CA SB1412

Authorizes California State University (CSU) campus treasurers and chief fiscal officers to invest money in mutual funds registered with the Securities and Exchange Commission and United States registered real estate investment trusts, in addition to existing eligible securities.

Establishes investment caps on these new asset categories: $200 million for fiscal year 2016-17, $400 million for 2017-18, $600 million for 2018-19, and 30% of all invested money from 2019-20 forward.

Requires CSU Trustees to establish an investment committee with majority membership from external investment experts (not CSU employees) to oversee these investments.

Mandates quarterly investment performance reports to the Legislature and Department of Finance, and prohibits CSU from requesting state funds to compensate for investment losses or citing investment losses to justify tuition increases or course reductions.

Requires earnings from these new investments to be used only for capital outlay or maintenance, not for ongoing operations.