HOUSE BILL No. 1004
DIGEST OF INTRODUCED BILL
Synopsis: Alternative investments by pension funds. Encourages the
boards of trustees of the public employees' retirement fund and the
Indiana state teachers' retirement fund to invest at least 5% of the funds
under their control and available for investment in alternative
investments. Encourages the boards to place at least $100,000,000 of
these alternative investments in certain business sectors over the next
ten years. Requires the boards to exercise financial and fiduciary
prudence to identify appropriate alternative investments.
Effective: July 1, 2003.
January 15, 2003, read first time and referred to Committee on Labor and Employment.
First Regular Session 113th General Assembly (2003)
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HOUSE BILL No. 1004
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 5-10.2-2-18; (03)IN1004.1.1. -->
IS ADDED TO THE INDIANA CODE
AS A NEW
SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]: Sec. 18. (a) As used in this section, "alternative
investment" means capital invested in the privately held equity or
debt assets of a domestic or an international private business and
includes investment in any of the following:
(1) Unlisted or illiquid common and preferred stock.
(2) Venture capital.
(3) Corporate buyouts and acquisitions.
(4) Restructuring, recovery, and hedge funds.
(5) Limited and blind pool partnerships.
(6) Special situation and private finance investments.
(7) Limited liability companies.
(8) Group trusts.
(9) Unsecured, undersecured, subordinated senior, or
convertible loans or debt securities of privately held
(10) Real estate investment trusts, mortgages, "turn around"
situations, commercial leases, and joint ventures.
(11) Commodity trading.
(b) The board is encouraged to invest at least five percent (5%)
of the funds under its control and available for investment in
alternative investments. In making these investments, the board
must exercise financial and fiduciary prudence to identify
appropriate alternative investments.
(c) In selecting investments under this section, the board is
encouraged to invest at least one hundred million dollars
($100,000,000) over the ten (10) years beginning July 1, 2003, in the
Indiana operations of companies in the following business sectors:
(1) Advanced manufacturing.
(2) Life sciences.
(3) Information technology.
(4) Twenty-first century logistics.