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SF 4023

as introduced - 91st Legislature (2019 - 2020) Posted on 03/06/2020 08:32am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to the State Board of Investment; authorizing certain investments;
exempting certain investments from the market capitalization restriction; amending
Minnesota Statutes 2018, section 11A.24, subdivision 6.

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

Section 1.

Minnesota Statutes 2018, section 11A.24, subdivision 6, is amended to read:


Subd. 6.

Other investments.

(a) In addition to the investments authorized in subdivisions
1 to 5, and subject to the provisions in paragraph (b), the state board is authorized to invest
funds in:

(1) equity and debt investment businesses through participation in limited partnerships,
trusts, private placements, limited liability corporations, limited liability companies, limited
liability partnerships, and corporations;

(2) real estate ownership interests or loans secured by mortgages or deeds of trust or
shares of real estate investment trusts through investment in limited partnerships,
bank-sponsored collective funds, trusts, mortgage participation agreements, and insurance
company commingled accountsdeleted text begin, including separate accountsdeleted text end;

(3) resource investments through limited partnerships, trusts, private placements, limited
liability corporations, limited liability companies, limited liability partnerships, and
corporations; deleted text beginand
deleted text end

new text begin (4) investment vehicles that are co-investments or separate accounts;
new text end

new text begin (5) liquid alternatives;
new text end

new text begin (6) bank loans; and
new text end

deleted text begin (4)deleted text end new text begin(7) new text endinternational securities.

(b) The investments authorized in paragraph (a) must conform to the following deleted text beginprovisionsdeleted text endnew text begin
clauses
new text end:

(1) the aggregate value of all investments made under paragraph (a), clauses (1) to deleted text begin(3)deleted text endnew text begin
(4)
new text end, may not exceed 35 percent of the market value of the fund for which the state board is
investing;

(2) there must be at least four unrelated owners of the investment other than the state
board for investments made under paragraph (a), clause (1), (2), or (3);

(3) state board participation in an investment vehicle is limited to 20 percent thereof for
investments made under paragraph (a), clause (1), (2), or (3); and

(4) state board participation in deleted text begina limited partnershipdeleted text end new text beginan investment vehicle new text enddoes not
include a general partnership interest or other interest involving general liability. The state
board may not deleted text beginengagedeleted text end new text beginparticipate new text endin any deleted text beginactivity as a limited partnerdeleted text end new text begininvestment vehicle in
a manner
new text endwhich creates general liability.

(c) All financial, business, or proprietary data collected, created, received, or maintained
by the state board in connection with investments authorized by paragraph (a), deleted text beginclausedeleted text end new text beginclauses
new text end (1)deleted text begin, (2), or (3)deleted text endnew text begin to (6)new text end, are nonpublic data under section 13.02, subdivision 9. As used in this
paragraph, "financial, business, or proprietary data" means data, as determined by the
responsible authority for the state board, that is of a financial, business, or proprietary nature,
the release of which could cause competitive harm to the state board, the legal entity in
which the state board has invested or has considered an investment, the managing entity of
an investment, or a portfolio company in which the legal entity holds an interest. As used
in this section, "business data" is data described in section 13.591, subdivision 1. Regardless
of whether they could be considered financial, business, or proprietary data, the following
data received, prepared, used, or retained by the state board in connection with investments
authorized by paragraph (a), deleted text beginclausedeleted text end new text beginclauses new text end(1)deleted text begin, (2), or (3)deleted text endnew text begin to (6)new text end, are public at all times:

(1) the name and industry group classification of the legal entity in which the state board
has invested or in which the state board has considered an investment;

(2) the state board commitment amount, if any;

(3) the funded amount of the state board's commitment to date, if any;

(4) the market value of the investment by the state board;

(5) the state board's internal rate of return for the investment, including expenditures
and receipts used in the calculation of the investment's internal rate of return; and

(6) the age of the investment in years.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end