Pennsylvania Act 2006-120 — STATE GOVERNMENT (71 PA.C.S.) - STATE EMPLOYEES' RETIREMENT BOARD ADMINISTRATIVE DUTIES, DEFINING "ALTERNATIVE INVESTMENT" AND "ALTERNATIVE INVESTMENT VEHICLE"

Act text

STATE GOVERNMENT (71 PA.C.S.) - STATE EMPLOYEES' RETIREMENT BOARD
ADMINISTRATIVE DUTIES, DEFINING "ALTERNATIVE INVESTMENT" AND "ALTERNATIVE
                           INVESTMENT VEHICLE"
                 Act of Oct. 27, 2006, P.L. 1177, No. 120             Cl. 71
                             Session of 2006
                               No. 2006-120

     HB 126

                                  AN ACT

     Amending Title 71 (State Government) of the Pennsylvania
        Consolidated Statutes, defining "alternative investment" and
        "alternative investment vehicle"; and further providing for
        administrative duties of the State Employees' Retirement
        Board.

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

        Section 1.  Section 5102 of Title 71 of the Pennsylvania
     Consolidated Statutes is amended by adding definitions to read:
      § 5102.  Definitions.
        The following words and phrases as used in this part, unless
     a different meaning is plainly required by the context, shall
     have the following meanings:
        * * *
        "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 5931(i) (relating to
     management of fund and accounts) through which the system makes
     an alternative investment.
        * * *
        Section 2.  Section 5902(e) of Title 71 is amended to read:
      § 5902.  Administrative duties of the 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.
        * * *
        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 71 Pa.C.S. §
     5902(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 71 Pa.C.S. § 5902(e)(2) as not
     being a public record is a violation of the State Employees'
     Retirement Board's fiduciary duties.
        Section 5.  This act shall apply to any record, material or
     data described in 71 Pa.C.S. § 5902(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 State 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 71
     Pa.C.S. § 5902(e) will not be made available for inspection by
     and will not be provided to the requester who made the payment,
     the State Employees' Retirement System shall return the fee or
     money to the requester.
        Section 7.  This act shall take effect immediately.

     APPROVED--The 10th day of October 27, A. D. 2006.

     EDWARD G. RENDELL