S T A T E O F N E W Y O R K
________________________________________________________________________
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.