Bill Text: NY A10636 | 2023-2024 | General Assembly | Introduced

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Bill Title: Prohibits the use of investment managers to assist with investments of monies in the common retirement fund; requires that all current contracts with investment managers not be renewed after a period of one year.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-06-20 - referred to governmental employees [A10636 Detail]

Download: New_York-2023-A10636-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10636

                   IN ASSEMBLY

                                      June 20, 2024
                                       ___________

        Introduced by COMMITTEE ON RULES -- (at request of M. of A. Rajkumar) --
          read once and referred to the Committee on Governmental Employees

        AN  ACT  to amend the retirement and social security law, in relation to
          prohibiting investing in the common retirement fund  using  investment
          managers

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 424-a of the retirement and social security law, as
     2  added by chapter 203 of the laws of 2018, is amended to read as follows:
     3    § 424-a. Use of [placement agents or intermediaries] investment manag-
     4  ers prohibited. 1. [The] (a) Beginning on  the  effective  date  of  the
     5  chapter  of  the  laws  of  two  thousand twenty-four which amended this
     6  subdivision, the fund shall not enter into any contract to engage, hire,
     7  invest with or commit to  an  investment  manager  [that  is  using  the
     8  services  of  a placement agent or intermediary] to assist [such invest-
     9  ment manager] in obtaining investments, other than real property, by the
    10  fund [nor shall the fund engage, hire,  invest  with  or  commit  to  an
    11  investment  manager  without  obtaining  from  such investment manager a
    12  certification in the form and manner prescribed by the fund stating that
    13  such investment manager has not used the services of a  placement  agent
    14  or  other  intermediary  to  assist such investment manager in obtaining
    15  investments by the fund].
    16    (b) Beginning on the effective date of the chapter of the laws of  two
    17  thousand  twenty-four which amended this subdivision, the fund shall not
    18  renew any existing contracts to engage, hire, invest with or  commit  to
    19  an investment manager to assist in obtaining investments by the fund.
    20    2. For the purposes of this section[:
    21    (a)],    "investment  manager"  shall  mean  any person, other than an
    22  employee of the comptroller, or entity engaged by the common  retirement
    23  fund  to  manage  a  part or all of an investment portfolio of the fund,
    24  other than real property owned by the fund.  "Manage" shall include, but
    25  is not limited to, the analysis of portfolio holdings, and the purchase,
    26  sale, and lending thereof. Any investment made by the fund  pursuant  to
    27  subdivision  seven  of section one hundred seventy-seven of this chapter

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14094-03-4
        A. 10636                            2

     1  shall be deemed to be the investment of  the  fund  in  such  investment
     2  entity rather than in the assets of such investment entity.
     3    [(b)  "placement agent or intermediary" shall mean any person or enti-
     4  ty, including registered lobbyists, directly or indirectly  engaged  and
     5  compensated  by  an  investment  manager,  other than an employee of the
     6  investment manager,  to  assist  the  investment  manager  in  obtaining
     7  investments  by the fund whether compensated on a flat fee, a contingent
     8  fee, or any other basis. Employees of  an  investment  manager  and  its
     9  affiliates  are  excluded  from this definition unless they are employed
    10  principally for the purpose of securing or influencing the  decision  to
    11  secure a particular investment transaction or investment by the fund.]
    12    §  2. This act shall take effect on the first of January next succeed-
    13  ing one year after it shall have become a law.