Investments task force.

2018
STATE OF WYOMING
18LSO-0237
ENGROSSED
2.1

HOUSE BILL

NO.
HB0074

Investments task force.

Sponsored by:
Joint Appropriations Committee

A BILL

for

AN ACT relating to public funds and public employee retirement funds; creating the investments task force and providing for its membership and duties; providing for staffing and for assistance by state agencies; requiring a report; providing appropriations; and providing for an effective date.

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

Section
1
.

(a)

There is created the investment
s

task force consisting of the following members:

(i)

Three
(
3
) members of the Wyoming senate appointed by the president of the senate
;

(ii)

Three
(
3
) members of the Wyoming house
of representatives
appoin
ted by the speaker of the house
;

(iii)

Three
(
3
)
member
s

appointed by the
governor not later than March 31, 2018
, two (2) of
which

who

possess

institutional investment
knowledge and experience
;

(iv)

One (1) member
appointed by the
Wyoming retirement board
not later than March 31, 2018
;

(v)

The director of the Wyoming retirement system
or a designee of the director
shall serve as an ex officio nonvoting member
;

(
vi)

The state treasurer or a
designee of the state treasurer.

(b)

The task force shall select from among its members a chairman and a vice
‑
chairman.
The
task force
shall meet at the call of either the chairman or a majority of the membership
of the task force
.

(c)

The task force shall be staffed b
y the
legislative service office
.
The
Wyoming retirement system and the state treasure
r
'
s office
shall provide information and assistance to the task force as requested by the task force.

(d)

The task force shall identify, study and make recommendations concerning:

(i
)

T
he benefits and challenges of
the consolidation or
integration of the
investment staff of the
Wyoming r
etirement
s
ystem and
the state t
re
asurer
'
s
o
ffice
;

(ii)

Design and implementation of performance compensation for employees of the Wyoming Retirement
system
and the state
treasurer's office directly engaged in investing
public employee retirement system funds and public funds of the state of Wyoming.
In studying design and implementation of performance compensation, the task force shall:

(A)

Identify appropriate investment performance benchmarks against which to base performance compensation;

(B)

Establish recommendations for
limitations on total payments for performance compensation
that are based on investment returns exceeding established performance benchmarks;

(C
)

Evaluate use of other measures related to performance compensation which are identified by the task force.

(i
i
i)

Wh
ether increased use of
internal investment strategies

c
ould result in efficiencies
if applied to the investment and management of
public employee retirement system funds and
public funds
of the state of Wyoming
. In
studying
increased
use of
internal investment strategies, the task force shall:

(
A
)

Identify
the r
esources
that would be
required, saved or
reallocated
under
increased
use of
internal management
strategies
;

(B
)

Identify
appropriate benchmarks
and peers against which to evaluate the internal investment performance of the

public employee retirement system funds and public funds of the state of Wyoming
.

(i
v
)

The investment
management
,

structure
and governance
of
retirement
,
pension, permanent,
sovereign wealth
and
other comparable
funds in
other states.
In studying
invest
ment management and structure in
other states, t
he task force shall:

(A)

I
dentify

states that provide for combined
or

separate

management
of retirement, pension, permanent
,
sovereign wealth
and
other

comparable
funds and evaluate
the benefits and challenges of

combined and separate
management
structure
s
;

(B)

Evaluate the structure of internal as compared to external management of other states
'
retirement, pension, permanent, sovereign w
ealth and
other comparable funds;

(C)

Identify the most comparable investment funds of other states and evaluate the size of the investable balances of the funds along with the
number
and compe
nsation of the investment staff.

(
v
)

Specific changes to Wyoming law
necessary to implement the recommendations of the task force
;

(
vi)

Timelines, costs and any governance implications associated with implementing the recommendations of the task force.

(e)

The task force shall submit a report summarizing its studies, findings and recommendations to the joint
appropriations
committee on or before
November 1, 2018
. The joint
appropriations
committee shall consider the recommendations and develop any legislation it deems appropriate for consideration by the legislature.

(f)

The task force shall exist until December 31, 201
8
.

Members of the task force who are legislators shall be paid salary, per diem and mileage as provided in W.S. 28
‑
5
‑
101 for their official duties as members of the task
force.

Subject to constitutional limitations, m
embers of the task force
who are employees or elected officials of the state of Wyoming shall be considered on official business of their agency or office and shall receive mileage and per diem in the manner pro
vided by their agency or
office. Any other member of the task force shall
be paid no salary but shall
receive mileage and per diem the same as state
employees as provided by W.S. 9
‑
3-102.

Section 2.

(a
)

There is appropriated
fifty thousand dollars ($5
0,000.00)
from the general fund to the legislative service office. This appropriation shall only be expended for providing payments authorized by section 1 of this act to legislative members of the investment
s
task force.

(b)

There is appropriated
twelve thousand
dollars ($1
2
,
0
00.00)
from the general fund to the governor
'
s office. This appropriation shall only be expended for providing payments authorized by section 1 of this act
for
any
member of the investments task force
appointed by the
governor
who is not an employee or elected official of the state of Wyoming.

(
c
)

There is appropriated
four
thousand dollars ($
4
,
0
00.00)
from the general fund to the Wyoming retirement system. This appropriation shall only be expended for
providing payment
s
authorized by section 1 of this act
for
any
member of the investments task force
appointed by the Wyoming retirement board
who is not an employee or elected official of the state of Wyoming
.

(d)

There is appropriated four thousand dollars ($4,000.00) from the general fund to the state treasurer's office. This appropriation shall only be expended for providing payments authorized by section 1 of this act for any member of the investments task force designated by the state treasurer who is not an employee or elected official of the state of Wyoming.

(
e
)

Funds appropriated
under this section
shall be for the period beginning with the effective date of this act and ending June 30, 2019.

Notwithstanding
any other provision of law,
funds appropriated under
this section

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, 20
19
.

Section
3
.

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.

(END)

1
HB0074