Sec. 20a.
(1) Except as provided in subsection (2), an investment fiduciary of a system having assets of more than $250,000,000.00 may invest not more than 2% of a system's assets in a debt, warrant, or equity interest in a small business having more than 1/2 of the small business's assets or employees within this state, or in a debt, warrant, or equity interest in a small business investment company or venture capital firm having its principal office or more than 1/2 of its assets within this state, or the system may create, own, hold, buy, sell, operate, manage, and direct 1 or more small business investment companies or venture capital firms designed to invest in small businesses having more than 1/2 of their assets or employees within this state. An investment fiduciary may also join with a group composed of other public employee retirement systems, pension systems subject to the employee retirement income security act of 1974, Public Law 93-406, 88 Stat. 829, financial institutions, corporations, or governmental agencies or instrumentalities to accomplish the purposes of this section. An investment in stock under this section shall be considered an investment in stock under section 14 only for the purpose of determining the 70% maximum investment limitation contained in section 14.
(2) If the investment fiduciary of a system is the state treasurer, investments described in subsection (1) may exceed 2% of the assets of the system, but shall not exceed 5% of the assets of the system.
History: Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982 ;-- Am. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2000, Act 307, Imd. Eff. Oct. 16, 2000 Compiler's Notes: For transfer of powers and duties of state treasurer created under public employee retirement system investment act or authorizing statutes to Michigan investment board and transfer of powers and duties of investment advisory committee created under MCL 16.191 to Michigan investment board , see E.R.O. No. 2018-5, compiled at MCL 38.1176.
Structure Michigan Compiled Laws
Chapter 38 - Civil Service and Retirement
Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141)
Section 38.1121-38.1131 - Repealed. 1982, Act 55, Imd. Eff. Apr. 6, 1982.
Section 38.1132 - Short Title; Meanings of Words and Phrases.
Section 38.1132a - Definitions; A.
Section 38.1132b - Definitions; D to G.
Section 38.1132c - Definitions; I to L.
Section 38.1132d - Definitions; N to P.
Section 38.1132e - Definitions; S.
Section 38.1132f - Definitions; V.
Section 38.1133b - Repealed. 1993, Act 214, Imd. Eff. Oct. 27, 1993.
Section 38.1134 - Investment in Stock or Global Security.
Section 38.1135 - Investment in Investment Companies.
Section 38.1137 - Other Authorized Investments; Prohibited Investments.
Section 38.1138 - Investment in Real Estate or Mortgages on Certain Leased Real Property.
Section 38.1139 - Investment in Real Estate Investment Trust or Real or Personal Property.
Section 38.1140b - Deposits by Investment Fiduciary.
Section 38.1140d - Investments Not Qualified Under Act.
Section 38.1140e - Loan of Securities by Investment Fiduciary.
Section 38.1140f - Transferring and Holding Securities.
Section 38.1140g - Investment in Securities Exempt From Taxes.
Section 38.1140i - Repealed. 2000, Act 307, Imd. Eff. Oct. 16, 2000.
Section 38.1140j - Investment in Derivatives.
Section 38.1140k - Investment in Global Securities; Prohibited Conduct.
Section 38.1140l - Financial or Proprietary Information.