A04866 Summary:
| BILL NO | A04866 |
| SAME AS | No Same As |
| SPONSOR | Rajkumar |
| COSPNSR | |
| MLTSPNSR | |
| Amd §424-a, R & SS L | |
| Prohibits the use of investment managers to assist with investments of monies in the common retirement fund; requires that all current contracts with investment managers not be renewed after a period of one year. | |
A04866 Text:
Go to topSTATE OF NEW YORK ________________________________________________________________________ 4866 2025-2026 Regular Sessions IN ASSEMBLY February 6, 2025 ___________ Introduced by M. of A. RAJKUMAR -- read once and referred to the Commit- tee on Governmental Employees AN ACT to amend the retirement and social security law, in relation to prohibiting investing in the common retirement fund using investment managers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 424-a of the retirement and social security law, as 2 added by chapter 203 of the laws of 2018, is amended to read as follows: 3 § 424-a. Use of [placement agents or intermediaries] investment manag- 4 ers prohibited. 1. [The] (a) Beginning on the effective date of the 5 chapter of the laws of two thousand twenty-five which amended this 6 subdivision, the fund shall not enter into any contract to engage, hire, 7 invest with or commit to an investment manager [that is using the8services of a placement agent or intermediary] to assist [such invest-9ment manager] in obtaining investments, other than real property, by the 10 fund [nor shall the fund engage, hire, invest with or commit to an11investment manager without obtaining from such investment manager a12certification in the form and manner prescribed by the fund stating that13such investment manager has not used the services of a placement agent14or other intermediary to assist such investment manager in obtaining15investments by the fund]. 16 (b) Beginning on the effective date of the chapter of the laws of two 17 thousand twenty-five which amended this subdivision, the fund shall not 18 renew any existing contracts to engage, hire, invest with or commit to 19 an investment manager to assist in obtaining investments by the fund. 20 2. For the purposes of this section[:21(a)], "investment manager" shall mean any person, other than an 22 employee of the comptroller, or entity engaged by the common retirement 23 fund to manage a part or all of an investment portfolio of the fund, 24 other than real property owned by the fund. "Manage" shall include, but EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08639-01-5A. 4866 2 1 is not limited to, the analysis of portfolio holdings, and the purchase, 2 sale, and lending thereof. Any investment made by the fund pursuant to 3 subdivision seven of section one hundred seventy-seven of this chapter 4 shall be deemed to be the investment of the fund in such investment 5 entity rather than in the assets of such investment entity. 6 [(b) "placement agent or intermediary" shall mean any person or enti-7ty, including registered lobbyists, directly or indirectly engaged and8compensated by an investment manager, other than an employee of the9investment manager, to assist the investment manager in obtaining10investments by the fund whether compensated on a flat fee, a contingent11fee, or any other basis. Employees of an investment manager and its12affiliates are excluded from this definition unless they are employed13principally for the purpose of securing or influencing the decision to14secure a particular investment transaction or investment by the fund.] 15 § 2. This act shall take effect on the first of January next succeed- 16 ing one year after it shall have become a law.