LRB-4717/1
MES&PG:kmg:km
1997 - 1998 LEGISLATURE
January 28, 1998 - Introduced by Senators George, Rude and Darling,
cosponsored by Representatives
Plale, Kreuser, Staskunas, Riley and
Cullen. Referred to Committee on Education.
SB425,1,3
1An Act to amend 66.04 (2) (b); and
to create 66.04 (2s) of the statutes;
relating
2to: the delegation of authority by 1st class city school districts over funds held
3in trust for certain pension plans.
Analysis by the Legislative Reference Bureau
Under current law, any city, village, town, county, school district, drainage
district, technical college district and certain other local governing boards (local
governmental units) may delegate the investment authority over any of their funds,
not immediately needed, to banks and certain trust companies. Such funds must be
invested in certain time deposits of a bank, trust company, credit union or savings
and loan association, or in fixed income U.S. government or federal, state or local
government agency securities.
Under this bill, a 1st class city school district (presently only Milwaukee) may
invest supplemental early retirement pension funds that are not immediately
needed in a variety of financial instruments, consistent with the current statutory
"prudent person" standard of responsibility. These investments may be made with
an investment manager who meets the requirements and qualifications specified in
the trust's investment policy and who is registered as an investment adviser under
the Investment Advisers Act of 1940.
For further information see the local fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB425, s. 1
1Section
1. 66.04 (2) (b) of the statutes is amended to read:
SB425,2,112
66.04
(2) (b) Any town, city or village may invest surplus funds in any bonds
3or securities issued under the authority of the municipality, whether the bonds or
4securities create a general municipality liability or a liability of the property owners
5of the municipality for special improvements, and may sell or hypothecate the bonds
6or securities. Funds of any employer, as defined by s. 40.02 (28), in a deferred
7compensation plan may also be invested and reinvested in the same manner
8authorized for investments under s. 881.01 (1).
Funds of any school district
9operating under ch. 119, held in trust for pension plans intended to qualify under
10section 401 (a) of the Internal Revenue Code, may be invested and reinvested in the
11same manner as is authorized for investments under s. 881.01.
SB425, s. 2
12Section
2. 66.04 (2s) of the statutes is created to read:
SB425,2,1913
66.04
(2s) Additional delegation of investment authority. In addition to the
14authority granted under sub. (2m), a school district operating under ch. 119 may
15delegate the investment authority over any of its funds not immediately needed and
16held in trust for its qualified pension plans to an investment manager who meets the
17requirements and qualifications specified in the trust's investment policy and who
18is registered as an investment adviser under the Investment Advisers Act of 1940,
1915 USC 80b-3.
