California 2017-2018 Regular Session Status: Passed Senate 2 D cosponsors

SB 459 — Public employee retirement systems: prohibited investments: retailers and wholesalers of banned weapons.

Last action — June 20 set for first hearing canceled at the request of author.

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

This bill died with 2017-2018 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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. 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 board of administration of the Public Employees' Retirement System (PERS) from making investments in certain countries and in thermal coal companies, as specified, subject to the board's plenary authority and fiduciary responsibility for investment of moneys and administration of the system. Existing law requires the state to indemnify and hold harmless the present, former, and future board members, officers, and employees of PERS for investment decisions regarding specified business operations. This bill would require the board of administration of PERS, by July 1, 2019, to adopt an investment policy regarding companies that are retailers or wholesalers of banned weapons, based on a limited timeframe of engagement seeking the voluntary removal of banned weapons from the stock of items sold by these companies. The bill would require the board, if unsuccessful in persuading the governing board of a company to cease in the sale of banned weapons, to adopt a divestment action and divest from that company by no later than July 1, 2021. The bill would also require the board, if a company reinitiates the sale of banned weapons after voluntarily choosing to cease sales, to initiate action to divest within 60 days of that decision. The bill would not require the board to take any above-described action unless it determines that the action is consistent with its fiduciary responsibilities. The bill would specify that board members and other officers and employees would be indemnified and held harmless in connection with actions taken pursuant to the bill's requirements.

Bill Text

Action History

  1. June 20 set for first hearing canceled at the request of author.

  2. From committee with author's amendments. Read second time and amended. Re-referred to Com. on P.E., R., & S.S.

  3. From committee: Be re-referred to Com. on P.E., R., & S.S. (Ayes 7. Noes 0.) (May 31). Re-referred to Com. on P.E., R., & S.S.

  4. Re-referred to Com. on RLS. pursuant to Assembly Rule 96.

  5. From committee with author's amendments. Read second time and amended. Re-referred to Com. on PUB. S.

  6. Referred to Com. on PUB. S.

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

  8. Read third time. Passed. (Ayes 24. Noes 14. Page 4113.) Ordered to the Assembly.

  9. Read second time and amended. Ordered to third reading.

  10. From committee: Do pass as amended. (Ayes 5. Noes 2. Page 4055.) (January 18).

  11. Set for hearing January 18.

  12. January 16 hearing: Placed on APPR. suspense file.

  13. Set for hearing January 16.

  14. From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2. Page 4006.) (January 9). Re-referred to Com. on APPR.

  15. Set for hearing January 9.

  16. Re-referred to Com. on PUB. S.

  17. Re-referred to Com. on RLS.

  18. Withdrawn from committee.

  19. From committee with author's amendments. Read second time and amended. Re-referred to Com. on T. & H.

  20. April 25 set for first hearing canceled at the request of author.

  21. Set for hearing April 25.

  22. From committee with author's amendments. Read second time and amended. Re-referred to Com. on T. & H.

  23. April 25 hearing postponed by committee.

  24. Set for hearing April 25.

  25. Referred to Com. on T. & H.

  26. From printer. May be acted upon on or after March 19.

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

Sponsors

Sponsorship breakdown

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1 sponsors · 2 co-sponsors · 119 not signed on

Sponsors (1)

  • Portantino

Co-sponsors (2)

Not signed on (119)

119 members have not signed on to this bill.

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"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

Subjects

public-safety finance
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Frequently asked questions

What does SB 459 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. 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 board of administration of the Public Employees' Retirement System (PERS) from making investments in certain countries and in thermal coal companies, as specified, subject to the board's plenary authority and fiduciary responsibility for investment of moneys and administration of the system. Existing law requires the state to indemnify and hold harmless the present, former, and future board members, officers, and employees of PERS for investment decisions regarding specified business operations. This bill would require the board of administration of PERS, by July 1, 2019, to adopt an investment policy regarding companies that are retailers or wholesalers of banned weapons, based on a limited timeframe of engagement seeking the voluntary removal of banned weapons from the stock of items sold by these companies. The bill would require the board, if unsuccessful in persuading the governing board of a company to cease in the sale of banned weapons, to adopt a divestment action and divest from that company by no later than July 1, 2021. The bill would also require the board, if a company reinitiates the sale of banned weapons after voluntarily choosing to cease sales, to initiate action to divest within 60 days of that decision. The bill would not require the board to take any above-described action unless it determines that the action is consistent with its fiduciary responsibilities. The bill would specify that board members and other officers and employees would be indemnified and held harmless in connection with actions taken pursuant to the bill's requirements.
Who sponsors SB 459?
SB 459 is sponsored by Portantino, Gipson, Mike A. (Democratic), and Reyes, Eloise Gómez (Democratic).
What is the current status of SB 459?
This bill died with 2017-2018 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 459?
Track SB 459 free on One Click Politics — get push/email alerts when it moves.

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