Investment funds committee.

ORIGINAL
Senate
ENGROSSED
File No
.
SF0049

ENROLLED ACT NO. 88,

SENATE

SIXTY-FOURTH LEGISLATURE OF THE STATE OF WYOMING
2017 General Session

AN ACT relating to state investments; creating the investment funds committee; specifying membership; providing for appointment and removal of members; imposing duties on the committee; transferring certain duties from the state loan and investment board to the committee; creating the selection panel for the investment funds committee; providing for appointment and removal of members to the selection panel; providing for staffing of the committee and the panel; amending public meetings, public records and administrative procedures provisions in relation to the investment funds committee; providing an appropriation; requiring a report; and providing for effective dates.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 9
‑
4
‑
720

and 9
‑
4
‑
721 are
created to read:

9
‑
4
‑
720
.

I
nvestment
fund
s
committee
.

(a)

There is created the
investment funds committee
. The
committee
consists of
six
(
6
)
voting
members including
the state treasurer,
a member of the state treasurer's office
designated by the state treasurer
, the chief investment officer of the Wyoming retirement system
and three
(
3
) members appointed by
a selection
panel
in accordance with
W.S. 9
‑
4
‑
721
.
In addition to the voting members, there shall be one (1) ex officio nonvoting member appointed by the governor and one (1) ex officio nonvoting member appointed by the management council.

(b)

The ex officio nonvoting member appointed by the governor shall serve for the term of office of the governor
but may be removed by the governor. The ex officio nonvoting member appointed by the management council shall serve a two (2) year term but is eligible for reappointment and may be removed by the management council.

(c)

The three (3) voting

members
appointed by a selection panel
shall serve a
three
(
3
) year term

provided that of the initial committee, one (1) member shall be appointed for a one (1) year term, one (1) member for a two (2) year term and one (1) member for a three (3) year term. The three (3) members
are eligible for reappointment
.

T
erms of appointment
for voting members
shall commence on March 1 of the year of appointment.

Any
appointed
voting
member of the
committee
may be removed
by
the selection panel at any time or may be removed by the governor for malfeasance or misconduct in office.
If an
appointed
voting

position on the
committee
becomes vacant for any reason,
the selection
panel
shall appoint a member in accordance with
W.S. 9
‑
4
‑
721
to fill the position for the remainder of the unexpired term.

Appointed
voting
m
embers of the investment funds committee shall be confirmed by the senate. The selection panel may fill any vacancy occurring between sessions of the legislature by temporary appointment.

(
d
)

The state treasurer shall be the chairman of the
committee
.
T
he
committee
shall m
eet
at least quarterly and at
the call of
either the chairman or
a majority of the membership
.

(
e
)

Staff and support for the
committee
shall be provided by the
office of the state treasurer
. Members of the
committee
who are not employees or elected officials of the state of Wyoming
shall receive
per diem and travel
expense reimbursement in the manner and amount prescribed
for legislators
under W.S. 28
‑
5
‑
101.

9
‑
4
‑
721
.

Investment funds committee; selection panel.

(a)

There is created the selection panel to appoint
voting
members to the investment funds committee
as provided in W.S. 9
‑
4
‑
720
. The panel consists of
five
(
5
)
members
composed of
one (1) member
appointed by each of the members of the board.
Each selection panel member
shall possess financial knowledge and experience to qualify them for the position.
Once appointed, a selection panel m
ember
shall serve for the term of office of the
board member who appointed them

but
may be removed by th
e
appointing
board
member.

(b)

The selection panel s
hall research and interview
candidates
for the investment funds committee.
Candidates
for the investment funds committee
may be nominated by the board or may apply directly to the panel.

(c)

No candidate shall be appointed by the selection panel to the
investment funds
committee unless the candidate
has
all of the following qualifications:

(
i
)

N
ot less than seven (7) years of institutional investment experience involved in the management of a portfolio in excess of five hundred million dollars ($500,000,000.00);

(
ii
)

A
broad understanding of financial markets;

(
iii
)

N
ot been convicted of

or pleads guilty or nolo contendere to
a felony violation or been the subject of any disciplinary action involving moral turpitude;

(
iv
)

N
o
conflicts of interest that would lead to a violation of W.S. 6
‑
5
‑
106, 6
‑
5
‑
118, 16
‑
6
‑
118 or other comparable provision of law.

(
d
)

Staff and support for the
selection
panel shall be provided by the office of the state treasurer. Members of the panel who are not employees or elected officials of the state of Wyoming shall receive per diem and travel expense reimbursement in the manner and amount prescribed for legislators under W.S. 28
‑
5
‑
101.

Section 2
.

W.S.
9
‑
4
‑
714(a)(vi), 9
‑
4
‑
715(d),
9
‑
4
‑
716
(c)
,
9
‑
4
‑
718(a)(iv)
, 16
‑
3
‑
101(b)(i), 16
‑
4
‑
203(d) by creating a new paragraph (xviii) and 16
‑
4
‑
402(a)(ii)
are
amended to read:

9
‑
4
‑
714
.

Definitions.

(a)

As used in this act:

(vi)

"
This act
"
means W.S. 9
‑
4
‑
714 through
9
‑
4
‑
719

9
‑
4
‑
721
.

9
‑
4
‑
715
.

Permissible investments.

(d)

When approving, acquiring, investing, reinvesting, exchanging, retaining, selling and managing investments of the state of Wyoming, the members of the board,
the members of the investment funds committee created by this act,
the state treasurer, designees of the state treasurer or any other fiduciary appointed by the state treasurer
,

or
the board

or the investment funds committee
shall exercise the judgment and care of a prudent
investor as specified by the Uniform Prudent Investor Act, W.S. 4
‑
10
‑
901 through 4
‑
10
‑
913.

9
‑
4
‑
716
.

State investment policy; investment consultant.

(c)

The state treasurer
, in consultation with the
investment funds committee created by this act
,
shall develop and submit proposed investment policy statements for each grouping of state funds specified in subsection (a) of this section and may contract for assistance in developing proposals or in making suggestions for modifications to existing investment policy statements. The state treasurer

shall report quarterly to the board regarding the performance of investments with respect to each grouping of state funds specified by the board under subsection (a) of this section and such other information as may be required by the board.

9
‑
4
‑
718
.

Investment managers.

(a)

The state treasurer may contract with investment managers and pay for investment services and investment advice subject to the following conditions:

(iv)

Investment
managers shall be selected based upon a competitive process and with consideration given to the historical performance of prospective managers. No investment manager shall be hired unless approved by a majority vote of the board
in consultation with
the
investment funds committee created by this act
. The contract with an investment manager may be terminated by a majority vote of the board;

16
‑
3
‑
101
.

Short title; definitions.

(b)

As used in this act:

(i)

"Agency" means any authority, bureau, board, commission, department, division, officer or employee of the state, a county, city or town or other political subdivision of the state, except the governing body of a city or town, the state legislature, the University of Wyoming, the judiciary
,

and
the consensus revenue estimating group as defined in W.S. 9
‑
2
‑
1002
and the investment funds committee created by W.S. 9
‑
4
‑
720
;

16
‑
4
‑
203
.

Right of inspection; grounds for denial; access of news media; order permitting or restricting disclosure; exceptions.

(d)

The custodian shall deny the right of inspection of the following records, unless otherwise provided by law:

(xviii)

Any records of the investment funds committee, created by W.S. 9
‑
4
‑
720, that disclose information considered by the committee, committee deliberations or tentative decisions of the committee.

16
‑
4
‑
402
.

Definitions.

(a)

As used in this act:

(ii)

"Agency" means any authority, bureau, board, commission, committee, or subagency of the state, a county, a municipality or other political subdivision which is created by or pursuant to the Wyoming constitution, statute or ordinance, other than the state legislature, the judiciary,
and
the consensus revenue estimating group as
defined in W.S. 9
‑
2
‑
1002
and the investment funds committee created by W.S. 9
‑
4
‑
720
;

Section
3
.

(a)

Not later than
November
1, 2019, t
he state treasurer shall report to the select committee on capital financi
ng
and investments
and the joint appropriations committee
. The report shall include
recommendations
,
including
an
y
proposed legislation
,
on
:

(i)

The functions and impact of the
investment funds committee
created in section 1 of this act;

(ii)

Whether the investment funds committee should continue to carry out the duties imposed on it by this act;

(i
i
i)

W
hether the duty to establish and implement state investment policy
under W.S. 9
‑
4
‑
716 should be transferred
from the state loan and investment board
to the investment
funds committee
;

(iv)

Modifications
to the state investment policy;

(v)

Improvements to the management of investments or other relevant information;

(vi)

Those
provisions in section
s
1 and 2 of this act which should be changed; and

(
v
ii
)

Those provisions in Wyoming law which should be

created,
amended or repealed to achieve the recommendations
contained in the report
.

Section
4
.

There is appropriated from the general fund
forty
‑
five
thousand
dollars
($
4
5,000.00)
to the
office of the state treasurer. This appropriation shall be for the period beginning with the effective date
specified in section 5(a) of this
act and ending June 30, 2018. This appropriation shall only be expended for payment of authorized compensation, per diem and mileage for
investment funds committee
members appointed under W.S. 9
‑
4
‑
720

and selection panel members appointed under W.S. 9
‑
4
‑
721
as created by this act
. Notwithstanding any other provision of law, this appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2018. This appropriation shall be included in the office of the state treasurer
'
s 2019
‑
2020 standard biennial budget request
funded from special revenue available for e
x
ternal manager payments
.

Section

5
.

(a)

Except as provided in subsection (b) of this section,
this act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(b)

Section
2 of this act is effective July 1, 2018.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the
Senate
.

Chief Clerk

1