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.