§ 147-69.3. Administration of State Treasurer's investment programs. - North Carolina Statutes

§ 147‑69.3. Administration of State Treasurer's investment programs.

(a)        The State Treasurershall establish, maintain, administer, manage, and operate within theDepartment of State Treasurer one or more investment programs for the depositand investment of assets pursuant to the provisions of G.S. 147‑69.1 andG.S. 147‑69.2.

(b)        Any official,board, commission, other public authority, local government, schooladministrative unit, local ABC board, or community college of the State havingcustody of any funds not required by law to be deposited with and invested bythe State Treasurer may deposit all or any portion of those funds with theState Treasurer for investment in one of the investment programs establishedpursuant to this section, subject to any provisions of law with respect toeligible investments, provided that any occupational licensing board as definedin G.S. 93B‑1 may participate in one of the investment programsestablished pursuant to this section regardless of whether or not the fundswere required by law to be deposited with and invested by the State Treasurer.In the absence of specific statutory provisions to the contrary, any of thosefunds may be invested in accordance with the provisions of G.S. 147‑69.2and 147‑69.3. Upon request from any depositor eligible under thissubsection, the State Treasurer may authorize moneys invested pursuant to thissubsection to be withdrawn by warrant on the State Treasurer.

(c)        The StateTreasurer's investment programs shall be so managed that in the judgment of theState Treasurer funds may be readily converted into cash when needed.

(d)        Except as providedby G.S. 147‑69.1(d), the total return earned on investments shall accruepro rata to the fund whose assets are invested according to the formula prescribedby the State Treasurer with the approval of the Governor and Council of State.

(e)        The State Treasurerhas full powers as a fiduciary to hold, purchase, sell, assign, transfer, lendand dispose of any of the securities or investments in which any of theprograms created pursuant to this section have been invested, and may reinvestthe proceeds from the sale of those securities or investments and any otherinvestable assets of the program.

(f)         The cost ofadministration, management, and operation of investment programs establishedpursuant to this section shall be apportioned equitably among the programs insuch manner as may be prescribed by the State Treasurer, such costs to be paidfrom each program, and to the extent not otherwise chargeable directly to theincome or assets of the specific investment program or pooled investmentvehicle, shall be deposited with the State Treasurer as a General Fund nontaxrevenue. The cost of administration, management, and operation of investmentprograms established pursuant to this section and not directly paid from theincome or assets of such program shall be covered by an appropriation to theState Treasurer for this purpose in the Current Operations Appropriations Act.

(g)        The State Treasureris authorized to retain the services of independent appraisers, auditors,actuaries, attorneys, investment counseling firms, statisticians, custodians,or other persons or firms possessing specialized skills or knowledge necessaryfor the proper administration of investment programs created pursuant to thissection.

(h)        The State Treasurershall prepare, as of the end of each fiscal year, a report on the financialcondition of each investment program created pursuant to this section. A copyof each report shall be submitted within 30 days following the end of thefiscal year to the official, institution, board, commission or other agencywhose funds are invested, the State Auditor, and the chairs of the FinanceCommittees of the House of Representatives and the Senate.

(i)         The StateTreasurer shall report at least twice a year to the General Assembly, throughthe Finance Committees of the House of Representatives and the Senate, on theinvestment programs created under this section. The Treasurer shall present thereports to a joint meeting of the Finance Committees. The chairs of the FinanceCommittees may receive the reports and call the meetings. The FinanceCommittees may meet during the interim as necessary to hear the reports fromthe State Treasurer. The State Treasurer's report and presentation to theFinance Committees shall include all of the following:

(1)        A full and completestatement of all moneys invested by virtue of the provisions of G.S. 147‑69.1and G.S. 147‑69.2.

(2)        The nature andcharacter of the investments.

(3)        The revenues derivedfrom the investments.

(4)        The costs ofadministering, managing, and operating the investment programs, including therecapture of any investment commissions.

(5)        A statement of theinvestment policies for the revenues invested.

(6)        Any otherinformation that may be helpful in understanding the State Treasurer'sinvestment policies and investment results.

(7)        Any otherinformation requested by the Finance Committees.

(i1)       The State Treasurershall report the incentive bonus paid to the Chief Investment Officer to theJoint Legislative Commission on Governmental Operations by October 1 of eachyear.

(i2)       In order to retainkey public employees in the Investment Division, the State Treasurer isauthorized to establish compensation including bonuses for the Chief InvestmentOfficer and Investment Directors. The bonuses may be based on compensationstudies conducted by a nationally recognized firm specializing in public fundinvestment compensation and the Pension Plan performance. The salaries andother associated benefits shall be apportioned directly from the investmentprogram. The Treasurer shall report the bonuses paid to the Joint LegislativeCommission on Governmental Operations annually.

(j)         Subject to theprovisions of G.S. 147‑69.1(d), the State Treasurer shall adopt any rulesnecessary to carry out the provisions of this section.  (1979, c. 467, s. 3; 1981,c. 445, ss. 4, 5; 1983, c. 515, s. 1; c. 702, s. 10; 1983 (Reg. Sess., 1984),c. 1034, ss. 116, 117; 1987, c. 751, ss. 6‑8; 2001‑444, s. 4; 2002‑126,s. 6.12; 2005‑276, s. 27.3; 2006‑203, s. 119; 2008‑132, s.5.)