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Committee advances change clarifying PSPRS investment cap applies to public companies
Summary
Lawmakers approved HB 21-43 to specify the PSPRS 5% voting‑stock cap applies only to publicly traded corporations; trustees said the change reduces legal and administrative costs without increasing risk.
The committee advanced House Bill 21-43, which narrows an existing limitation on PSPRS investments so the 5% voting‑stock cap applies to publicly traded corporations only. Supporters said the change clarifies statute and reduces costly legal workarounds when the system invests in privately held corporations or funds structured as corporations.
Doug Cole, representing PSPRS, told the committee the change saves the retirement system legal and transaction costs that result from current structural workarounds. He said the system maintains statutory and board‑level safeguards that limit concentration and manage risk, and that the revision would not materially increase portfolio risk but would lower administrative expense.
Committee members questioned whether the change could open concentration risks; trustees and staff pointed to existing statutory limits (e.g., maximum share of total assets) and board oversight. After discussion the committee returned the bill with a due‑pass recommendation.
