senate Bill S1822

2013-2014 Legislative Session

Relates to investments by the comptroller; appropriation

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to finance
Jan 09, 2013 referred to finance

Co-Sponsors

S1822 - Bill Details

Current Committee:
Senate Finance
Law Section:
Appropriations
Laws Affected:
Amd §13, add §423-d, R & SS L; amd §98-a, St Fin L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3006
2009-2010: S2329

S1822 - Bill Texts

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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.

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BILL NUMBER:S1822

TITLE OF BILL:
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

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends Section 13 of the Retirement and Social Security Law
and Section 98-a of the State Finance Law in relation to the New York
State Comptrollers investment of the New York State Comptrollers
Retirement Fund.

PURPOSE OF BILL:
To create a free standing commission that will have as its mandate the
monitoring and reporting of investment decisions of the Common
Retirement Fund made by the New York State Comptroller. The
Commission will report to the Governor and the New York State.

JUSTIFICATION:
By definition the New York State Common Retirement Fund P,Fund") is
comprised of all of the assets of income of the Employee's Retirement
System; and of the Policemen's and Firemen's Retirement System.
Together there are over 650,000 contributors in addition to the
approximate 315,000 pensioners and beneficiaries in the System,
bringing the total number of participants to more than 965,000. The
Fund is among the largest state sponsored fund in the United States.

The New York State Comptroller is the administrative head and
fiduciary of the Retirement System. As sole trustee, the State
Comptrollers directly answerable to retirees and shall invest the
available monies of the Fund in any investments and securities
authorized by law for each retirement system. The management of such
fund Significantly affects publicly held companies, the securities
markets and the economy as a whole. More directly, the fund affects
taxpayers and the many state retirees who rely on the funds for their
pensions and other benefits. In fact, a, large percentage of the
contributions are generated by employees who reside in underserved
economically at risk communities who would greatly benefit from sound
social institutional investments. Social investments by way of
corporate civic funds, for example, does not require a. change in
how. fund managers do business rather it enables fund managers to
finance projects that benefit the community through the creation of
jobs and diversified economic growth.

As such, as a matter of public policy, the Comptroller Investment
Review Commission is established as a monitoring and reporting body
of the state comptroller's office to assure an institutional
commitment to advancing the social investment market.

PRIOR LEGISLATIVE HISTORY: New Legislation.

FISCAL IMPLICATIONS: $500,000


EFFECTIVE DATE: This act shall take effect immediately.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1822

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sens. ESPAILLAT, PERKINS -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Finance

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:

  Section 1. Section 13 of the retirement and  social  security  law  is
amended by adding a new subdivision l to read as follows:
  L.  CONSISTENT  WITH THE COMPTROLLER'S ROLE AS THE ADMINISTRATIVE HEAD
OF THE RETIREMENT SYSTEM AND SOLE TRUSTEE AND FIDUCIARY  OF  THE  COMMON
RETIREMENT  FUND,  THE COMPTROLLER SHALL COMPLY WITH THE REQUIREMENTS OF
ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW WITH RESPECT TO ANY CONTRACTS FOR
INVESTMENT SERVICES.
  S 2. Section 98-a of the state finance law is amended by adding a  new
subdivision 3 to read as follows:
  3.  THE  COMPTROLLER  SHALL  COMPLY  WITH  THE REQUIREMENTS OF ARTICLE
FIFTEEN-A OF THE EXECUTIVE LAW WITH RESPECT TO ANY CONTRACTS FOR INVEST-
MENT SERVICES.
  S 3. The retirement and social security law is amended by adding a new
section 423-d to read as follows:
  S 423-D. COMPTROLLER INVESTMENT REVIEW COMMISSION. 1.  APPOINTMENT  OF
MEMBERS.  THERE  SHALL  BE  ESTABLISHED  A COMPTROLLER INVESTMENT REVIEW
COMMISSION TO CONSIST OF ELEVEN MEMBERS  TO  BE  APPOINTED  AS  FOLLOWS:
FIVE  MEMBERS  SHALL  BE APPOINTED BY THE GOVERNOR, TWO MEMBERS SHALL BE
APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE, TWO MEMBERS SHALL BE
APPOINTED BY THE SPEAKER OF THE ASSEMBLY, ONE MEMBER SHALL BE  APPOINTED
BY  THE  MINORITY LEADER OF THE SENATE AND ONE MEMBER SHALL BE APPOINTED
BY THE MINORITY LEADER OF THE ASSEMBLY. OF THE FIVE MEMBERS APPOINTED BY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04985-01-3

S. 1822                             2

THE GOVERNOR ONE SHALL BE SELECTED FROM  AMONG  THE  LEADERSHIP  OF  THE
UNIONS  REPRESENTING  POLICE, FIREFIGHTERS OR STATE EMPLOYEES, ONE SHALL
BE AN EXPERT IN THE FIELD OF FINANCIAL INVESTING, AND TWO SHALL BE RETI-
REES OF A PUBLIC PENSION SYSTEM. MEMBERS SHALL BE REPRESENTATIVE OF BOTH
THE  UPSTATE  AND DOWNSTATE URBAN AND RURAL GEOGRAPHIC AREAS OF NEW YORK
STATE AND SHALL ALSO REPRESENT UNDERSERVED, ECONOMICALLY AT-RISK AREAS.
  2. TERMS OF OFFICE; VACANCIES. A. THE TERMS OF OFFICE  OF  MEMBERS  OF
THE  COMMISSION  SHALL BE FOUR YEARS; PROVIDED THAT INITIAL APPOINTMENTS
SHALL BE TO STAGGERED TERMS WITH THE MEMBERS APPOINTED  BY  THE  SPEAKER
AND  MINORITY  LEADER  OF  THE  ASSEMBLY TO INITIAL FOUR-YEAR TERMS, THE
MEMBERS APPOINTED BY THE TEMPORARY PRESIDENT AND MINORITY LEADER OF  THE
SENATE TO INITIAL THREE-YEAR TERMS AND MEMBERS APPOINTED BY THE GOVERNOR
TO  INITIAL TWO-YEAR TERMS. THE MEMBERS OF THE COMMISSION SHALL CONTINUE
IN OFFICE UNTIL THE EXPIRATION OF THEIR TERMS AND UNTIL THEIR SUCCESSORS
ARE APPOINTED AND HAVE QUALIFIED. SUCH APPOINTMENTS SHALL BE MADE WITHIN
ONE YEAR FOLLOWING THE EXPIRATION OF SUCH TERMS.
  B. VACANCIES SHALL BE FILLED FOR THE UNEXPIRED TERMS WITHIN  ONE  YEAR
OF  THE  DATE  UPON WHICH SUCH VACANCIES OCCUR IN THE SAME MANNER AS THE
ORIGINAL APPOINTMENT.
  3. MEETINGS. A. THE COMMISSION SHALL MEET AS FREQUENTLY AS  ITS  BUSI-
NESS MAY REQUIRE, AND AT LEAST TWICE IN EACH YEAR.
  B.  THE  GOVERNOR SHALL DESIGNATE ONE OF THE MEMBERS OF THE COMMISSION
TO ACT AS ITS CHAIR.
  4. COMPENSATION AND EXPENSES. THE  MEMBERS  OF  THE  COMMISSION  SHALL
SERVE WITHOUT COMPENSATION OTHER THAN REIMBURSEMENT OF ACTUAL AND NECES-
SARY EXPENSES.
  5. POWERS AND DUTIES. A.  THE COMMISSION SHALL:
  (1)  MONITOR AND REPORT ON THE TARGETED INVESTMENT PROGRAMS CREATED BY
THE COMPTROLLER'S OFFICE AND ASSURE THAT CONTRIBUTORS OF  THE  FUND  AND
THE COMMUNITIES THEY REPRESENT BENEFIT FROM SUCH PROGRAMS.
  (2)  MONITOR  AND REPORT ON THE PROMOTION OF BEST INVESTMENT PRACTICES
IN URBAN REVITALIZATION TO INCLUDE AFFORDABLE HOUSING, URBAN INFRASTRUC-
TURE, RETAIL AND OFFICE DEVELOPMENTS, INVESTMENTS IN  SMALL  AND  MEDIUM
ENTERPRISES AND WOMAN AND MINORITY-OWNED BUSINESSES.
  (3)  MONITOR  AND  REPORT ON THE USE OF WOMEN AND MINORITY-OWNED BUSI-
NESSES IN THE OPERATIONS OF THE COMPTROLLER'S OFFICE IN ACCORDANCE  WITH
ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW.
  (4)  MONITOR AND REPORT ON THE USE OF MINORITY AND WOMEN-OWNED BROKER-
AGE SERVICE PROVIDERS WHEN TRADING FOR THE INTERNALLY MANAGED ASSETS.
  (5) MONITOR AND REPORT ON THE USE OF THE FUND'S EXTERNAL EQUITY MANAG-
ERS USE OF WOMEN AND MINORITY-OWNED BROKERS.
  (6) MONITOR AND REPORT ON THE USE OF WOMEN AND MINORITY-OWNED FIRMS TO
EXECUTE LONG-TERM AND SHORT-TERM TRADES.
  (7) MONITOR AND REPORT ON THE ECONOMIC DEVELOPMENT AND  INFRASTRUCTURE
BUILDING  OF  AT-RISK  COMMUNITIES  OF  THE STATE TO PRESERVE AFFORDABLE
HOUSING; THE PROVISIONS OF GUARANTEED MARKET RATE LOANS TO  SMALL  BUSI-
NESSES;  AND PROGRAMS TO ASSIST IN TRANSITION TO NEW ECONOMIES WHERE THE
MANUFACTURING BASE IS ERODING.
  B. THE COMMISSION SHALL, ON OR BEFORE JANUARY FIFTEENTH OF EACH  YEAR,
PREPARE A REPORT TO THE COMPTROLLER, THE LEGISLATURE AND THE GOVERNOR ON
ITS FINDINGS AND RECOMMENDATIONS WITH RESPECT TO THE PROVISIONS OF PARA-
GRAPH A OF THIS SUBDIVISION.
  S  4.  The sum of five hundred thousand dollars ($500,000), or so much
thereof as may be necessary, is hereby appropriated for operating  costs
of the comptroller investment review commission out of any moneys in the
state  treasury  in the general fund to the credit of the state purposes

S. 1822                             3

account, not otherwise appropriated, and made immediately available, for
the purpose of carrying out the provisions  of  this  act.  Such  moneys
shall be payable on the audit and warrant of the comptroller on vouchers
certified  or  approved  by  the comptroller in the manner prescribed by
law.
  S 5. This act shall take effect immediately.

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