§ 89726. — 89726. (Amended by Stats. 2022, Ch. 530, Sec. 3.)

California § 89726.

• Jurisdiction: California
• Code EDC: Education Code - EDC
• Div.: 8.
• Title 3.: DIVISION 8. CALIFORNIA STATE UNIVERSITY
• Part 55.: PART 55. CALIFORNIA STATE UNIVERSITY
• Ch. 6.: CHAPTER 6. Finance
• Art. 2.: ARTICLE 2. Revenues

Text

(a)
(1) The trustees may invest in securities or investments not listed in Section 16430 of the Government Code only if the trustees have established a committee to provide advice and expertise on investments.
(2)
A majority of the members of the committee shall be individuals who have investment expertise and who are not employees of the California State University.
(3)
The trustees shall allow the Treasurer to serve as a member of the committee or to appoint a deputy treasurer to serve as a member of the committee.
(b)
The total amount invested in securities
or investments not listed in Section 16430 of the Government Code shall not exceed the following amounts:
(1)
In the fiscal year ending June 30, 2022, 30 percent of all moneys invested pursuant to Sections 89724 and 89725.
(2)
In the fiscal year ending June 30, 2023, and each fiscal year thereafter, 65 percent of all moneys invested pursuant to Sections 89724 and 89725.
(c)
(1) The trustees shall receive an investment performance report quarterly and distribute an annual report to the Legislature, in compliance with Section 9795 of the Government Code, and the Department of Finance.
(2)
The investment performance reports shall include investment
returns, comparisons to benchmarks, holdings, market values, and fees.
(d)
Any additional moneys earned through investments in securities or investments not listed in Section 16430 of the Government Code shall be used only for capital outlay or maintenance, and shall not be used for ongoing operations.
(e)
The trustees shall not submit a request to the Department of Finance or the Legislature for any funds to compensate for investment loss resulting from investments in securities or investments not listed in Section 16430 of the Government Code.
(f)
The trustees shall not cite investment loss resulting from investments in securities or investments not listed in Section 16430 of the Government Code to justify approval of an
increase in student tuition or fees. No increase in tuition or reduction in course sections offered shall be adopted because of investment losses sustained as a result of this section.

Legislative History

Amended by Stats. 2022, Ch. 530, Sec. 3. (AB 2422) Effective January 1, 2023.