Bill Text: CA AB2283 | 2015-2016 | Regular Session | Amended
Bill Title: Public retirement system: investments: securitized rental homes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [AB2283 Detail]
Download: California-2015-AB2283-Amended.html
BILL NUMBER: AB 2283 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 28, 2016
INTRODUCED BY Assembly Member Calderon
FEBRUARY 18, 2016
An act to add Section 22357 to the Education Code, and to add
Section 20201.5 to the Government Code, relating to the public
retirement systems investments.
LEGISLATIVE COUNSEL'S DIGEST
AB 2283, as amended, Calderon. Public retirement system:
investments: securitized rental homes.
Existing law creates the State Teachers' Retirement System (STRS)
and the Public Employees' Retirement System (PERS) for the purpose of
providing pension and other benefits to teachers and public
employees. These systems are funded by employee and employer
contributions, investment returns and, in the case of STRS,
additional state contributions. The California Constitution
authorizes the Legislature to prohibit certain investments by a
retirement board if doing so is in the public interest and satisfies
the standards of fiduciary care and loyalty required of a retirement
board. The California Constitution commits to the retirement board of
a public pension or retirement system plenary authority and
fiduciary responsibility for investment of moneys and administration
of the system.
This bill would require the Teachers' Retirement Board and the
Board of Administration of the Public Employees' Retirement System,
before either board chooses to invest in new securitized home
rental properties or reinvest in an existing investment in
securitized home rental properties and consistent with their
fiduciary duties, on and after January 1, 2017, to cease
investing in securitized home rental properties. to
evaluate their investment in securitized home rental properties and
ensure certain requirements are met, including that the property
management group is in compliance with fair housing laws, as
specified. The bill would define securitized home rental
properties as single-family homes in California used as rental
properties that are aggregated, either with properties in California
or elsewhere, with the resulting income from the properties funding
publicly traded investment products. The bill would also
require the board, consistent with its fiduciary duties, on or before
January 1, 2018, to liquidate investments in securitized home rental
properties. The bill would also require each board to
appoint an independent ombudsman to implement a system of oversight
and enforcement of these provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 22357 is added to the Education Code, to read:
22357. (a) For purposes of this section, "securitized home rental
properties" means single-family homes in California used as rental
properties that are aggregated, either with properties in California
or elsewhere, with the resulting income from the properties funding
publicly traded investment products.
(b) On and after January 1, 2017, the board, consistent with its
fiduciary duties, shall not make new or additional investments in
securitized rental home properties.
(c) On or before January 1, 2018, the board, consistent with its
fiduciary duties, shall liquidate its investments in securitized
rental home properties.
(b) Before the board chooses to invest in new securitized home
rental properties or reinvest in an existing investment in
securitized home rental properties, the board shall evaluate those
investments and ensure all of the following:
(1) That the property management group is in compliance with fair
housing laws that prohibit discrimination against renters based on
race, national origin, sex, familial composition, or disability.
(2) That rents are not increased to a level that is inconsistent
with the surrounding rental market, that an unreasonable financial
burden is not placed on the tenant through unjustly raising rents,
and that rents are kept affordable.
(3) That securitized home rental properties are in compliance with
lawful eviction notice guidelines to ensure renters are not unjustly
evicted from the property.
(4) That adequate maintenance of the investment properties is
being conducted.
(c) The board shall appoint an independent ombudsman to implement
a system of oversight and enforcement of subdivision (b).
(d) This section shall not require the board to take any action
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.
SEC. 2. Section 20201.5 is added to the Government Code, to read:
20201.5. (a) For purposes of this section, "securitized home
rental properties" means single-family homes in California used as
rental properties that are aggregated, either with properties in
California or elsewhere, with the resulting income from the
properties funding publicly traded investment products.
(b) On and after January 1, 2017, the board, consistent with its
fiduciary duties, shall not make new or additional investments in
securitized rental home properties.
(c) On or before January 1, 2018, the board, consistent with its
fiduciary duties, shall liquidate its investments in securitized
rental home properties.
(b) Before the board chooses to invest in new securitized home
rental properties or reinvest in an existing investment in
securitized home rental properties, the board shall evaluate those
investments and ensure all of the following:
(1) That the property management group is in compliance with fair
housing laws that prohibit discrimination against renters based on
race, national origin, sex, familial composition, or disability.
(2) That rents are not increased to a level that is inconsistent
with the surrounding rental market, that an unreasonable financial
burden is not placed on the tenant through unjustly raising rents,
and that rents are kept affordable.
(3) That securitized home rental properties are in compliance with
lawful eviction notice guidelines to ensure renters are not unjustly
evicted from the property.
(4) That adequate maintenance of the investment properties is
being conducted.
(c) The board shall appoint an independent ombudsman to implement
a system of oversight and enforcement of subdivision (b).
(d) This section shall not require the board to take any action
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.
