HOUSE AMENDED
PRIOR PRINTER'S NOS. 1898, 2002, 2057 PRINTER'S NO. 2217
No. 1340 Session of 1984
INTRODUCED BY TILGHMAN, APRIL 11, 1984
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 28, 1984
AN ACT
1 Making an appropriation from the State Employees' Retirement
2 Fund to provide for expenses of the State Employees'
3 Retirement Board for the fiscal year July 1, 1984 to June 30,
4 1985 and for the payment of bills incurred and remaining
5 unpaid at the close of the fiscal year ending June 30, 1984. <--
6 AND PROVIDING FOR INVESTMENTS IN PENNSYLVANIA INDUSTRIES. <--
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. The sum of $5,630,000, or as much thereof as may
10 be necessary, is hereby appropriated from the State Employees'
11 Retirement Fund to the State Employees' Retirement Board for the
12 payment of all salaries, wages and other compensation and travel
13 expenses of the employees and members of the State Employees'
14 Retirement Board, for contractual services and other expenses
15 necessary for the proper conduct of the duties, functions and
16 activities of the board for the fiscal year beginning July 1,
17 1984 and for the payment of bills incurred and remaining unpaid
18 at the close of the fiscal year ending June 30, 1984.
1 SECTION 2. ANY ADDITIONAL FUNDS NECESSARY TO FULFILL <--
2 CONTRACTUAL AGREEMENTS FOR THE MANAGEMENT OF INVESTMENTS IS
3 HEREBY APPROPRIATED.
4 SECTION 3. (A) THE BOARD SHALL, WITHIN SIX MONTHS OF THE
5 EFFECTIVE DATE OF THIS ACT, DETAIL A PROGRAM OF INVESTMENT FOR
6 THE ECONOMIC REDEVELOPMENT AND CAPITALIZATION OF PENNSYLVANIA
7 INDUSTRIES. RECOGNIZING THE INITIAL DUTY OF THE FUND TO PRUDENT
8 INVESTMENTS WHICH PROTECT THE PENSIONS OF RETIREES, THE GENERAL
9 ASSEMBLY REQUIRES THE BOARD TO INVEST AN EQUITY INTEREST IN
10 VENTURE CAPITAL LIMITED PARTNERSHIPS AND PARTICIPATE IN PRIVATE
11 PLACEMENT SEPARATE ACCOUNTS. INVESTMENTS IN VENTURE CAPITAL
12 LIMITED PARTNERSHIPS AND PRIVATE PLACEMENT SEPARATE ACCOUNTS
13 SHALL:
14 (1) ENHANCE THE GENERAL WELFARE OF THE STATE AND ITS
15 CITIZENS THROUGH ECONOMIC DEVELOPMENT.
16 (2) LIMIT THE LIABILITY OF THE RETIREMENT FUND ONLY TO
17 THE EXTENT OF THE INVESTMENT.
18 (3) PROVIDE THAT THE MANAGEMENT OF THE VENTURE CAPITAL
19 LIMITED PARTNERSHIP AND THE PRIVATE PLACEMENT SEPARATE
20 ACCOUNT RESTS SOLELY WITH THE GENERAL PARTNER OR MANAGER WHO
21 SHALL BE A PROFESSIONAL INVESTMENT MANAGER.
22 (B) INVESTMENTS MADE PURSUANT TO THIS SECTION FOR VENTURE
23 CAPITAL LIMITED PARTNERSHIPS SHALL NOT BE LESS THAN 1% NOR MORE
24 THAN 2% OF THE VALUE OF THE FUND. INVESTMENTS FOR PRIVATE
25 PLACEMENT SEPARATE ACCOUNTS SHALL NOT BE LESS THAN 1% OF THE
26 VALUE OF THE FUND. THE VALUE OF THE FUND SHALL BE THE TOTAL BOOK
27 VALUE OF THE FUND ON THE EFFECTIVE DATE OF THIS SECTION.
28 (C) THE INVESTMENTS AUTHORIZED BY THIS SECTION SHALL BE MADE
29 BY THE BOARD OVER A THREE-YEAR PERIOD. THE BOARD SHALL FILE AN
30 ANNUAL REPORT ON THESE INVESTMENTS WITH THE GENERAL ASSEMBLY.
19840S1340B2217 - 2 -
1 INCLUDED IN THE REPORT SHALL BE INFORMATION ON HOW THE BOARD
2 EXERCISED ITS STEWARDSHIP ON BEHALF OF PENNSYLVANIA INDUSTRIES
3 OVER THE PAST THREE YEARS. THIS REPORT SHALL ALSO DETAIL HOW THE
4 BOARD INTENDS TO USE FUND ASSETS FOR THE BENEFIT OF JOBS IN
5 PENNSYLVANIA.
6 SECTION 2. THE SUM OF $317,000, OR AS MUCH THEREOF AS MAY BE
7 NECESSARY, IS HEREBY SPECIFICALLY APPROPRIATED FROM THE STATE
8 EMPLOYEES RETIREMENT FUND TO THE STATE EMPLOYEES RETIREMENT
9 BOARD FOR THE FISCAL PERIOD JULY 1, 1983 TO JUNE 30, 1984, FOR
10 THE PAYMENT OF EXPENSES NECESSARY FOR THE PROPER CONDUCT OF THE
11 DUTIES, FUNCTIONS AND ACTIVITIES OF THE BOARD AND FOR THE
12 DISCHARGE OF ITS OBLIGATIONS.
13 Section 2 4 3. This act shall take effect July 1, 1984 or, <--
14 if enacted subsequent to that date, then immediately.
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