2017 -- H 5923

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LC002044

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO PUBLIC FINANCE – DISCLOSURE BY THE STATE INVESTMENT

COMMISSIONS OF PERFORMANCE AND EXPENSES OF RETIREMENT SYSTEM

INVESTMENT MANAGERS

     

     Introduced By: Representatives Carson, Lima, Maldonado, Fogarty, and Barros

     Date Introduced: March 16, 2017

     Referred To: House Finance

     (General Treasurer)

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 35-10 of the General Laws entitled "State Investment Commission"

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is hereby amended by adding thereto the following section:

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     35-10-15. Disclosure of performance and expenses.

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     (a) In 2015, the office of general treasurer launched the "Transparent Treasury Initiative"

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in order to assist the public in accessing information regarding how the state's pension

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investments are managed and invested, how such investments are performing, and to provide an

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overview of the state's pension investment strategies. The purpose of this section is to provide a

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statutory requirement for the continuance of several aspects of this initiative.

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     (b) The state investment commission shall, on a best effort basis, compile and disclose in

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a manner readily accessible to the public the following information:

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     (1) On a quarterly basis, as to each investment vehicle and as to all vehicles in the

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aggregate, the current values of the investment, and the annualized performance of the

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investment, net of fees and expenses;

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     (2) On an annual basis, as to each vehicle as to all vehicles in the aggregate, the dollar

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amount of fees and expenses paid to each manager including , if applicable, management fees,

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performance fees, and fund expenses.

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     (c) Disclosure of expenses in §35-10-15(b)(2) shall only be required for investments

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initiated by the retirement system on or after June 30, 2017.

 

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     (d) The general treasurer shall use best efforts to calculate and verify the relevant

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information necessary for the state investment commission to comply with these disclosure

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requirements.

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     (e) For purposes of this section:

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     (1) "Investment" means an investment in a mutual fund, index fund, private equity fund,

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a venture capital fund, a hedge fund, a real estate fund, infrastructure fund, or any other

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investment vehicle in which retirement system assets are invested.

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     (2) "Investment vehicle" means the mutual fund, index fund, limited partnership, limited

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liability company or similar legal structure through which the retirement system makes an

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investment.

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     (3) "Retirement system" means the employees' retirement system of the state established

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by §36-8-2.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC FINANCE – DISCLOSURE BY THE STATE INVESTMENT

COMMISSIONS OF PERFORMANCE AND EXPENSES OF RETIREMENT SYSTEM

INVESTMENT MANAGERS

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     This act would require the general treasurer to maintain its transparent treasury initiative

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to assist the public in accessing information regarding how state pension investments are

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managed and performing.

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     This act would take effect upon passage.

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