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<ns0:Id>20250AB__143998AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-21</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-03-24</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Garcia</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Garcia</ns0:Name>
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<ns0:Title> An act to add Section 7513.77 to the Government Code, relating to public retirement systems.</ns0:Title>
<ns0:RelatingClause>public retirement systems</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Public retirement systems: development projects: labor standards.</ns0:Subject>
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<ns0:DigestText>
<html:p>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.</html:p>
<html:p>Existing law prohibits the boards of the Public Employees’ Retirement System and the State Teachers’ Retirement System 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.</html:p>
<html:p>This bill would prohibit the board of a public pension or retirement system from making any additional or new investments of public employee pension or retirement funds in development projects in California or providing financing for those projects with public employee pension or retirement funds unless those projects include labor standards protections, as defined. 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.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_61867E14-7AE8-482C-AAD9-9331F1C8E833">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 7513.77 is added to the
<ns0:DocName>Government Code</ns0:DocName>
, to read:
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<ns0:LawSection id="id_3A79DA15-C17D-4D6F-8C29-B5096037E450">
<ns0:Num>7513.77.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The Legislature finds and declares all of the following:
</html:p>
<html:p>
(1)
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The development of projects in California that do not involve strong labor standards protections for workers is not in the public interest or the interests of the participants in and beneficiaries of public pension and retirement systems.
</html:p>
<html:p>
(2)
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The purpose of this section is to prohibit the boards of public pension and retirement systems, consistent with, and not in violation of, their fiduciary responsibilities, from investing in development projects in California that do not provide labor standards protections for workers.
</html:p>
<html:p>
(b)
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As used in this
section, the following definitions apply:
</html:p>
<html:p>
(1)
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“Board” means the retirement board of a public pension or retirement system, as defined in subdivision (h) of Section 17 of Article XVI of the California Constitution.
</html:p>
<html:p>
(2)
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“Labor standards protections” means all of the following:
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<html:p>
(A)
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Construction work performed to carry out and maintain the development project will be subject to the same prevailing wage and apprenticeship requirements that apply to public projects pursuant to Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
</html:p>
<html:p>
(B)
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(i)
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All construction and maintenance work for the development project will be performed only by contractors and subcontractors that have provided an enforceable commitment to
use a skilled and trained workforce, as defined in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, to perform all work that falls within an apprenticeable occupation in the building and construction trades.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
This subparagraph shall not apply if the work is covered by a project labor agreement that requires the use of a skilled and trained workforce. For purposes of this subparagraph, “project labor agreement” means a prehire collective bargaining agreement that establishes terms and conditions of employment for a specific construction project or projects and is an agreement described in Section 158(f) of Title 29 of the United States Code.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
The developer has provided commitments designed to provide labor peace during union organizing campaigns for workers who will be employed upon completion of the project.
</html:p>
<html:p>
(c)
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The board shall not make additional or new investments of public employee pension or retirement funds in development projects in California or provide financing for those projects with public employee pension or retirement funds unless those projects include labor standards protections.
</html:p>
<html:p>
(d)
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Nothing in this section shall require a board to take action as described in this section unless the board determines in good faith that the action described in this section is consistent with the fiduciary responsibilities of the board described in Section 17 of Article XVI of the California Constitution.
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