CalSTRS board has approved proposed regulations limiting the amount its money managers can contribute to a CalSTRS board members campaign. Its the first such legislation in the state, according to a news release from the fund. The regulations, approved on Thursday, also apply to firms responding to RFPs issued by CalSTRS or companies having an investment relationship with the fund, according to the proposed regulation. The regulation limits contributions to a maximum of $1,000 from an individual or $5,000 in aggregate from a firm over 12 months. Board members who have received contributions would have to recuse themselves from decisions regarding those managers. Firms that violate the regulations would not be allowed to do business with the fund for two years.
The regulations proposed by the $169 billion California State Teachers Retirement System, Sacramento, have to be approved by the state Office of Administrative Law in order to take effect. The group has 30 days to review the proposal, said Linda Brown, deputy director at OAL.