Introduced By: Senators Lenihan, Cicilline, Goodwin, Coderre and Enos
Date Introduced : February 3, 1999
It is enacted by the General Assembly as follows:
SECTION 1. Section 35-10-1 of the General Laws in Chapter 35-10 entitled "State Investment Commission" is hereby amended to read as follows:
35-10-1. Establishment -- Membership -- Officers -- Quorum -- Investment votes -- Fund managers. -- (a) There is hereby established a state investment commission, the membership of which shall consist of the general treasurer, ex officio, or a deputy general treasurer as his or her designee, who shall act as chairperson, the director of administration, ex officio, or any assistant director of administration as his or her designee, who shall act as secretary, the chairperson of the finance committee of the senate, or any senator as his designee, the chairperson of the finance committee of the house of representatives, ex officio, or his or her designee, {ADD the chairperson of the higher education assistance authority, ex officio, or his or her designee, an active teacher, state, or municipal employee member of the retirement system or official from the teacher, state, or municipal employee unions to be appointed by the general treasurer, ADD} the executive director of the state retirement board, who shall be a nonvoting member, and three (3) members to be appointed by the governor, each for a term of three (3) years and until his or her successor is appointed and qualified. The members appointed by the governor shall be qualified by training and experience in the field of investment or finance.
(b) During the month of February in each year the governor shall appoint a member to succeed the member whose term will then next expire, to serve until the first day of March in the third year next after his or her appointment, and until his or her successor is elected and qualified. A member shall be eligible to succeed himself or herself. In the event of a vacancy in the office of an appointive member, the vacancy shall be filled by appointment for the unexpired term.
(c) A majority of all the members of the commission shall be necessary to constitute a quorum thereof. The approval of a majority of the commission shall be required prior to the purchase or sale of any investment, excepting those investments made by investment managers engaged by the commission and invested in accordance with the commission's statement of investment objectives and policies, day to day cash investments by the general treasurer, and, because of the importance of speedy action, investments in obligations of the United States government or certificates of deposit maturing within one year. These investments may be made within the framework of a policy established by the commission without prior approval of each transaction. The commission shall be empowered to engage one or more fund managers and to delegate to the manager or managers the authority to carry out the investment of the funds within the commission's control, or any portion thereof, in accordance with the objectives of the commission as set forth in its statement of investment objectives and policies.
(d) The day-to-day administration of the commission, including the voting of proxies and the execution of investment acquisitions and dispositions of the commission's assets, shall be carried out by the office of the general treasurer; provided, that the costs and expenses incurred in the management of the funds within the commission's control shall remain the obligation of those funds and not that of the general treasurer.
SECTION 2. This act shall take effect upon passage.
