Introduced Version






HOUSE BILL No. 1004

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 5-10.2-2-18.

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.





Kromkowski




    January 15, 2003, read first time and referred to Committee on Labor and Employment.







Introduced

First Regular Session 113th General Assembly (2003)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1004



    A BILL FOR AN ACT to amend the Indiana Code concerning pensions.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 5-10.2-2-18; (03)IN1004.1.1. -->     SECTION 1. IC 5-10.2-2-18 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 companies.
        (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.