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Legislation

California bill would add pay equity as requirement for alts managers

A California bill would restrict public pension funds in the state that make new, additional or renewed investments with alternative investment funds to managers that have adopted and committed to comply with a race and gender pay equity policy.

The bill, introduced in February, would require the alternative investment manager to submit an annual report of its efforts to comply with the policy to its public pension plan clients and also would require the pension plan to disclose that information at a public meeting and to the state auditor.

The bill defines alternative investment fund as including a limited partnership, limited liability company or similar legal structure; a joint venture, co-investment vehicle or any other investment vehicle that is not a publicly traded security or debt fund. Included asset classes are private equity, venture capital, hedge funds, absolute return and real estate.

The bill may be heard in a committee on March 18; the committee has not yet been identified.

The $231.6 billion California State Teachers' Retirement System, West Sacramento, is expected to decide whether to take action regarding the bill at its March board meeting.

The board of the $349.3 billion California Public Employees' Retirement System, Sacramento, isn't scheduled to discuss the bill, said spokesman Wayne Davis, in an email.