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A03137 Text:

                STATE OF NEW YORK
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    January 26, 2017
        Introduced  by  M. of A. ABBATE -- (at request of the State Comptroller)
          -- read once and referred to the Committee on Governmental Employees
        AN ACT to amend the retirement and social security law, in  relation  to
          prohibiting  the  use  of  placement agents by managers doing business
          with the common retirement fund

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. The retirement and social security law is amended by adding
     2  a new section 424-a to read as follows:
     3    § 424-a. Use of placement agents or intermediaries prohibited.  1. The
     4  fund  shall  not  engage,  hire,  invest with or commit to an investment
     5  manager that is using the services of a placement agent or  intermediary
     6  to  assist  such investment manager in obtaining investments by the fund
     7  nor shall the fund engage, hire, invest with or commit to an  investment
     8  manager  without  obtaining from such investment manager a certification
     9  in the form and manner prescribed by the fund stating that such  invest-
    10  ment  manager  has  not  used the services of a placement agent or other
    11  intermediary to assist such investment manager in obtaining  investments
    12  by the fund.
    13    2. For the purposes of this section:
    14    (a) "investment manager" shall mean any person, other than an employee
    15  of  the  comptroller, or entity engaged by the common retirement fund to
    16  manage a part or all of an investment portfolio of  the  fund.  "Manage"
    17  shall  include,  but  is not limited to, the analysis of portfolio hold-
    18  ings, and the purchase, sale, and lending thereof. Any  investment  made
    19  by  the fund pursuant to subdivision seven of section one hundred seven-
    20  ty-seven of this chapter shall be deemed to be  the  investment  of  the
    21  fund in such investment entity rather than in the assets of such invest-
    22  ment entity.
    23    (b) "placement agent or intermediary" shall mean any person or entity,
    24  including  registered  lobbyists,  directly  or  indirectly  engaged and
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 3137                             2
     1  compensated by an investment manager, other  than  an  employee  of  the
     2  investment  manager,  to  assist  the  investment  manager  in obtaining
     3  investments by the fund whether compensated on a flat fee, a  contingent
     4  fee,  or  any  other  basis.  Employees of an investment manager and its
     5  affiliates are excluded from this definition unless  they  are  employed
     6  principally  for  the purpose of securing or influencing the decision to
     7  secure a particular investment transaction or investment by the fund.
     8    § 2. This act shall take effect immediately.
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