

  1. June 19 set for first hearing canceled at the request of author.

  2. Referred to Com. on P.E. & R.

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

  4. Read third time. Passed. (Ayes 23. Noes 10. Page 1291.) 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 4. Noes 2. Page 1162.) (May 18).

  8. Set for hearing May 18.

  9. May 1 hearing: Placed on APPR suspense file.

  10. Set for hearing May 1.

  11. Read second time and amended. Re-referred to Com. on APPR.

  12. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 2. Page 798.) (April 18).

  13. From committee: Do pass and re-refer to Com. on JUD. (Ayes 4. Noes 1. Page 711.) (April 12). Re-referred to Com. on JUD.

  14. Set for hearing April 18 in JUD. pending receipt.

  15. Set for hearing April 12.

  16. Referred to Coms. on L., P.E. & R. and JUD.

  17. From printer. May be acted upon on or after March 2.

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

Sponsors

Sponsorship breakdown

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1 sponsors · 3 co-sponsors · 118 not signed on · 9 voted No

Sponsors (1)

Co-sponsors (3)

Not signed on (118)

118 members have not signed on to this bill.

Show all 118 →

"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 SB252 Gonzalez et al.

Passed 23 Yea · 10 Nay · 7 Other
Party YeaNayPresentNot Voting
Democratic 18202
Unaffiliated 5105
Republican 0700
Total 231007
% of votes cast 58%25%0%18%
How each member voted (40)
Member Party Vote
Atkins — Yea
Portantino — Yea
Min — Yea
Eggman — Yea
Skinner — Yea
Dodd — Nay
Wilk — Not Voting
Roth — Not Voting
Glazer — Not Voting
Bradford — Not Voting
Newman — Not Voting
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Ashby, Angelique V. Democratic Yea
Becker, Josh Democratic Yea
Blakespear, Catherine S. Democratic Yea
Caballero, Anna M. Democratic Not Voting
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Nay
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
Menjivar, Caroline Democratic Yea
Nguyen, Stephanie Democratic Nay
Padilla, Stephen C. Democratic Yea
Rubio, Susan Democratic Not Voting
Smallwood-Cuevas, Lola Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wahab, Aisha Democratic Yea
Wiener, Scott D. Democratic Yea
Alvarado-Gil, Marie Republican Nay
Dahle, Megan Republican Nay
Grove, Shannon Republican Nay
Jones, Brian W. Republican Nay
Niello, Roger W. Republican Nay
Ochoa Bogh, Rosilicie Republican Nay
Seyarto, Kelly Republican Nay

Official roll call →

Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]

Passed 8 Yea · 2 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 1100
Democratic 7001
Republican 0100
Total 8201
% of votes cast 73%18%0%9%
How each member voted (11)
Member Party Vote
Min — Yea
Wilk — Nay
Allen, Benjamin Democratic Yea
Ashby, Angelique V. Democratic Yea
Caballero, Anna M. Democratic Not Voting
Durazo, Maria Elena Democratic Yea
Laird, John Democratic Yea
McGuire, Mike Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Niello, Roger W. Republican Nay

Official roll call →

Subjects

environment
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Frequently asked questions

What does SB 252 do?
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 and the State Teachers' Retirement System from making new investments or renewing existing investments of public employee retirement funds in a thermal coal company, as defined. Existing law requires the boards to liquidate investments in thermal coal companies on or before July 1, 2017, and requires the boards, in making a determination to liquidate investments, to constructively engage with thermal coal companies to establish whether the companies are transitioning their business models to adapt to clean energy generation. Existing law provides that it does not require a board to take any action 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 prohibit the boards of the Public Employees' Retirement System and the State Teachers' Retirement System from making new investments or renewing existing investments of public employee retirement funds in a fossil fuel company, as defined. The bill would require the boards to liquidate investments in a fossil fuel company on or before July 1, 2031. The bill would temporarily suspend the above-described liquidation provision upon a good faith determination by the board that certain conditions materially impact normal market mechanisms for pricing assets, as specified, and would make this suspension provision inoperative on January 1, 2035. The bill would provide that it does not require a board to take any action 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 require the boards, commencing February 1, 2025, and annually thereafter, to file a report with the Legislature and the Governor, containing specified information, including a list of fossil fuel companies of which the board has liquidated their investments. The bill would provide that board members and other officers and employees shall be held harmless and be eligible for indemnification in connection with actions taken pursuant to the bill's requirements, as specified.
Who sponsors SB 252?
SB 252 is sponsored by Gonzalez, Lena A. (Democratic), Stern, Henry I. (Democratic), Wiener, Scott D. (Democratic), and Portantino.
What is the current status of SB 252?
This bill died with 2023-2024 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 252?
Track SB 252 free on One Click Politics — get push/email alerts when it moves.

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