HF 2187

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to volunteer firefighter relief associations; requiring establishment
of investment policies and reporting on results; repealing certain reporting
requirements; amending Minnesota Statutes 2006, section 356A.06, subdivisions
4, 5; proposing coding for new law in Minnesota Statutes, chapter 424A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 356A.06, subdivision 4, is amended to
read:

Subd. 4.

Economic interest statement.

(a) Each member of the governing board
of a covered pension plan and the chief administrative officer of the plan shall file with
the plan a statement of economic interest.

(b) For a covered pension plan other than a plan specified in paragraph (c), the
statement must contain the information required by section 10A.09, subdivision 5, and
any other information that the fiduciary or the governing board of the plan determines is
necessary to disclose a reasonably foreseeable potential or actual conflict of interest.

(c) For a covered pension plan governed by sections 69.771 to 69.776 or a covered
pension plan governed by section 69.77 with assets under $8,000,000, the statement
must contain the following:

(1) the person's principal occupation and principal place of business;

(2) whether or not the person has an ownership of or interest of ten percent or greater
in an investment security brokerage business, a real estate sales business, an insurance
agency, a bank, a savings and loan, or another financial institution; and

(3) any relationship or financial arrangement that can reasonably be expected to
give rise to a conflict of interest.

(d) The statement must be filed annually with the chief administrative officer of
the plan and be available for public inspection during regular office hours at the office
of the pension plan.

(e) A disclosure form meeting the requirements of the federal Investment Advisers
Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21 as amended, and
filed with the State Board of Investment or the pension plan meets the requirements of
this subdivision.

(f) The chief administrative officer of each covered pension plan new text begin other than a
volunteer firefighter relief association new text end , by January 15, annually, shall transmit a certified
listing of all individuals who have filed statements of economic interest with the plan
under this subdivision during the preceding 12 months and the address of the office
referenced in paragraph (d) to the Campaign Finance and Public Disclosure Board.

Sec. 2.

Minnesota Statutes 2006, section 356A.06, subdivision 5, is amended to read:

Subd. 5.

Investment business recipient disclosure.

The chief administrative officer
of a covered pension plan, with respect to investments made by the plan, and the executive
director of the State Board of Investment, with respect to investments of plan assets made
by the board, shall annually disclose in writing the recipients of investment business placed
with or investment commissions allocated among commercial banks, investment bankers,
brokerage organizations, or other investment managers. The disclosure document must be
prepared within 60 days after the close of the fiscal year of the plan and must be available
for public inspection during regular office hours at the office of the plan. new text begin Except for a
volunteer firefighter relief association, new text end the disclosure document must also be filed with
the executive director of the Legislative Commission on Pensions and Retirement within
90 days after the close of the fiscal year of the plan. For the State Board of Investment
and a first class city teacher retirement fund association, a disclosure document included
as part of a regular annual report of the board or of the first class city teacher retirement
fund association when filed with the executive director of the Legislative Commission on
Pensions and Retirement is considered to have been filed on a timely basis.

Sec. 3.

new text begin [424A.055] INVESTMENT POLICIES AND RESULTS.
new text end

new text begin Subdivision 1. new text end

new text begin Investment policies. new text end

new text begin The board of trustees of a volunteer firefighter
relief association must develop and maintain investment policies for assets of the special
fund of the relief association. The investment policies must:
new text end

new text begin (1) contain enough detail to implement a specific investment strategy;
new text end

new text begin (2) outline the duties and responsibilities of all parties involved;
new text end

new text begin (3) set forth diversification, rebalancing, and risk guidelines; and
new text end

new text begin (4) incorporate specific, measurable investment objectives and benchmarks.
new text end

new text begin Subd. 2. new text end

new text begin Annual report to members. new text end

new text begin The board of trustees of a volunteer
firefighter relief association must annually report to the membership of the association,
summarizing how the association's special fund investments have performed relative to
the investment objectives and benchmarks established by the board. If the benchmarks
used by the board are different from benchmarks established by the state auditor, the report
must also compare investment performance to the state auditor's benchmarks.
new text end