(a) The regents are urged to direct their Office of the Chief Investment Officer (OCIO) to do all of the following:

(1) Use reasonable efforts to encourage diversity, such as implementing a hiring strategy that requires that candidates from underrepresented groups be given full consideration whenever an OCIO position is to be filled.

(2) Request partner firms it invests in use reasonable efforts to encourage diversity, such as implementing a hiring strategy that requires that candidates from underrepresented groups be given full consideration whenever a position is filled.

(3) Launch an emerging manager program. The OCIO shall define the term “emerging manager” for the purpose of this section.

(4) Encourage startup firms to increase efforts to develop diverse executive teams and to recruit diverse managerial talent, as applicable.

(b) The OCIO shall submit a report to the chairs of the appropriate policy committees of each house of the Legislature, on or before January 1, 2020, describing its progress addressing the requirements of the regents set forth in subdivision (a). The report shall also include pertinent statistics setting forth the OCIO’s internal diversity metrics. The report required by this section shall comply with § 9795 of the Government Code.

(c) Nothing in this section shall require the regents or the OCIO to take action that is inconsistent with its fiduciary duties.

(Added by Stats. 2018, Ch. 912, Sec. 2. (AB 2041) Effective January 1, 2019.)