HB 1281 Summary

• Requires PERF and TRF boards to employ investment managers that are minority business enterprises or women-owned business enterprises, with at least 15% of assets managed by minority-owned firms and 5% by women-owned firms by December 31, 2012.

• Mandates investment advisers allocate securities trading brokerage commissions with at least 30% to Indiana-based broker-dealers, 25% to minority-owned or women-owned broker-dealers, and 5% to new broker-dealers by December 31, 2012.

• Requires investment advisers to submit quarterly reports to fund boards detailing broker-dealer usage, assets traded, and brokerage commissions paid to specified categories of firms.

• Allows funds to waive percentage requirements if unable to meet them due to financial and fiduciary prudence, requiring submission of plans to achieve targets as quickly as possible.

• Effective July 1, 2011, and applies to both the Public Employees' Retirement Fund (PERF) and Indiana State Teachers' Retirement Fund (TRF).