HB 345: "An Act relating to the procurement of investment and brokerage services by the Alaska State Pension Investment Board."
00HOUSE BILL NO. 345 01 "An Act relating to the procurement of investment and brokerage services by the 02 Alaska State Pension Investment Board." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. LEGISLATIVE FINDINGS AND PURPOSE. (a) The legislature finds that 05 (1) the existence of a strong and healthy free enterprise system is directly 06 related to the well-being and competitive strength of businesses in the state and to the 07 opportunity for businesses in the state to grow and expand; 08 (2) the state needs to examine its purchasing practices in order to ensure that 09 state agencies support businesses in the state by making every reasonable effort to identify 10 services available in the state and to foster bidding by local and resident businesses. 11 (b) The legislature declares that the purpose of this Act is to foster a procurement 12 process where businesses in the state obtain a fair proportion of the state's total procurement 13 contracts. 14 * Sec. 2. AS 37.10.220(a) is amended to read:
01 (a) The board shall 02 (1) hold regular and special meetings at the call of the chair or of at 03 least four members; 04 (2) establish investment policies for the funds for which it is 05 responsible after reviewing recommendations from the investment advisory council and 06 the Department of Revenue; 07 (3) submit long-range and quarterly investment reports to the 08 Legislative Budget and Audit Committee; 09 (4) report to the governor, the legislature, and employers participating 10 in the retirement systems by the first day of each regular legislative session concerning 11 the investment of funds for which the board is responsible, including financial and 12 investment policies established by the board, and enclose a summary of the most 13 recent performance evaluations of the funds managed by the board; 14 (5) contract with external performance evaluators to review the 15 performance of each fund for which the board is responsible and report each year on 16 the fund's condition to the board of trustees and to the other appropriate boards; 17 (6) engage independent certified public accountants to perform an 18 annual audit of each of the funds for which the board is responsible and to report to 19 the board with the results of the audit; 20 (7) review the actuarial earnings assumption for each fund for which 21 the board is responsible every two years and report its findings and recommendations 22 to the appropriate board or agency; 23 (8) after reviewing the recommendations from the Department of 24 Revenue and the advisory council, select and retain the external investment managers 25 and custodians for the funds managed by the board; 26 (9) develop an annual operating budget plan and present it to the 27 Department of Revenue, the office of management and budget, and the legislature; 28 (10) increase the board's utilization of brokerage and investment 29 services provided by persons located in the state to at least seven percent of the 30 brokerage and investment services that the board procures by contract, unless the 31 board makes a written finding that the board is unable to meet this goal because
01 there is an insufficient number of persons with the requisite skill in the state to 02 perform the services.