Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION __. Article 3, Chapter 16, Title 9 of the 1976 Code is amended by adding:
"Section 9-16-347. (A) For purposes of this section:
(1) 'Business owned by a person with a disability' means a business that is at least fifty-one percent owned by a person with a disability, and the management and daily business operations are controlled by a person with a disability who is the owner. A not-for-profit agency for persons with disabilities that is exempt from taxation under Section 501 of the Internal Revenue Code of 1986 is also considered a 'business owned by a person with a disability'.
(2) 'Emerging investment manager' means a qualified investment advisor that manages an investment portfolio of at least ten million dollars but less than ten billion dollars and is a minority-owned business, female-owned business, or business owned by a person with a disability.
(3) 'Female-owned business' means a business which is at least fifty-one percent owned by a female, or, in the case of a corporation, at least fifty-one percent of the stock is owned by a female, and the management and daily business operations are controlled by a female who is the owner.
(4) 'Minority investment manager' means a qualified investment manager that manages an investment portfolio and is a minority-owned business, female-owned business, or business owned by a person with a disability.
(5) 'Minority-owned business' means a business which is at least fifty-one percent owned by a minority person, or in the case of a corporation, at least fifty-one percent of the stock is owned by a minority person, and the management and daily business operations are controlled by a minority person who is the owner.
(6) 'Minority person' means those individuals who have been subject to racial or ethnic prejudice or cultural bias because of their identification as members of a certain group, without regard to their individual qualities. Groups include, but are not limited to, Black Americans, Hispanic Americans, Native Americans, including American Indians, Eskimos, Aleuts, Native Hawaiians, Asian Pacific Americans, and other minorities to be designated by the commission.
(B)(1) By January 1, 2018, the commission shall adopt a policy that sets forth goals for increasing the utilization of emerging investment managers. This policy must include quantifiable goals for the management of assets in specific asset classes by emerging investment managers. The commission shall establish a separate goal for emerging investment managers that are minority-owned businesses, female-owned businesses, and businesses owned by a person with a disability. The goals established must be based on the percentage of total dollar amount of investment service contracts let to minority-owned businesses, female-owned businesses, and businesses owned by a person with a disability. The commission annually shall review the goals established under this subsection.
(2) If an emerging investment manager meets the criteria established by the commission for a specific contract and meets the criteria established by a consultant for that contract, then that emerging investment manager shall receive an invitation by the commission to present his firm for final consideration of a contract. If multiple emerging investment managers meet the criteria of this item, the commission may choose the most qualified firm.
(3) The use of an emerging investment manager does not constitute a transfer of investment authority.
(C) The commission shall establish a policy that sets forth goals for increasing the racial, ethnic, and gender diversity of its fiduciaries, including its consultants and senior staff. The commission annually shall review the goals established under this subsection.
(D) By January 1, 2018, the commission shall adopt a policy that sets forth goals for utilization of businesses owned by minorities, females, and persons with disabilities for all contracts and services. The goals established must be based on the percentage of total dollar amount of all contracts let to minority-owned businesses, female-owned businesses, and businesses owned by a person with a disability. The commission annually shall review the goals established under this subsection.
(E) By January 1, 2018, the commission shall adopt a policy that sets forth goals for increasing the utilization of minority broker-dealers. For the purposes of this subsection, 'minority broker-dealer' means a qualified broker-dealer who is a minority-owned business, female-owned business, or business owned by a person with a disability. The commission annually shall review the goals established under this subsection.
(F) The commission shall submit a report to the Governor and the General Assembly by January first of each year that includes the following:
(1) the policy adopted pursuant to subsection (B), including the names and addresses of the emerging investment managers used, percentage of the assets under the investment control of emerging investment managers for the three separate goals, and the actions it has undertaken to increase the use of emerging investment managers, including encouraging other investment managers to use emerging investment managers as subcontractors when the opportunity arises;
(2) the policy adopted pursuant to subsection (C);
(3) the policy adopted pursuant to subsection (D);
(4) the policy adopted pursuant to subsection (E), including specific actions undertaken to increase the use of minority broker-dealers; and
(5) the policy adopted pursuant to subsection (G).
(G)(1) By February 1, 2022, the commission shall adopt a policy that sets forth goals for increasing the utilization of minority investment managers.
(2) The commission shall establish a separate goal for minority investment managers that are minority-owned businesses, female-owned businesses, and businesses owned by a person with a disability. The commission annually shall review the goals established under this subsection.
(3) If a minority investment manager meets the criteria established by the commission for a specific contract and meets the criteria established by a consultant for that contract, then that minority investment manager shall receive an invitation by the commission to present his firm for final consideration of a contract. If multiple minority investment managers meet the criteria of this subsection, the commission may choose the most qualified firm.
(4) The use of a minority investment manager does not constitute a transfer of investment authority.
(H) Beginning January 1, 2023, the commission shall strive to use emerging investment managers for not less than twenty percent of the total funds under management and for not less than twenty percent of investment advisors being minorities, females, and persons with disabilities. The commission shall strive to utilize businesses owned by minorities, females, and persons with disabilities for not less than twenty percent of contracts awarded for information technology services, accounting services, insurance brokers, architectural and engineering services, and legal services." /
Renumber sections to conform.
Amend title to conform.