LRB-3710/2
KSH:jrd:ch
1995 - 1996 LEGISLATURE
May 30, 1995 - Introduced by Representatives Wirch, Bock, Baldus, Black,
Robson, Meyer, Springer, Ryba, Wilder and Morris-Tatum, cosponsored by
Senators C. Potter and Clausing. Referred to Committee on Financial
Institutions.
AB415,1,2
1An Act to create 25.17 (18) of the statutes;
relating to: state investment board
2reporting requirements.
Analysis by the Legislative Reference Bureau
This bill requires the state investment board to submit quarterly reports to the
joint committee on finance and to the joint survey committee on retirement systems
on its investment performance and on its transactions in derivatives. Under the bill,
the term "derivative" is generally defined to mean any financial contract or other
instrument that derives its value from the value or performance of any security,
currency, exchange rate, interest rate, or any combination or index thereof. The
definition of derivative excludes certain specified instruments including securities
traded on regulated securities markets, forward contracts with a maturity date of
less than 270 days, futures contracts traded on a regulated commodities exchange
and deposits held by a financial institution.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB415, s. 1
3Section
1. 25.17 (18) of the statutes is created to read:
AB415,1,64
25.17
(18) Within 30 days after the end of each calendar quarter, submit a
5report to the joint committee on finance and to the joint survey committee on
6retirement systems. The report shall contain all of the following:
AB415,1,77
(a) A report on the investment performance of funds managed by the board.
AB415,2,6
1(b) An itemization of each derivatives transaction entered into by the board,
2together with an explanation of the purpose for which the transaction was entered
3into. In this paragraph, "derivative" means any financial contract or other
4instrument that derives its value from the value or performance of any security,
5currency exchange rate, or interest rate, or of any index or group of such securities
6or rates, except the following:
AB415,2,97
1. Any security that is traded on a national securities exchange or on an
8automated interdealer quotation system sponsored by a registered national
9securities association.
AB415,2,1110
2. Any forward contract which has a maturity at the time of issuance not
11exceeding 270 days.
AB415,2,1412
3. Any contract of sale of a commodity for future delivery, or any option on such
13a contract, traded or executed on a designated contract market and subject to
14regulation under the commodity exchange act.
AB415,2,1515
4. Any deposit held by a financial institution.
