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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