SB 863

This bill makes various changes relating to the State of Wisconsin Investment

Board.

Under current law, among its powers and duties, SWIB may do any of the

following:

1. Employ special legal or investment counsel in any matters arising out of the

scope of its investment authority, notwithstanding certain other statutory provisions

relating to state procurement and state agency employment of attorneys, but

employment of special legal counsel paid by SWIB must be with the consent of the

attorney general.

2. Execute certain indemnification agreements related to securities.

3. Secure insurance against risks relating to SWIB's investments or properties.

4. Liquidate any corporation wholly owned by SWIB or operate the corporation

for up to five years until it can be liquidated.

5. Take necessary action to make investments in mortgage loans or purchase

real estate interests.

6. Maintain and repair any building that SWIB owns in fee or in which SWIB

owns the beneficial interest and, notwithstanding certain other statutory provisions

relating to state procurement or engineering, have exclusive authority to contract as

SWIB deems necessary for this purpose.

7. Engage in certain types of securities lending and repurchase agreement

transactions.

8. Sell securities that SWIB has the right to acquire by exercising conversion

rights.

9. Employ professionals, contractors, or other agents necessary to evaluate or

operate any property if a fund managed by SWIB has an interest in, or is considering

purchasing or lending money based upon the value of, that property,

notwithstanding certain other statutory provisions relating to state procurement.

10. For specified purposes, enter into certain swap transactions.

11. Invest assets of the permanent endowment fund in any investment that is

authorized for Wisconsin Retirement System accounts or in certain other

investments related to tobacco settlement revenues.

This bill specifies that SWIB's authorization, as provided in items 1 to 11, above,

applies notwithstanding any other statute except one restricting SWIB's investment

in certain derivatives and reverse repurchase agreements. The bill also modifies this

authorization as follows: with respect to item 1, it removes the attorney general

consent requirement and authorizes SWIB to employ special legal or investment

counsel in any matters arising out of the scope of its operations, not just investment

authority; with respect to item 6, it expands the authorized activities to include a

leasehold interest and to include, among others, improving, occupying, and

furnishing the building; and it repeals the provisions creating the authorization