N.Y. Education Law § 508-a: New York state teachers' retirement system MWBE asset management and financial institution strategy

§ 508-a. New York state teachers' retirement system MWBE asset

management and financial institution strategy. 1. Within the discretion

of the retirement board and in accordance with and subject to its

fiduciary duties and obligations as trustees of the teachers retirement

system and to the members, retirees and beneficiaries of such system and

such other investment limitations as may be prescribed by this chapter,

the retirement board is authorized to establish on MWBE asset management

and financial institution strategy pursuant to section four hundred

twenty-three-c of the retirement and social security law including

reasonable goals for utilization of MWBE asset managers, MWBE financial

institutions and MWBE financial and professional services firms, as such

terms are defined in section one hundred seventy-six of the retirement

and social security law which strategy shall include, but shall not be

limited to, the following objectives:

a. investing assets of the teachers' retirement system with MWBE asset

managers;

b. subject to best execution, (1) conducting trades of public equity

securities with MWBE financial institutions and (2) conducting trades of

fixed-income securities through MWBE financial institutions;

c. allocating investments of assets of the teacher's retirement system

either through (1) direct investments in the equities and debt

securities of MWBEs or (2) indirectly through special programs involving

MWBE asset managers; and

d. awarding contracts for accounting, banking, financial advisory,

insurance, legal, research, valuation and other financial and

professional services to MWBE financial institutions and other MWBE

professional services firms.

As used in this section, the terms "MWBE asset manager", "MWBE

financial institutions", "MWBE", "fidiuciary-controlled entities", and

"best execution" shall have the meanings specified in section one

hundred seventy-six of the retirement and social security law, and shall

be certified in a manner consistent with the provisions of subdivision

three of section four hundred twenty-three-c of the retirement and

social security law.

2. The retirement board is also authorized to:

a. periodically advertise the existence of such strategy so that MWBE

asset managers, MWBE financial institutions and other MWBE professional

service firms are made aware of the opportunities made available

pursuant to such strategy;

b. within sixty days of the end of each fiscal year following the

effective date of this section, the retirement board shall report to the

governor, legislature and the chief diversity officer of the state of

New York on the participation of MWBE asset managers, MWBE financial

institutions and MWBE professional service providers in investment and

brokerage transactions with or as providers of services for the

teachers' retirement system, including a comparative analysis of such

activity relative to such activity with all asset managers, financial

institutions and professional service providers for the relevant period

and on the progress and success of the efforts undertaken during such

period to achieve the goals of such strategy. Each report shall be

simultaneously published on the website of the teachers' retirement

system for not less than sixty days following its release to the

governor and the other recipients named above;

c. work with the other fiduciary-controlled entities to create a

database of such MWBE entities; and

d. periodically, but not less than annually, hold a conference to

promote such strategy in conjunction with the other fiduciary-controlled

entities.