AB920,13,22 2125.01 Definition. In this chapter, unless the context requires otherwise,
22"board" means the investment board.
Note: Under s. 24.01 (2), in chs. 23 to 29, "board" means the board of commissioners
of public lands. Ch. 169, Laws of 1981, renumbered all of the public lands provisions in

ch. 25 to be in ch. 24 and contains a note saying "This bill consolidates the program
responsibilities of the board of commissioners of public lands into chapter 24 of the
statutes." Chapter 25 now relates to the program responsibilities of the investment
board.
This bill excepts the applicability of the s. 24.01 (2) definition to ch. 25 and defines
"board" as the investment board for purposes of ch. 25. Currently in ch. 25, the
investment board is referred to as both "the board" and the "investment board". Except
in provisions that contain references to other boards as well the investment board, this
bill replaces "the investment board" with "the board". See also the treatment of s. 24.01
(2) by this bill.
AB920, s. 24 1Section 24. 25.14 (1) of the statutes is renumbered 25.14 (1) (a) (intro.) and
2amended to read:
AB920,14,73 25.14 (1) (a) (intro.) There is created a state investment fund under the
4jurisdiction and management of the investment board (hereinafter referred to as
5"board")
to be operated as an investment trust for the purpose of managing the
6securities of all of the state's funds consisting of the funds specified in s. 25.17 (1),
7except the all of the following:
AB920,14,8 81. The state life fund,.
AB920,14,9 92. The fixed retirement investment trust, .
AB920,14,10 103. The variable retirement investment trust,.
AB920,14,11 114. The capital improvement fund,.
AB920,14,12 125. The bond security and redemption fund, .
AB920,14,13 136. The state building trust fund, the .
AB920,14,14 147. The state housing authority reserve fund, the.
AB920,14,15 158. The children's trust fund, the.
AB920,14,16 169. The patients compensation fund, the.
AB920,14,17 1710. The tuition trust fund, funds which .
AB920,14,19 1811. Funds that under article X of the constitution are controlled and invested
19by the board of commissioners of public lands, funds which.
AB920,15,2
112. Funds that are required by specific provision of law to be controlled and
2invested by any other authority, the.
AB920,15,3 313. The university trust funds and the.
AB920,15,4 414. The trust funds of the state universities except that the.
AB920,15,8 5(b) The respective authorities controlling the investment of any such excluded
6fund excluded under par. (a) may authorize the transfer of any temporary cash assets
7of any such excluded fund excluded under par. (a) to the state investment fund in
8accordance with subs. (2) and (3).
Note: Renumbers provision for improved readability and conformity with current
style. The stricken language in par. (a) (intro.) is unnecessary after the creation of the
definition of "board" as s. 25.01 by this bill. Replaces "which" with "that" to correct
grammar.
AB920, s. 25 9Section 25. 25.14 (3) of the statutes is amended to read:
AB920,15,2010 25.14 (3) The department of administration, upon consultation with the
11investment board, shall distribute all earnings, profits or losses of the state
12investment fund to each participating fund in the same ratio as each such
13participating fund's average daily balance within the state investment fund bears to
14the total average daily balance of all participating funds, except as provided in s.
1514.58 (19) and except that the department of administration shall credit to the
16appropriation account under s. 20.585 (1) (jt) an amount equal to the amount
17assessed under s. 25.19 (3) from the earnings or profits of the funds against which
18an assessment is made. Such distribution Distributions under this section shall be
19made at such times as the department of administration may determine, but must
20be made at least semiannually in each complete fiscal year of operation.
Note: Insert specific references. See also the note to the creation of s. 25.01 by this
bill.
AB920, s. 26 21Section 26. 25.15 (5) of the statutes is amended to read:
AB920,16,2
125.15 (5) Commissions. All records of commissions paid by the investment
2board for purchases and sales of investments are open to public inspection.
Note: See the note to the creation of s. 25.01 by this bill.
AB920, s. 27 3Section 27. 25.156 (1) of the statutes is amended to read:
AB920,16,64 25.156 (1) The members of the board shall be the governing body of the
5investment board and shall promulgate rules and formulate policies deemed
6considered necessary and appropriate to carry out its functions.
Note: Replaces disfavored term. See also the note to the creation of s. 25.01 by this
bill.
AB920, s. 28 7Section 28. 25.156 (2) of the statutes, as affected by 1999 Wisconsin Act 9, is
8amended to read:
AB920,16,139 25.156 (2) The investment board shall employ an executive director, who shall
10serve outside the classified service. The executive director shall be qualified by
11training and prior experience to manage, administer and direct the investment of
12funds. The investment board shall fix the compensation of the executive director,
13and may award bonus compensation.
Note: See the note to the creation of s. 25.01 by this bill.
AB920, s. 29 14Section 29. 25.156 (2m) of the statutes is amended to read:
AB920,16,1715 25.156 (2m) The investment board shall employ an internal auditor, who shall
16serve outside the classified service. The board shall fix the compensation of the
17internal auditor.
Note: See the note to the creation of s. 25.01 by this bill.
AB920, s. 30 18Section 30. 25.156 (8) of the statutes is amended to read:
AB920,16,1919 25.156 (8) The investment board shall keep full minutes of its proceedings.
Note: See the note to the creation of s. 25.01 by this bill.
AB920, s. 31 20Section 31. 25.156 (9) of the statutes is amended to read:
AB920,17,3
125.156 (9) The chairperson of the investment board shall appear at least
2annually before any committee established in the senate, whose jurisdiction includes
3financial institutions, if that committee so requests.
Note: See the note to the creation of s. 25.01 by this bill.
AB920, s. 32 4Section 32. 25.16 (1) of the statutes is amended to read:
AB920,17,105 25.16 (1) The executive and administrative functions of the investment board,
6except for the functions performed by the internal auditor under s. 25.165 (2), shall
7be vested in an executive director, who shall perform the functions of executive
8director in conformity with the requirements of the members of the board and in
9accordance with policies, principles and directives determined by the members of the
10board.
Note: See the note to the creation of s. 25.01 by this bill.
AB920, s. 33 11Section 33. 25.16 (2) of the statutes is amended to read:
AB920,18,212 25.16 (2) Subject to authorization under s. 16.505, the executive director may
13appoint a chief legal counsel, chief financial officer, chief risk officer and not more
14than 11 investment directors and shall appoint a chief investment officer and all
15other employes necessary to carry out the functions of the investment board, except
16that the investment board shall appoint the internal auditor and shall participate
17in the selection of the chief investment officer and investment directors and the
18internal auditor shall appoint his or her staff. The executive director shall appoint
19all employes outside the classified service, except blue collar and clerical employes.
20Neither the executive director, the internal auditor, the chief investment officer, the
21chief legal counsel, the chief financial officer, the chief risk officer, any investment
22director nor any other employe of the board shall have any financial interest, either
23directly or indirectly, in any firm engaged in the sale or marketing of real estate or

1investments of any kind, nor shall any of them render investment advice to others
2for remuneration.
Note: See the note to the creation of s. 25.01 by this bill.
AB920, s. 34 3Section 34. 25.16 (7) of the statutes, as affected by 1999 Wisconsin Act 9, is
4amended to read:
AB920,18,95 25.16 (7) The executive director shall fix the compensation of all employes
6appointed by the executive director, subject to restrictions set forth in the
7compensation plan under s. 230.12 or any applicable collective bargaining
8agreement in the case of employes in the classified service, but the investment board
9may provide for bonus compensation to employes in the unclassified service.
Note: See the note to the creation of s. 25.01 by this bill.
AB920, s. 35 10Section 35. 25.165 (1) of the statutes, as affected by 1999 Wisconsin Act 9, is
11amended to read:
AB920,18,2112 25.165 (1) There is created in the investment board an internal audit subunit,
13under the supervision of the internal auditor. The internal auditor shall report
14directly to the board and, subject to authorization under s. 16.505, shall appoint all
15employes necessary to carry out the duties of the internal auditor. The internal
16auditor shall appoint all employes outside the classified service, except blue collar
17and clerical employes. The internal auditor shall fix the compensation of all
18employes appointed by the internal auditor, subject to restrictions set forth in the
19compensation plan under s. 230.12 or any applicable collective bargaining
20agreement in the case of employes in the classified service, but the investment board
21may provide for bonus compensation to employes in the unclassified service.
Note: See the note to the creation of s. 25.01 by this bill.
AB920, s. 36 22Section 36. 25.17 (1) (pg) of the statutes is amended to read:
AB920,19,5
125.17 (1) (pg) State building trust fund (s. 25.30), except for the purpose and
2extent of loans to the Wisconsin state public building corporation State Public
3Building Corporation
, the Wisconsin university building corporation University
4Building Corporation
, and the Wisconsin state colleges building corporation State
5Colleges Building Corporation
, which are subject to sub. (2) (b); and
Note: Deletes unnecessary "and" and capitalizes corporate titles consistent with
current style.
AB920, s. 37 6Section 37. 25.17 (2) (a) of the statutes is amended to read:
AB920,19,207 25.17 (2) (a) Invest any of the funds specified in sub. (1), except operating funds,
8the capital improvement fund and the bond security and redemption fund, in loans
9to the Wisconsin university building corporation, state colleges building corporation
10University Building Corporation, the Wisconsin State Colleges Building
11Corporation
or the Wisconsin state public building corporation State Public Building
12Corporation
, but only if such the loans are secured by mortgages upon property
13owned by the respective corporations producing sufficient income to retire the
14mortgage over the term of the loan or are secured by the pledge of rentals sufficient
15in amount to retire the indebtedness. The investment board shall make no loans to
16any building corporation described in this subsection except under the conditions
17herein prescribed in this paragraph, or except as otherwise provided in par. (b).
18These loans shall be made only when in the judgment of the investment board it is
19to the interest of the funds to do so, except that loans made under par. (b) shall be
20made at the direction of the building commission.
Note: Capitalizes corporate titles consistent with current style and inserts specific
references. See also the note to the creation of s. 25.01 by this bill.
AB920, s. 38 21Section 38. 25.17 (2) (b) of the statutes is amended to read:
AB920,20,11
125.17 (2) (b) Invest the state building trust fund in loans to the Wisconsin state
2public building corporation
State Public Building Corporation, to the Wisconsin
3university building corporation University Building Corporation, and to the
4Wisconsin state colleges building corporation State Colleges Building Corporation.
5Except for interim loans for construction, or other temporary financing for the
6purchase of lands, planning (, including both engineering and financing), and all
7other expenses incidental to any of the foregoing, such loans under this paragraph
8shall be secured by a pledge and assignment of net revenues derived from the
9operation of buildings by said corporations the borrowing corporation on lands leased
10or conveyed to said corporations the corporation. Any such loan under this
11paragraph
shall be made upon the direction of the building commission.
Note: Capitalizes corporate titles consistent with current style and inserts specific
references. Replaces parentheses in conformity with current style.
AB920, s. 39 12Section 39. 25.17 (2) (d) of the statutes is amended to read:
AB920,20,1913 25.17 (2) (d) Invest the environmental improvement fund, and collect the
14principal and interest of all moneys loaned or invested from the environmental
15improvement fund, as directed by the department of administration under s. 281.59
16(2m). In making such investment investments under this paragraph, the investment
17board shall accept any reasonable terms and conditions that the department of
18administration specifies and is relieved of any obligations relevant to prudent
19investment of the fund, including those set forth under ch. 881.
Note: Inserts specific references. See also the note to the creation of s. 25.01 by
this bill.
AB920, s. 40 20Section 40. 25.17 (2) (e) of the statutes is amended to read:
AB920,21,521 25.17 (2) (e) Invest the transportation infrastructure loan fund, and collect the
22principal and interest of all moneys loaned or invested from the transportation

1infrastructure loan fund, as directed by the department of administration under s.
285.52 (4m). In making such investment investments under this paragraph, the
3investment board shall accept any reasonable terms and conditions that the
4department of administration specifies and is relieved of any obligations relevant to
5prudent investment of the fund, including those set forth under ch. 881.
Note: Inserts specific references. See also the note to the creation of s. 25.01 by
this bill.
AB920, s. 41 6Section 41. 25.17 (5) of the statutes is amended to read:
AB920,21,237 25.17 (5) The limitations upon the percentage of the assets of any fund which
8that are imposed by sub. (4) or any other statute shall not be applicable to
9investments made by the investment board of funds in the variable retirement
10investment trust created under s. 40.04 (3) and said those investments shall be
11excluded in computing the assets to which any such the limitations imposed by sub.
12(4)
apply. Assets of the variable retirement investment trust shall be invested
13primarily in equity securities which that shall include common stocks, real estate or
14other recognized forms of equities whether or not subject to indebtedness, including
15securities convertible into common stocks and securities of corporations in the
16venture capital stage. The investment board may, however, temporarily invest such
17assets of the variable retirement investment trust in investments which that are
18authorized under sub. (3), but the assets so temporarily invested shall be replaced
19by equity securities at the earliest time deemed considered by the board to be
20practicable considering the then existing condition of the securities market and other
21influential factors. Investments in securities of corporations which that are in the
22venture capital stage shall not exceed 2% of the admitted assets of the variable
23retirement investment trust.

Note: Replaces disfavored terms, inserts specific references and replaces "which"
with "that" to correct grammar. See also the note to the creation of s. 25.01 by this bill.
AB920, s. 42 1Section 42. 25.17 (6) of the statutes is amended to read:
AB920,22,162 25.17 (6) Notwithstanding any other statute, transfers from the variable
3retirement investment trust to the fixed retirement investment trust under s. 40.04
4(7) may be made in cash or securities or both as determined by the investment board.
5The investment board shall determine market values for securities in the variable
6retirement investment trust as of the close of business on the last working day
7preceding a transfer. If securities are transferred, to the extent determined feasible
8by the investment board, a proportionate amount of all securities in even hundreds
9of shares of stock or even thousands of par value of bonds in the variable retirement
10investment trust shall be transferred. The investment board may hold or sell the
11transferred securities as it determines appropriate considering market and
12economic conditions. Any limitation on the percentage of assets in common stocks
13or in the stock of one company does not apply to the transferred securities, except the
14investment board shall, at such time as it determines that market, economic and
15other conditions are appropriate to the sale of the securities, sell sufficient
16transferred securities so as to comply with percentage of asset limitations.
Note: Inserts "that" to improve readability. See also the note to the creation of s.
25.01 by this bill.
AB920, s. 43 17Section 43. 25.17 (8) of the statutes is amended to read:
AB920,22,2218 25.17 (8) Accept, when necessary to protect a mortgage loan, a quitclaim deed
19or warranty deed to the mortgaged property in full satisfaction of the mortgage debt,
20and manage, operate, lease, exchange, sell and convey, by land contract, quitclaim
21deed or warranty deed, and grant easement rights in, any real property acquired by
22said the board.

Note: Inserts comma to correct grammar. See also the note to the creation of s.
25.01 by this bill.
AB920, s. 44 1Section 44. 25.17 (9) of the statutes is amended to read:
AB920,23,122 25.17 (9) Give such advice and assistance as may be requested by the board of
3commissioners of public lands or the board of regents of the University of Wisconsin
4System in concerning the investment of any moneys which that under sub. (1) are
5excepted from the moneys to be loaned or invested by the investment board, and
6assign, sell, convey and deed to them such the board of commissioners of public lands
7or the board of regents of the University of Wisconsin System any
investments made
8by the said investment board as may be mutually agreeable. The cost of any services
9rendered to the board of commissioners of public lands or the board of regents of the
10University of Wisconsin System pursuant to under this section shall be charged to
11the fund to which the moneys invested belong and shall be added to the appropriation
12to the investment board in s. 20.536.
Note: Inserts specific references and a missing "the". Deletes unnecessary
language. Replaces "which" with "that" to correct grammar. See also the note to the
creation of s. 25.01 by this bill.
AB920, s. 45 13Section 45. 25.17 (10) of the statutes is amended to read:
AB920,23,2014 25.17 (10) If a building constitutes any part of the security for a loan made by
15the investment board under s. 25.17 (3) (bh) or 620.22 (2), such the building shall be
16kept insured for at least the unpaid amount of the loan or such any larger amount
17as that may be necessary to comply with any coinsurance clause inserted in or
18attached to the policy. When the full insurable value of the building is less than the
19unpaid amount of the loan, such the building shall be kept insured for the full
20insurable value thereof of the building.
Note: Inserts specific reference. Replaces "such" for internal consistency and to
modernize language. See also the note to the creation of s. 25.01 by this bill.
AB920, s. 46 21Section 46. 25.17 (12) (d) of the statutes is amended to read:
AB920,24,3
125.17 (12) (d) All other state boards, commissions, departments, institutions
2and officers in the investment of any funds which that under sub. (1) are hereafter
3to be loaned and invested by the investment board.
Note: Replaces incorrectly used "which". Deletes superfluous "hereafter". See also
the note to the creation of s. 25.01 by this bill.
AB920, s. 47 4Section 47. 25.17 (13) of the statutes is amended to read:
AB920,24,75 25.17 (13) Succeed to all of the property, documents, records and assets of the
6state annuity and investment board in the investment of the several funds which
7that were under the control of said the state annuity and investment board.
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