Title 35
Public Finance

Chapter 10
State Investment Commission

§ 35-10-1. Establishment — Membership — Officers — Quorum — Investment votes — Fund managers.

(a) There is hereby authorized, created and established in the office of the general treasurer a state investment commission, the membership of which shall consist of the general treasurer, ex officio, or a deputy general treasurer as his or her designee, who shall act as chairperson, the director of administration, ex officio, or any assistant director of administration as his or her designee, who shall act as secretary, an active or retired teacher, state, or municipal employee member of the retirement system or official from the teacher, state, or municipal employee unions to be appointed by the general treasurer for a term of three (3) years, the executive director of the state retirement board, who shall be a nonvoting member, three (3) members of the general public to be appointed by the general treasurer, one of whom shall serve for an initial term of one year, and one of whom shall serve for an initial term of two (2) years and until his or her successor is appointed and qualified and three (3) members of the general public to be appointed by the governor, one of whom shall serve for an initial term of three (3) years, one of whom shall serve for an initial term of two (2) years, and one of whom shall serve for an initial term of one year and until his or her successor is appointed and qualified. Thereafter, the general public members shall serve for three (3) year terms and until his or her successor is appointed and qualified. The members of the general public appointed by the governor and the general treasurer shall be qualified by training or experience in the field of investment or finance.

The commission may elect from among its own members such other officers as they deem necessary. All general treasurer and gubernatorial appointments made under this section after the effective date of this act [July 4, 2006] shall be subject to the advice and consent of the senate. No one shall be eligible for appointment unless he or she is a resident of this state.

Public members of the board shall be removable by the chair for cause only, and removal solely for partisan or personal reasons unrelated to capacity or fitness for the office shall be unlawful.

Newly appointed and qualified public members shall, within six (6) months of their appointment, attend a training course that shall be developed and provided by the office of the general treasurer and shall include instruction in the following areas: the provisions of chapter 10 of title 35, chapter 46 of title 42, chapter 14 of title 36 and chapter 2 of title 38 of the Rhode Island general laws; and the board’s rules and regulations. The director of the department of administration shall, within ninety (90) days of the effective date of this act [July 4, 2006], prepare and disseminate training materials relating to the provisions of chapter 46 of title 42, chapter 14 of title 36 and chapter 2 of title 38.

Any member of the general public who was appointed by the governor or general treasurer prior to the effective date of this act [July 4, 2006] shall continue to serve until such time as a successor is appointed and qualified.

(b) A member shall be eligible to succeed himself or herself. In the event of a vacancy in the office of an appointive member, the vacancy shall be filled by the appointing authority for the unexpired term.

(c) A majority of all the members of the commission shall be necessary to constitute a quorum thereof. The approval of a majority of the commission shall be required prior to the purchase or sale of any investment, excepting those investments made by investment managers engaged by the commission and invested in accordance with the commission’s statement of investment objectives and policies, day to day cash investments by the general treasurer, and, because of the importance of speedy action, investments in obligations of the United States government or certificates of deposit maturing within one year. These investments may be made within the framework of a policy established by the commission without prior approval of each transaction. The commission shall be empowered to engage one or more fund managers and to delegate to the manager or managers the authority to carry out the investment of the funds within the commission’s control, or any portion thereof, in accordance with the objectives of the commission as set forth in its statement of investment objectives and policies.

(d) The day-to-day administration of the commission, including the voting of proxies and the execution of investment acquisitions and dispositions of the commission’s assets, shall be carried out by the office of the general treasurer; provided, that the costs and expenses incurred in the management of the funds within the commission’s control shall remain the obligation of those funds and not that of the general treasurer.

(e) Within ninety (90) days after the end of each fiscal year during which the board has conducted business, the commission shall submit an annual report to the governor, the speaker of the house of representatives, the president of the senate, and the secretary of state of its activities during that fiscal year. The report shall provide: an operating statement summarizing meetings or hearings held, meeting minutes if requested, subjects addressed, decisions rendered, rules or regulations promulgated, studies conducted, policies and plans developed, approved, or modified, and programs administered or initiated; a consolidated financial statement of all the funds received and expended including the source of funds, a listing of any staff supported by these funds, and a summary of any clerical, administrative or technical support received; a summary of performance during the previous fiscal year including accomplishments, shortcomings and remedies; a synopsis of hearings, complaints, suspensions, or other legal matters related to the authority of the board; a summary of any training courses held pursuant to § 35-10-1; a briefing on anticipated activities in the upcoming fiscal year; and findings and recommendations for improvements. The report shall be posted electronically on the general assembly and the secretary of state’s website as prescribed in § 42-20-8.2. The director of the department of administration shall be responsible for the enforcement of this provision.