Bill Text: CA SB574 | 2015-2016 | Regular Session | Amended
Bill Title: University of California: alternative investment information.
Spectrum: Bipartisan Bill
Status: (Failed) 2016-11-30 - From Assembly without further action. [SB574 Detail]
Download: California-2015-SB574-Amended.html
BILL NUMBER: SB 574 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 22, 2015
AMENDED IN SENATE APRIL 16, 2015
AMENDED IN SENATE APRIL 6, 2015
INTRODUCED BY Senator Pan
(Coauthor: Senator Cannella)
FEBRUARY 26, 2015
An act to amend Section 92032 add Article
8 (commencing with Section 92680) to Chapter 6 of Part 57 of Division
9 of Title 3 of the Education Code, relating to
postsecondary education.
LEGISLATIVE COUNSEL'S DIGEST
SB 574, as amended, Pan. University of California: regent
meetings: closed meetings. alternative investment
information.
Existing provisions of the California Constitution establish the
University of California as a public trust under the administration
of the Regents of the University of California. The University of
California system includes 10 campuses, which are located in
Berkeley, Davis, Irvine, Los Angeles, Merced, Riverside, San Diego,
San Francisco, Santa Barbara, and Santa Cruz.
This bill would require the University of California to obtain
certain information regarding alternative investments from each
private equity fund, venture fund, hedge fund, or absolute return
fund in which the University of California provides or has provided
funds for investment.
Existing law generally requires meetings of the Regents of the
University of California to be conducted in accordance with the
Bagley-Keene Open Meeting Act, unless otherwise provided. Existing
law further authorizes the Regents of the University of California to
conduct closed sessions to discuss specified matters, including,
among others, matters involving the purchase or sale of investments
for endowment and pension funds.
This bill would specify that the provisions authorizing the
regents to conduct a closed meeting to discuss matters involving the
purchase of sale of investments for endowment and pension funds do
not apply to investments in a private equity fund, venture fund,
hedge fund, or absolute return fund unless the regents have received
from the fund, and disclosed to the public, certain information set
forth in specified provisions of the California Public Records Act.
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. Article 8 (commencing with Section
92680) is added to Chapter 6 of Part 57 of Division 9 of
Title 3 of the Education Code , to read:
Article 8. Alternative Investment Information
92680. The University of California shall obtain the information
set forth in subdivision (b) of Section 6254.26 of the Government
Code from each private equity fund, venture fund, hedge fund, or
absolute return fund in which the University of California provides
or has provided funds for investment.
SECTION 1. Section 92032 of the Education Code
is amended to read:
92032. Notwithstanding Article 9 (commencing with Section 11120)
of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
Code:
(a) The Regents of the University of California, as occasioned by
necessity, may hold special meetings. The regents shall give public
notice for these meetings. This notice shall be given by means of a
notice hand delivered or mailed to each newspaper of general
circulation and television or radio station that has requested notice
in writing, so that the notice may be published or broadcast at
least 72 hours before the time of the meeting. The notice shall
specify the time, place, and agenda of the special meeting. The
regents shall not consider any business not included in the agenda
portion of the notice. Failure to comply with this subdivision shall
not be excused by the fact that no action was taken at the special
meeting.
(b) The Regents of the University of California may conduct closed
sessions when they meet to consider or discuss any of the following
matters:
(1) Matters affecting national security.
(2) The conferring of honorary degrees or other honors or
commemorations.
(3) Matters involving gifts, devises, and bequests.
(4) (A) Matters involving the purchase or sale of investments for
endowment and pension funds.
(B) This paragraph shall not apply to investments in a private
equity fund, venture fund, hedge fund, or absolute return fund,
unless the regents have received from the fund, and disclosed to the
public, the information specified in subdivision (b) of Section
6254.26 of the Government Code.
(5) Matters involving litigation, when discussion in open session
concerning those matters would adversely affect, or be detrimental
to, the public interest.
(6) The acquisition or disposition of property, if discussion of
these matters in open session could adversely affect the regents'
ability to acquire or dispose of the property on the terms and
conditions they deem to be in the best public interest.
(7) (A) Matters concerning the appointment, employment,
performance, compensation, or dismissal of university officers or
employees, excluding individual regents other than the president of
the university.
(B) (i) Action taken by a committee of the regents, and final
action by the full board of regents, on a proposal for the
compensation package of the following executive officers shall occur
in an open session of each of those bodies, and shall include a
disclosure of the compensation package and rationale for the action:
(I) The President of the University of California.
(II) The chancellor of an individual campus.
(III) A vice president.
(IV) The treasurer or the assistant treasurer.
(V) The general counsel.
(VI) The regents' secretary.
(ii) Members of the public shall be afforded the opportunity to
address the committee and full board on the proposal during or before
consideration of the action item.
(C) Discussion by a committee of the regents of, and action on, an
executive compensation program or policy, and any final action by
the full board of regents on that program or policy, shall occur in
open session of each of those bodies.
(D) Compensation for the principal officers of the regents and the
officers of the university shall include salary, benefits,
perquisites, severance payments (except those made in connection with
a dismissal or a litigation settlement), retirement benefits, or any
other form of compensation.
(8) Matters relating to complaints or charges brought against
university officers or employees, excluding individual regents other
than the president of the university, unless the officer or employee
requests a public hearing.
(c) While a witness is being examined during any open or closed
session, any or all other witnesses in the investigation may be
excluded from the proceedings by the regents.
(d) Committees of the regents may conduct closed sessions on
Medi-Cal contract negotiations.
(e) The nominating committee of the regents may conduct closed
sessions held for the purpose of proposing officers of the board and
members of the board's various committees.
(f) Committees of the regents may conduct closed sessions held for
the purpose of proposing a student regent.
(g) The regents shall not be required to give public notice of
meetings of special search or selection committees held for the
purpose of conducting interviews for university officer positions.
