Skip to main content
Find a Lawyer

California Code, Education Code - EDC § 89726

Current as of January 01, 2025 | Updated by Findlaw Staff

(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.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - California Code, Education Code - EDC § 89726 - last updated January 01, 2025 | https://codes.findlaw.com/ca/education-code/edc-sect-89726/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard