07 LC 21
9228
House
Bill 318
By:
Representatives Benton of the
31st,
Coleman of the
97th,
Bridges of the
10th,
Meadows of the
5th,
and Maxwell of the
17th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Article 7 of Chapter 20 of Title 47 of the Official Code of Georgia
Annotated, the "Public Retirement Systems Investment Authority Law," so as to
provide that certain foreign corporations shall be deemed to be United States
corporations for purposes of investment by public retirement systems; to allow
the investment of public retirement system assets in certain real estate trusts;
to increase the percentage of the assets of certain public retirement systems
that may be invested in foreign corporations; to provide that certain public
retirement systems may enter into certain contracts, agreements, and other
obligations; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
7 of Chapter 20 of Title 47 of the Official Code of Georgia Annotated, the
"Public Retirement Systems Investment Authority Law," is amended by revising
paragraph (1) of subsection (a) of Code Section 47-20-83, relating to
certificated or uncertificated forms of investment and real estate investments,
as follows:
"(1)
Corporations or obligations of corporations organized under the laws of this
state or any other state or under the laws of Canada, but only if the
corporation has a market capitalization equivalent to $100 million; provided,
however, that except as provided in Code Section 47-20-84, no fund shall invest
in corporations or in obligations of corporations organized in a country other
than the United States or Canada; provided, further, that such obligation shall
be listed as investment grade by a nationally recognized rating
agency. For
purposes of this paragraph, a corporation organized under the laws of a country
other than the United States or Canada shall be deemed to be organized under the
laws of this state or another state unless it is a private foreign issuer within
the meaning of United States Securities and Exchange Commission Rule 3b-4, 17
C.F.R. Section 240.3b-4, as such appears on July 1,
2007;"
SECTION
2.
Said
article is further amended in subsection (a) of said Code Section 47-20-83, by
striking "and" at the end of paragraph (20), by replacing the period with ";
and" at the end of paragraph (21), and by adding a new paragraph to read as
follows:
"(22)
Business entities organized under the laws of this state or under the laws of
Canada, but only if the business entity has a minimum market capitalization
equivalent to $100 million and if the business entity has elected to be
taxed and continues to qualify as a real estate investment trust under Section
856 through Section 860 of the federal Internal Revenue Code, 26 U.S.C. Section
856 through Section 860; provided, however, that except as provided in Code
Section 47-20-84, no fund shall invest in business entities organized in a
country other than the United States or Canada."
SECTION
3.
Said
article is further amended by revising subsection (b) of Code Section 47-20-84,
relating to large retirement systems, as follows:
"(b)
A large retirement system may not invest more than
10
20
percent of the retirement system assets in corporations or in obligations of
corporations organized in a country other than the United States or Canada
subject to the provisions of paragraph (1) of subsection (a) of Code Section
47-20-83."
SECTION
4.
Said
article is further amended in said Code Section 47-20-84, by adding a new
subsection to read as follows:
"(f)
A large retirement system may enter into contracts, agreements, and other
instruments designed to manage risk exposure."
SECTION
5.
All
laws and parts of laws in conflict with this Act are repealed.