O'Pharrow, Dais, Hyndman, Reyes, Bichotte Hermelyn, Tapia, De Los Santos
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); directs the comptroller and the commissioner of taxation and finance to undertake a study on the feasibility of establishing a venture capital program within the common retirement fund and a venture capital tax credit to ensure equitable access to investment opportunities, and foster the growth of emerging diverse founding member businesses (Part B); relates to fair investment practices by investment advisers within the state of New York (Part C).
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5471A
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);
directing the comptroller and the commissioner of taxation and finance
to undertake a study on the feasibility of establishing a venture capi-
tal program within the common retirement fund and a venture capital tax
credit to ensure equitable access to investment opportunities, and
foster the growth of emerging diverse founding member businesses (Part
B); and to amend the executive law, in relation to fair investment prac-
tices by investment advisers within the state of New York (Part C)
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 Assemblymember introduced last
year aimed tt 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 systems, retirement funds and other similar organiza-
tions. The venture capital firms would report the demographics of the
businesses receiving investments to the Division of Minority and Women
Business 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
