AB 386: Public Employees’ Retirement Fund: investments: confidentiality.
- Session Year: 2021-2022
- House: Assembly
- Latest Version Date: 2021-06-29
Existing law, the California Public Records Act, requires state and local agencies to make their records available for public inspection, unless an exemption from disclosure applies. Existing law excludes from the disclosure requirement certain records regarding alternative investments in which public investment funds invest.
This bill would exempt from disclosure under the act specified records regarding an internally managed private loan made directly by the Public Employees Retirement Fund. Under the bill, these records would include quarterly and annual financial statements of the borrower or its constituent owners, unless the information has already been publicly released by the keeper of the information. The bill would prescribe specified exceptions to this exemption from disclosure.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Existing law, the California Public Records Act, requires state and local agencies to make their records available for public inspection, unless an exemption from disclosure applies. Existing law excludes from the disclosure requirement certain records regarding alternative investments in which public investment funds invest.
This bill would exempt from disclosure under the act specified records regarding an internally managed private loan made directly by the Public Employees Retirement Fund. Under the bill, these records would include quarterly and annual financial statements of the borrower or its constituent owners, unless the information has already been publicly released by the keeper of the information. The bill would prescribe specified exceptions to this exemption from disclosure.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Existing law, the California Public Records Act, requires state and local agencies to make their records available for public inspection, unless an exemption from disclosure applies. Existing law excludes from the disclosure requirement certain records regarding alternative investments in which public investment funds invest.
This bill would exempt from disclosure under the act specified records regarding an internally managed private loan made directly by the Public Employees Retirement Fund. Under the bill, these records would include quarterly and annual financial statements of the borrower or its constituent owners, unless the information has already been publicly released by the keeper of the information.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Existing law, the California Public Records Act, requires state and local agencies to make their records available for public inspection, unless an exemption from disclosure applies. Existing law excludes from the disclosure requirement certain records regarding alternative investments in which public investment funds invest.
This bill would exempt from disclosure under the act specified records regarding an internally managed private loan made directly by the Public Employees Retirement Fund. Under the bill, these records would include quarterly and annual financial statements of the borrower or its constituent owners, unless the information has already been publicly released by the keeper of the information.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
(a)For purposes of this section, the following definitions shall apply:
(1)Business identifying information means any information about a legal entity that reveals a trade secret, commercial information, or financial data that is proprietary or confidential, including, but not limited to, information that may be used to distinguish or trace the identity of a person or other legal entity maintaining a constituent ownership interest in the borrower. (2)(1)Constituent owner means a person or legal entity that maintains a direct or indirect ownership interest in the borrower or one of its guarantors or sources of collateral for the loan, including, among others, a stockholder, member, or partner.
(3)Personal identifying information has the same meaning as defined in Section 530.55 of the Penal Code. (4)(2)Private loan means a loan made pursuant to or evidenced by a loan agreement, debt instrument, or other evidence of indebtedness, if that lending arrangement is exempt from registration as a security under federal securities laws.
(5)(3)Public investment fund means the Public Employees Retirement Fund described in Section 20170.
(b)Notwithstanding any provision of this chapter or other law, the following records regarding an internally managed private loan made directly by a public investment fund shall not be subject to disclosure pursuant to this chapter unless the information has already been publicly released by the keeper of the information:
(1)Due diligence materials that are possessed by the public investment fund or that are proprietary to any participating underwriting syndicate, the borrower, or any of the borrowers constituent owners or guarantors.
(2)Private loan agreements and all related documents.
(3)Personal or business identifying information contained in records that would disclose the identities of any constituent owners of the borrower, regardless of whether the constituent owner is a person or legal entity.(4)(3)Quarterly and annual financial statements of the borrower or its constituent owners.
(5)Materials relating to collateral pledged in support of the private loan. (6)(4)Meeting materials of creditors committees.
(c)Notwithstanding subdivision (b), the following information contained in records described in subdivision (b) shall be subject to disclosure pursuant to this chapter and shall not be considered a trade secret or otherwise exempt from disclosure:
(1)The name and address of each borrower.
(2)The dollar amount of each private loan made to each borrower by the public investment fund since inception.
(3)The annualized time-weighted return and duration of each private loan.
(4)For each private loan, the aggregate amount of undrawn loan commitments.
(5)The amount of principal and interest payments made to the public investment fund by each borrower since the inception of the loan.
(6)For each private loan, whether the loan has been in default for six months or longer and any public records related to the default that are in the possession of the public investment fund and another public agency and that are open to inspection or copying upon request of the public made to the other agency.
(d)Records related to a public investment funds indirect funding of a private loan via a fund or other type of externally managed investment vehicle shall remain subject to Sections 6254.26 and 7514.7.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Section 6254.32 to the Government Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
This act strikes a balance between preserving the right of the public to access information about how public funds are invested and protecting the privacy of loan recipients and proprietary information provided to public investment funds.
(a)For purposes of this section, the following definitions shall apply:
(1)Business identifying information means any information about a legal entity that reveals a trade secret, commercial information, or financial data that is proprietary or confidential, including, but not limited to, information that may be used to distinguish or trace the identity of a person or other legal entity maintaining a constituent ownership interest in the borrower.
(2)Constituent owner means a person or legal entity that maintains a direct or indirect ownership interest in the borrower or one of its guarantors or sources of collateral for the loan, including, among others, a stockholder, member, or partner.
(3)Personal identifying information has the same meaning as defined in Section 530.55 of the Penal Code.
(4)Private loan means a loan made pursuant to or evidenced by a loan agreement, debt instrument, or other evidence of indebtedness, if that lending arrangement is exempt from registration as a security under federal securities laws.
(5)Public investment fund means the Public Employees Retirement Fund described in Section 20170.
(b)Notwithstanding any provision of this chapter or other law, the following records regarding an internally managed private loan made directly by a public investment fund shall not be subject to disclosure pursuant to this chapter unless the information has already been publicly released by the keeper of the information:
(1)Due diligence materials that are proprietary to possessed by the public investment fund, fund or that are proprietary to any participating underwriting syndicate, the borrower, or any of the borrowers constituent owners or guarantors.
(2)Private loan agreements and all related documents.
(3)Personal or business identifying information contained in records that would disclose the identities of any constituent owners of the borrower, regardless of whether the constituent owner is a person or legal entity.
(4)Quarterly and annual financial statements of the borrower or its constituent owners.
(5)Materials relating to collateral pledged in support of the private loan.
(6)Meeting materials of creditors committees.
(c)Notwithstanding subdivision (b), the following information contained in records described in subdivision (b) shall be subject to disclosure pursuant to this chapter and shall not be considered a trade secret or otherwise exempt from disclosure:
(1)The name and address of each borrower.
(2)The dollar amount of each private loan made to each borrower by the public investment fund since inception.
(3)The annualized time-weighted return of each private loan.
(4)For each private loan, the aggregate amount of undrawn loan commitments.
(5)The amount of principal and interest payments made to the public investment fund by each borrower since the inception of the loan.
(6)For each private loan, whether the loan has been in default for six months or longer. longer and any public records related to the default that are in the possession of the public investment fund and another public agency and that are open to inspection or copying upon request of the public made to the other agency.
(d)Records related to a public investment funds indirect funding of a private loan via a fund or other type of externally managed investment vehicle shall remain subject to Sections 6254.26 and 7514.7.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Section 6254.32 to the Government Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
This act strikes a balance between preserving the right of the public to access information about how public funds are invested and protecting the privacy of loan recipients and proprietary information provided to public investment funds.
(a)For purposes of this section, the following definitions shall apply:
(1)Business identifying information means any information about a legal entity that reveals a trade secret, commercial information, or financial data that is proprietary or confidential, including, but not limited to, information that may be used to distinguish or trace the identity of a person or other legal entity maintaining a constituent ownership interest in the borrower.
(2)Constituent owner means a person or legal entity that maintains a direct or indirect ownership interest in the borrower or one of its guarantors or sources of collateral for the loan, including, among others, a stockholder, member, or partner.
(3)Personal identifying information has the same meaning as defined in Section 530.55 of the Penal Code.
(4)Private loan means a loan made pursuant to or evidenced by a loan agreement, debt instrument, or other evidence of indebtedness, if that lending arrangement is exempt from registration as a security under federal securities laws.
(5)Public investment fund means the Public Employees Retirement Fund described in Section 20170.
(b)Notwithstanding any provision of this chapter or other law, the following records regarding an internally managed private loan made directly by a public investment fund shall not be subject to disclosure pursuant to this chapter unless the information has already been publicly released by the keeper of the information:
(1)Due diligence materials that are proprietary to the public investment fund, any participating underwriting syndicate, the borrower, or any of the borrowers constituent owners or guarantors.
(2)Private loan agreements and all related documents.
(3)Personal or business identifying information contained in records that would disclose the identities of any constituent owners of the borrower, regardless of whether the constituent owner is a person or legal entity.
(4)Quarterly and annual financial statements of the borrower or its constituent owners.
(5)Materials relating to collateral pledged in support of the private loan.
(6)Meeting materials of creditors committees.
(c)Notwithstanding subdivision (a), (b), the following information contained in records described in subdivision (a) (b) shall be subject to disclosure pursuant to this chapter and shall not be considered a trade secret exempt from disclosure:
(1)The name and address of each borrower.
(2)The dollar amount of each private loan made to each borrower by the public investment fund since inception.
(3)The annualized time-weighted return of each private loan.
(4)For each private loan, the aggregate amount of undrawn loan commitments.
(5)The amount of principal and interest payments made to the public investment fund by each borrower since the inception of the loan.
(6)For each private loan, whether the loan has been in default for six months or longer.
(d)Records related to a public investment funds indirect funding of a private loan via a fund or other type of externally managed investment vehicle shall remain subject to Sections 6254.26 and 7514.7.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Section 6254.32 to the Government Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
This act strikes a balance between preserving the right of the public to access information about how public funds are invested and protecting the privacy of loan recipients and proprietary information provided to public investment funds.
(a)For purposes of this section, the following definitions shall apply:
(1)Business identifying information means any information about a legal entity that reveals a trade secret, commercial information, or financial data that is proprietary or confidential, including, but not limited to, information that may be used to distinguish or trace the identity of a person or other legal entity maintaining a constituent ownership interest in the borrower.
(2)Constituent owner means a person or legal entity that maintains a direct or indirect ownership interest in the borrower or one of its guarantors or sources of collateral for the loan, including, among others, a stockholder, member, or partner.
(3)Personal identifying information has the same meaning as defined in Section 530.55 of the Penal Code.
(4)Private loan means a loan made pursuant to or evidenced by a loan agreement, debt instrument, or other evidence of indebtedness, if that lending arrangement is exempt from registration as a security under federal securities laws.
(5)Public investment fund means the Public Employees Retirement Fund described in Section 20170.
(b)Notwithstanding any provision of this chapter or other law, the following records regarding an internally managed private loan made directly by a public investment fund shall not be subject to disclosure pursuant to this chapter unless the information has already been publicly released by the keeper of the information:
(1)Due diligence materials that are proprietary to the public investment fund, any participating underwriting syndicate, the borrower, or any of the borrowers constituent owners or guarantors.
(2)Private loan agreements and all related documents.
(3)Personal or business identifying information contained in records that would disclose the identities of any constituent owners of the borrower, regardless of whether the constituent owner is a person or legal entity.
(4)Quarterly and annual financial statements of the borrower or its constituent owners.
(5)Materials relating to collateral pledged in support of the private loan.
(6)Meeting materials of creditors committees.
(c)Notwithstanding subdivision (a), the following information contained in records described in subdivision (a) shall be subject to disclosure pursuant to this chapter and shall not be considered a trade secret exempt from disclosure:
(1)The name and address of each borrower.
(2)The dollar amount of each private loan made to each borrower by the public investment fund since inception.
(3)The annualized time-weighted return of each private loan.
(4)For each private loan, the aggregate amount of undrawn loan commitments.
(5)The amount of principal and interest payments made to the public investment fund by each borrower since the inception of the loan.
(6)For each private loan, whether the loan has been in default for six months or longer.
(d)Records related to a public investment funds indirect funding of a private loan via a fund or other type of externally managed investment vehicle shall remain subject to Sections 6254.26 and 7514.7.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Section 6254.32 to the Government Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
This act strikes a balance between preserving the right of the public to access information about how public funds are invested and protecting the privacy of loan recipients and proprietary information provided to public investment funds.
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Date
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Status
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| Jul 13, 2021 | In committee: Set, first hearing. Failed passage. Reconsideration granted. |
| Jun 29, 2021 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD. |
| Jun 24, 2021 | In committee: Hearing postponed by committee. |
| Jun 22, 2021 | From committee: Do pass and re-refer to Com. on JUD. (Ayes 4. Noes 0.) (June 21). Re-referred to Com. on JUD. |
| Jun 9, 2021 | Referred to Coms. on L., P.E. & R. and JUD. |
| Jun 2, 2021 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 1, 2021 | Read third time. Passed. Ordered to the Senate. (Ayes 53. Noes 10. Page 1718.) |
| May 13, 2021 | Read second time. Ordered to third reading. |
| May 12, 2021 | From committee: Do pass. (Ayes 10. Noes 5.) (May 12). |
| Apr 29, 2021 | Re-referred to Com. on APPR. |
| Apr 28, 2021 | Read second time and amended. |
| Apr 27, 2021 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (April 27). |
| Apr 19, 2021 | From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (April 15). Re-referred to Com. on JUD. |
| Mar 22, 2021 | Re-referred to Com. on P.E. & R. |
| Mar 18, 2021 | From committee chair, with author's amendments: Amend, and re-refer to Com. on P.E. & R. Read second time and amended. |
| Feb 12, 2021 | Referred to Coms. on P.E. & R. and JUD. |
| Feb 3, 2021 | From printer. May be heard in committee March 5. |
| Feb 2, 2021 | Read first time. To print. |
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Date
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Description
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Location
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Votes
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| Jun 1, 2021 | AB 386 Cooper Assembly Third Reading | Assembly Floor |
Passed |
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Positions by individuals are not included.
Bill Author
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