California Passes Legislation Requiring Placement Agents Who Solicit State Pension Systems to Register as Lobbyists
On September 30, 2010 Governor Arnold Schwarzenegger signed into law AB 1743 (the “Act”), a law that will require placement agents who solicit funds from the California Public Employees’ Retirement System (“CalPERS”) or the California State Teachers’ Retirement System (“CalSTRS”) to register as lobbyists. The Act also limits the types of compensation that placement agents can receive for soliciting investments from CalPERS or CalSTRS and imposes new disclosure requirements on placement agents who solicit local public pension systems in California. The Act will take effect on January 1, 2011.