LRB-3754/3
RAC:jld:rs
2003 - 2004 LEGISLATURE
January 9, 2004 - Introduced by Representative Montgomery, cosponsored by
Senator Schultz. Referred to Committee on Financial Institutions.
AB740,1,4
1An Act to repeal 25.17 (14g);
to renumber and amend 25.17 (14m) (a);
to
2amend 25.18 (2) (e); and
to create 25.17 (14m) (ad) of the statutes;
relating
3to: reports required to be submitted by the investment board and contracting
4with outside investment advisors for certain investments.
Analysis by the Legislative Reference Bureau
The bill makes all of the following changes with respect to the State of
Wisconsin Investment Board (SWIB):
1. Under current law, SWIB is required to submit an annual report, no later
than January 1 of each year, to the Joint Legislative Audit Committee, the Joint
Committee on Finance, and to the legislature on SWIB's annual investment goals
and long-term investment strategies. The bill provides that this report is to be
included in another report relating to investments that SWIB must submit each year
no later than March 31.
2. Under current law, SWIB may contract with outside investment advisers for
the investment of SWIB-managed assets in real estate, mortgages, equities, debt of
foreign corporations, and debt of foreign governments. Currently, no more than 15
percent of the total assets of the fixed retirement investment trust or 15 percent of
the total assets of the variable retirement investment trust may be delivered to
outside investment advisers. The bill permits such investments to be made not only
in the debt of foreign corporations and governments, but in any debt.
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:
AB740, s. 1
1Section
1. 25.17 (14g) of the statutes is repealed.
AB740, s. 2
2Section
2. 25.17 (14m) (a) of the statutes is renumbered 25.17 (14m) (am) and
3amended to read:
AB740,2,54
25.17
(14m) (am) An assessment of the board's progress in meeting its annual
5investment goals
established in the report under sub. (14g).
AB740, s. 3
6Section
3. 25.17 (14m) (ad) of the statutes is created to read:
AB740,2,97
25.17
(14m) (ad) A description of the board's annual investment goals and
8long-term investment strategies, including any changes in the goals and strategies
9from those in the previous year.
AB740, s. 4
10Section
4. 25.18 (2) (e) of the statutes is amended to read:
AB740,3,211
25.18
(2) (e) Contract with and delegate to investment advisers the
12management and control over assets from any fund or trust delivered to such
13investment advisers for investment in real estate, mortgages, equities,
and debt
of 14foreign corporations and debt of foreign governments and pay such advisers fees
15from the current income of the fund or trust being invested. No more than 15% of
16the total assets of the fixed retirement investment trust or 15% of the total assets of
17the variable retirement investment trust may be delivered to investment advisers.
18The board shall set performance standards for such investment advisers, monitor
19such investments to determine if performance standards are being met and if an
1investment adviser does not consistently meet the performance standards then
2terminate the contract with such investment adviser.
