SF 1995

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to state government; prohibiting members and 
  1.3             staff of the state board of investment from 
  1.4             considering factors other than investment return and 
  1.5             safety of capital when making investment decisions; 
  1.6             amending Minnesota Statutes 1994, section 11A.09. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 11A.09, is 
  1.9   amended to read: 
  1.10     11A.09 [STANDARD OF CARE.] 
  1.11     In the discharge of their respective duties, the members of 
  1.12  the state board, director, board staff, and members of the 
  1.13  council and any other person charged with the responsibility of 
  1.14  investing money pursuant to the standards set forth in sections 
  1.15  11A.01 to 11A.25 shall act in good faith and shall exercise that 
  1.16  degree of judgment and care, under circumstances then 
  1.17  prevailing, which persons of prudence, discretion, and 
  1.18  intelligence exercise in the management of their own affairs, 
  1.19  not for speculation, but for investment, considering the 
  1.20  probable safety of their capital as well as the probable income 
  1.21  to be derived therefrom.  In addition, for the investment of 
  1.22  pension fund assets, the members and director of the state board 
  1.23  and members of the investment advisory council shall act in 
  1.24  accordance with chapter 356A. 
  1.25     In making investment decisions, the members of the state 
  1.26  board, the director, members of the staff, and the investment 
  2.1   advisory council may not consider factors other than probable 
  2.2   income to be derived from investments of assets and probable 
  2.3   safety of the investments.