Bill Text: NY A06931 | 2009-2010 | General Assembly | Introduced

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Bill Title: Relates to investments by the comptroller; requires the comptroller to comply with provisions of the executive law relating to participation by minority and women owned businesses in awarding contracts for investment services for the common retirement fund; creates commission to investigate investment practices of the comptroller's office and appropriates $500,000 therefor.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-01-06 - referred to governmental employees [A06931 Detail]

Download: New_York-2009-A06931-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6931
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                    March 17, 2009
                                      ___________
       Introduced  by  M.  of  A.  ESPAILLAT  --  read once and referred to the
         Committee on Governmental Employees
       AN ACT to amend the retirement and social security  law  and  the  state
         finance  law,  in relation to investment of the common retirement fund
         by the comptroller and creating an independent comptroller  investment
         review commission, and making an appropriation therefor
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 13 of the retirement and  social  security  law  is
    2  amended by adding a new subdivision l to read as follows:
    3    L.  CONSISTENT  WITH THE COMPTROLLER'S ROLE AS THE ADMINISTRATIVE HEAD
    4  OF THE RETIREMENT SYSTEM AND SOLE TRUSTEE AND FIDUCIARY  OF  THE  COMMON
    5  RETIREMENT  FUND,  THE COMPTROLLER SHALL COMPLY WITH THE REQUIREMENTS OF
    6  ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW WITH RESPECT TO ANY CONTRACTS FOR
    7  INVESTMENT SERVICES.
    8    S 2. Section 98-a of the state finance law is amended by adding a  new
    9  subdivision 3 to read as follows:
   10    3.  THE  COMPTROLLER  SHALL  COMPLY  WITH  THE REQUIREMENTS OF ARTICLE
   11  FIFTEEN-A OF THE EXECUTIVE LAW WITH RESPECT TO ANY CONTRACTS FOR INVEST-
   12  MENT SERVICES.
   13    S 3. The retirement and social security law is amended by adding a new
   14  section 423-c to read as follows:
   15    S 423-C. COMPTROLLER INVESTMENT REVIEW COMMISSION. 1.  APPOINTMENT  OF
   16  MEMBERS.  THERE  SHALL  BE  ESTABLISHED  A COMPTROLLER INVESTMENT REVIEW
   17  COMMISSION TO CONSIST OF ELEVEN MEMBERS  TO  BE  APPOINTED  AS  FOLLOWS:
   18  FIVE  MEMBERS  SHALL  BE APPOINTED BY THE GOVERNOR, TWO MEMBERS SHALL BE
   19  APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE, TWO MEMBERS SHALL BE
   20  APPOINTED BY THE SPEAKER OF THE ASSEMBLY, ONE MEMBER SHALL BE  APPOINTED
   21  BY  THE  MINORITY LEADER OF THE SENATE AND ONE MEMBER SHALL BE APPOINTED
   22  BY THE MINORITY LEADER OF THE ASSEMBLY. OF THE FIVE MEMBERS APPOINTED BY
   23  THE GOVERNOR ONE SHALL BE SELECTED FROM  AMONG  THE  LEADERSHIP  OF  THE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD07544-01-9
       A. 6931                             2
    1  UNIONS  REPRESENTING  POLICE, FIREFIGHTERS OR STATE EMPLOYEES, ONE SHALL
    2  BE AN EXPERT IN THE FIELD OF FINANCIAL INVESTING, AND TWO SHALL BE RETI-
    3  REES OF A PUBLIC PENSION SYSTEM. MEMBERS SHALL BE REPRESENTATIVE OF BOTH
    4  THE  UPSTATE  AND DOWNSTATE URBAN AND RURAL GEOGRAPHIC AREAS OF NEW YORK
    5  STATE AND SHALL ALSO REPRESENT UNDERSERVED, ECONOMICALLY AT-RISK AREAS.
    6    2. TERMS OF OFFICE; VACANCIES. A. THE TERMS OF OFFICE  OF  MEMBERS  OF
    7  THE  COMMISSION  SHALL BE FOUR YEARS; PROVIDED THAT INITIAL APPOINTMENTS
    8  SHALL BE TO STAGGERED TERMS WITH THE MEMBERS APPOINTED  BY  THE  SPEAKER
    9  AND  MINORITY  LEADER  OF  THE  ASSEMBLY TO INITIAL FOUR-YEAR TERMS, THE
   10  MEMBERS APPOINTED BY THE TEMPORARY PRESIDENT AND MINORITY LEADER OF  THE
   11  SENATE TO INITIAL THREE-YEAR TERMS AND MEMBERS APPOINTED BY THE GOVERNOR
   12  TO  INITIAL TWO-YEAR TERMS. THE MEMBERS OF THE COMMISSION SHALL CONTINUE
   13  IN OFFICE UNTIL THE EXPIRATION OF THEIR TERMS AND UNTIL THEIR SUCCESSORS
   14  ARE APPOINTED AND HAVE QUALIFIED. SUCH APPOINTMENTS SHALL BE MADE WITHIN
   15  ONE YEAR FOLLOWING THE EXPIRATION OF SUCH TERMS.
   16    B. VACANCIES SHALL BE FILLED FOR THE UNEXPIRED TERMS WITHIN  ONE  YEAR
   17  OF  THE  DATE  UPON WHICH SUCH VACANCIES OCCUR IN THE SAME MANNER AS THE
   18  ORIGINAL APPOINTMENT.
   19    3. MEETINGS. A. THE COMMISSION SHALL MEET AS FREQUENTLY AS  ITS  BUSI-
   20  NESS MAY REQUIRE, AND AT LEAST TWICE IN EACH YEAR.
   21    B.  THE  GOVERNOR SHALL DESIGNATE ONE OF THE MEMBERS OF THE COMMISSION
   22  TO ACT AS ITS CHAIR.
   23    4. COMPENSATION AND EXPENSES. THE  MEMBERS  OF  THE  COMMISSION  SHALL
   24  SERVE WITHOUT COMPENSATION OTHER THAN REIMBURSEMENT OF ACTUAL AND NECES-
   25  SARY EXPENSES.
   26    5. POWERS AND DUTIES. A.  THE COMMISSION SHALL:
   27    (1)  MONITOR AND REPORT ON THE TARGETED INVESTMENT PROGRAMS CREATED BY
   28  THE COMPTROLLER'S OFFICE AND ASSURE THAT CONTRIBUTORS OF  THE  FUND  AND
   29  THE COMMUNITIES THEY REPRESENT BENEFIT FROM SUCH PROGRAMS.
   30    (2)  MONITOR  AND REPORT ON THE PROMOTION OF BEST INVESTMENT PRACTICES
   31  IN URBAN REVITALIZATION TO INCLUDE AFFORDABLE HOUSING, URBAN INFRASTRUC-
   32  TURE, RETAIL AND OFFICE DEVELOPMENTS, INVESTMENTS IN  SMALL  AND  MEDIUM
   33  ENTERPRISES AND WOMAN AND MINORITY-OWNED BUSINESSES.
   34    (3)  MONITOR  AND  REPORT ON THE USE OF WOMEN AND MINORITY-OWNED BUSI-
   35  NESSES IN THE OPERATIONS OF THE COMPTROLLER'S OFFICE IN ACCORDANCE  WITH
   36  ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW.
   37    (4)  MONITOR AND REPORT ON THE USE OF MINORITY AND WOMEN-OWNED BROKER-
   38  AGE SERVICE PROVIDERS WHEN TRADING FOR THE INTERNALLY MANAGED ASSETS.
   39    (5) MONITOR AND REPORT ON THE USE OF THE FUND'S EXTERNAL EQUITY MANAG-
   40  ERS USE OF WOMEN AND MINORITY-OWNED BROKERS.
   41    (6) MONITOR AND REPORT ON THE USE OF WOMEN AND MINORITY-OWNED FIRMS TO
   42  EXECUTE LONG-TERM AND SHORT-TERM TRADES.
   43    (7) MONITOR AND REPORT ON THE ECONOMIC DEVELOPMENT AND  INFRASTRUCTURE
   44  BUILDING  OF  AT-RISK  COMMUNITIES  OF  THE STATE TO PRESERVE AFFORDABLE
   45  HOUSING; THE PROVISIONS OF GUARANTEED MARKET RATE LOANS TO  SMALL  BUSI-
   46  NESSES;  AND PROGRAMS TO ASSIST IN TRANSITION TO NEW ECONOMIES WHERE THE
   47  MANUFACTURING BASE IS ERODING.
   48    B. THE COMMISSION SHALL, ON OR BEFORE JANUARY FIFTEENTH OF EACH  YEAR,
   49  PREPARE A REPORT TO THE COMPTROLLER, THE LEGISLATURE AND THE GOVERNOR ON
   50  ITS FINDINGS AND RECOMMENDATIONS WITH RESPECT TO THE PROVISIONS OF PARA-
   51  GRAPH A OF THIS SUBDIVISION.
   52    S  4.  The sum of five hundred thousand dollars ($500,000), or so much
   53  thereof as may be necessary, is hereby appropriated for operating  costs
   54  of the comptroller investment review commission out of any moneys in the
   55  state  treasury  in the general fund to the credit of the state purposes
   56  account, not otherwise appropriated, and made immediately available, for
       A. 6931                             3
    1  the purpose of carrying out the provisions  of  this  act.  Such  moneys
    2  shall be payable on the audit and warrant of the comptroller on vouchers
    3  certified  or  approved  by  the comptroller in the manner prescribed by
    4  law.
    5    S 5. This act shall take effect immediately.