Bill Text: MI HB5922 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Retirement; investments; investment fiduciary of certain retirement systems investing in small business; increase cap on percentage of retirement system assets. Amends sec. 20a of 1965 PA 314 (MCL 38.1140a).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-11-12 - Printed Bill Filed 11/07/2014 [HB5922 Detail]
Download: Michigan-2013-HB5922-Introduced.html
HOUSE BILL No. 5922
November 6, 2014, Introduced by Rep. Jenkins and referred to the Committee on Financial Services.
A bill to amend 1965 PA 314, entitled
"Public employee retirement system investment act,"
by amending section 20a (MCL 38.1140a), as amended by 2000 PA 307.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 20a. (1) Except as provided in subsection (2), an
investment fiduciary of a system having assets of more than
$250,000,000.00
may invest not more than 2% of a the system's
assets in a debt, warrant, or equity interest in a small business
having more than 1/2 of the small business's assets or employees
within this state, or in a debt, warrant, or equity interest in a
small business investment company or venture capital firm having
its principal office or more than 1/2 of its assets within this
state, or the system may create, own, hold, buy, sell, operate,
manage, and direct 1 or more small business investment companies or
venture capital firms designed to invest in small businesses having
more than 1/2 of their assets or employees within this state. An
investment fiduciary may also join with a group composed of other
public employee retirement systems, pension systems subject to the
employee retirement income security act of 1974, Public Law 93-406,
88 Stat. 829, financial institutions, corporations, or governmental
agencies or instrumentalities to accomplish the purposes of this
section.
An investment in stock under this section shall be
considered
is an investment in stock under section 14 only for the
purpose of determining the 70% maximum investment limitation
contained
in under section 14.
(2) If the investment fiduciary of a system is the state
treasurer, investments described in subsection (1) may exceed 2% of
the assets of the system, but shall not exceed 5% of the assets of
the system.
(3) Subject to this subsection, an investment fiduciary of a
system having assets of $15,000,000.00 or more but less than
$250,000.000.00 may invest not more than 5% of the system's assets
in investments described in subsection (1). The investment
fiduciary shall not invest more than $100,000.00 in any 1 small
business, small business investment company, or venture capital
firm described in subsection (1).
