SB 128-6_ Filed 03/20/2007, 10:12 Crawford
Text Box
PREVAILED Roll Call No. _______
FAILED Ayes _______
WITHDRAWN Noes _______
RULED OUT OF ORDER
[
HOUSE MOTION ____
]
MR. SPEAKER:
I move that Engrossed Senate Bill 128 be amended to read as follows:
SOURCE: Page 1, line 1; (07)MO012808.1. -->
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
SOURCE: IC 5-10.2-2-19; (07)MO012808.1. -->
"SECTION 1. IC 5-10.2-2-19 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 19. (a) As used in this section,
"emerging money manager" means an investment adviser that:
(1) has an investment portfolio of less than one billion dollars
($1,000,000,000) on July 1, 2007; and
(2) is a minority business enterprise (as defined in
IC 4-13-16.5-1) or a women-owned business enterprise (as
defined in IC 5-16-6.5-3).
(b) The board of each fund is strongly encouraged to use
emerging money managers to the greatest extent feasible in
managing the assets of the fund.
(c) Except as provided in subsection (d), not later than
December 31, 2008, each board shall contract for and employ:
(1) emerging money managers that are minority business
enterprises to manage at least fifteen percent (15%) of the
assets under the board's control; and
(2) emerging money managers that are women-owned
business enterprises to manage at least five percent (5%) of
the assets under the board's control.
(d) Beginning with the 2007 annual report, each fund shall
provide the following information in its annual report each year:
(1) The identity of each emerging money manager used by the
fund.
(2) The percentage of the fund's assets under the investment
control of each emerging money manager used by the fund.
If either fund, exercising financial and fiduciary prudence,
determines that it is unable to meet the percentages set forth in
subsection (c), the fund shall include in its annual report a
description of efforts made to meet the percentages and a
description of the fund's plan to achieve the percentages as quickly
as possible.
SOURCE: IC 5-10.3-5-4; (07)MO012808.2. -->
SECTION 2. IC 5-10.3-5-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 4. (a) Securities shall
be held for the fund by banks or trust companies under a custodial
agreement. Income, interest, proceeds of sale, materials, redemptions,
and all other receipts from securities and other investments which the
board retains for the cash working balance shall be deposited with the
treasurer of state.
(b) Subject to IC 5-10.2-2-19, the board may contract with
investment counsel, trust companies, or banks to assist the board in its
investment program.
SOURCE: IC 5-10.4-3-10; (07)MO012808.3. -->
SECTION 3. IC 5-10.4-3-10, AS ADDED BY P.L.2-2006,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 10. (a) The board shall invest its assets with the
care, skill, prudence, and diligence that a prudent person acting in a
like capacity and familiar with such matters would use in the conduct
of an enterprise of a like character with like aims. The board also shall
diversify investments in accordance with prudent investment standards,
subject to the limitations and restrictions set forth in IC 5-10.2-2-18.
(b) The board may:
(1) make or have investigations made concerning investments;
and
(2) contract for and employ investment counsel to advise and
assist in the purchase and sale of securities,
subject to
IC 5-10.2-2-19.
(c) The board is not subject to IC 4-13, IC 4-13.6, or IC 5-16 when
managing real property as an investment. A management agreement
entered into by the board shall ensure that the management agent acts
in a prudent manner regarding the purchase of goods and services.
Contracts for the management of investment property shall be
submitted to the governor, the attorney general, and the budget agency
for approval. A contract for the management of real property as an
investment:
(1) may not exceed a four (4) year term and must be based upon
guidelines established by the board;
(2) may provide that the property manager may collect rent and
make disbursements for routine operating expenses such as
utilities, cleaning, maintenance, and minor tenant finish needs;
(3) shall establish, consistent with the board's duty under
IC 30-4-3-3(c), guidelines for the prudent management of
expenditures related to routine operation and capital
improvements; and
(4) may provide specific guidelines for the board to:
(A) purchase new properties;
(B) contract for the construction or repair of properties; and
(C) lease or sell properties;
without individual transactions requiring the approval of the
governor, the attorney general, the Indiana department of
administration, and the budget agency. However, each individual
contract involving the purchase or sale of real property is subject
to review and approval by the attorney general at the specific
request of the attorney general.
(d) Whenever the board takes bids in managing or selling real
property, the board shall require a bid submitted by a trust (as defined
in IC 30-4-1-1(a)) to identify all the following:
(1) Each beneficiary of the trust.
(2) Each settlor empowered to revoke or modify the trust.".
Renumber all SECTIONS consecutively.
(Reference is to ESB 128 as printed March 13, 2007.)
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MO012808/DI 113 2007