In March, I wrote about AB 2571 which would have prohibited public pension fund investments in alternative investment vehicles that lacked race and gender pay equity policies.   Yesterday, the bill was amended to require public investment funds to obtain reports on these issues from alternative investment vehicles involved in the hospitality sector.  The bill defines "alternative investment vehicle" as "a limited partnership, limited liability company, or similar legal structure through which a public investment fund invests in a private equity fund, venture fund, hedge fund, absolute return fund, real estate fund, joint venture, coinvestment vehicle, comingled investment, direct investment, or any other investment that is not a publicly traded security or debt fund."

Although the bill as currently amended no longer appears to prohibit public fund investments in alternative investment vehicles, the author has added language that would broadly indemnify CalPERS and CalSTRS board members against liability sustained by reason of any decision to restrict, reduce, or eliminate investments pursuant to the reporting requirement.