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:

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

is hereby amended by adding thereto the following section:

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

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

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

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

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

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

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

a manner readily accessible to the public the following information:

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

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

investment, net of fees and expenses;

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

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

performance fees, and fund expenses.

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

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

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

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

requirements.

     (e) For purposes of this section:

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

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

investment vehicle in which retirement system assets are invested.

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

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

investment.

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

by §36-8-2.

     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

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

managed and performing.

     This act would take effect upon passage.

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