NY State Senate Bill 2023-S631

Current Bill Status - In Senate Committee Civil Service And Pensions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to civil service and pensions
Jan 05, 2023	referred to civil service and pensions

co-Sponsors

2023-S631 (ACTIVE) - Details

See Assembly Version of this Bill:: A6962
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Add §§177-b, 177-e & 177-f, amd §423-c, R & SS L; amd §§8 & 5, St Fin L; amd §508-a, Ed L; amd §87-i, Work Comp L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S8524, A10495
2021-2022: S3267, A5575

2023-S631 (ACTIVE) - Summary

Relates to the use of MWBE investments for and aspirational goal of at least twenty percent of each New York state fund, to the greatest extent feasible within the bounds of financial and fiduciary prudence.

2023-S631 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S631

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the retirement and social security law, the state
finance law, the education law, and the workers' compensation law, in
relation to the use of MWBE investments for New York state funds

 
PURPOSE:

The purpose of this bill is to expand the participation and contracting
of NYS MWBE asset management and investment firms on the New York State
pension funds.

 
SUMMARY OF PROVISIONS:

Section 1 of this bill amends the retirement and social security law by
adding a new section, 177-b, which requires public officials with
investment making discretion and duties to the greatest extent feasible
within the bounds of financial and fiduciary prudence to utilize MWBE
asset managers, MWBE financial institutions, and MWBE financial or

professional service firms for the investment of no less than twenty
percent of the total dollar amount of such fund under management. It
also authorizes the trustee or trustees of a fund to establish addi-
tional aspirational goals to the goals directed by subdivision one of
this section. The trustee or trustees of a fund is required to report to
the governor, legislature, and chief diversity officer of the state of
New York on the participation of MWBE asset managers, MWBE financial
institutions, and MWBE professional service providers in investment and
brokerage transactions with or as providers of services for such a fund.
The report is required to be given within sixty days of the end of each
fiscal year following the effective date of this section and each report
sent shall be simultaneously published on the website of such for not
less than sixty days following its release to the gover nor and the
other recipients named in Subdivision 3.

Section 2 of this bill amends the retirement and social security law by
adding a new section, 177-e, lays out that the term "disability" shall
have the same meaning as defined by section two hundred of the economic
development law. The section requires each consultant retained by the
trustee or trustees of a fund to disclose to the trustee or trustees of
such fund the total number of searches for investment services made by
such consultant in the previous calendar year including all such search-
es no later than January first, two thousand twenty-one, and each Janu-
ary first thereafter. Also, no contract, oral or written, for consulting
services shall be awarded by the trustee or trustees of a fund without
first requiring the consultant to make the disclosures required under
subdivision two of this section beginning January first, two thousand
twenty-one.

Section 3 of this bill amends the retirement and social security law by
adding a new section, 177-f, and lays out that the term "compensation"
shall be defined as any money, thing of value, or economic benefit
conferred on, or received by, a consultant in return for services
rendered, or to be rendered and the term "economic opportunity" shall be
defined as any purchase, sale, lease, contract, option, or other trans-
action or arrangement involving property or services wherein a consult-
ant may gain an economic benefit. It stipulates that a consultant must
disclose to his or her trustees any compensation or economic opportunity
received from an investment advisor that they recommend to the trustee,
and this must be done prior to the trustee or trustees select and
investment advisor for appointment. Finally, no contract for consulting
services shall be awarded by a trustee or trustees of a fund without
requiring the consultant to make the disclosures required by subdivision
three of this section.

Section 4 of this bill amends section 8 of the state finance law by
adding two new subdivisions 21 and 22. Subdivision 21 authorizes that
preference must be given to MWBE business enterprises, businesses that
are at least fifty-one percent by a veteran or veterans or a person or
persons with a disability, and businesses that have a record of support
for increasing diversity and inclusion in board membership, management,
employment, philanthropy, and supplier diversity, including investment
professionals and investment sourcing. Section 22 mandates that a finan-
cial institution's federal Community Reinvestment Act rating, record,
and current level of financial commitment to the community when deter-
mining its eligibility to participate in financial programs or activity
under the purview of the comptroller.

Section 5 of this bill amends subdivision 1 of section 423-c of the
retirement and social security law. It authorizes the comptroller to
establish an MWBE asset Management and financial strategy that is
consistent with and in addition to goals for the utilization of MWBE
asset managers, MWBE financial institutions and MWBE financial and
professional service firms.

Section 6 of this bill amends subdivision 1 of section 508-a of the
education law. It authorizes that, the retirement board establish an
MWBE asset management and financial institution strategy that is
consistent with and in addition to goals for the utilization of MWBE
asset managers, MWBE financial institutions and MWBE financial and
professional service firms.

Section 7 of this bill amends paragraph c of subdivision 2 of section 5
a of the state finance law. It authorizes the deferred compensation
board to establish an MWBE asset management and financial institution
strategy that is consistent with and in addition to goals for the utili-
zation of MWBE asset managers, MWBE financial institutions and MWBE
financial and professional service firms.

Section 8 of this bill amends subdivision 1 of section 87-i of workers'
compensation law. It authorizes the commissioners of the state insurance
fund to establish an MWBE asset management and financial institution
strategy that is consistent with and in addition to goals for the utili-
zation of MWBE asset managers, MWBE financial institutions and MWBE
financial and professional service firms.

Section 9 sets the effective date for this bill.

 
JUSTIFICATION:

This bill will greatly expand opportunities for MWBE asset managers,
financial institutions, and financial and professional service firms to
participate in New York state pension funds, improving their opportu-
nities for investment and encouraging greater economic diversity
throughout New York. Section 1 will ensure a sufficient proportion of
funds are dedicated to MWBE entities and establish a system of account-
ability and transparency among trustees to publicly report on their MWBE
participation and utilization. Sections 2 and 3 promote honesty and full
disclosure in contracts and investment searches between trustees and
MWBE entities to ensure fair and diverse investment practices. Section 4
authorizes preference be given to MWBE entities, further expanding their
participation in New York state funds and encouraging economic diversi-
ty. The remaining sections will establish strategies in various insti-
tutions that strengthen and promote the goals of MWBE utilization.

New York is a place of rich diversity that should be.celebrated,
supported and prioritized, and this bill will create much-needed oppor-
tunities for diverse investment and financial institutions to strengthen
the diversity of our economy. A similar bill enacted in Illinois created
a 60-fold increase in assets brokered by diverse firms over a 4 year
period, and a 2S-fold increase in assets managed by diverse firms over a
3 year period. It is crucial that our public funds and economic activity
reflect the diversity of our state, especially when diverse institutions
are still being held down and underutilized.

 
LEGISLATIVE HISTORY:

2022: S3267- referred to civil service and pensions.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.

2023-S631 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    631
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 5, 2023
                                ___________
 
 Introduced  by  Sens.  COMRIE, JACKSON, PARKER -- read twice and ordered
   printed, and when printed to be committed to the  Committee  on  Civil
   Service and Pensions
 
 AN  ACT  to  amend  the  retirement  and  social security law, the state
   finance law, the education law, and the workers' compensation law,  in
   relation to the use of MWBE investments for New York state funds
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The retirement and social security law is amended by adding
 a new section 177-b to read as follows:
   § 177-B. USE OF MWBE ASSET MANAGEMENT AND FINANCIAL  INSTITUTIONS.  1.
 IN  ADDITION  TO  THE  POWERS  CONTAINED  IN ANY OTHER PROVISION OF LAW,
 INCLUDING THE PROVISIONS OF THE ADMINISTRATIVE CODE OF THE CITY  OF  NEW
 YORK,  IT  SHALL  BE THE GOAL OF PUBLIC OFFICIALS WITH INVESTMENT MAKING
 DISCRETION AND DUTIES, INCLUDING, BUT NOT LIMITED TO  ELECTED  OFFICIALS
 SUCH  AS  THE  STATE  COMPTROLLER AND THE COMPTROLLER OF THE CITY OF NEW
 YORK, APPOINTED OFFICIALS, THE TRUSTEE OR TRUSTEES OF A FUND, AND  STATE
 AUTHORITY  OFFICIALS  THAT,  TO  THE GREATEST EXTENT FEASIBLE WITHIN THE
 BOUNDS OF FINANCIAL AND FIDUCIARY PRUDENCE, SUCH PUBLIC OFFICIALS, TRUS-
 TEE OR TRUSTEES SHALL ASPIRE TO UTILIZE MWBE ASSET MANAGERS, MWBE FINAN-
 CIAL INSTITUTIONS, AND MWBE FINANCIAL OR PROFESSIONAL SERVICE FIRMS  FOR
 THE INVESTMENT OF NO LESS THAN TWENTY PERCENT OF THE TOTAL DOLLAR AMOUNT
 OF  SUCH  FUND UNDER MANAGEMENT, WHICH SHALL INCLUDE, BUT NOT BE LIMITED
 TO, THE FOLLOWING:
   (A) INVESTING ASSETS OF SUCH FUND WITH MWBE ASSET MANAGERS;
   (B) SUBJECT TO BEST EXECUTION: (I) CONDUCTING TRADES OF PUBLIC  EQUITY
 SECURITIES  WITH MWBE FINANCIAL INSTITUTIONS; AND (II) CONDUCTING TRADES
 OF FIXED-INCOME SECURITIES THROUGH MWBE INSTITUTIONS;
   (C) ALLOCATING INVESTMENTS OF ASSETS OF SUCH FUND EITHER THROUGH:  (I)
 DIRECT INVESTMENTS IN THE EQUITIES AND DEBT SECURITIES OF MWBES; OR (II)
 INDIRECTLY THROUGH SPECIAL PROGRAMS INVOLVING MWBE ASSET MANAGERS; OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02760-01-3

 S. 631                              2
 
   (D)  AWARDING  CONTRACTS  FOR ACCOUNTING, BANKING, FINANCIAL ADVISORY,
 INSURANCE, LEGAL, RESEARCH, VALUATION, AND OTHER FINANCIAL  AND  PROFES-
 SIONAL  SERVICES  TO  MWBE FINANCIAL INSTITUTIONS AND OTHER MWBE PROFES-
 SIONAL SERVICE FIRMS.
   2.  THE TRUSTEE OR TRUSTEES OF A FUND SHALL BE AUTHORIZED TO ESTABLISH
 ADDITIONAL ASPIRATIONAL GOALS TO THE GOALS DIRECTED BY  SUBDIVISION  ONE
 OF THIS SECTION.
   3.  WITHIN  SIXTY  DAYS  OF  THE END OF EACH FISCAL YEAR FOLLOWING THE
 EFFECTIVE DATE OF THIS SECTION, THE TRUSTEE OR TRUSTEES OF A FUND  SHALL
 REPORT  TO THE GOVERNOR, LEGISLATURE, AND CHIEF DIVERSITY OFFICER OF THE
 STATE OF NEW YORK ON THE PARTICIPATION  OF  MWBE  ASSET  MANAGERS,  MWBE
 FINANCIAL  INSTITUTIONS,  AND  MWBE  PROFESSIONAL  SERVICE  PROVIDERS IN
 INVESTMENT AND BROKERAGE TRANSACTIONS WITH OR AS PROVIDERS  OF  SERVICES
 FOR  SUCH  FUND, INCLUDING A COMPARATIVE ANALYSIS OF SUCH ACTIVITY RELA-
 TIVE TO SUCH ACTIVITY WITH ALL ASSET MANAGERS,  FINANCIAL  INSTITUTIONS,
 AND  PROFESSIONAL  SERVICE PROVIDERS FOR THE RELEVANT PERIOD, AND ON THE
 PROGRESS AND SUCCESS OF THE EFFORTS UNDERTAKEN  DURING  SUCH  PERIOD  TO
 ACHIEVE  THE ASPIRATIONAL GOALS UNDER SUBDIVISION ONE OF THIS SECTION TO
 THE GREATEST EXTENT FEASIBLE WITHIN THE BOUNDS OF FINANCIAL AND  FIDUCI-
 ARY  PRUDENCE.  EACH  REPORT  SHALL  BE  SIMULTANEOUSLY PUBLISHED ON THE
 WEBSITE OF SUCH FUND FOR NOT LESS THAN SIXTY DAYS FOLLOWING ITS  RELEASE
 TO THE GOVERNOR AND THE OTHER RECIPIENTS NAMED IN THIS SUBDIVISION.
   § 2. The retirement and social security law is amended by adding a new
 section 177-e to read as follows:
   §  177-E.  REQUIRED DISCLOSURES FROM CONSULTANTS; MWBES AND BUSINESSES
 OWNED BY PERSONS WITH DISABILITIES. 1. AS USED IN THIS SECTION, THE TERM
 "DISABILITY" SHALL HAVE THE SAME  MEANING  AS  DEFINED  BY  SECTION  TWO
 HUNDRED TEN OF THE ECONOMIC DEVELOPMENT LAW.
   2.  NO  LATER  THAN  JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, AND EACH
 JANUARY FIRST THEREAFTER, EACH CONSULTANT RETAINED  BY  THE  TRUSTEE  OR
 TRUSTEES  OF  A  FUND  SHALL DISCLOSE TO THE TRUSTEE OR TRUSTEES OF SUCH
 FUND THE TOTAL NUMBER OF SEARCHES FOR INVESTMENT SERVICES MADE  BY  SUCH
 CONSULTANT IN THE PREVIOUS CALENDAR YEAR INCLUDING ALL SUCH SEARCHES:
   (A)  THAT  INCLUDED  (I)  MWBE ASSET   MANAGERS,   (II) MWBE FINANCIAL
 INSTITUTIONS, (III) MWBE FINANCIAL  OR  PROFESSIONAL  SERVICE FIRMS,  OR
 (IV)  ANY  BUSINESS ENTERPRISE AT LEAST FIFTY-ONE PERCENT OWNED BY INDI-
 VIDUALS WITH DISABILITIES;
   (B) IN WHICH THE CONSULTANT RECOMMENDED FOR SELECTION (I)  MWBE  ASSET
 MANAGERS,    (II) MWBE FINANCIAL  INSTITUTIONS, (III) MWBE FINANCIAL  OR
 PROFESSIONAL  SERVICE FIRMS, OR (IV) ANY BUSINESS  ENTERPRISE  AT  LEAST
 FIFTY-ONE PERCENT OWNED BY INDIVIDUALS WITH DISABILITIES; AND
   (C)  THAT RESULTED IN THE SELECTION OF (I) MWBE ASSET  MANAGERS,  (II)
 MWBE FINANCIAL  INSTITUTIONS, (III) MWBE FINANCIAL    OR    PROFESSIONAL
 SERVICE  FIRMS,  OR  (IV)  ANY  BUSINESS  ENTERPRISE  AT LEAST FIFTY-ONE
 PERCENT OWNED BY INDIVIDUALS  WITH  DISABILITIES,  INCLUDING  THE  TOTAL
 DOLLAR AMOUNTS INVESTED PURSUANT TO SUCH SELECTION.
   3.    BEGINNING  JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, NO CONTRACT,
 ORAL OR WRITTEN, FOR CONSULTING SERVICES SHALL BE AWARDED BY THE TRUSTEE
 OR TRUSTEES OF A FUND WITHOUT FIRST REQUIRING THE CONSULTANT TO MAKE THE
 DISCLOSURES REQUIRED UNDER SUBDIVISION TWO OF THIS SECTION.
   4. SUCH DISCLOSURE SHALL BE CONSIDERED BY THE TRUSTEE OR TRUSTEES OF A
 FUND, WITHIN THE BOUNDS OF FINANCIAL AND FIDUCIARY  PRUDENCE,  PRIOR  TO
 THE AWARDING OF AN ORAL OR WRITTEN CONTRACT FOR CONSULTING SERVICES.
   § 3. The retirement and social security law is amended by adding a new
 section 177-f to read as follows:
 S. 631                              3
 
   §  177-F.  REQUIRED  DISCLOSURES  FROM  CONSULTANTS;  COMPENSATION AND
 ECONOMIC OPPORTUNITY RECEIVED.  1. FOR THE PURPOSES OF THIS SECTION, THE
 FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "COMPENSATION" MEANS ANY MONEY, THING OF VALUE, OR ECONOMIC BENE-
 FIT CONFERRED ON, OR RECEIVED BY, A CONSULTANT IN  RETURN  FOR  SERVICES
 RENDERED, OR TO BE RENDERED.
   (B)  "ECONOMIC OPPORTUNITY" MEANS ANY PURCHASE, SALE, LEASE, CONTRACT,
 OPTION, OR  OTHER  TRANSACTION  OR  ARRANGEMENT  INVOLVING  PROPERTY  OR
 SERVICES WHEREIN A CONSULTANT MAY GAIN AN ECONOMIC BENEFIT.
   2.  NO  LATER  THAN  JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, AND EACH
 JANUARY FIRST SUCCEEDING SUCH DATE, A CONSULTANT RETAINED BY THE TRUSTEE
 OR TRUSTEES OF A FUND SHALL DISCLOSE TO THE TRUSTEE OR TRUSTEES OF  SUCH
 FUND  ALL  COMPENSATION  AND  ECONOMIC OPPORTUNITY RECEIVED IN THE PRIOR
 TWENTY-FOUR MONTHS FROM INVESTMENT ADVISORS RETAINED BY SUCH TRUSTEE  OR
 TRUSTEES.
   3.  BEGINNING  JANUARY  FIRST,  TWO THOUSAND TWENTY-FOUR, A CONSULTANT
 SHALL DISCLOSE TO THE TRUSTEE OR TRUSTEES OF A FUND ANY COMPENSATION  OR
 ECONOMIC  OPPORTUNITY  RECEIVED  IN THE PRIOR TWENTY-FOUR MONTHS FROM AN
 INVESTMENT ADVISOR THAT IS RECOMMENDED FOR SELECTION BY SUCH CONSULTANT.
 A CONSULTANT SHALL MAKE THIS DISCLOSURE PRIOR TO THE TRUSTEE OR TRUSTEES
 OF A FUND SELECTING AN INVESTMENT ADVISOR FOR APPOINTMENT.
   4. BEGINNING JANUARY FIRST, TWO  THOUSAND  TWENTY-FOUR,  NO  CONTRACT,
 ORAL  OR  WRITTEN, FOR CONSULTING SERVICES SHALL BE AWARDED BY A TRUSTEE
 OR TRUSTEES OF A FUND WITHOUT FIRST REQUIRING THE CONSULTANT TO MAKE THE
 DISCLOSURES REQUIRED BY SUBDIVISION THREE OF THIS SECTION.
   § 4. Section 8 of the state finance law is amended by adding  two  new
 subdivisions 21 and 22 to read as follows:
   21.  A. WHEN PROCURING OR AUTHORIZING THE PROCUREMENT OF ANY GOODS AND
 SERVICES, WHETHER THROUGH  A  REQUEST  FOR  PROPOSAL  OR  OTHERWISE,  BE
 AUTHORIZED  TO  INCORPORATE PREFERENCES IN THE SCORING PROCESS FOR BUSI-
 NESSES THAT:
   (1) ARE A MINORITY-OWNED BUSINESS ENTERPRISE OR A WOMAN-OWNED BUSINESS
 ENTERPRISE, AS SUCH TERMS ARE DEFINED BY SECTION TWO HUNDRED TEN OF  THE
 ECONOMIC DEVELOPMENT LAW;
   (2) ARE AT LEAST FIFTY-ONE PERCENT OWNED BY A VETERAN OR VETERANS OR A
 PERSON  OR  PERSONS  WITH  A  DISABILITY,  AS  SUCH TERMS ARE DEFINED BY
 SECTION TWO HUNDRED TEN OF THE ECONOMIC DEVELOPMENT LAW; OR
   (3) HAVE A RECORD OF SUPPORT FOR INCREASING DIVERSITY AND INCLUSION IN
 BOARD MEMBERSHIP, MANAGEMENT,  EMPLOYMENT,  PHILANTHROPY,  AND  SUPPLIER
 DIVERSITY, INCLUDING INVESTMENT PROFESSIONALS AND INVESTMENT SOURCING.
   B.  BEGINNING  WITH  THE  FISCAL YEAR TWO THOUSAND TWENTY-FOUR, AND AT
 LEAST ANNUALLY THEREAFTER, REPORT ON HIS OR HER UTILIZATION OF THE BUSI-
 NESSES DESCRIBED IN PARAGRAPH A OF THIS SUBDIVISION.  SUCH REPORT  SHALL
 BE PUBLISHED ON THE OFFICIAL WEBSITE OF THE COMPTROLLER.
   22.  REVIEW  A  FINANCIAL INSTITUTION'S FEDERAL COMMUNITY REINVESTMENT
 ACT RATING, RECORD, AND CURRENT LEVEL OF  FINANCIAL  COMMITMENT  TO  THE
 COMMUNITY WHEN DETERMINING THE ELIGIBILITY OF SUCH FINANCIAL INSTITUTION
 TO  PARTICIPATE  IN  A BANKING CONTRACT, INVESTMENT CONTRACT, INVESTMENT
 ACTIVITY, OR OTHER FINANCIAL PROGRAM UNDER THE CONTROL OR SUPERVISION OF
 THE COMPTROLLER.
   § 5. Subdivision 1 of section 423-c of the retirement and social secu-
 rity law, as added by chapter 171 of the laws of  2010,  is  amended  to
 read as follows:
   1.  Within  the  discretion of the state comptroller and in accordance
 with and subject to his or her fiduciary duties and obligations as trus-
 tee of the common retirement fund and to the members, retirees and bene-
 S. 631                              4

 ficiaries of such fund and such other investment limitations as  may  be
 prescribed  by  this chapter, the comptroller is authorized to establish
 an MWBE asset management and financial institution strategy  [including]
 CONSISTENT  WITH AND IN ADDITION TO HIS OR HER OBLIGATIONS UNDER SECTION
 ONE HUNDRED SEVENTY-SEVEN-B OF THIS CHAPTER, WHICH SHALL INCLUDE reason-
 able goals for utilization of MWBE asset managers, MWBE financial insti-
 tutions and MWBE financial and professional service firms, which strate-
 gy shall include, but shall not be limited to, the following objectives:
   (a) investing assets of the common retirement  fund  with  MWBE  asset
 managers;
   (b)  subject to best execution: (i) conducting trades of public equity
 securities with MWBE financial institutions; and (ii) conducting  trades
 of fixed-income securities through MWBE financial institutions;
   (c)  allocating  investments  of  assets of the common retirement fund
 either through: (i) direct investments in the equities and debt  securi-
 ties  of  MWBEs;  or  (ii) indirectly through special programs involving
 MWBE asset managers; and
   (d) awarding contracts for accounting,  banking,  financial  advisory,
 insurance,  legal,  research,  valuation and other financial and profes-
 sional services to MWBE financial institutions and  other  MWBE  profes-
 sional service firms.
   §  6. Subdivision 1 of section 508-a of the education law, as added by
 chapter 171 of the laws of 2010, is amended to read as follows:
   1. Within the discretion of the retirement  board  and  in  accordance
 with  and subject to its fiduciary duties and obligations as trustees of
 the [teachers] TEACHERS' retirement system and to the members,  retirees
 and  beneficiaries  of such system and such other investment limitations
 as may be prescribed by this chapter, the retirement board is authorized
 to establish [on] AN MWBE asset  management  and  financial  institution
 strategy  pursuant to section four hundred twenty-three-c of the retire-
 ment and social security law [including] CONSISTENT WITH AND IN ADDITION
 TO HIS OR HER OBLIGATIONS UNDER SECTION ONE HUNDRED  SEVENTY-SEVEN-B  OF
 THE  RETIREMENT  AND SOCIAL SECURITY LAW, WHICH SHALL INCLUDE reasonable
 goals for utilization of MWBE  asset  managers,  MWBE  financial  insti-
 tutions  and  MWBE  financial  and  professional services firms, as such
 terms are defined in section one hundred seventy-six of  the  retirement
 and  social  security law which strategy shall include, but shall not be
 limited to, the following objectives:
   a. investing assets of the teachers' retirement system with MWBE asset
 managers;
   b. subject to best execution, (1) conducting trades of  public  equity
 securities with MWBE financial institutions and (2) conducting trades of
 fixed-income securities through MWBE financial institutions;
   c.  allocating  investments  of  assets  of  the [teacher's] TEACHERS'
 retirement system either through (1) direct investments in the  equities
 and  debt securities of MWBEs or (2) indirectly through special programs
 involving MWBE asset managers; and
   d. awarding contracts for  accounting,  banking,  financial  advisory,
 insurance,  legal,  research,  valuation and other financial and profes-
 sional services to MWBE financial institutions and  other  MWBE  profes-
 sional services firms.
   As  used in this section, the terms "MWBE asset manager", "MWBE finan-
 cial  institutions",  "MWBE",  "[fidiuciary-controlled]  FIDUCIARY-CONT-
 ROLLED entities", and "best execution" shall have the meanings specified
 in section one hundred seventy-six of the retirement and social security
 law,  and  shall be certified in a manner consistent with the provisions
 S. 631                              5
 
 of subdivision three of  section  four  hundred  twenty-three-c  of  the
 retirement and social security law.
   §  7.  Paragraph  c of subdivision 2 of section 5 of the state finance
 law, as added by chapter 171 of the laws of 2010, is amended to read  as
 follows:
   c.  Within  the  discretion  of the deferred compensation board and in
 accordance with and subject to its fiduciary duty and obligations to the
 deferred compensation plan for state employees and to  the  members  and
 beneficiaries  of such plan and such other investment limitations as may
 be prescribed by  this  chapter,  the  deferred  compensation  board  is
 authorized  to establish an MWBE asset management and financial institu-
 tion strategy [including] CONSISTENT WITH AND IN ADDITION TO HIS OR  HER
 OBLIGATIONS  UNDER SECTION ONE HUNDRED SEVENTY-SEVEN-B OF THE RETIREMENT
 AND SOCIAL SECURITY LAW, WHICH SHALL INCLUDE reasonable goals for utili-
 zation of MWBE asset managers,  MWBE  financial  institutions  and  MWBE
 professional service firms, which shall include, but shall not be limit-
 ed to, the following objectives:
   (i) conducting procurement procedures in a manner that will assure the
 inclusion  of  MWBE asset managers in any request for proposal or search
 process for asset management services undertaken in accordance with  the
 rules and regulations [and] of the board;
   (ii)  subject to best execution policies, developing a strategy to (1)
 conduct trades of public equity securities with  MWBE  financial  insti-
 tutions  and  (2) conduct trades of fixed-income securities through MWBE
 financial institutions;
   (iii) conducting procurement procedures in a manner that  will  assure
 the inclusion of MWBE financial institutions and other MWBE professional
 service  firms  in  procurements  for  services that include accounting,
 banking, financial advisory, insurance, legal, research,  valuation  and
 other financial and professional services that are undertaken in accord-
 ance with the rules and regulations of the board;
   (iv)  cooperating  with  other fiduciary controlled entities and state
 agencies and offices to identify MWBE  asset  managers,  MWBE  financial
 institutions and MWBE professional service firms.
   As  used in this section, the terms "MWBE asset manager", "MWBE finan-
 cial institutions", "MWBE", "fiduciary-controlled  entities"  and  "best
 execution"  shall  have  the  meanings  specified in section one hundred
 seventy-six of the retirement and social security law.
   § 8. Subdivision 1 of section 87-i of the workers'  compensation  law,
 as  added  by  chapter  171  of  the laws of 2010, is amended to read as
 follows:
   1. Within the discretion of the commissioners of the  state  insurance
 fund  and  in  accordance  with  and subject to their fiduciary duty and
 obligations as trustees of the state insurance fund and to the benefici-
 aries of such fund and such  other  investment  limitations  as  may  be
 prescribed  by  this chapter, the commissioners are authorized to estab-
 lish  an  MWBE  asset  management  and  financial  institution  strategy
 [including]  CONSISTENT  WITH AND IN ADDITION TO THEIR OBLIGATIONS UNDER
 SECTION ONE HUNDRED SEVENTY-SEVEN-B OF THE RETIREMENT AND SOCIAL SECURI-
 TY LAW, WHICH SHALL INCLUDE reasonable goals  for  utilization  of  MWBE
 asset  managers,  MWBE  financial  institutions  and  MWBE financial and
 professional service firms, which strategy shall include, but shall  not
 be limited to, the following objectives:
   (a)  investing  assets  of  the  state  insurance fund with MWBE asset
 managers;
 S. 631                              6
 
   (b) subject to best execution, (1) conducting trades of public  equity
 securities  with  MWBE financial institutions; and (2) conducting trades
 of fixed-income securities through MWBE financial institutions;
   (c)  allocating  investments  of  assets  of  the state insurance fund
 either through (1) direct investments in the equities and  debt  securi-
 ties of MWBEs; or (2) indirectly through special programs involving MWBE
 asset managers; and
   (d)  awarding  contracts  for accounting, banking, financial advisory,
 insurance, legal, research, valuation and other  financial  and  profes-
 sional  services  to  MWBE financial institutions and other MWBE profes-
 sional service firms.
   As used in this section, the terms "MWBE asset manager", "MWBE  finan-
 cial  institutions",  "MWBE",  "fiduciary-controlled entities" and "best
 execution" shall have the meanings  specified  in  section  one  hundred
 seventy-six  of  the  retirement  and  social  security law and shall be
 certified in a manner consistent  with  the  provisions  of  subdivision
 three  of  section  four  hundred  twenty-three-c  of the retirement and
 social security law.
   § 9. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law.

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Senate Bill S631

Sponsored By

Current Bill Status - In Senate Committee Civil Service And Pensions Committee

co-Sponsors

2023-S631 (ACTIVE) - Details

2023-S631 (ACTIVE) - Summary

2023-S631 (ACTIVE) - Sponsor Memo

2023-S631 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S631

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Sponsored By

Leroy Comrie

Current Bill Status - In Senate Committee Civil Service And Pensions Committee

co-Sponsors

Nathalia Fernandez

Robert Jackson

Kevin S. Parker

Lea Webb

2023-S631 (ACTIVE) - Details

2023-S631 (ACTIVE) - Summary

2023-S631 (ACTIVE) - Sponsor Memo

2023-S631 (ACTIVE) - Bill Text download pdf

Comments