Bill Summary for S 531 (2019-2020)

Summary date: 

Apr 4 2019

Bill Information:

View NCGA Bill Details2019-2020 Session
Senate Bill 531 (Public) Filed Tuesday, April 2, 2019
AN ACT TO PROMOTE INVESTMENT IN SMALL BUSINESS VENTURES.
Intro. by Gunn.

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Bill summary

Amends GS 14-69.2 to allow, in addition to those investments otherwise authorized, up to $100 million of assets of the Escheat Fund to be invested as authorized in GS 147-69.2A. Amends GS 147-69.2A as follows to account for these Escheat Fund assets. Requires that following a public procurement process designees for the specified governmental entities jointly and unanimously select a third-party professional investment management firm, registered with the US Securities and Exchange Commission as an Investment Advisor and an exempt entity, to administer the Fund and select investment opportunities appropriate for receiving allocations from the Fund on the basis of the following limitations. Provides that assets of the Fund may be invested in those types of investments authorized for the North Carolina Retirement Systems notwithstanding the percentage limitations imposed on the investments. For these escheat assets also requires that (1) they be allocated to small business ventures with a North Carolina nexus of various sizes, growth potential, and industry classifications, and that they diversify investment risk and maximize the number of business ventures that may benefit from the Fund; (2) no more than 33% of the assets may be allocated to business ventures located in urban regions; (3) the maximum amount for total annual investments made in any calendar year is $20 million; and (4) at least 20% of the assets must be invested in business ventures started and owned by a veteran of any branch of the US Armed Forces whose character of service at separation was honorable or under honorable conditions and who has not been convicted of a felony offense or who has been convicted of one or more felonies that have been expunged. Sets out additional provisions making documents held by specified entities related to escheat assets public records, requiring adopting of an investment policy statement, and an investment policy statement. Effective July 1, 2019.

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