SB 557

This bill expands the authority of the Board of Regents of the University of

Wisconsin System to manage the investment of certain UW System revenues

through a financial manager, a private investment firm, or the State of Wisconsin

Investment Board (SWIB), instead of investing these moneys in SWIB's State

Investment Fund (SIF).

Current law specifies that SWIB has control of the investment of certain state

moneys. SWIB manages the SIF, an investment trust that functions as the state's

cash management fund under which idle cash balances are pooled and invested in

liquid, low-risk investments until these moneys are needed.

Under current law, the Board of Regents may invest revenues from gifts,

grants, and donations by doing any of the following: 1) directly employing a financial

manager; 2) selecting a private investment firm using a competitive proposal

process; or 3) contracting with SWIB to manage the investment of these moneys. If

the Board of Regents invests these moneys in this manner, the moneys are not

required to be deposited in the SIF. If the Board of Regents contracts with SWIB to

invest these moneys, SWIB must invest the moneys in accordance with the terms of

its contract with the Board of Regents and SWIB's general standard of investment

prudence.

Under the bill, the Board of Regents may manage the investment of any

revenues designated by the Board of Regents in the same manner allowed under

current law for gifts, grants and donations: 1) by directly employing a financial

manager; 2) by selecting a private investment firm; or 3) by contracting with SWIB.

If the Board of Regents employs a financial manager or selects a private investment

firm, the designated revenues must be managed in accordance with the investment

policies established by the Board of Regents and consistently with the standard of

investment prudence for investing institutional charitable funds. If the Board of

Regents contracts with SWIB, SWIB must manage the designated revenues as

provided under current law, which requires SWIB to invest the moneys in accordance

with the terms of the contract and SWIB's standard of investment prudence.