25.17(1)(zm)
(zm) All other funds of the state or of any state department or institution, except funds which under
article X of the constitution are controlled and invested by the board of commissioners of public lands, funds which are required by specific provision of law to be controlled and invested by any other authority, and moneys in the university of Wisconsin trust funds, and in the trust funds of the state universities.
25.17(2)(a)(a) Invest any of the funds specified in
sub. (1), except operating funds, the capital improvement fund and the bond security and redemption fund, in loans to the Wisconsin university building corporation, state colleges building corporation or the Wisconsin state public building corporation, but only if such loans are secured by mortgages upon property owned by the respective corporations producing sufficient income to retire the mortgage over the term of the loan or are secured by the pledge of rentals sufficient in amount to retire the indebtedness. The investment board shall make no loans to any building corporation described in this subsection except under the conditions herein prescribed, or except as otherwise provided in
par. (b). These loans shall be made only when in the judgment of the investment board it is to the interest of the funds to do so, except that loans made under
par. (b) shall be made at the direction of the building commission.
25.17(2)(b)
(b) Invest the state building trust fund in loans to the Wisconsin state public building corporation, to the Wisconsin university building corporation, and to the Wisconsin state colleges building corporation. Except for interim loans for construction, or other temporary financing for the purchase of lands, planning (including both engineering and financing) and all other expenses incidental to any of the foregoing, such loans shall be secured by a pledge and assignment of net revenues derived from the operation of buildings by said corporations on lands leased or conveyed to said corporations. Any such loan shall be made upon the direction of the building commission.
25.17(2)(c)
(c) Invest the state housing authority reserve fund as directed by the Wisconsin housing and economic development authority in housing rehabilitation loan program bonds of the authority including subordinated bonds which may also be special obligations of the authority. In making such investment, the board shall accept such terms and conditions as the authority specifies and is relieved of any obligations relative to prudent investment of the fund, including those set forth under
ch. 881.
25.17(2)(d)
(d) Invest the clean water fund, and collect the principal and interest of all moneys loaned or invested from the clean water fund, as directed by the department of administration under
s. 281.59 (2m). In making such investment, the investment board shall accept any reasonable terms and conditions that the department of administration specifies and is relieved of any obligations relevant to prudent investment of the fund, including those set forth under
ch. 881.
25.17(3)(a)(a) Invest the fixed retirement investment trust, state life fund, veterans trust fund and patients compensation fund in loans, securities and any other investments authorized by
s. 620.22, and in bonds or other evidences of indebtedness or preferred stock of companies engaged in the finance business whether as direct lenders or as holding companies owning subsidiaries engaged in the finance business. Investments permitted by
sub. (4) are permitted investments under this subsection.
25.17(3)(b)
(b) Invest any of the funds over which it has investment authority, including but not limited to the state investment fund and surplus funds of the state building trust fund not invested under
sub. (2) (b) and not in the state investment fund, in:
25.17(3)(b)1.
1. Direct obligations maturing within 10 years or less from the date of settlement, of the United States or its agencies, corporations wholly owned by the United States, the international bank for reconstruction and development, the international finance corporation, the inter-American development bank, the African development bank, the Asian development bank, the federal national mortgage association or any corporation chartered by an act of congress.
25.17(3)(b)2.
2. Securities maturing within 10 years or less from the date of settlement, guaranteed by the United States or, where the full faith and credit of the United States is pledged or, where securities are collateralized by government-insured investments or, where the securities are issued by a corporation created by act of congress and regulated by such act.
25.17(3)(b)3.
3. Unsecured notes of financial and industrial issuers maturing within 5 years or less from the date of settlement and having one of the 2 highest ratings given by a nationally recognized rating service, but if the corporation issuing such notes has any long-term senior debt issues outstanding which also have been rated, the rating must be one of the 3 highest ratings so given.
25.17(3)(b)4.
4. Certificates of deposit issued by banks located in the United States and by savings and loan associations, savings banks and credit unions located in this state.
25.17(3)(b)5.
5. Bankers acceptances accepted by banks located in the United States.
25.17(3)(b)6.
6. Direct obligations of or guaranteed by the government of Canada maturing within 2 years from the date of settlement provided that at the time of purchase the board enters into a contract with a bank or securities dealer in the United States or Canada providing that at the maturity of the obligation the Canadian dollars realized will be exchanged into U.S. dollars at a guaranteed rate of exchange.
25.17(3)(b)7.
7. Certificates of deposit of at least $100,000 issued by solvent financial institutions in this state. The board shall promulgate rules to determine solvency on the basis of assets, capital, surplus, undivided profits and net worth of a financial institution.
25.17(3)(b)9.
9. Bonds issued by the University of Wisconsin Hospitals and Clinics Authority.
25.17(3)(ba)
(ba) Invest the funds included in the state investment fund created by
s. 25.14 in loans upon collateral security in the form of direct obligations of the U.S. government having a maturity of 5 years or less where the principal amount of each such loan does not exceed 98% of the market value of such collateral security.
25.17(3)(bd)
(bd) Have authority to invest any funds includable in the state investment fund in loans, securities or investments which are in addition to those permitted under any other statute but within the board standard of responsibility under
s. 25.15 (2). The total amount of loans, securities and investments made under this paragraph may not exceed 10% of the aggregate value of all funds includable in the state investment fund under
s. 25.14 (1) at the time that the investment is made.
25.17(3)(bh)
(bh) Invest the fixed retirement investment trust and state life fund in loans secured by mortgages upon unencumbered and improved real property in the United States or Canada when such real estate is leased to a corporation or limited liability company incorporated, organized or existing under the laws of the United States or any state, district or territory thereof, or Canada or any province thereof, whose income available for fixed charges for the period of 5 fiscal years next preceding the date of the investment has averaged not less than 1.5 times its average annual fixed charges applicable to such period, if there is pledged and assigned, either absolutely or conditionally, as additional security for the loan either the lease or sufficient of the rentals payable thereunder to repay the principal and interest of the loan within the unexpired term of the lease. Real property and leasehold estates are not encumbered within the meaning of this section by reason of the existence of unpaid assessments and taxes not delinquent, mineral, oil or timber rights, easements or rights-of-way for public highways, private roads, railroads, telegraph, telephone, electric light and power lines, drains, sewers or other similar easements or rights-of-way, liens for service and maintenance of water rights when not delinquent, party wall agreements, building restrictions, or other restrictive covenants or conditions, with or without a reversionary clause, or leases under which rents or profits are reserved to the owner. The foregoing limitations and restrictions shall not apply to real estate loans which are insured under the national housing act by the federal housing administration or to real estate loans made under
ch. 219, or insured under policies of insurance issued by responsible mortgage insurance companies.
25.17(3)(c)
(c) Have exclusive control of the investment and collection of the principal and interest of all funds of the historical society which are available for investment as determined by said society. The board may dispose of said investments and any other securities placed under its control by the historical society when in the judgment of the board it is for the best interest of the society to do so. The board may invest those funds of the society which are available for investment under
ch. 881.
25.17(3)(d)
(d) Invest the funds of the state insurance property fund in investments permitted by s.
201.25, 1969 stats.
25.17(3)(dg)1.
1. Direct obligations of the United States and of agencies of and corporations wholly owned by the United States, and direct obligations of federal land banks, federal home loan banks, central bank for cooperatives and banks for cooperatives, international bank for reconstruction and development, the international finance corporation, inter-American development bank, African development bank and Asian development bank, in each case maturing within one year or less from the date of investment.
25.17(3)(dg)2.
2. Commercial paper maturing within one year or less from the date of investment and rated prime by the national credit office, if the issuing corporation has one or more long-term senior debt issues outstanding, each of which has one of the 3 highest ratings issued by Moody's investors service or Standard & Poor's corporation.
25.17(3)(dg)3.
3. Certificates of deposit maturing within one year or less from the date of investment, issued by banks, credit unions, savings banks or savings and loan associations located in the United States and having capital and surplus of at least $50,000,000.
25.17(3)(dm)
(dm) Make loans secured by mortgages upon unencumbered and wholly or partly improved real property in the United States or Canada, or upon leasehold estates in improved real property therein. Real property and leasehold estates shall not be deemed to be encumbered within the meaning of this paragraph by reason of the existence of unpaid assessments and taxes not delinquent, mineral, oil or timber rights, easements or rights-of-way for public highways, private roads, railroad, telegraph, telephone, electric light and power lines, drains, sewers or other similar easements or rights-of-way, lines for service and maintenance of water rights when not delinquent, party wall agreements, building restrictions, or other restrictive covenants or conditions, with or without a reversionary clause, or leases under which rents or profits are reserved to the owner. No such loan shall exceed 75% of the then fair market value, including buildings, if any, mortgages to secure the same. If the value of the buildings constitutes any part of the security, such buildings shall be kept insured to an amount which, together with 75% of the value of the land, shall equal or exceed the loan. The foregoing limitations and restrictions shall not apply to loans made under
ch. 219 or real estate loans which are insured in whole or in part by the federal housing administration or commercial mortgage insurers.
25.17(3)(dr)
(dr) Invest the funds of the bond security and redemption fund only in direct obligations of the United States maturing in amounts and at times sufficient to pay the principal and interest payable from such fund during the calendar year.
25.17(3)(e)
(e) Sell investments from one fund to another when the board determines that it is necessary and desirable, and dispose of any investments when in their judgment it is to the best interest of these funds to do so.
25.17(3)(f)
(f) Every investment shall be held as an asset of the fund by which purchased and, except as otherwise provided by law, the loss or gain shall inure thereto.
25.17(3)(g)
(g) All loans, securities and other investments in which moneys of any such fund, including the general fund, are invested shall be under the management and control of the board.
25.17(4)
(4) Invest the funds of the fixed retirement investment trust in loans, securities or investments in addition to those permitted by any other statute including investments in corporations or limited liability companies which are in the venture capital stage. The aggregate of the loans, securities and investments made under this subsection shall not exceed 15% of the admitted assets of that trust. Investments in corporations or limited liability companies which are in the venture capital stage shall not exceed 2% of the admitted assets of that trust.
25.17(5)
(5) The limitations upon the percentage of the assets of any fund which are imposed by
sub. (4) or any other statute shall not be applicable to investments made by the investment board of funds in the variable retirement investment trust created under
s. 40.04 (3) and said investments shall be excluded in computing the assets to which any such limitations apply. Assets of the variable retirement investment trust shall be invested primarily in equity securities which shall include common stocks, real estate or other recognized forms of equities whether or not subject to indebtedness, including securities convertible into common stocks and securities of corporations in the venture capital stage. The investment board may, however, temporarily invest such assets in investments which are authorized under
sub. (3), but the assets so temporarily invested shall be replaced by equity securities at the earliest time deemed by the board to be practicable considering the then existing condition of the securities market and other influential factors. Investments in securities of corporations which are in the venture capital stage shall not exceed 2% of the admitted assets of the variable retirement investment trust.
25.17(6)
(6) Notwithstanding any other statute, transfers from the variable retirement investment trust to the fixed retirement investment trust under
s. 40.04 (7) may be made in cash or securities or both as determined by the investment board. The investment board shall determine market values for securities in the variable retirement investment trust as of the close of business on the last working day preceding a transfer. If securities are transferred, to the extent determined feasible by the investment board, a proportionate amount of all securities in even hundreds of shares of stock or even thousands of par value of bonds in the variable retirement investment trust shall be transferred. The investment board may hold or sell the transferred securities as it determines appropriate considering market and economic conditions. Any limitation on the percentage of assets in common stocks or in the stock of one company does not apply to the transferred securities, except the investment board shall, at such time as it determines market, economic and other conditions are appropriate to the sale of the securities, sell sufficient transferred securities so as to comply with percentage of asset limitations.
25.17(7)
(7) Make all loans and investment purchases from any funds under its control in the name of the board, except that:
25.17(7)(a)
(a) Mortgages on real estate outside of this state may be made to, and the title to real estate outside of this state may be acquired in the name of, a trustee under a trust agreement between the board and a bank, credit union, savings and loan association, savings bank or trust company organized under the laws of the United States or any state having a combined capital and surplus of at least $25,000,000; and any such mortgages or real estate acquired prior to June 24, 1966, may be assigned or conveyed to the trustee under an appropriate trust agreement between it and the board.
25.17(7)(b)
(b) Loans, securities and investments may be purchased or held in the name of, or transferred to nominees of one or more banks or trust companies meeting the requirements of this section under a custodial agreement between the board and each such bank or trust company. Any such bank or trust company shall be organized under the laws of the United States or any state thereof and any such bank or trust company not located in Wisconsin shall have a combined capital surplus and undivided profits of at least $100,000,000. Foreign loans, securities and investments may be purchased or held in the name of, or transferred to nominees of, foreign sub-custodians of any such bank or trust company.
25.17(8)
(8) Accept when necessary to protect a mortgage loan, a quitclaim deed or warranty deed to the mortgaged property in full satisfaction of the mortgage debt, and manage, operate, lease, exchange, sell and convey, by land contract, quitclaim deed or warranty deed, and grant easement rights in, any real property acquired by said board.
25.17(9)
(9) Give such advice and assistance as may be requested by the board of commissioners of public lands or the board of regents of the university of Wisconsin system in the investment of any moneys which under
sub. (1) are excepted from the moneys to be loaned or invested by the investment board, and assign, sell, convey and deed to them such investments made by the said board as may be mutually agreeable. The cost of any services rendered to the board of commissioners of public lands or the board of regents of the university of Wisconsin system pursuant to this section shall be charged to the fund to which the moneys invested belong and shall be added to appropriation to the investment board in
s. 20.536.
25.17(10)
(10) If a building constitutes any part of the security for a loan made by the investment board under
s. 25.17 (3) (bh) or
620.22 (2), such building shall be kept insured for at least the unpaid amount of the loan or such larger amount as may be necessary to comply with any coinsurance clause inserted in or attached to the policy. When the full insurable value of the building is less than the unpaid amount of the loan, such building shall be kept insured for the full insurable value thereof.
25.17(11)
(11) In order to promptly process investment transactions and receipts, have authority to establish and maintain accounts in its own name in those banks, savings and loan associations, savings banks and credit unions with which the board has entered into custodial agreements.
25.17(12)
(12) Succeed to all of the duties, functions, and powers, property, documents, records, assets, liabilities and obligations of:
25.17(12)(a)
(a) The commissioner of insurance in the investment of the state insurance fund;
25.17(12)(b)
(b) The commissioner of insurance, the state treasurer, the secretary of state and the attorney general in the investment of the life fund;
25.17(12)(c)
(c) The state treasurer, the secretary of state and the attorney general in the investment of the soldiers' rehabilitation fund;
25.17(12)(d)
(d) All other state boards, commissions, departments, institutions and officers in the investment of any funds which under
sub. (1) are hereafter to be loaned and invested by the investment board.
25.17(13)
(13) Succeed to all of the property, documents, records and assets of the state annuity and investment board in the investment of the several funds which were under the control of said board.
25.17(14)
(14) The investment board shall, as of December 31 of each year, make and file with the department of employe trust funds a report of the value of the assets of the fixed retirement investment trust and of the variable retirement investment trust, determined as of that date at market value for the variable retirement investment trust and on the following basis for the fixed retirement investment trust:
25.17(14)(a)
(a) Bonds and other evidences of debt and loans secured by mortgages having a fixed term and rate shall be valued at market value, except that if the investment board determines that a market value cannot readily be determined such items shall be valued at the outstanding principal balance.
25.17(14)(b)
(b) Preferred stocks shall be valued at current market value, but if no current market exists shall be valued at par.
25.17(14)(c)
(c) Real property which is leased to others shall be valued at market value, except that if the investment board determines that market value cannot readily be assigned such real property shall be valued at cost.
25.17(14)(d)
(d) Any preferred stock, bond, or mortgage which is in arrears or in default shall be assigned a value by the investment board which will approximate what the board in its sole discretion feels the asset is worth.
25.17(14)(e)
(e) All other investments shall be valued at market.
25.17(14)(f)
(f) With respect to all securities under
pars. (a) to
(e), the amount of any gain or loss at time of sale or other disposition, premium on call or redemption, commitment or standby fee, profit or loss on residual value, scrap value, fire or casualty award, condemnation award, adjustment in book value, or other gains or losses shall be transferred to the transaction amortization account of the fixed retirement investment trust under
s. 40.04 (3).
25.17(14)(g)
(g) With respect to all securities under
pars. (a) to
(e), the amount of any income or any adjustment in income shall be transferred to the current income account of the fixed retirement investment trust under
s. 40.04 (3).
25.17(14g)
(14g) Annually, on or before January 1, submit to the joint legislative audit committee, to the joint committee on finance and to the chief clerk of each house, for distribution to the appropriate standing committees under
s. 13.172 (3), a report of the board's annual investment goals and long-term investment strategies. The report shall specify any change in the annual investment goals and long-term investment strategies from those in the previous year.
25.17(14m)
(14m) Annually, on or before March 31, submit to the joint legislative audit committee, to the joint committee on finance and to the chief clerk of each house, for distribution to the appropriate standing committees under
s. 13.172 (3), a report including all of the following:
25.17(14m)
1. An assessment of the board's progress in meeting its annual investment goals established in the report under
sub. (14g).
25.17(14m)
2. Information on the types of investments held by the board, including the market values of the investments and the degree of risk associated with the investments, the board's use of derivatives, as defined in
s. 25.183 (1) (a), any ventures by the board into new markets, any use of new investment instruments by the board and a comparison of the investment performance of the board to that achieved by a peer group of public and private entities that invest similar-sized funds.
25.17(14m)
3. A discussion of the amounts and categories of investments made within the state, including the amounts and categories of investments described, and progress in meeting the objectives of the plan submitted, under
sub. (70).
25.17(14r)
(14r) Upon adopting any change in the board's investment policies or guidelines, submit to the joint legislative audit committee, to the joint committee on finance and to the chief clerk of each house, for distribution to the appropriate standing committees under
s. 13.172 (3), a report summarizing the change in the investment policies or guidelines.
25.17(15)
(15) For purposes of the power and authority of the investment board to make investments, the "admitted assets" of the fixed retirement investment trust or the variable retirement investment trust shall be the total valuation of the assets of such trust as set forth in the last report made pursuant to
sub. (14).
25.17(17)
(17) No later than January 31 annually, submit a report to the joint committee on finance concerning the amount of credits generated by the investment board with brokerage firms during the preceding calendar year. The report shall contain a separate itemization of the amount of directed credits for services to be provided by the firm providing the credit and 3rd party credits for services to be provided by any firm. The report shall include information regarding utilization of 3rd-party credits by the board.
25.17(51)
(51) Annually, have the legislative audit bureau conduct a financial audit, including an assessment of the fair presentation of the financial statements and an evaluation of the internal control structure of the board. As part of the financial audit, the legislative audit bureau shall identify certain statutes and policies and guidelines adopted by the board and shall determine the extent of compliance by the board with the statutes, policies and guidelines. The board shall reimburse the legislative audit bureau for the cost of audits required to be performed under this subsection.
25.17(51m)
(51m) Biennially, have the legislative audit bureau conduct a performance evaluation audit that includes an audit of the board's policies and management practices. The board shall reimburse the legislative audit bureau for the cost of audits required to be performed under this subsection.
25.17(52)
(52) Maintain records from which it can determine the particular investments of the sinking funds of the bond security and redemption fund made under
sub. (3) (dr) and the fair market value of such investments, and report this information to the department of administration at its request.
25.17(59)
(59) Invest or deposit money from the appropriation under
s. 20.143 (1) (fm) in a public depository located in this state that is at least 51% owned by a minority group member or minority group members, as defined in
s. 560.036 (1) (f).
25.17(61)
(61) Designate special depositories in which the state treasurer may make special deposits of funds, not exceeding the amount limited by the board, which shall be deposited subject to the depository's rules and regulations relative to either savings accounts, time certificates of deposit or open time accounts, as the case may be.
25.17(65)
(65) Invest the industrial building construction loan fund under
sub. (1) (hm) only on the basis specified in
sub. (3) (b) or
(ba).
25.17(70)(a)(a) No later than June 30 of every odd-numbered year, after receiving a report from the department of commerce under
s. 560.08 (2) (m) and in consultation with the department of commerce, submit to the governor and to the presiding officer of each house of the legislature a plan for making investments in this state. The purpose of the plan is to encourage the board to make the maximum amount of investments in this state, subject to
s. 25.15 and consistent with the statutory purpose of each trust or fund managed by the board.
25.17(70)(b)
(b) The plan shall discuss potential investments to be made during the first to 5th fiscal years following submittal, and shall include, but not be limited to, the following:
25.17(70)(b)1.
1. A report from the department of commerce under
s. 560.08 (2) (m) describing the types of investments in businesses in this state which will have the greatest likelihood of enhancing economic development in this state.
25.17(70)(b)2.
2. Nonbinding management objectives for each fiscal year stated, as appropriate, as a dollar amount or as a percentage of the total amount of all investments made by the investment board, for the following:
25.17(70)(b)2.a.
a. The number and value of holdings of securities of entities headquartered or primarily located in this state.
25.17(70)(b)2.b.
b. The number and value of holdings of securities of entities with significant employment in this state.
25.17(70)(b)2.c.
c. The number and value of investments to be made annually in companies that are reasonably likely to use the moneys invested by the investment board to maintain or expand employment in this state. Such investments may include: 1) loans to corporations and other organizations to maintain or expand operations in this state; 2) purchases of new equity offerings by companies whose equities are not broadly traded on major exchanges, if the proceeds are to be used to maintain or expand operations in this state; 3) purchases of real estate located in this state; 4) purchases of certificates of deposit or similar instruments issued by financial institutions with substantial operations in this state; 5) investments in venture capital firms based in this state; 6) investments in venture capital firms based in other states, if those investments are to be used to purchase securities in companies located in this state; 7) investments in businesses headquartered in this state that have less than 500 employes; and 8) other investments that the investment board determines will result in maintenance or expansion of employment in this state.
25.17(70)(b)3.
3. Recommended actions to help the board meet its management objectives. The actions may include preparing and distributing informational materials, soliciting and reviewing proposals from venture capital investment firms located within or outside this state for investments in businesses in this state and soliciting investment proposals from businesses in this state.
25.17(70)(b)4.
4. Comments solicited from the secretary of commerce and received by the board on or before May 31 of the year of submittal.
