S T A T E   O F   N E W   Y O R K
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                                  7991

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              May 25, 2011
                               ___________

Introduced by M. of A. ABBATE -- read once and referred to the Committee
  on Governmental Employees

AN  ACT to amend chapter 171 of the laws of 2010 amending the retirement
  and social security law and other laws relating  to  establishing  the
  New York state MWBE asset management and financial institution strate-
  gy  and the retirement and social security law, in relation to the New
  York state deferred compensation plan's role in  the  New  York  state
  MWBE  asset  management  and  financial  institution  strategy; and to
  repeal certain provisions of the state finance law relating thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  1 of section 2 of chapter 171 of the laws of
2010, amending the retirement and social security  law  and  other  laws
relating  to  establishing  the New York state MWBE asset management and
financial institution strategy, is amended to read as follows:
  1. The New York state MWBE asset management and financial  institution
strategy  is  hereby established to codify and replicate, across certain
fiduciary-controlled entities established by New York  state  law,  best
practices  with  respect  to  the  inclusion of minority and women-owned
business enterprises that are  asset  managers,  investment  banks,  and
financial  and  professional service firms in the opportunity to provide
services to such fiduciary-controlled entities --  the  New  York  state
common  retirement  fund,  New York state teachers' retirement system[,]
AND the New York insurance  fund[,  and  the  New  York  state  deferred
compensation plan].  Certain fiduciary-controlled entities have recently
adopted  emerging  manager  programs to increase opportunities for firms
that include small, disadvantaged or minority and  women-owned  business
enterprises.    These programs and similar programs in other states have
shown that there is a growing pool of  minority  and  women-owned  asset
managers, investment banks and financial and professional services firms
that are qualified to provide investment management, investment banking,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11829-01-1
              

A. 7991                             2

underwriting and other financial and professional services to such fidu-
ciary-controlled  entities.  The intent of this act is to institutional-
ize access to opportunities for MWBE firms in such  fiduciary-controlled
entities  that  use  such  services, to create reasonable objectives for
conducting business with such firms, and to facilitate  transparency  by
creating  a  regime  of public reporting about the use of such firms for
such services. Nothing in this act shall be deemed to preempt or  affect
in  any way existing laws or fiduciary obligations of the trustees, plan
sponsors, fiduciaries, board members or executive  officers  of  any  of
such  fiduciary-controlled  entities, to create quotas or other unlawful
preferences, or to diminish the ability of any entity  covered  by  this
act  to  make  independent  decisions consistent with best practices for
procuring the services covered hereby.
  S 2. Subdivision 8 of section 176 of the retirement and social securi-
ty law, as added by chapter 171 of the laws of 2010, is amended to  read
as follows:
  8.  The  term  "fiduciary-controlled  entities"  shall mean the common
retirement fund, state teachers retirement fund[,] AND  state  insurance
fund [and state deferred compensation plan].
  S  3.  Paragraphs  c  and d of subdivision 2 of section 5 of the state
finance law are REPEALED and paragraphs e, f, g  and  h  are  relettered
paragraphs c, d, e and f.
  S 4. This act shall take effect immediately.