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Bill would modernize State Board of Investment fee allocation; sponsors call it a transparency update
Summary
A technical bill would change how the State Board of Investment allocates administrative fees across assets under management instead of relying on a fixed appropriation for the general fund; sponsors say the change aligns practice with industry norms and enhances transparency. The commission laid the bill over pending finance questions.
Senator Rasmussen told the pensions commission that Senate File 4572 / House File 4367 would revise statute to allocate State Board of Investment (SBI) administrative fees proportionally across assets under management rather than maintain a fixed appropriation for the general fund.
John Lamb, general counsel for the SBI, explained the rationale and scale: he said the Invested Treasurers Cash account (ITC) includes roughly $27.02 billion in assets under management and that average investment returns have been on the order of $727 million per fiscal year; the bill would allow the SBI to invoice the general fund as a proportion of assets under management similar to other funds the SBI manages, replacing the current fixed appropriation model. Sponsors described the change as procedural modernization to increase transparency and efficiency.
Committee action: Members asked how the change would be funded; sponsors suggested the language is often carried in state government budget omnibus bills and laid the matter over pending finance committee discussions. No appropriation was made at the hearing.
Provenance: The bill and SBI testimony appear in the hearing record starting at SEG 1416 through SG 1542 where members discussed funding and the committee laid the bill over.
