25.18(2)(c)
(c) Have any of its employees serve as an officer of a corporation in which it owns voting stock, or have any of its employees serve as an officer of a company, joint venture or association, or as a manager of a limited liability company, in which it owns an interest.
25.18(2)(d)
(d) Insure against from the current income of any fund or trust, or pay out of current income of any fund or trust, amounts arising from any acts of employees, members or agents of the board acting as officers or directors of a company in which the board has invested the moneys in the fund or trust.
25.18(2)(e)1.1. Contract with and delegate to investment advisers the management and control over assets from any fund or trust delivered to such investment advisers for investment in real estate, mortgages, equities, and debt and pay such advisers fees from the current income of the fund or trust being invested. Subject to
subd. 2., no more than 20 percent of the total assets of the core retirement investment trust or 20 percent of the total assets of the variable retirement investment trust may be delivered to investment advisers to manage in accounts in which the board directly holds title to all securities purchased for the accounts. The board shall set performance standards for such investment advisers, monitor such investments to determine if performance standards are being met and if an investment adviser does not consistently meet the performance standards then terminate the contract with such investment adviser.
25.18(2)(e)2.
2. For the purpose of calculating the 20 percent limit under
subd. 1., the board shall not include any appreciation on assets delivered to the investment advisers. The board shall also not include for this purpose shares or participation in mutual funds, index funds, commingled funds, partnership funds, or other similar collective investment instruments in which the board does not hold title to the underlying investments purchased by the manager of the fund or the collective investment instrument.
25.18(3)
(3) Notwithstanding
s. 19.45 (4), investment board employees may disclose information to other investment board employees who are also students participating in a program in the School of Business at the University of Wisconsin-Madison related to applied securities analysis, or participating in a comparable program, if the only use of the information unrelated to investment board purposes would be for purposes related to the program.
25.182
25.182
Management authority for certain funds. In addition to the management authority provided under any other provision of law, and notwithstanding any limitation on the board's management authority provided under any other provision of law, the board shall have authority to manage the money and property of the core retirement investment trust and, subject to
s. 25.17 (5), the variable retirement investment trust in any manner that does not violate the standard of responsibility specified in
s. 25.15 (2).
25.182 History
History: 2007 a. 212.
25.182 Annotation
The Investment Board has the power to make investments that meet the standard of prudence under s. 25.15 (2), even if those investments are not specifically listed in ch. 25. Prior to making investments other than the types enumerated in ch. 25, the board is not required to make a threshold finding that investing solely in the "legal list" would not meet the standard of prudence. The statutory standard for prudence remains the same whether the board is investing in an enumerated investment, or one that is not enumerated. Because the standard of prudence, however, takes into account the trustees' powers to manage the funds, the board's expanded powers are a relevant factor in evaluating whether the board has met that standard.
OAG 11-08.
25.183
25.183
Certain investments prohibited. 25.183(1)(a)
(a) "Derivative" means any financial contract or other instrument that derives its value from the value or performance of any security, currency exchange rate or interest rate or of any index or group of any securities, currency exchange rates or interest rates, but does not include any of the following:
25.183(1)(a)1.
1. Any security that is traded on a national securities exchange or on an automated interdealer quotation system sponsored by a securities association registered under
15 USC 78o-3, et seq.
25.183(1)(a)2.
2. Any forward contract which has a maturity at the time of issuance not exceeding 270 days.
25.183(1)(a)3.
3. Any contract of sale of a commodity, as defined under
7 USC 2, for future delivery, or any option on such a contract, traded or executed on a designated contract market and subject to regulation under
7 USC 1 to
26.
25.183(1)(a)4.
4. Any security of an open-end management investment company or investment trust, if the investment company or investment trust is registered under
15 USC 80a-1 to
80a-64.
25.183(1)(a)6e.
6e. Any collateralized mortgage obligation or other asset-backed security which either has one of the 2 highest ratings given by a nationally recognized rating service or is backed or collateralized by insured instruments, guarantees or pledges of the federal government, this state or an agency of the federal government or this state.
25.183(1)(a)6m.
6m. Any transaction permitted under
s. 25.18 (1) (n), if all of the following conditions are met at the time the transaction is entered into:
25.183(1)(a)6m.a.
a. The counterparty to the transaction is rated in, or has outstanding long-term debt which is rated in, one of the 2 highest ratings given by a nationally recognized rating service.
25.183(1)(a)6m.b.
b. The transaction is used only for specified hedging or interest rate risk reduction purposes.
25.183(1)(a)6m.c.
c. All of the board's payment obligations under the transaction are fully backed by distinctly identified assets held in the state investment fund.
25.183(1)(a)7.
7. Any financial contract or instrument that the board determines, by rule, is not a derivative.
25.183(1)(b)
(b) "Reverse repurchase agreement" means an agreement for the sale of securities by the board under which the board will repurchase those securities on or before a specified date and for a specified amount.
25.183(2)
(2) Derivative investments. After May 7, 1996, the board may not purchase or acquire any derivative in the state investment fund except in accordance with rules promulgated by the board. Rules promulgated under this subsection may not permit the purchase or acquisition of derivatives in the state investment fund unless the purchase or acquisition is made for the purpose of reducing risk of price changes or of interest rate or currency exchange rate fluctuations with respect to investments held or to be held by the board.
25.183(3)
(3) Reverse repurchase agreements. After May 7, 1996, the board may not enter into any reverse repurchase agreement unless the repurchase of securities under the agreement is required to occur no later than the next business day.
25.183 History
History: 1995 a. 274.
25.185
25.185
Minority financial advisers and investment firms; disabled veteran-owned financial advisers and investment firms. 25.185(1)(a)
(a) "Disabled veteran-owned financial adviser" means a financial adviser certified by the department of commerce under
s. 560.0335 (3).
25.185 Note
NOTE: The cross-reference to s. 560.0335 was changed from s. 560.033 by the legislative reference bureau under s. 13.92 (1) (bm) 2. to reflect the renumbering under s. 13.92 (1) (bm) 2. of s. 560.033, as created by
2009 Wis. Act 299.
25.185(1)(b)
(b) "Disabled veteran-owned investment firm" means an investment firm certified by the department of commerce under
s. 560.0335 (3).
25.185 Note
NOTE: The cross-reference to s. 560.0335 was changed from s. 560.033 by the legislative reference bureau under s. 13.92 (1) (bm) 2. to reflect the renumbering under s. 13.92 (1) (bm) 2. of s. 560.033, as created by
2009 Wis. Act 299.
25.185(1)(c)
(c) "Minority financial adviser" means a financial adviser certified by the department of commerce under
s. 560.036 (2).
25.185(1)(d)
(d) "Minority investment firm" means an investment firm certified by the department of commerce under
s. 560.036 (2).
25.185(2)
(2) The board shall attempt to ensure that 5% of the total funds expended for financial and investment analysis and for common stock and convertible bond brokerage commissions in each fiscal year is expended for the services of minority financial advisers or minority investment firms.
25.185(3)
(3) The board shall annually report to the department of administration the total amount of moneys expended under
sub. (2) for common stock and convertible bond brokerage commissions, the services of minority and disabled veteran-owned financial advisers, and the services of minority and disabled veteran-owned investment firms during the preceding fiscal year.
25.185 History
History: 1987 a. 27;
1995 a. 27 s.
9116 (5);
1999 a. 83;
2009 a. 299; s. 13.92 (1) (bm) 2.
25.186
25.186
Broker-dealers located in this state. 25.186(1)(b)
(b) "Securities trading brokerage commission" means any commission or fee paid on or for a brokered security transaction, a purchase of a security or any other kind of trade of a security.
25.186(2)(a)(a) Of the total funds that are expended by the board for securities trading brokerage commissions in any fiscal year, the board shall pay at least 5% of the total funds in securities trading brokerage commissions to broker-dealers that are registered under
s. 551.406, that are headquartered in this state and whose principal business operations are located in this state.
25.186(2)(b)
(b) For the purpose of satisfying the requirement under
par. (a), the board may not include any securities trading brokerage commissions paid to minority financial advisers and minority investment firms under
s. 25.185.
25.186(3)
(3) Annually, no later than September 30, the board shall submit a report to the department of administration documenting the amount of moneys expended in the preceding fiscal year by the board for securities trading brokerage commissions and the amount of moneys paid in the preceding fiscal year for securities trading brokerage commissions to broker-dealers under
sub. (2) (a).
25.186 History
History: 1999 a. 9;
2007 a. 196.
25.187
25.187
Operating expenditures. 25.187(1)
(1) In this section, "operating expenditures" include all costs and expenses incurred by the investment board for the purpose of operating the board and managing the assets of each fund for which the board has management responsibility, but does not include costs or expenses incurred under
s. 25.18 (1) (a),
(c),
(f) or
(m) or
(2) (d) or
(e) or
40.04 (3) (intro.).
25.187(2)(a)(a) Subject to
par. (c), on September 1 of each year, the investment board shall assess each fund for which the board has management responsibility for its share of the board's operating expenditures for the current fiscal year in an equitable manner. The board shall pay the assessment from the current income of each fund, unless an appropriation is made for payment of the assessment, in which case the assessment shall be paid from that appropriation account.
25.187(2)(c)1.1. Except as provided in
subd. 2., the total amount that the board may assess the funds for which the board has management responsibility for any fiscal year may not exceed the greater of the amount that the board could have assessed the funds in the 2nd year of the prior fiscal biennium or 0.0325% of the average market value of the assets of the funds at the end of each month between November 30 and April 30 of the preceding fiscal year.
25.187(2)(c)2.
2. In addition to the amount assessed under
subd. 1., the board may assess the funds for which the board has management responsibility for any fiscal year up to an additional 0.0025% of the average market value of the assets of the funds at the end of each month between November 30 and April 30 of the preceding fiscal year if the board notifies the joint committee on finance in writing of the proposed assessment. If the cochairpersons of the committee do not notify the board that the committee has scheduled a meeting for the purpose of reviewing the proposed assessment within 14 working days after the date of the board's notification, the board may make the assessment. If, within 14 working days after the date of the board's notification, the cochairpersons of the committee notify the board that the committee has scheduled a meeting for the purpose of reviewing the proposed assessment, the board may make the assessment only upon approval of the committee.
25.187(2)(c)3.
3. For the purposes of this paragraph, the board shall do all of the following:
25.187(2)(c)3.a.
a. Determine the total market value of the assets of the funds according to the methodology used to determine the market value of the core retirement investment trust under
s. 25.17 (14).
25.187(2)(c)3.b.
b. Annually, no later than June 15, certify to the department of administration and to the joint committee on finance the average market value of the assets of the funds at the end of each month between November 30 and April 30 of the current fiscal year.
25.187(2)(c)3.c.
c. Annually, no later than June 15, certify to the department of administration and to the joint committee on finance the maximum amount that the board may assess the funds for which the board has management responsibility in the next fiscal year.
25.187(3)
(3) The investment board shall transmit a notice of each assessment to each fund at the time that the assessment is made, and shall transmit a statement of the board's actual expenditures for management of each fund at the close of each fiscal year both to the state agency having primary responsibility for expenditure of principal or earnings of the fund and to the department of administration or, if there is no state agency, only to the department of administration.
25.19
25.19
Treasurer; bond; deposit of securities; cash management. 25.19(1)(1) The state treasurer shall be the treasurer of the board and shall give an additional bond in the amount and with the corporate sureties required and approved by the board, the cost of which shall be borne by the board.
25.19(1m)
(1m) Any of the securities purchased by the board for any of the funds whose investment is under the control of the board may be deposited by the board in vaults or other safe depositories either in or outside of this state.
25.19(3)
(3) The secretary of administration shall, at the direction of the depository selection board under
s. 34.045 (1) (bm), allocate bank service costs to the funds incurring those costs.
25.19(4)
(4) The secretary of administration shall provide advice to state agencies concerning efficient cash management practices.
25.20
25.20
General fund. All moneys in the state treasury not specifically designated in any statute as belonging to any other funds constitute the general fund.
25.29
25.29
Conservation fund. 25.29(1)(1) There is established a separate nonlapsible trust fund designated as the conservation fund to consist of:
25.29(1)(a)
(a) Except as provided in
ss. 25.293 and
25.295, all moneys accruing to the state for or in behalf of the department under
chs. 26,
27,
28,
29,
169, and
350,
subchs. I and
VI of ch. 77 and
ss. 23.09 to
23.31,
23.325 to
23.42,
23.50 to
23.99,
30.50 to
30.55,
70.58,
71.10 (5),
71.30 (10), and
90.21, including grants received from the federal government or any of its agencies except as otherwise provided by law.
25.29(1)(c)
(c) For fiscal year 1992-93, and for each fiscal year thereafter, an amount equal to the estimated motorboat gas tax payment multiplied by 1.4. Except for fiscal years 2007-08, 2008-09, and 2009-10, the estimated motorboat gas tax payment is calculated by multiplying the number of motorboats registered under
s. 30.52 on January 1 of the previous fiscal year by 50 gallons and multiplying that product by the excise tax imposed under
s. 78.01 (1) on April 1 of the previous fiscal year. For fiscal years 2007-08, 2008-09, and 2009-10, the estimated motorboat gas tax payment is calculated by multiplying the number of motorboats registered under
s. 30.52 on January 1 of the previous fiscal year by 50.5 gallons and multiplying that product by the excise tax imposed under
s. 78.01 (1) on April 1 of the previous fiscal year.
25.29(1)(d)
(d) An amount equal to the estimated snowmobile gas tax payment. The estimated snowmobile gas tax payment is the sum of the following amounts:
25.29(1)(d)1.
1. An amount calculated by multiplying the number of snowmobiles registered under
s. 350.12 or
350.122 on the last day of March of the previous fiscal year by 50 gallons and multiplying that product by the excise tax imposed under
s. 78.01 (1) on the last day of March of the previous fiscal year.
25.29(1)(d)2.
2. An amount equal to 40% of the amount calculated under
subd. 1.
25.29(1)(dm)
(dm) For fiscal year 1991-92 and for each fiscal year thereafter, an amount equal to the estimated all-terrain vehicle gas tax payment. The estimated all-terrain vehicle gas tax payment is calculated by multiplying the sum of the number of all-terrain vehicles registered for public use under
s. 23.33 (2) (c) or
(2g) and the number of reflectorized plates issued under
s. 23.33 (2) (dm) on the last day of February of the previous fiscal year by 25 gallons and multiplying that product by the excise tax imposed under
s. 78.01 (1) on the last day of February of the previous fiscal year.
25.29(1m)
(1m) There is established in the conservation fund a separate account that is designated the snowmobile account and that consists of the moneys paid into the conservation fund under
s. 20.855 (4) (t) and the moneys collected under
s. 350.12.
25.29(2)
(2) License fees and other state moneys collected by each field employee of the department shall be remitted to the department within one month after receipt together with a report of the number of licenses issued and details covering the type and the amount of money remitted.
25.29(3)
(3) Funds accruing to the conservation fund from license fees paid by hunters and from sport and recreation fishing license fees shall not be diverted for any other purpose than the administration of the department when it is exercising its responsibilities that are specific to the management of the fish and wildlife resources of this state.
25.29(3m)(a)(a) The total amount that the department may expend for a given fiscal year from the fish and wildlife account of the conservation fund for administrative costs may not exceed 16% of the expenditures from that account for that fiscal year.
25.29(3m)(b)
(b) For purposes of
par. (a), administrative costs consist of the costs incurred in the administration of the department and its divisions and in providing support services for the department.
25.29(4)
(4) No money shall be expended or paid from the conservation fund except in pursuance of an appropriation by law.
25.29(4m)
(4m) No moneys that accrue to the state for or in behalf of the department under
ch. 29 or
169 or
s. 90.21 may be expended or paid for the enforcement of the treaty-based, off-reservation rights to fish held by members of federally recognized American Indian tribes or bands domiciled in Wisconsin.
