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CalPERS asks staff to analyze SB 351’s implications for health‑facility investments
Summary
Board members requested staff provide an analysis of Senate Bill 351, which would restrict private‑equity control over health facilities, and to bring the results to the July off‑site for board consideration of potential CalPERS impacts.
During June board meetings, members asked staff to prepare a written analysis of Senate Bill 351 — a proposal that would limit certain private‑equity investments or require additional oversight for private‑equity ownership of health care facilities — and to provide that analysis to the full board ahead of the July off‑site.
Board discussion referenced earlier work on a related Assembly measure and a 2024 item on private‑equity ownership in health facilities. Danny Brown and staff confirmed SB 351 is out of the Senate and has been referred to an Assembly committee; they said it had not yet been scheduled for a hearing on the Assembly side. Staff committed to prepare an analysis of potential CalPERS investment‑portfolio impacts — including any effects on existing holdings, governance covenants, regulatory risk, and procurement — and to circulate the analysis to board members and include it on the July off‑site agenda for further discussion.
Board members requested the analysis evaluate scenarios where the bill becomes law and where it does not, and to include input from the investment team on legal, fiduciary and operational implications. Several members emphasized the need for a measured, evidence‑based response rather than an immediate position. Staff indicated they will coordinate with investment staff and counsel and return with a memo and recommended next steps for the board to consider at the July off‑site.
