§ 5-10.3-5-3 — Investments of assets; management agreements; board exemptions on sale of surplus personal property or state property

Indiana § 5-10.3-5-3

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 10.3: THE PUBLIC EMPLOYEES' RETIREMENT
• Ch. 5: Accounts; Investments

Text

(a) The board shall invest its assets with the
care, skill, prudence, and diligence that a prudent person acting in a
like capacity and familiar with such matters would use in the conduct
of an enterprise of a like character with like aims. The board shall also
diversify such investments in accordance with prudent investment
standards.
(b) The board may invest up to five percent (5%) of the excess of its
cash working balance in debentures of the corporation for innovation
development subject to IC 30-4-3-3.
(c) The board is not subject to IC 4-13, IC 4-13.6, and IC 5-16 when
managing real property as an investment. Any management agreements
entered into by the board must ensure that the management agent acts
in a prudent manner with regard to the purchase of goods and services.
Contracts for the management of investment property shall be
submitted to the governor, the attorney general, and the budget agency
for approval. A contract for management of real property as an
investment:
(1) may not exceed a four (4) year term and must be based upon
guidelines established by the board;
(2) may provide that the property manager may collect rent and
make disbursements for routine operating expenses such as
utilities, cleaning, maintenance, and minor tenant finish needs;
(3) must establish, consistent with the board's duty under IC 30-4-3-3(c), guidelines for the prudent management of
expenditures related to routine operation and capital
improvements; and
(4) may provide specific guidelines for the board to purchase new
properties, contract for the construction or repair of properties,
and lease or sell properties without individual transactions
requiring the approval of the governor, the attorney general, the
Indiana department of administration, and the budget agency.
However, each individual contract involving the purchase or sale
of real property is subject to review and approval by the attorney
general at the specific request of the attorney general.
(d) Whenever the board takes bids in managing or selling real
property, the board shall require a bid submitted by a trust (as defined
in IC 30-4-1-1(a)) to identify all of the following:
(1) Each beneficiary of the trust.
(2) Each settlor empowered to revoke or modify the trust.
As added by Acts 1977, P.L.53, SEC.3. Amended by
P.L.51-1983, SEC.1; P.L.46-1988, SEC.3; P.L.336-1989(ss), SEC.14;
P.L.1-1991, SEC.34; P.L.37-1996, SEC.1; P.L.49-1997, SEC.26;
P.L.224-2003, SEC.187; P.L.32-2021, SEC.9.