2017 -- H 5993 | |
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LC002158 | |
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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 - STATE INVESTMENT COMMISSION | |
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Introduced By: Representatives Filippi, Morgan, Mendonca, Giarrusso, and Nardolillo | |
Date Introduced: March 23, 2017 | |
Referred To: House Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 35-10-1 of the General Laws in Chapter 35-10 entitled "State |
2 | Investment Commission" is hereby amended to read as follows: |
3 | 35-10-1. Establishment -- Membership -- Officers -- Quorum -- Investment votes -- |
4 | Fund managers. |
5 | (a) There is hereby authorized, created and established in the office of the general |
6 | treasurer a state investment commission, the membership of which shall consist of the general |
7 | treasurer, ex officio, or a deputy general treasurer as his or her designee, who shall act as |
8 | chairperson, the director of administration, ex officio, or any assistant director of administration |
9 | as his or her designee, who shall act as secretary, an active or retired teacher, state, or municipal |
10 | employee member of the retirement system or official from the teacher, state, or municipal |
11 | employee unions to be appointed by the general treasurer for a term of three (3) years, the |
12 | executive director of the state retirement board, who shall be a nonvoting member, three (3) |
13 | members of the general public to be appointed by the general treasurer, one of whom shall serve |
14 | for an initial term of one year, and one of whom shall serve for an initial term of two (2) years |
15 | and until his or her successor is appointed and qualified and three (3) members of the general |
16 | public to be appointed by the governor, one of whom shall serve for an initial term of three (3) |
17 | years, one of whom shall serve for an initial term of two (2) years, and one of whom shall serve |
18 | for an initial term of one year and until his or her successor is appointed and qualified. Thereafter, |
19 | the general public members shall serve for three (3) year terms and until his or her successor is |
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1 | appointed and qualified. The members of the general public appointed by the governor and the |
2 | general treasurer shall be qualified by training or experience in the field of investment or finance. |
3 | The commission may elect from among its own members such other officers as they |
4 | deem necessary. All general treasurer and gubernatorial appointments made under this section |
5 | after the effective date of this act [July 4, 2006] shall be subject to the advice and consent of the |
6 | senate. No one shall be eligible for appointment unless he or she is a resident of this state. |
7 | Public members of the board shall be removable by the chair for cause only, and removal |
8 | solely for partisan or personal reasons unrelated to capacity or fitness for the office shall be |
9 | unlawful. |
10 | Newly appointed and qualified public members shall, within six (6) months of their |
11 | appointment, attend a training course that shall be developed and provided by the office of the |
12 | general treasurer and shall include instruction in the following areas: the provisions of chapter 10 |
13 | of title 35, chapter 46 of title 42, chapter 14 of title 36 and chapter 2 of title 38 of the Rhode |
14 | Island general laws; and the board's rules and regulations. The director of the department of |
15 | administration shall, within ninety (90) days of the effective date of this act [July 4, 2006] prepare |
16 | and disseminate training materials relating to the provisions of chapter 46 of title 42, chapter 14 |
17 | of title 36 and chapter 2 of title 38. |
18 | Any member of the general public who was appointed by the governor or general |
19 | treasurer prior to the effective date of this act [July 4, 2006] shall continue to serve until such |
20 | time as a successor is appointed and qualified. |
21 | (b) A member shall be eligible to succeed himself or herself. In the event of a vacancy in |
22 | the office of an appointive member, the vacancy shall be filled by the appointing authority for the |
23 | unexpired term. |
24 | (c) A majority of all the members of the commission shall be necessary to constitute a |
25 | quorum thereof. The approval of a majority of the commission shall be required prior to the |
26 | purchase or sale of any investment, excepting those investments made by investment managers |
27 | engaged by the commission and invested in accordance with the commission's statement of |
28 | investment objectives and policies, day to day cash investments by the general treasurer, and, |
29 | because of the importance of speedy action, investments in obligations of the United States |
30 | government or certificates of deposit maturing within one year. These investments may be made |
31 | within the framework of a policy established by the commission without prior approval of each |
32 | transaction. The commission shall be empowered to engage one or more fund managers and to |
33 | delegate to the manager or managers the authority to carry out the investment of the funds within |
34 | the commission's control, or any portion thereof, in accordance with the objectives of the |
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1 | commission as set forth in its statement of investment objectives and policies. |
2 | (d) The day-to-day administration of the commission, including the voting of proxies and |
3 | the execution of investment acquisitions and dispositions of the commission's assets, shall be |
4 | carried out by the office of the general treasurer; provided, that the costs and expenses incurred in |
5 | the management of the funds within the commission's control shall remain the obligation of those |
6 | funds and not that of the general treasurer. |
7 | (e)(1) Within ninety (90) days after the end of each fiscal year during which the board has |
8 | conducted business, the commission shall submit an annual report to the governor, the speaker of |
9 | the house of representatives, the president of the senate, and the secretary of state of its activities |
10 | during that fiscal year. The report shall provide: an operating statement summarizing meetings or |
11 | hearings held, meeting minutes if requested, subjects addressed, decisions rendered, rules or |
12 | regulations promulgated, studies conducted, policies and plans developed, approved, or modified, |
13 | and programs administered or initiated; a consolidated financial statement of all the funds |
14 | received and expended including the source of funds, a listing of any staff supported by these |
15 | funds, and a summary of any clerical, administrative or technical support received; a summary of |
16 | performance during the previous fiscal year including accomplishments, shortcomings and |
17 | remedies; a synopsis of hearings, complaints, suspensions, or other legal matters related to the |
18 | authority of the board; a summary of any training courses held pursuant to § 35-10-1; a briefing |
19 | on anticipated activities in the upcoming fiscal year; and findings and recommendations for |
20 | improvements. |
21 | (2) The report shall include a section providing information and supporting documents |
22 | related to the hiring of the pension fund's alternative investment consultant(s), the due diligence |
23 | reports reviewed when investments in alternatives were considered, the performance regarding all |
24 | alternative investments and all confidentiality agreements entered into with alternative investment |
25 | consultant(s). |
26 | (3) The report These reports and supporting documents shall be posted electronically on |
27 | the general assembly and the secretary of state's website as prescribed in § 42-20-8.2 of the |
28 | Rhode Island general laws. The director of the department of administration shall be responsible |
29 | for the enforcement of this provision. |
30 | SECTION 2. This act shall take effect upon passage. |
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LC002158 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO PUBLIC FINANCE - STATE INVESTMENT COMMISSION | |
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1 | This act would require the state investment commission to include in its annual report a |
2 | separate section devoted to alternative pension fund investments providing information and |
3 | supporting documents relating to the hiring of alternative investment consultant(s), alternative |
4 | investments performance and confidentiality agreements with the consultant(s). |
5 | This act would take effect upon passage. |
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LC002158 | |
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