This bill amends existing laws regarding the investment of state funds in alternative investments by granting the investment funds committee the authority to approve such investments. The state treasurer will now make recommendations and obtain approval from the investment funds committee before proceeding with alternative investments. Additionally, the committee can delegate its approval authority to the state treasurer, but this delegation must be specific to individual investment decisions and can be rescinded by a majority vote of the committee. The bill also introduces a requirement for the investment funds committee to report to the board at least semi-annually on the approval or disapproval of alternative investments and any delegation of authority to the state treasurer.

Furthermore, the bill establishes that any material changes to the terms of previously approved investments will require renewed approval from either the investment funds committee or the state treasurer, depending on who holds the approval authority. The state treasurer will serve as the chairman of the investment funds committee, which is mandated to hold at least four meetings annually. The bill also clarifies that decisions will be made by a majority vote of the committee members, rather than just a majority of a quorum, ensuring a more democratic process in investment decisions. The act is set to take effect on July 1, 2025.