SB402-SSA1,6,2520 25.17 (14g) Annually, on or before January 1, submit to the joint legislative
21audit committee, to the joint committee on finance and to the chief clerk of each
22house, for distribution to the appropriate standing committees under s. 13.172 (3),
23a report of the board's annual investment goals and long-term investment
24strategies. The report shall specify any change in the annual investment goals and
25long-term investment strategies from those in the previous year.
SB402-SSA1, s. 18
1Section 18. 25.17 (14m) of the statutes is repealed and recreated to read:
SB402-SSA1,7,52 25.17 (14m) Annually, on or before March 31, submit to the joint legislative
3audit committee, to the joint committee on finance and to the chief clerk of each
4house, for distribution to the appropriate standing committees under s. 13.172 (3),
5a report including all of the following:
SB402-SSA1,7,76 1. An assessment of the board's progress in meeting its annual investment
7goals established in the report under sub. (14g).
SB402-SSA1,7,148 2. Information on the types of investments held by the board, including the
9market values of the investments and the degree of risk associated with the
10investments, the board's use of derivatives, as defined in s. 25.183 (1) (a), any
11ventures by the board into new markets, any use of new investment instruments by
12the board and a comparison of the investment performance of the board to that
13achieved by a peer group of public and private entities that invest similar-sized
14funds.
SB402-SSA1,7,1715 3. A discussion of the amounts and categories of investments made within the
16state, including the amounts and categories of investments described, and progress
17in meeting the objectives of the plan submitted, under sub. (70).
SB402-SSA1, s. 19 18Section 19. 25.17 (14r) of the statutes is created to read:
SB402-SSA1,7,2319 25.17 (14r) Upon adopting any change in the board's investment policies or
20guidelines, submit to the joint legislative audit committee, to the joint committee on
21finance and to the chief clerk of each house, for distribution to the appropriate
22standing committees under s. 13.172 (3), a report summarizing the change in the
23investment policies or guidelines.
SB402-SSA1, s. 20 24Section 20. 25.17 (51) of the statutes is amended to read:
SB402-SSA1,8,8
125.17 (51) Annually, have the legislative audit bureau conduct a financial audit
2to include, including an assessment of the fair presentation of the financial
3statements and an evaluation of accounting controls and accounting records the
4internal control structure
of the board. As part of the financial audit, the legislative
5audit bureau shall identify certain statutes and policies and guidelines adopted by
6the board and shall determine the extent of compliance by the board with the
7statutes, policies and guidelines.
The board shall reimburse the legislative audit
8bureau for the cost of audits required to be performed under this subsection.
SB402-SSA1, s. 21 9Section 21. 25.17 (51m) of the statutes is created to read:
SB402-SSA1,8,1310 25.17 (51m) Biennially, have the legislative audit bureau conduct a
11performance evaluation audit that includes an audit of the board's policies and
12management practices. The board shall reimburse the legislative audit bureau for
13the cost of audits required to be performed under this subsection.
SB402-SSA1, s. 22 14Section 22. 25.18 (1) (intro.) of the statutes is amended to read:
SB402-SSA1,8,1615 25.18 (1) (intro.) In addition to the powers and duties enumerated in s. 25.17,
16but subject to s. 25.183,
the investment board may:
SB402-SSA1, s. 23 17Section 23. 25.18 (1) (L) of the statutes is repealed.
SB402-SSA1, s. 24 18Section 24. 25.18 (2) (intro.) of the statutes is amended to read:
SB402-SSA1,8,2019 25.18 (2) (intro.) In addition to the powers set forth in sub. (1) and s. 25.17, but
20subject to s. 25.183
, the investment board may:
SB402-SSA1, s. 25 21Section 25. 25.18 (2) (e) of the statutes is amended to read:
SB402-SSA1,9,722 25.18 (2) (e) Contract with and delegate to investment advisers the
23management and control over assets from any fund or trust delivered to such
24investment advisers for investment in real estate, mortgages, equities, debt of
25foreign corporations and debt of foreign governments, and pay such advisers fees

1from the current income of the fund or trust being invested. No more than 10% 20%
2of the total assets of the fixed retirement investment trust or 10% 20% of the total
3assets of the variable retirement investment trust may be delivered to investment
4advisers. The board shall set performance standards for such investment advisers,
5monitor such investments to determine if performance standards are being met and
6if an investment adviser does not consistently meet the performance standards then
7terminate the contract with such investment adviser.
SB402-SSA1, s. 26 8Section 26. 25.183 of the statutes is created to read:
SB402-SSA1,9,9 925.183 Certain investments prohibited. (1) Definitions. In this section:
SB402-SSA1,9,1310 (a) "Derivative" means any financial contract or other instrument that derives
11its value from the value or performance of any security, currency exchange rate or
12interest rate or of any index or group of any securities, currency exchange rates or
13interest rates, but does not include any of the following:
SB402-SSA1,9,1614 1. Any security that is traded on a national securities exchange or on an
15automated interdealer quotation system sponsored by a securities association
16registered under 15 USC 78o-3, et seq.
SB402-SSA1,9,1817 2. Any forward contract which has a maturity at the time of issuance not
18exceeding 270 days.
SB402-SSA1,9,21193. Any contract of sale of a commodity, as defined under 7 USC 2, for future
20delivery, or any option on such a contract, traded or executed on a designated contract
21market and subject to regulation under 7 USC 1 to 26.
SB402-SSA1,9,2422 4. Any security of an open-end management investment company or
23investment trust, if the investment company or investment trust is registered under
2415 USC 80a-1 to 80a-64.
SB402-SSA1,9,2525 5. Any deposit held by a financial institution.
SB402-SSA1,10,1
16. Any investment specifically authorized under s. 25.17 (3) (b) and (ba).
SB402-SSA1,10,62 6e. Any collateralized mortgage obligation or other asset-backed security
3which either has one of the 2 highest ratings given by a nationally recognized rating
4service or is backed or collateralized by insured instruments, guarantees or pledges
5of the federal government, this state or an agency of the federal government or this
6state.
SB402-SSA1,10,87 6m. Any transaction permitted under s. 25.18 (1) (n), if all of the following
8conditions are met at the time the transaction is entered into:
SB402-SSA1,10,119 a. The counterparty to the transaction is rated in, or has outstanding long-term
10debt which is rated in, one of the 2 highest ratings given by a nationally recognized
11rating service.
SB402-SSA1,10,1312 b. The transaction is used only for specified hedging or interest rate risk
13reduction purposes.
SB402-SSA1,10,1514 c. All of the board's payment obligations under the transaction are fully backed
15by distinctly identified assets held in the state investment fund.
SB402-SSA1,10,1716 7. Any financial contract or instrument that the board determines, by rule, is
17not a derivative.
SB402-SSA1,10,2018 (b) "Reverse repurchase agreement" means an agreement for the sale of
19securities by the board under which the board will repurchase those securities on or
20before a specified date and for a specified amount.
SB402-SSA1,11,3 21(2) Derivative investments. After the effective date of this subsection ....
22[revisor inserts date], the board may not purchase or acquire any derivative in the
23state investment fund except in accordance with rules promulgated by the board.
24Rules promulgated under this subsection may not permit the purchase or acquisition
25of derivatives in the state investment fund unless the purchase or acquisition is

1made for the purpose of reducing risk of price changes or of interest rate or currency
2exchange rate fluctuations with respect to investments held or to be held by the
3board.
SB402-SSA1,11,7 4(3) Reverse repurchase agreements. After the effective date of this subsection
5.... [revisor inserts date], the board may not enter into any reverse repurchase
6agreement unless the repurchase of securities under the agreement is required to
7occur no later than the next business day.
SB402-SSA1, s. 27 8Section 27. 25.50 (5) of the statutes is renumbered 25.50 (5) (intro.) and
9amended to read:
SB402-SSA1,11,1910 25.50 (5) Investment policies. (intro.) The investment board shall formulate
11policies for the investment and reinvestment of moneys in the fund and the
12acquisition, retention, management and disposition of such investments. The board
13shall provide a copy of the investment policies, together with any guidelines adopted
14by the board to direct staff investment activity, to each local government having an
15investment in the fund upon the local government's request and at least annually to
16all investors. The board shall distribute at least annually performance information
17over the preceding one-year, 5-year and 10-year periods, compared with
18appropriate indices or benchmarks in the private sector. The investment policies
19shall include all of the following:
SB402-SSA1, s. 28 20Section 28. 25.50 (5) (a) to (d) of the statutes are created to read:
SB402-SSA1,11,2121 25.50 (5) (a) Any types of prohibited investments.
SB402-SSA1,11,2222 (b) Any restrictions on allocation of assets among various asset types.
SB402-SSA1,11,2323 (c) Credit standards for private companies in which the fund may invest.
SB402-SSA1,11,2424 (d) Dollar or percentage limits on investments in a single company or bank.
SB402-SSA1, s. 29 25Section 29. 25.50 (5m) of the statutes is created to read:
SB402-SSA1,12,9
125.50 (5m) Monthly reporting requirements. (a) The board, in cooperation
2with the department of administration, shall provide information necessary for the
3state treasurer to provide a monthly report to each local government having an
4investment in the fund. The board shall use all reasonable efforts to provide the
5information to the state treasurer in time to allow the treasurer to mail or
6electronically transmit the report to the local government no later than 6 business
7days after the end of the month covered by the report. The report shall include
8information on the fund's earnings for the month, with comparison to appropriate
9indices or benchmarks in the private sector.
SB402-SSA1,12,1410 (b) Upon request of any local government having an investment in the fund,
11the board shall provide a summary of securities held by the fund, including for each
12type of security, its cost, current value and, in the case of debt instruments, the
13average maturity. The board shall provide the information as soon as practicable
14after receiving the request.
SB402-SSA1, s. 30 15Section 30. Nonstatutory provisions.
SB402-SSA1,12,21 16(1) Alternative insurance arrangements for the local government-pooled
17investment fund
. No later than the first day of the 2nd month beginning after
18publication, the investment board shall report to the joint legislative audit
19committee and to the joint committee on finance on alternative insurance
20arrangements for the local government pooled-investment fund under section 25.50
21of the statutes.
SB402-SSA1,12,22 22(2) Submission of investment board reports.
SB402-SSA1,13,2 23(a) Notwithstanding the deadline for the submission of the report of the
24investment board's annual investment goals and long-term investment strategies
25that is specified in section 25.17 (14g) of the statutes, as created by this act, the

1investment board, for the 1996 calendar year, shall submit the report on or before the
2first day of the 2nd month beginning after publication.
SB402-SSA1,13,7 3(b) Notwithstanding the deadline for the submission of the report of the
4investment board that is specified in section 25.17 (14m) of the statutes, as affected
5by this act, the investment board shall submit the report for 1995 on or before March
631, 1996, or on or before the first day of the 2nd month beginning after publication,
7whichever is later.
SB402-SSA1,13,10 8(3) Investment board officers. The officers of the investment board
9designated by the governor under section 15.07 (2) (a), 1993 stats., shall cease to hold
10the designated offices on the effective date of this subsection.
SB402-SSA1, s. 31 11Section 31. Appropriation changes.
SB402-SSA1,13,17 12(1) Internal auditor. In the schedule under section 20.005 (3) of the statutes
13for the appropriation to the investment board under section 20.536 (1) (k) of the
14statutes, as affected by the acts of 1995, the dollar amount is increased by $72,000
15for fiscal year 1995-96 and the dollar amount is increased by $210,900 for fiscal year
161996-97 to increase the authorized FTE positions for the investment board by 3.0 PR
17positions on April 1, 1996, for the performance of the functions of the internal auditor.
SB402-SSA1,13,24 18(2) Chief investment officer. In the schedule under section 20.005 (3) of the
19statutes for the appropriation to the investment board under section 20.536 (1) (k)
20of the statutes, as affected by the acts of 1995, the dollar amount is increased by
21$42,500 for fiscal year 1995-96 and the dollar amount is increased by $144,100 for
22fiscal year 1996-97 to increase the authorized FTE positions for the investment
23board by 1.0 PR position on April 1, 1996, for the performance of the functions of the
24chief investment officer.
SB402-SSA1,14,7
1(3) Investment operations. In the schedule under section 20.005 (3) of the
2statutes for the appropriation to the investment board under section 20.536 (1) (k)
3of the statutes, as affected by the acts of 1995, the dollar amount is increased by
4$42,600 for fiscal year 1995-96 and the dollar amount is increased by $118,600 for
5fiscal year 1996-97 to increase the authorized FTE positions for the investment
6board by 2.0 PR positions on April 1, 1996, for the performance of certain investment
7operations.
SB402-SSA1,14,14 8(4) Investment technology. In the schedule under section 20.005 (3) of the
9statutes for the appropriation to the investment board under section 20.536 (1) (k)
10of the statutes, as affected by the acts of 1995, the dollar amount is increased by
11$21,300 for fiscal year 1995-96 and the dollar amount is increased by $59,300 for
12fiscal year 1996-97 to increase the authorized FTE positions for the investment
13board by 1.0 PR position on April 1, 1996, for the development of a comprehensive
14strategic information systems plan.
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