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SB 1319

California Public Records Act: public investment funds.

2025-2026 Regular Session Introduced by Dave Cortese and 1 co-sponsor

SB 1319 requires public investment funds to disclose detailed data on alternative investment vehicles, including costs, returns, counterparties, and performance, while preserving t

May 14 hearing: Held in committee and under submission.
#californiapublicrecordsact #publicinvestmentfunds
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Bill Summary · SB 1319

Summary of SB 1319 (California Public Records Act: public investment funds)

Jurisdiction: California | Session: 2025–2026 | Amended: March 25, 2026; April 15, 2026

Purpose and intent

SB 1319 amends the Government Code to adjust what information about public investment funds’ involvement with alternative investments must be disclosed under the California Public Records Act. The bill seeks to increase transparency by requiring additional disclosure about alternative investments while preserving certain protections for trade secrets.

Key purpose points:
- Enhance public access to information related to how public investment funds (e.g., public pension funds, endowments, foundations, public banks, and related venture programs) invest in private market vehicles.
- Balance transparency with protection of sensitive trade secrets and proprietary information.

Key provisions and changes

  • Definitions (Section 7928.710):

    • Clarifies terms: “Alternative investment,” “Alternative investment vehicle,” “Portfolio positions,” and “Public investment fund.”

  • Disclosure regime (existing exemptions expanded):

    • Current law exempts many records about alternative investments from disclosure, including due diligence, statements, meeting materials, and records of portfolio positions (with some exceptions).
    • SB 1319 adds new disclosure requirements for records that previously were exempt, bringing more information into the public disclosure net.

  • Information that must be disclosed (subject to disclosure, not trade secrets):
    The bill lists specific data elements that must be disclosed for each alternative investment vehicle, including:

    • Name, address, and vintage year of each investment vehicle; the name of each general partner or manager and individuals with direct/indirect interests.
    • Financial commitments: the dollar amount of public investment fund commitments since inception; total commitments by all investors.
    • Cash contributions: the fund’s cash contributions since inception; total cash contributed by all investors.
    • Distributions: annual cash distributions received by the fund; distributions plus remaining value attributable to the public fund on a fiscal-year basis.
    • Performance metrics: net internal rate of return (IRR) and investment multiple since inception.
    • Fees and profits: total management fees and costs paid; cash profit received by public investment funds on a fiscal-year basis.
    • Benchmark comparison: a comparison of the alternative investment’s results against a public market index of comparable assets, adjusted for risk, liquidity, and expense; index chosen at the time of commitment.
    • Ongoing preferences: for vehicles still active past their original term, the basis for continued operation, current asset value, and ongoing fees/expenses.
    • Continuation/rollover events: details of continuation funds, asset rollovers, or similar transactions, including financial terms and asset valuations.
    • Employment data related to certain enterprises: for investments in activities with natural-person work, the identity of the enterprise, geographic locations, and employee classifications (using BLS 2018 SOC system).
    • Debt investments: number and aggregate dollar value of loans valued below certain thresholds and the third-party rating agencies engaged.

  • Legislative findings and purpose (Section 7928.710(d), Section 2):

    • The act emphasizes public access to meetings and writings while balancing trade secret protections.

  • Fiscal note (Section 7928.710(c)):

    • The act provides that no state reimbursement is required for local agencies, recognizing reimbursement is not mandated for these local costs.

Who would be affected

  • Public investment funds (e.g., state and local public pensions, endowments, foundations, public banks, and related venture programs) that invest in alternative investment vehicles.
  • Local agencies and school districts tasked with responding to public records requests about alternative investments.
  • The public (transparency advocates, researchers, journalists) who seek access to data about public investment performance, fees, and counterparties.

Procedural and timeline aspects

  • The bill has undergone amendments and committee referrals, with actions in early 2026 and a hearing schedule noted (e.g., set for April 22, 2026, in L., P.E. & R.).
  • As a California Public Records Act measure, it interacts with existing exemptions for trade secrets; the bill explicitly carves out disclosure for the enumerated data elements while continuing protections for sensitive materials.

Overall, SB 1319 expands transparency around public investments in alternative funds by requiring detailed disclosure of investment vehicles, performance, costs, and related entities, while preserving necessary protections for trade secrets.

Compiled from official sources — confirm details with the bill’s official record.

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