Legislation watch
2009 House Bill 5618: Allow more non-traditional investments in government pension funds
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- Introduced by Rep. Shanelle Jackson (D) on December 1, 2009, to allow state and local government pension funds to place more of the more of the money under trust in “private equity” (shares of stocks not listed on public exchanges). Also, to require ones that use a paid investment advisor to make a good-faith effort to hire one that is a qualified “emerging fund manager,” who manages less than $2 billion, and also to report to the legislature on the methods and results for finding one, with the data segregated by race, ethnicity, gender, and fund size.
- Referred to the House Senior Health, Security and Retirement Committee on December 1, 2009.
- Reported in the House on November 10, 2010, with the recommendation that the substitute (H-6) be adopted and that the bill then pass.
- Substitute offered in the House on November 10, 2010, to not allow government pensions to invest in more "alternative investments," but instead direct more state pension fund money to certain types of businesses. The substitute passed by voice vote in the House on November 10, 2010.
- Amendment offered by Rep. Tim Melton (D) on November 10, 2010, to revise details related to which entity is making the investment decisions. The amendment passed by voice vote in the House on November 10, 2010.
- Amendment offered by Rep. Darwin Booher (R) on November 10, 2010, to revise language so as to expand the proposed investment in businesses located in decayed "cities of promise". The amendment passed by voice vote in the House on November 10, 2010.
- Referred to the House Senior Health, Security and Retirement Committee on December 1, 2009.
- Passed 57 to 43 in the House on November 10, 2010, to require state pension managers to "use their best efforts" to ensure that at least 5 percent of state pension funds get invested in Michigan businesses, with at least half of these located in one of eight so-called "cities of promise" (meaning eight decaying, economically declining urban-core cities). Reportedly this and similar bills are a priority of the Obama administration, and indirectly a way to direct more government money to minority-owned businesses.
Who Voted "Yes" and Who Voted "No" - Received in the Senate on November 30, 2010.
- Referred to the Senate Appropriations Committee on November 30, 2010.
Comments
1) Re: 2009 House Bill 5618 (Allow more non-traditional investments in government pension funds ) by z1queenie on December 4, 2010Am I interpreting this right? They want to take some of MY hard-earned pension money and invest it in cities like Detroit under the guise of "cities of promise?" They want to GIVE my pension money to DETROIT? This is one of the most idiotic ideas to come from Lansing in a whole line of idiotic ideas. We need to clean house again in 2012.
Introduced in the House on December 1, 2009, to require state pension managers to "use their best efforts" to ensure that at least 5 percent of state pension funds get invested in Michigan businesses, with at least half of these located in one of eight so-called "cities of promise" (meaning eight decaying, economically declining urban-core cities). Reportedly this and similar bills are a priority of the Obama administration, and indirectly a way to direct more government money to minority-owned businesses
The vote was 57 in favor, 43 opposed and 7 not voting
(House Roll Call 486 at House Journal 0)
Click here to view bill details.
