SB 1328

  • California Senate Bill
  • 2021-2022 Regular Session
  • Introduced in Senate Feb 18, 2022
  • Passed Senate May 26, 2022
  • Assembly
  • Governor

Prohibited investments and contracts: Russia and Belarus.

Abstract

(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 Sponsors (62)

Rubio

     
Coauthor

Votes


Actions


Jun 21, 2022

Assembly

June 22 hearing postponed by committee.

Jun 09, 2022

Assembly

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

  • Referral-Committee
Coms. on P.E. & R. and A. & A.R.

May 27, 2022

Assembly

In Assembly. Read first time. Held at Desk.

May 26, 2022

Senate

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

May 23, 2022

Senate

Read second time. Ordered to third reading.

May 19, 2022

Senate

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

Senate

Read second time and amended. Ordered to second reading.

May 13, 2022

Senate

Set for hearing May 19.

May 02, 2022

Senate

May 2 hearing: Placed on APPR suspense file.

Apr 22, 2022

Senate

Set for hearing May 2.

Apr 19, 2022

Senate

April 25 hearing postponed by committee.

Senate

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

  • Amendment-Passage
  • Committee-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on APPR.

Apr 14, 2022

Senate

Set for hearing April 25.

Apr 07, 2022

Senate

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

Apr 05, 2022

Senate

Set for hearing April 18.

Mar 29, 2022

Senate

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.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on APPR.

Mar 23, 2022

Senate

Set for hearing March 29.

Senate

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

  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on G.O.

Mar 22, 2022

Senate

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

Mar 18, 2022

Senate

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.

Mar 17, 2022

Senate

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

  • Referral-Committee
Coms. on L., P.E. & R., G.O., and JUD.

Mar 15, 2022

Senate

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

Mar 03, 2022

Senate

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

  • Amendment-Passage
  • Committee-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on RLS.

Mar 02, 2022

Senate

Referred to Com. on RLS.

  • Referral-Committee
Com. on RLS.

Feb 22, 2022

Senate

From printer.

Feb 18, 2022

Senate

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

Senate

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

Bill Text

Bill Text Versions Format
SB1328 HTML
02/18/22 - Introduced PDF
03/03/22 - Amended Senate PDF
03/23/22 - Amended Senate PDF
04/19/22 - Amended Senate PDF
05/19/22 - Amended Senate PDF

Related Documents

Document Format
03/18/22- Senate Committee on Labor, Public Employment and Retirement PDF
03/25/22- Senate Governmental Organization PDF
04/29/22- Senate Appropriations PDF
05/19/22- Senate Appropriations PDF
05/23/22- Sen. Floor Analyses PDF

Sources

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