S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9999
 
                           I N  A S S E M B L Y
 
                                May 1, 2024
                                ___________
 
 Introduced  by  M.  of  A.  ALVAREZ  --  Multi-Sponsored  by -- M. of A.
   BICHOTTE HERMELYN -- read  once  and  referred  to  the  Committee  on
   Governmental Employees
 
 AN  ACT  to amend the retirement and social security law, in relation to
   diversity and inclusion in the management  of  public  pension  funds,
   ensure  equitable  access  to investment opportunities, and foster the
   growth of emerging BIPOC (black,  indigenous,  and  people  of  color)
   owned investment management firms within the state of New York
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York state agency BIPOC asset management and financial institu-
 tion strategy act".
   § 2. The retirement and social security law is amended by adding a new
 section 423-d to read as follows:
   §  423-D.  BIPOC-OWNED INVESTMENT MANAGEMENT FIRMS; STATE OF NEW YORK.
 1. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE  THE
 FOLLOWING MEANINGS:
   (A)  "BEST  PRACTICES"  SHALL  MEAN  INDUSTRY-RECOGNIZED STANDARDS AND
 GUIDELINES FOR DIVERSITY, EQUITY, AND INCLUSION.
   (B) "BIPOC" SHALL MEAN BLACK, INDIGENOUS, AND PEOPLE OF COLOR.
   (C) "BIPOC-OWNED FIRMS" SHALL MEAN BUSINESS ENTERPRISES OWNED BY INDI-
 VIDUALS FROM BLACK, INDIGENOUS, AND PEOPLE OF COLOR COMMUNITIES.
   (D)  "DESIGNATED  ENTITIES"  SHALL  MEAN  ENTITIES  GOVERNED  BY  THIS
 SECTION,  INCLUDING  BUT NOT LIMITED TO, THE COMMON RETIREMENT FUND, THE
 NEW YORK STATE TEACHERS' RETIREMENT  SYSTEM,  AND  THE  NEW  YORK  STATE
 INSURANCE FUND.
   (E)  "EMERGING  MANAGER  PROGRAMS"  SHALL  MEAN  PROGRAMS  DESIGNED TO
 ENHANCE OPPORTUNITIES FOR SMALL, DISADVANTAGED, OR BIPOC-OWNED  BUSINESS
 ENTERPRISES.
   (F)  "FIDUCIARIES"  SHALL  MEAN  INDIVIDUALS  ENTRUSTED WITH FIDUCIARY
 DUTIES WITHIN THE DESIGNATED ENTITIES.
   2. (A) ALL PUBLIC PENSION FUNDS IN THE STATE  SHALL  PROVIDE  OPPORTU-
 NITIES FOR EMERGING BIPOC-OWNED INVESTMENT MANAGEMENT FIRMS. SUCH PUBLIC
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14197-01-4
 A. 9999                             2
 
 PENSION  FUNDS SHALL ADOPT AN INVESTMENT MANAGER DIVERSITY POLICY TO SET
 OBJECTIVES FOR ENHANCING THE UTILIZATION OF BIPOC INVESTMENT  MANAGEMENT
 FIRMS.
   (B)  TWENTY  PERCENT  OF A PUBLIC PENSION FUND'S TOTAL ASSETS SHALL BE
 INVESTED WITH BIPOC INVESTMENT MANAGERS.
   (C) TWENTY-FIVE PERCENT OF A PUBLIC PENSION FUND'S ACTIVE ASSETS SHALL
 BE INVESTED WITH BIPOC INVESTMENT MANAGERS.
   (D) THERE SHALL BE AN ASSET CLASS BREAKDOWN AS FOLLOWS:
   (I) THIRTY PERCENT OF A PUBLIC PENSION FUND'S EQUITY ASSETS  SHALL  BE
 INVESTED WITH BIPOC INVESTMENT MANAGERS;
   (II)  FIFTEEN  PERCENT  OF A PUBLIC PENSION FUND'S FIXED INCOME ASSETS
 SHALL BE INVESTED WITH BIPOC INVESTMENT MANAGERS; AND
   (III) FIFTEEN PERCENT OF A PUBLIC PENSION  FUND'S  ALTERNATIVE  ASSETS
 SHALL BE INVESTED WITH BIPOC INVESTMENT MANAGERS.
   3. PURSUANT TO SUBDIVISION TWO OF THIS SECTION, THE UTILIZATION STAND-
 ARDS  SHALL  SERVE AS THE MINIMUM REQUIREMENT, AND SUCH STANDARDS MAY BE
 SUBJECT TO MODIFICATION IN RESPONSE TO CHANGES IN THE  NUMBER  OF  BIPOC
 INVESTMENT  MANAGERS THAT ARE CAPABLE OF DIRECTLY MANAGING MANDATES FROM
 A PUBLIC PENSION FUND.
   4. (A) A PUBLIC PENSION FUND SHALL, WITHIN SIX MONTHS OF THE EFFECTIVE
 DATE OF THIS SECTION, ESTABLISH MECHANISMS TO ENSURE COMPLIANCE WITH THE
 INVESTMENT MANAGER DIVERSITY POLICY.
   (B) THE RELEVANT AUTHORITIES OF EACH PUBLIC PENSION FUND SHALL  REPORT
 ANNUALLY  TO  THE  COMPTROLLER  ON THE PROGRESS AND OUTCOMES ACHIEVED IN
 MEETING THE UTILIZATION STANDARDS SET FORTH IN SUBDIVISION THREE OF THIS
 SECTION.
   (C) THE COMPTROLLER SHALL COMPILE AND PUBLISH AN ANNUAL REPORT DETAIL-
 ING THE PROGRESS AND EFFECTIVENESS OF THE INVESTMENT  MANAGER  DIVERSITY
 POLICY.
   5.  (A)  WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, EACH
 PUBLIC PENSION FUND WITHIN  THE  STATE  SHALL  DEVELOP  A  COMPREHENSIVE
 IMPLEMENTATION  PLAN  TO  ENSURE  COMPLIANCE WITH THE INVESTMENT MANAGER
 DIVERSITY POLICY OUTLINED IN SUBDIVISION TWO OF THIS SECTION. THIS  PLAN
 SHALL  DETAIL  THE  STRATEGIES, PROCEDURES, AND TIMELINES THAT SUCH FUND
 SHALL ADOPT TO ACHIEVE THE SPECIFIED  UTILIZATION  STANDARDS  FOR  BIPOC
 INVESTMENT MANAGERS ACROSS VARIOUS ASSET CLASSES.
   (B)  THE  GOVERNING  BODY  OF EACH PUBLIC PENSION FUND SHALL SUBMIT AN
 ANNUAL PROGRESS REPORT TO THE CITY COMPTROLLER  OUTLINING  THE  ADVANCE-
 MENTS  MADE  IN  FULFILLING  THE  INVESTMENT  MANAGER DIVERSITY POLICY'S
 REQUIREMENTS. SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO:
   (I) THE TOTAL  ASSETS  MANAGED  BY  BIPOC  INVESTMENT  MANAGERS  AS  A
 PERCENTAGE OF THE FUND'S TOTAL ASSETS;
   (II)  THE  ACTIVE  ASSETS  MANAGED  BY  BIPOC INVESTMENT MANAGERS AS A
 PERCENTAGE OF THE FUND'S ACTIVE ASSETS;
   (III) THE ALLOCATION OF EQUITY, FIXED INCOME, AND  ALTERNATIVE  ASSETS
 TO BIPOC INVESTMENT MANAGERS; AND
   (IV)  AN ASSESSMENT OF ANY CHALLENGES FACED AND STEPS TAKEN TO ADDRESS
 THEM.
   (C) EACH PUBLIC PENSION FUND SHALL PROVIDE A NARRATIVE REPORT  DETAIL-
 ING  ANY  INITIATIVES,  PROGRAMS, OR PARTNERSHIPS ESTABLISHED TO PROMOTE
 THE GROWTH AND DEVELOPMENT OF BIPOC-OWNED  INVESTMENT  MANAGEMENT  FIRMS
 WITHIN  THE STATE. SUCH REPORT SHALL HIGHLIGHT SUCCESSFUL COLLABORATIONS
 AND THE IMPACT OF THESE INITIATIVES ON DIVERSIFYING THE INVESTMENT LAND-
 SCAPE.
 A. 9999                             3
 
   (D) ALL ANNUAL REPORTS SUBMITTED TO  THE  COMPTROLLER  SHALL  BE  MADE
 PUBLICLY  AVAILABLE  ON  THE  FUND'S  WEBSITE, ENSURING TRANSPARENCY AND
 ACCOUNTABILITY TO THE PUBLIC.
   6.  (A)  THE  COMPTROLLER  SHALL REVIEW AND ASSESS THE ANNUAL PROGRESS
 REPORTS SUBMITTED BY THE PUBLIC PENSION FUNDS.
   (B) IN THE EVENT THAT A PUBLIC PENSION FUND FAILS TO MEET THE UTILIZA-
 TION STANDARDS SPECIFIED IN SUBDIVISION TWO OF THIS SECTION,  THE  COMP-
 TROLLER  SHALL  WORK  CLOSELY WITH SUCH FUND TO IDENTIFY THE REASONS FOR
 NON-COMPLIANCE AND PROVIDE GUIDANCE ON CORRECTIVE ACTIONS.
   (C) THE COMPTROLLER SHALL COMPILE THE INFORMATION  RECEIVED  FROM  THE
 PUBLIC  PENSION FUNDS AND PRODUCE AN ANNUAL REPORT ASSESSING THE OVERALL
 PROGRESS AND EFFECTIVENESS OF THE INVESTMENT  MANAGER  DIVERSITY  POLICY
 ACROSS  THE  STATE.  SUCH  REPORT SHALL ALSO INCLUDE RECOMMENDATIONS FOR
 ENHANCING DIVERSITY AND INCLUSION IN ASSET MANAGEMENT WITHIN THE  PUBLIC
 PENSION SECTOR.
   7. TO PROMOTE AWARENESS AND UNDERSTANDING OF THE GOALS AND BENEFITS OF
 THE  INVESTMENT MANAGER DIVERSITY POLICY, EACH PUBLIC PENSION FUND SHALL
 ESTABLISH PUBLIC OUTREACH  AND  EDUCATIONAL  PROGRAMS  THAT  ENGAGE  THE
 COMMUNITY,   INVESTMENT  PROFESSIONALS,  AND  OTHER  STAKEHOLDERS.  SUCH
 PROGRAMS MAY INCLUDE SEMINARS, WORKSHOPS,  WEBINARS,  AND  INFORMATIONAL
 MATERIALS  THAT  HIGHLIGHT  THE  VALUE  OF DIVERSE INVESTMENT MANAGEMENT
 TEAMS AND THE POTENTIAL FOR ECONOMIC GROWTH  THROUGH  BIPOC-OWNED  BUSI-
 NESSES.
   8. TO SUPPORT THE GROWTH OF EMERGING BIPOC-OWNED INVESTMENT MANAGEMENT
 FIRMS,  EACH  PUBLIC PENSION FUND SHALL EXPLORE OPPORTUNITIES TO PROVIDE
 TECHNICAL ASSISTANCE, MENTORSHIP, AND RESOURCES. SUCH SUPPORT MAY ENCOM-
 PASS FINANCIAL EDUCATION,  NETWORKING  OPPORTUNITIES,  AND  GUIDANCE  ON
 COMPLIANCE  AND  BEST  PRACTICES,  WITH  THE  AIM OF FOSTERING A VIBRANT
 ECOSYSTEM OF DIVERSE INVESTMENT PROFESSIONALS.
   9. FIVE YEARS AFTER THE EFFECTIVE DATE OF THIS SECTION, THE CITY COMP-
 TROLLER SHALL CONDUCT A COMPREHENSIVE REVIEW OF THE  INVESTMENT  MANAGER
 DIVERSITY  POLICY'S  IMPACT ON THE PUBLIC PENSION SECTOR'S DIVERSITY AND
 INCLUSION GOALS.
   § 3. The retirement and social security law is amended by adding a new
 section 423-e to read as follows:
   § 423-E. BIPOC-OWNED INVESTMENT MANAGEMENT FIRMS; CITY OF NEW YORK. 1.
 FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   (A)  "BEST  PRACTICES"  SHALL  MEAN  INDUSTRY-RECOGNIZED STANDARDS AND
 GUIDELINES FOR DIVERSITY, EQUITY, AND INCLUSION.
   (B) "BIPOC" SHALL MEAN BLACK, INDIGENOUS, AND PEOPLE OF COLOR.
   (C) "BIPOC-OWNED FIRMS" SHALL MEAN BUSINESS ENTERPRISES OWNED BY INDI-
 VIDUALS FROM BLACK, INDIGENOUS, AND PEOPLE OF COLOR COMMUNITIES.
   (D)  "DESIGNATED  ENTITIES"  SHALL  MEAN  ENTITIES  GOVERNED  BY  THIS
 SECTION,  INCLUDING  BUT NOT LIMITED TO, THE COMMON RETIREMENT FUND, THE
 NEW YORK STATE TEACHERS' RETIREMENT  SYSTEM,  AND  THE  NEW  YORK  STATE
 INSURANCE FUND.
   (E)  "EMERGING  MANAGER  PROGRAMS"  SHALL  MEAN  PROGRAMS  DESIGNED TO
 ENHANCE OPPORTUNITIES FOR SMALL, DISADVANTAGED, OR BIPOC-OWNED  BUSINESS
 ENTERPRISES.
   (F)  "FIDUCIARIES"  SHALL  MEAN  INDIVIDUALS  ENTRUSTED WITH FIDUCIARY
 DUTIES WITHIN THE DESIGNATED ENTITIES.
   (G) "MUNICIPALITY" SHALL MEAN ANY CITY, VILLAGE, OR INCORPORATED  TOWN
 WITH  AN  INHABITANT  COUNT  ONE  MILLION  OR  MORE BUT LESS THAN TWELVE
 MILLION, AS DETERMINED BY UNITED STATES GOVERNMENT STATISTICS OR A RELE-
 VANT CENSUS.
 A. 9999                             4
 
   (H) "COMPENSATION" SHALL MEAN ANY MONEY, THING OF VALUE,  OR  ECONOMIC
 BENEFIT  CONFERRED  ON  OR  RECEIVED  BY  A  CONSULTANT  IN EXCHANGE FOR
 SERVICES RENDERED OR TO BE RENDERED.
   (I)  "ECONOMIC  OPPORTUNITY" SHALL MEAN ANY TRANSACTION OR ARRANGEMENT
 INVOLVING THE PURCHASE, SALE, LEASE, CONTRACT, OPTION, OR OTHER  ENGAGE-
 MENT  RELATED TO PROPERTY OR SERVICES, IN WHICH A CONSULTANT MAY GAIN AN
 ECONOMIC BENEFIT.
   (J) "TRUSTEES" SHALL MEAN THE RELEVANT GOVERNING BODY,  SUCH  AS  CITY
 COUNCILS, BOARDS OF TRUSTEES, AND OTHER APPROPRIATE AUTHORITIES.
   1-A.  IN  EACH  MUNICIPALITY  AND  CITY AS DEFINED IN PARAGRAPH (G) OF
 SUBDIVISION ONE OF THIS SECTION, THE RELEVANT GOVERNING  BODY,  SUCH  AS
 CITY  COUNCILS,  BOARDS  OF TRUSTEES, AND OTHER APPROPRIATE AUTHORITIES,
 SHALL ESTABLISH AND ADMINISTER  SPECIFIC  FUNDS  AS  DESCRIBED  IN  THIS
 SECTION  FOR  THE  BENEFIT  OF  POLICE OFFICERS, FIREFIGHTERS, MUNICIPAL
 EMPLOYEES, OFFICERS,  AND  PUBLIC  SCHOOL  TEACHERS,  ALONG  WITH  THEIR
 SURVIVING SPOUSES, CHILDREN, AND CERTAIN OTHER DEPENDENTS.
   2.  (A)  THE  TRUSTEES  OF EACH PUBLIC PENSION FUND IN THE CITY OF NEW
 YORK SHALL BE MANDATED TO ALLOCATE NO LESS THAN  FORTY  PERCENT  OF  THE
 TOTAL  DOLLAR  AMOUNT  OF  THE  IDENTIFIED FUND UNDER MANAGEMENT TOWARDS
 INVESTMENTS THROUGH BIPOC ASSET MANAGERS, BIPOC FINANCIAL  INSTITUTIONS,
 AND BIPOC FINANCIAL OR PROFESSIONAL SERVICE FIRMS.
   (B)  INVESTMENT  FUNDS THAT DO NOT FALL UNDER THE BIPOC CATEGORY SHALL
 ASPIRE TO REACH A MINIMUM OF TWENTY PERCENT BUT SHALL STRIVE TO  ACHIEVE
 THE  GOAL  OF  FORTY PERCENT OF FUNDS RECEIVED FROM THE FUND BEING ALLO-
 CATED TOWARDS BIPOC-LED INVESTMENTS.
   3. THE SCOPE OF  BIPOC  INVESTMENTS  COVERED  BY  THIS  SECTION  SHALL
 INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:
   (A)  INVESTING  ASSETS  OF  THE VARIOUS PENSION FUNDS WITH BIPOC ASSET
 MANAGERS, RECOGNIZING THEIR EXPERTISE, EXPERIENCE, AND  UNIQUE  PERSPEC-
 TIVES IN MANAGING INVESTMENT PORTFOLIOS; AND
   (B) SUBJECT TO BEST EXECUTION PRACTICES:
   (I) CONDUCTING TRADES OF PUBLIC EQUITY SECURITIES WITH BIPOC FINANCIAL
 INSTITUTIONS,  PROMOTING COLLABORATION AND ECONOMIC OPPORTUNITIES WITHIN
 THE BIPOC COMMUNITY; AND
   (II) CONDUCTING TRADES OF FIXED-INCOME SECURITIES THROUGH BIPOC INSTI-
 TUTIONS, CONTRIBUTING TO THE GROWTH AND DEVELOPMENT OF BIPOC-LED  FINAN-
 CIAL ENTITIES;
   (C) ALLOCATING INVESTMENTS OF ALL PENSION FUND ASSETS THROUGH:
   (I)  DIRECT  INVESTMENTS  IN THE EQUITIES AND DEBT SECURITIES OF BIPOC
 ENTITIES, FOSTERING CAPITAL FLOW TO BIPOC-LED PROJECTS  AND  BUSINESSES;
 AND
   (II)  INDIRECT  INVESTMENTS  THROUGH  SPECIAL PROGRAMS INVOLVING BIPOC
 ASSET  MANAGERS,  FACILITATING  PARTNERSHIPS  AND  PROMOTING  ACCESS  TO
 INVESTMENT OPPORTUNITIES; AND
   (D) AWARDING CONTRACTS FOR VARIOUS FINANCIAL AND PROFESSIONAL SERVICES
 TO  BIPOC  FINANCIAL  INSTITUTIONS  AND OTHER BIPOC PROFESSIONAL SERVICE
 FIRMS, ENSURING EQUITABLE DISTRIBUTION OF OPPORTUNITIES  AND  SUPPORTING
 THE GROWTH OF BIPOC-LED ENTERPRISES.
   4.  (A)  THE TRUSTEES OF THE VARIOUS FUNDS SHALL HAVE THE AUTHORITY TO
 ESTABLISH ADDITIONAL GOALS THAT SUPPLEMENT THE  REQUIREMENTS  STATED  IN
 SUBDIVISION TWO OF THIS SECTION.
   (B) WITHIN SIXTY DAYS OF THE CONCLUSION OF EACH FISCAL YEAR SUBSEQUENT
 TO  THE  EFFECTIVE  DATE  OF  THIS SECTION, THE TRUSTEES SHALL PROVIDE A
 COMPREHENSIVE REPORT TO THE CITY COMPTROLLER. SUCH REPORT  SHALL  DETAIL
 THE PARTICIPATION OF BIPOC ASSET MANAGERS, BIPOC FINANCIAL INSTITUTIONS,
 A. 9999                             5
 
 AND  BIPOC  PROFESSIONAL  SERVICE  PROVIDERS IN INVESTMENT AND BROKERAGE
 TRANSACTIONS, AS WELL AS THEIR PROVISION OF SERVICES FOR THE FUND.
   (C) SUCH REPORT SHALL INCLUDE A COMPARATIVE ANALYSIS OF THE ACTIVITIES
 OUTLINED  IN  SUBDIVISION THREE OF THIS SECTION IN RELATION TO ALL ASSET
 MANAGERS, FINANCIAL INSTITUTIONS,  AND  PROFESSIONAL  SERVICE  PROVIDERS
 ENGAGED  BY THE CITY COMPTROLLER OF THE PENSION FUND DURING THE RELEVANT
 PERIOD.
   (D) SUCH REPORT SHALL EVALUATE AND HIGHLIGHT THE PROGRESS AND  SUCCESS
 ACHIEVED  IN PURSUING THE ASPIRATIONAL GOALS OUTLINED IN SUBDIVISION TWO
 OF THIS SECTION. THESE EFFORTS  SHALL  BE  UNDERTAKEN  TO  THE  GREATEST
 EXTENT  FEASIBLE,  ENSURING  COMPLIANCE  WITH  FINANCIAL  AND  FIDUCIARY
 PRUDENCE.
   (E) EACH REPORT SHALL BE PROMPTLY PUBLISHED ON THE OFFICIAL WEBSITE OF
 THE APPLICABLE INVESTMENT FUND, REMAINING ACCESSIBLE FOR A MINIMUM PERI-
 OD OF SIXTY DAYS FOLLOWING ITS RELEASE.
   5. (A) EFFECTIVE JANUARY FIRST, TWO THOUSAND TWENTY-FIVE, AND ON  EACH
 SUBSEQUENT JANUARY FIRST THEREAFTER, ANY CONSULTANT RETAINED BY THE FUND
 SHALL  DISCLOSE  TO  THE TRUSTEES ALL COMPENSATION AND ECONOMIC OPPORTU-
 NITIES RECEIVED IN THE  PRECEDING  TWENTY-FOUR  MONTHS  FROM  INVESTMENT
 ADVISORS RETAINED BY THE TRUSTEES.
   (B)  A  CONSULTANT  SHALL DISCLOSE TO THE TRUSTEES ANY COMPENSATION OR
 ECONOMIC OPPORTUNITY RECEIVED WITHIN THE PAST TWENTY-FOUR MONTHS FROM AN
 INVESTMENT ADVISOR THAT IS RECOMMENDED FOR SELECTION BY SUCH CONSULTANT.
 SUCH DISCLOSURE SHALL BE  MADE  PRIOR  TO  THE  TRUSTEES  APPOINTING  AN
 INVESTMENT ADVISOR. NO CONTRACT FOR CONSULTING SERVICES SHALL BE AWARDED
 BY  THE  TRUSTEES  OF THE FUND WITHOUT FIRST REQUIRING THE CONSULTANT TO
 FULFILL  THE  NECESSARY  DISCLOSURE  REQUIREMENTS  STATED  WITHIN   THIS
 SECTION.
   6.  TO QUALIFY FOR FUND ALLOCATION AS PROVIDED UNDER THIS SECTION, THE
 FOLLOWING MINIMUM REQUIREMENTS SHALL BE MET BY THE RESPECTIVE FIRMS:
   (A) FOR REAL ESTATE MANAGER QUALIFICATIONS:
   (I) THE FIRM SHALL MANAGE GROSS ASSETS  UNDER  MANAGEMENT  ACROSS  ALL
 CLIENTS  THAT  ARE LESS THAN TWO BILLION DOLLARS AT THE INCEPTION OF THE
 RELATIONSHIP;
   (II) THE FIRM'S LATEST FUND OFFERINGS SHALL SEEK LESS THAN TWO HUNDRED
 FIFTY MILLION DOLLARS OF EQUITY;
   (III) REAL ESTATE FIRMS SHALL HAVE  AT  LEAST  FORTY-FIVE  PERCENT  OF
 THEIR ECONOMIC INTERESTS OWNED BY PRINCIPALS AND EMPLOYEES; AND
   (IV)  QUALIFIED  REAL  ESTATE MANAGERS SHALL OPERATE AND RESIDE WITHIN
 NEW YORK STATE.
   (B) FOR PRIVATE EQUITY MANAGER QUALIFICATIONS:
   (I) THE FIRM SHALL BE A LEGALLY STRUCTURED  ENTITY,  ADHERING  TO  ALL
 APPLICABLE LAWS AND REGULATIONS;
   (II)  THE  FIRM  SHALL  HAVE  A  PRIVATE PLACEMENT MEMORANDUM (PPM) IN
 PLACE;
   (III) THE FIRM SHALL RAISE A FIRST,  SECOND,  OR  THIRD  INSTITUTIONAL
 FUND; AND
   (IV)  THE FIRM'S INSTITUTIONAL FUND SHALL NOT EXCEED CERTAIN FUND SIZE
 LIMITS.
   (C) FOR FIXED INCOME MANAGER QUALIFICATIONS:
   (I) THE FIRM SHALL HAVE TWO BILLION DOLLARS OR LESS  IN  ASSETS  UNDER
 MANAGEMENT;
   (II)  THE  FIRM  SHALL  HAVE  A  MAXIMUM OF FIFTY PERCENT NON-EMPLOYEE
 OWNERSHIP; AND
   (III) THE FIRM SHALL BE A  LEGALLY  STRUCTURED  ENTITY  WITH  A  VALID
 CORPORATE TAX IDENTIFICATION NUMBER.
 A. 9999                             6

   (D)  FOR  A REGISTERED INVESTMENT ADVISOR OR EXEMPTION, THE FIRM SHALL
 BE A REGISTERED INVESTMENT ADVISOR OR QUALIFY FOR EXEMPTION FROM  REGIS-
 TRATION.
   § 4. This act shall take effect immediately.