COMMITTEE ON INSURANCE AND RETIREMENT
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2060
(Reference to printed bill)
Page 7, line 5, after "fund" strike remainder of line; strike lines 6 and 7, insert "and the board is not subject to title 41, chapter 6. beginning july 1, 2015, contracts for goods and services approved by the board are not subject to title 41, chapter 23., except that investment-related contracts, including investment-related legal services are not subject to title 41, chapter 23. As an independent trust"
Page 8, between lines 37 and 38, insert:
"Sec. 2. Section 38-848.03, Arizona Revised Statutes, is amended to read:
38-848.03. Appointed investment management
A. The board may appoint investment management. Investment management shall have:
1. The highest professional and fiduciary recommendations.
2. Not less than three years' experience at handling institutional investments of at least two hundred fifty million dollars. This paragraph is satisfied if investment management, the individual retained by investment management or individual employees in a firm of investment managers meet this requirement.
3. Had responsibility for investment decision making as an insurance company investment fund, an investment division of a bank, a mutual fund, an investment organization or institution, a pension fund or an investment adviser who is designated as a chartered financial analyst by the chartered financial analyst institute.
B. A bank serving as investment management does not have a conflict of interest because it is also a depository in which any monies administered by the board are deposited.
C. The board shall appoint investment management for a term of one year and may appoint the investment management to succeeding terms. The board may remove investment management for not complying with this article or for failure to comply with or adhere to the board's investment goals, objectives or policies.
D. Investment management appointed by the board:
1. May purchase and sell in the name of the system and other plans that the board administers any of the securities and investments held by the system or plans.
2. Subject to any restrictions imposed by the board, is responsible for making all investment decisions relating to the investments the board has assigned investment management to manage.
E. Investment management shall not directly or indirectly:
1. Except for the fees agreed to be paid by the board to investment management or as otherwise agreed by the board, have any interest in the investments being managed by investment management for the board.
2. Borrow monies, funds or deposits of the system or other plans that the board administers or use these monies in any manner except as directed under this article.
3. Be an endorser, surety or obligor on investments made under this article.
F. Subject to the limitations in this article, the board may authorize the administrator, chief investment officer and other in‑house investment professionals employed by the board to make discretionary investments for the system and other plans or trusts that the board administers that do not exceed fifty per cent of the assets of the system and other plans or trusts measured at cost.
G. To exercise the investment responsibilities prescribed in this article, the board may enter into investment-related contracts that may be interpreted and enforced under the laws of a jurisdiction other than this state and that are not subject to section 35‑214 or 38‑511 or title 41, chapter 23."
Renumber to conform
Page 9, line 9, after "contributions" insert "and remitting employee contributions"
Page 9, line 19, strike "and" insert a comma; after the second "fees" insert "and all other investment-related expenses except for staff salaries and benefits"
Line 23, after "payroll" insert "including disability and medical subsidies"
Line 26, after "and" insert "vendor or"; after "implement" insert "the provisions of"
Line 29, strike "and the cost of legal counsel"
Page 12, strike lines 1 through 3, insert:
"T. Contracts for investment-related goods and services approved, including investment-related legal services entered into by the board of trustees of the public safety personnel retirement system are exempt from this chapter."
Reletter to conform
Page 13, after line 35, insert:
"kk. Contracts for investment-related goods and services, including investment-related legal services entered into by the Arizona state retirement system are exempt from this chapter.
Sec. 5. PSPRS; appropriation authority; budget request submission
A. All revenues received into the administration account established by section 38‑848.04, Arizona Revised Statutes, through June 30, 2015 are appropriated to the public safety personnel retirement system in fiscal year 2014-2015.
B. The public safety personnel retirement system shall submit a budget request pursuant to section 35‑113, Arizona Revised Statutes, to the governor's office of strategic planning and budgeting and the joint legislative budget committee by September 1, 2014 for fiscal year 2015-2016."
Amend title to conform