Public Act 425 of 2008

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• Introduced by Rep. Robert Jones (D) on September 24, 2008, to revise the investment rules for state and municipal pension funds. The bill would increase from 5 percent to 10 percent the amount the funds can invest in real estate investment trusts (REIT), and increase from 15 percent to 30 percent the allowable amount in "derivatives." Municipal pension investements in non-publicly traded private equity firms would be capped at 5 to 15 percent depending on the size of the fund, but there would be no cap on the amount of state funds in these. The state could increase "investments not otherwise qualified" under specific provisions from 20 percent to 25 percent.
  • Referred to the House Government Operations Committee on September 24, 2008.
  • Referred to the House Senior Health, Security and Retirement Committee on November 12, 2008.
  • Substitute offered in the House on November 13, 2008, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute passed in the House by voice vote on November 13, 2008.
• Failed in the House (55 to 47) on November 13, 2008. [Vote Details and Comments]
• Moved to reconsider by Rep. Steve Tobocman (D) on November 13, 2008, the vote by which the House did not pass the bill. The motion passed in the House by voice vote on November 13, 2008.
• Received in the House on November 13, 2008, to revise the investment rules for state and municipal pension funds. The bill would increase from 5 percent to 10 percent the amount the funds can invest in real estate investment trusts (REIT), and increase from 15 percent to 30 percent the allowable amount in "derivatives." Municipal pension investments in non-publicly traded private equity firms would be capped at 5 to 15 percent depending on the size of the fund, but there would be no cap on the amount of state funds in these. The state could increase "investments not otherwise qualified" under specific provisions from 20 percent to 25 percent, and would have no cap on its investments in "private equity". Passed in the House (56 to 46) on November 13, 2008. [Vote Details and Comments]
• Received in the Senate on December 2, 2008.
  • Referred to the Senate Appropriations Committee on December 2, 2008.
  • Substitute offered in the Senate on December 18, 2008, to replace the previous version of the bill with one that only increases the cap on one class of investments. The substitute passed in the Senate by voice vote on December 18, 2008.
• Passed in the Senate (37 to 0) on December 18, 2008, to revise the investment rules for state pension funds, increasing from 15 percent to 30 percent the allowable amount that can be invested in "private equity" securities. [Vote Details and Comments]
• Received in the House on December 19, 2008, to concur with the Senate-passed version of the bill. Passed in the House (74 to 21) on December 19, 2008. [Vote Details and Comments]
• Signed by Gov. Jennifer Granholm on January 5, 2009.