Bill Text: NJ S369 | 2018-2019 | Regular Session | Introduced
Bill Title: Requires external managers authorized to invest assets of State pension or annuity funds to have physical place of business within State.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-09 - Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee [S369 Detail]
Download: New_Jersey-2018-S369-Introduced.html
STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Senator RONALD L. RICE
District 28 (Essex)
SYNOPSIS
Requires external managers authorized to invest assets of State pension or annuity funds to have physical place of business within State.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act requiring external managers authorized to invest the assets of any State pension or annuity funds to have a physical place of business within this State, amending P.L.1950, c.270.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 13 of P.L.1950, c.270 (C.52:18A-91) is amended to read as follows:
13. a. The State Investment Council shall consult with the Director of the Division of Investment from time to time with respect to the work of the division. It shall have access to all files and records of the division and may require any officer or employee therein to provide such information as it may deem necessary in the performance of its functions. The council shall have authority to inspect and audit the respective accounts and funds administered through the Division of Investment. It shall formulate and establish, and may from time to time amend, modify or repeal, such policies as it may deem necessary or proper, which shall govern the methods, practices or procedures for investment, reinvestment, purchase, sale or exchange transactions to be followed by the Director of the Division of Investment established hereunder.
b. On or before January first of each year, and at such other times as it may deem in the public interest, the council shall report to the Governor, the Legislature, and the State Treasurer with respect to its work and the work of the Division of Investment. In addition to the reports specified above and in section 14 of P.L.1950, c.270 (C.52:18A-92), the council shall issue a report by March 1 of each year on the investment activities for the prior calendar year, which shall include a summary of the current investment policies and strategies of the council and those in effect during the prior calendar year, a detailed summary for each financial product of the amount invested, whether the investments were made by employees of the Division of Investment or by external managers, performance benchmarks, and actual performance during the calendar year. The report shall be submitted to the Governor, the Legislature, and the State Treasurer, and shall be made available to the public through the official Internet site of the State.
c. The council shall hold a meeting each year that shall be open to the public, and shall accept comments from the public at such meeting. The matters that shall be open to discussion and public comment during this annual meeting shall include the investment policies and strategies of the council, the investment activities of the council, the financial disclosure statements filed by council members, and the certification of contributions filed by external managers, as well as other appropriate matters concerning the operations, activities and reports of the council.
d. An external manager shall be required to file a certification before being retained, and annually thereafter, that discloses the political contributions made, during the 12 months preceding the certification, by the manager or the manager's firm, or a political committee in which the manager or firm was active. The certification shall specify the political contributions made to candidates for elective public office in this State and any political committee established for the support of such candidates, and contributions made for the transition and inaugural expenses of any candidate who is elected to public office. As used in this subsection, "contribution" and "political committee" shall have the meaning set forth in "The New Jersey Campaign Contributions and Expenditures Reporting Act," P.L.1973, c.83 (C.19:44A-1 et al.). An external manager also shall be required to file a certification, made by the manager or the manager's firm, before being retained, and annually thereafter, that the external manager has a physical place of business located within this State. [This certification] These certifications shall be in addition to any other such disclosure required by law or executive order of the Governor.
(cf: P.L.2007, c.103, s.51)
2. This act shall take effect immediately and apply to new external manager retainer agreements or renewal of existing retainer agreements executed on and after the date of enactment.
STATEMENT
This bill requires external managers retained by the Division of Investments in the Department of the Treasury and authorized to invest assets of State pension or annuity funds to have a physical place of business within State. It is in the interest of State public retirement systems to ensure these private, retained investment management firms have a physical place of business in this State with the goal of enhancing the general welfare and development of the State and its citizens through the stimulation of job creation and capital formation that may occur through these investment management businesses being located with New Jersey locations.
