PRINTER'S NO. 3027
No. 2286 Session of 2000
INTRODUCED BY STRITTMATTER, LUCYK, SCHULER, DeWEESE,
E. Z. TAYLOR, BATTISTO, BELFANTI, CIVERA, M. COHEN, DeLUCA,
FAIRCHILD, FRANKEL, GEIST, HARHAI, HENNESSEY, HORSEY,
JOSEPHS, LAUGHLIN, MANDERINO, McGEEHAN, MELIO, MICHLOVIC,
NICKOL, PESCI, READSHAW, ROBINSON, SANTONI, SATHER, SAYLOR,
PIPPY, SCRIMENTI, SEYFERT, SHANER, STABACK, STEELMAN, STERN,
TIGUE, TRELLO, WILT, WOJNAROSKI, YOUNGBLOOD AND ZIMMERMAN,
FEBRUARY 16, 2000
REFERRED TO COMMITTEE ON STATE GOVERNMENT, FEBRUARY 16, 2000
AN ACT
1 Amending Title 71 (State Government) of the Pennsylvania
2 Consolidated Statutes, further providing for management of
3 fund and accounts relating to venture capital, private
4 placement equity and other alternative investments.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 5931(h) of Title 71 of the Pennsylvania
8 Consolidated Statutes is amended to read:
9 § 5931. Management of fund and accounts.
10 * * *
11 (h) Venture capital[.--Venture capital investments shall be
12 limited to not more than 2% of the book value of the total
13 assets of the fund as determined for financial statement
14 purposes as of December 31 next preceding the date of
15 investment. An investment shall be deemed a venture capital
16 investment if it results in the acquisition of equity interests
1 or a combination of debt and equity interests in a business
2 which is expected to grow substantially in the future and in
3 which the expected return on investment is to come predominantly
4 from an increase in value of the equity interests and are not
5 interests in or secured by real estate. A venture capital
6 investment may be made only if, in the judgment of the board,
7 the investment is reasonably likely to enhance the general
8 welfare of this Commonwealth and its citizens and meets the
9 standard of prudence set forth in subsection (a). In determining
10 whether the investment meets the standard of prudence, the board
11 may consider, together with the expected return on and the risk
12 characteristics of the particular investment, the actual and
13 expected future returns and the risk characteristics of the
14 total venture capital investments held by the board at the time
15 and the degree to which the proposed new investment would
16 promote further diversification within the venture capital asset
17 class.] , private placement equity and alternative
18 investments.--The board in its prudent discretion may make any
19 venture capital investment, private placement investment or
20 other alternative investment of any kind, structure or manner
21 which meets the standard of prudence set forth in subsection
22 (a).
23 * * *
24 Section 2. This act shall take effect in 60 days.
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