General Assembly Raised Bill No. 1557 proposes significant reforms to the governance and oversight of the state's pension funds by establishing an Investment Board that will replace the existing Investment Advisory Council. Key changes include the repeal of the Treasurer's authority to appoint investment personnel, as the Investment Board will now be responsible for appointing a chief investment officer and other staff, determining their compensation, and advising on investment strategies. The bill also extends the terms of current public members and union representatives until July 1, 2027, and outlines the composition of the board, which will include the Governor (or designee), the Treasurer, and various appointed members with investment experience. The Investment Board will be tasked with developing and adopting an investment policy statement, which will no longer require review by the Advisory Council, thereby streamlining the investment governance process.

Additionally, the bill mandates enhanced transparency and accountability measures, including the requirement for the Investment Board to provide monthly and quarterly performance reports to the public and conduct annual examinations of state security investments. It clarifies the definition of "public official" to include board members and introduces new provisions regarding the Treasurer's investment decisions, particularly concerning divestment from companies operating in Iran and Sudan. The bill also requires the Office of Legislative Management to contract with a private advisory firm for independent reviews of investment performance, ensuring that firms with conflicts of interest are disqualified from bidding. Overall, Raised Bill No. 1557 aims to create a more structured and independent framework for managing state investments while prioritizing ethical considerations and transparency.

Statutes affected:
Raised Bill: 3-12a, 3-13a, 3-13b, 3-39b, 3-13i