LRB-3804/1
ARG:cdc
2021 - 2022 LEGISLATURE
September 15, 2021 - Introduced by Senators Stroebel, Cowles,
Ballweg,
Bernier, Felzkowski, Feyen, Nass, Petrowski, Roys and Marklein,
cosponsored by Representatives
Macco, Steffen, Baldeh, Edming, Gundrum,
Horlacher, Knodl, Kuglitsch, Loudenbeck, Moses, Murphy, Penterman,
Spiros, Wittke and Zimmerman. Referred to Committee on Universities and
Technical Colleges.
SB557,1,3
1An Act to amend 36.11 (11m) (a) (intro.) and 36.11 (11m) (b); and
to create 36.11
2(11m) (am) of the statutes;
relating to: investment of certain University of
3Wisconsin System revenues.
Analysis by the Legislative Reference Bureau
This bill expands the authority of the Board of Regents of the University of
Wisconsin System to manage the investment of certain UW System revenues
through a financial manager, a private investment firm, or the State of Wisconsin
Investment Board (SWIB), instead of investing these moneys in SWIB's State
Investment Fund (SIF).
Current law specifies that SWIB has control of the investment of certain state
moneys. SWIB manages the SIF, an investment trust that functions as the state's
cash management fund under which idle cash balances are pooled and invested in
liquid, low-risk investments until these moneys are needed.
Under current law, the Board of Regents may invest revenues from gifts,
grants, and donations by doing any of the following: 1) directly employing a financial
manager; 2) selecting a private investment firm using a competitive proposal
process; or 3) contracting with SWIB to manage the investment of these moneys. If
the Board of Regents invests these moneys in this manner, the moneys are not
required to be deposited in the SIF. If the Board of Regents contracts with SWIB to
invest these moneys, SWIB must invest the moneys in accordance with the terms of
its contract with the Board of Regents and SWIB's general standard of investment
prudence.
Under the bill, the Board of Regents may manage the investment of any
revenues designated by the Board of Regents in the same manner allowed under
current law for gifts, grants and donations: 1) by directly employing a financial
manager; 2) by selecting a private investment firm; or 3) by contracting with SWIB.
If the Board of Regents employs a financial manager or selects a private investment
firm, the designated revenues must be managed in accordance with the investment
policies established by the Board of Regents and consistently with the standard of
investment prudence for investing institutional charitable funds. If the Board of
Regents contracts with SWIB, SWIB must manage the designated revenues as
provided under current law, which requires SWIB to invest the moneys in accordance
with the terms of the contract and SWIB's standard of investment prudence.
For further information see the state 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:
SB557,1
1Section
1. 36.11 (11m) (a) (intro.) of the statutes is amended to read:
SB557,2,42
36.11
(11m) (a) (intro.) The board may
invest manage the investment of any
3revenues designated by the board, including revenues from gifts, grants, and
4donations
, by doing any of the following:
SB557,2
5Section 2
. 36.11 (11m) (am) of the statutes is created to read:
SB557,2,126
36.11
(11m) (am) 1. If the board employs a financial manager under par. (a) 1.
7or selects a private investment firm under par. (a) 3., the designated revenues shall
8be managed in accordance with the investment policies established by the board and
9in compliance with the requirements under s. 112.11 if the designated revenues
10comprise an institutional fund, as defined in s. 112.11 (2) (e), or consistently with the
11same standard of responsibility under s. 112.11 (3) (b) if the designated revenues do
12not comprise an institutional fund.
SB557,2,1413
2. If the board contracts with the investment board under par. (a) 2., the
14designated revenues shall be managed as provided in s. 25.17 (9m).
SB557,3
15Section 3
. 36.11 (11m) (b) of the statutes is amended to read:
SB557,3,4
136.11
(11m) (b) Notwithstanding ss. 25.14 (1) (a) and 25.17 (1) (g), the board
2is not required to deposit revenues
from gifts, grants, and donations designated
3under par. (a) in the state investment fund if the board invests these moneys as
4provided in
par.
pars. (a)
and (am).
SB557,4
5Section
4.
Initial applicability.
SB557,3,76
(1) The treatment of s. 36.11 (11m) (am) first applies to investments made on
7the effective date of this subsection.
