Pennsylvania Act 2006-148 — EDUCATION (24 PA.C.S.) - ADMINISTRATIVE DUTIES OF PUBLIC SCHOOL EMPLOYEES RETIREMENT BOARD

Act text

EDUCATION (24 PA.C.S.) - ADMINISTRATIVE DUTIES OF PUBLIC SCHOOL EMPLOYEES
                             RETIREMENT BOARD
                 Act of Nov. 9, 2006, P.L. 1371, No. 148              Cl. 24
                             Session of 2006
                               No. 2006-148

     SB 592

                                  AN ACT

     Amending Title 24 (Education) of the Pennsylvania Consolidated
        Statutes, defining "alternative investment" and "alternative
        investment vehicle"; and further providing for administrative
        duties of the board.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Section 8102 of Title 24 of the Pennsylvania
     Consolidated Statutes is amended by adding definitions to read:
      § 8102.  Definitions.
        The following words and phrases when used in this part shall
     have, unless the context clearly indicates otherwise, the
     meanings given to them in this section:
        * * *
        "Alternative investment."  An investment in a private equity
     fund, private debt fund, venture fund, real estate fund, hedge
     fund or absolute return fund.
        "Alternative investment vehicle."  A limited partnership,
     limited liability company or any other legal vehicle for
     authorized investments under section 8521(i) (relating to
     management of fund and accounts) through which the system makes
     an alternative investment.
        * * *
        Section 2.  Section 8502(e) of Title 24 is amended to read:
      § 8502.  Administrative duties of board.
        * * *
        (e)  Records.--
            (1)  The board shall keep a record of all its proceedings
        which shall be open to inspection by the public[.], except as
        otherwise provided in this part or by other law.
            (2)  Any record, material or data received, prepared,
        used or retained by the board or its employees, investment
        professionals or agents relating to an investment shall not
        constitute a public record subject to public inspection under
        the act of June 21, 1957 (P.L.390, No.212), referred to as
        the Right-to-Know Law, if, in the reasonable judgment of the
        board, the inspection would:
                (i)  in the case of an alternative investment or
            alternative investment vehicle involve the release of
            sensitive investment or financial information relating to
            the alternative investment or alternative investment
            vehicle which the fund was able to obtain only upon
            agreeing to maintain its confidentiality;
                (ii)  cause substantial competitive harm to the
            person from whom sensitive investment or financial
            information relating to the investment was received; or
                (iii)  have a substantial detrimental impact on the
            value of an investment to be acquired, held or disposed
            of by the fund, or would cause a breach of the standard
            of care or fiduciary duty set forth in this part.
            (3)  (i)  The sensitive investment or financial
            information excluded from inspection under paragraph
            (2)(i), to the extent not otherwise excluded from
            inspection, shall constitute a public record subject to
            public inspection under the Right-to-Know Law once the
            board is no longer required by its agreement to maintain
            confidentiality.
                (ii)  The sensitive investment or financial
            information excluded from inspection under paragraph
            (2)(ii), to the extent not otherwise excluded from
            inspection, shall constitute a public record subject to
            public inspection under the Right-to-Know Law once:
                    (A)  the inspection no longer causes substantial
                competitive harm to the person from whom the
                information was received; or
                    (B)  the entity in which the investment was made
                is liquidated;
            whichever is later.
                (iii)  The sensitive investment or financial
            information excluded from inspection under paragraph
            (2)(iii), to the extent not otherwise excluded from
            inspection, shall constitute a public record subject to
            public inspection under the Right-to-Know Law once:
                    (A)  the inspection no longer has a substantial
                detrimental impact on the value of an investment of
                the fund and would not cause a breach of the standard
                of care or fiduciary duty set forth in this part; or
                    (B)  the entity in which the investment was made
                is liquidated;
            whichever is later.
            (4)  Except for the provisions of paragraph (3), nothing
        in this subsection shall be construed to designate any
        record, material or data received, prepared, used or retained
        by the board or its employees, investment professionals or
        agents relating to an investment as a public record subject
        to public inspection under the Right-to-Know Law.
            (5)  Notwithstanding the provisions of this subsection,
        the following information regarding an alternative investment
        vehicle shall be subject to public inspection under the
        Right-to-Know Law:
                (i)  The name, address and vintage year of the
            alternative investment vehicle.
                (ii)  The identity of the manager of the alternative
            investment vehicle.
                (iii)  The dollar amount of the commitment made by
            the system to the alternative investment vehicle.
                (iv)  The dollar amount of cash contributions made by
            the system to the alternative investment vehicle since
            inception.
                (v)  The dollar amount of cash distributions received
            by the system from the alternative investment vehicle
            since inception.
                (vi)  The net internal rate of return of the
            alternative investment vehicle since inception, provided
            that the system shall not be required to disclose the net
            internal rate of return under circumstances in which,
            because of the limited number of portfolio assets
            remaining in the alternative investment vehicle, the
            disclosure could reveal the values of specifically
            identifiable remaining portfolio assets to the detriment
            of the alternative investment.
                (vii)  The aggregate value of the remaining portfolio
            assets attributable to the system's investment in the
            alternative investment vehicle, provided that the system
            shall not be required to disclose the value under
            circumstances in which, because of the limited number of
            portfolio assets remaining in the alternative investment
            vehicle, the disclosure could reveal the values of
            specifically identifiable remaining portfolio assets to
            the detriment of the alternative investment.
                (viii)  The dollar amount of total management fees
            and costs paid to the alternative investment vehicle by
            the system on an annual fiscal year-end basis.
        * * *
        Section 3.  Nothing in this act shall be construed or deemed
     to affect the authority of the Auditor General to obtain copies
     of any record, material or data described in 24 Pa.C.S. §
     8502(e)(2) in connection with a lawfully conducted audit.
        Section 4.  Nothing in this act shall be construed or deemed
     to imply that the release or making public of any record,
     material or data described in 24 Pa.C.S. § 8502(e)(2) as not
     being a public record is a violation of the Public School
     Employees' Retirement Board's fiduciary duties.
        Section 5.  This act shall apply to any record, material or
     data described in 24 Pa.C.S. § 8502(e)(2), without regard to
     whether the record, material or data was created, generated or
     stored before the effective date of this section, without regard
     to whether the record, material or data was previously released
     or made public and without regard to whether a request for the
     record, material or data was made or is pending final response
     under the act of June 21, 1957 (P.L.390, No.212), referred to as
     the Right-to-Know Law.
        Section 6.  In the event that the Public School Employees'
     Retirement System has collected a fee or other monetary charge
     for the preparation, duplication, production, redaction or other
     expenses associated with the inspection or provision of a
     record, material or data that as a result of the amendment of 24
     Pa.C.S. § 8502(e) will not be made available for inspection by
     and will not be provided to the requester who made the payment,
     the Public School Employees' Retirement System shall return the
     fee or money to the requester.
        Section 7.  This act shall take effect immediately.

     APPROVED--The 9th day of November, A. D. 2006.

     EDWARD G. RENDELL