Dais, Hyndman, Reyes, Bichotte Hermelyn, Tapia, De Los Santos, Jackson, Wright, Taylor, Cruz, Raga,
Burroughs
MLTSPNSR
Davila
Add 423-d & 423-e, R & SS L; add Art 15-D 328-b - 328-d, Exec L
Enacts the "New York state agency BIPOC asset management and financial institution strategy act" to ensure the promotion of equity, diversity, and inclusion within the state pension system and the New York city pension system's investments by mandating a minimum allocation of assets to BIPOC asset managers, BIPOC financial institutions, and BIPOC financial or professional service firms; addresses disparities in investment opportunities and fosters economic growth within BIPOC communities, aligning with best practices in investment management and bolstering the financial well-being of New York City and state and residents thereof (Part A); relates to fair investment practices by investment advisers within the state of New York (Part B).
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5471B
SPONSOR: Alvarez TITLE OF BILL:
An act to amend the retirement and social security law, in relation to
diversity and inclusion in the management of public pension funds,
ensure equitable access to investment opportunities, and foster the
growth of emerging BIPOC (black, indigenous, and people of color) owned
investment management firms within the state of New York (Part A); and
to amend the executive law, in relation to fair investment practices by
investment advisers within the state of New York (Part B)
PURPOSE OR GENERAL IDEA OF BILL:
Aimed at diversifying the investment authority of the New York State
Insurance Fund
SUMMARY OF PROVISIONS:
This bill proposes the combination of three acts, firstly, Bill A00383,
The New York State Agency BIPOC Asset Management and Financial Institu-
tion Strategy Act, this is a bill the Assembly member introduced last
year aimed at diversifying the investment authority of the New York
State Insurance Fund. Secondly, The New York State Investment Tax Cred-
it. This bill establishes a tax credit to Venture capital firms on their
qualified investments made to BIPOC owned firms. Requiring the Depart-
ment of Taxation and finance to monitor and report on the utilization,
impact, and violation of the Venture Capital tax Credit. Lastly, The New
York State Fair Investment Practices by Investment Advisers. Which is a
bill that establishes reporting requirements and compliance measures for
venture capital firms managing assets for New York State entities such a
public pension system, retirement funds and other similar organizations.
The venture capital firms would report the demographics of the busi-
nesses receiving investments to the Division of Minority and Women Busi-
ness Development Department.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
The Assembly Member is reintroducing what had been a solo bill and is
combining it with two other initiatives.
PRIOR LEGISLATIVE HISTORY:
Was introduced as Bill A00383 during the prior legislation session
EFFECTIVE DATE:
As soon as possible.
