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CSHB 345(L&C): "An Act relating to the investments of the Alaska State Pension Investment Board."

00 CS FOR HOUSE BILL NO. 345(L&C)                                                                                          
01 "An Act relating to the investments of the Alaska State Pension Investment                                              
02 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 and employers participating in the retirement                                            
10 systems by the first day of each regular legislative session concerning the investment                                  
11 of funds for which the board is responsible, including financial and investment policies                                
12 established by the board, and enclose a summary of the most recent performance                                          
13 evaluations of the funds managed by the board; the board shall notify the legislature                                   
14 that the report is available;                                                                                           
15   (5)  contract with external performance evaluators to review the                                                     
16 performance of each fund for which the board is responsible and report each year on                                     
17 the fund's condition to the board of trustees and to the other appropriate boards;                                      
18   (6)  engage independent certified public accountants to perform an                                                   
19 annual audit of each of the funds for which the board is responsible and to report to                                   
20 the board with the results of the audit;                                                                                
21   (7)  review the actuarial earnings assumption for each fund for which                                                
22 the board is responsible every two years and report its findings and recommendations                                    
23 to the appropriate board or agency;                                                                                     
24   (8)  after reviewing the recommendations from the Department of                                                      
25 Revenue and the advisory council, select and retain the external investment managers                                    
26 and custodians for the funds managed by the board;                                                                      
27   (9)  develop an annual operating budget plan and present it to the                                                   
28 Department of Revenue and the office of management and budget; the board shall                                          
29 notify the legislature that the plan is available;                                                                    
30   (10)  invest the funds for which the board is responsible in in-state                                               
31 investments to the extent in-state investments are available and if the in-state                                        
01 investments                                                                                                             
02   (A)  have a risk level and expected yield equal to or more                                                          
03 favorable than alternate investment opportunities; and                                                                  
04   (B)  are consistent with the investment policies established by                                                     
05 the board under (2) of this subsection.