PRINTER'S NO. 3230
No. 2321 Session of 1984
INTRODUCED BY COWELL, GEIST AND MURPHY, JUNE 14, 1984
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 14, 1984
AN ACT
1 Amending Title 71 (State Government) of the Pennsylvania
2 Consolidated Statutes, authorizing the Pennsylvania State
3 Employees' Retirement System to participate in limited
4 partnerships and separate accounts and specifying its
5 authority for venture capital investments.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 5931 of Title 71 of the Pennsylvania
9 Consolidated Statutes is amended by adding subsections to read:
10 § 5931. Management of fund and accounts.
11 * * *
12 (o) Limited partnerships and separate accounts.--The board
13 may invest in any investments authorized by this section by
14 becoming a limited partner in partnerships that will hold such
15 investments or by participating in separate accounts of any
16 insurance company authorized to do business in this
17 Commonwealth. In either case, the liability of the fund shall be
18 limited to the amount of the investment.
19 (p) Venture capital.--The provisions of subsection (m)
1 notwithstanding, venture capital investments made through
2 limited partnerships and through separate accounts shall be
3 limited to not more than 1% of the book value of the total
4 assets of the fund. A venture capital investment shall be made
5 only if the investment will enhance the general welfare of this
6 Commonwealth and its citizens through economic development and
7 meets the standard of prudence set forth in subsection (m). An
8 investment shall be deemed a venture capital investment if it
9 results in the acquisition of equity interests or a combination
10 of debt and equity interests in a business which is expected to
11 grow substantially in the future and in which the expected
12 return on investment is to come predominantly from an increase
13 in value of the equity interest and that are not held through or
14 secured by stock that is an authorized investment under the
15 authority of subsection (h) and are not interests in or secured
16 by real estate.
17 Section 2. This act shall take effect immediately.
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