NAC355.270. Duties of Board.

The Board shall:

     1. Adopt a policy concerning the appropriate training of workers and the payment of fair wages and benefits by contractors retained by a business in which the Corporation directly invests. The officers of the Corporation shall prepare and submit to the Board a draft of such a policy. In drafting the policy, the officers of the Corporation shall:

     (a) Define “appropriate training of workers” and “fair wages and benefits” in such a manner that recognizes the practicalities of all markets.

     (b) Define “fair wages and benefits” based upon the following criteria:

          (1) The nature of a project;

          (2) The nature of the jobs or trades required for a project and comparable job or trade classifications;

          (3) The scope and complexity of the work; and

          (4) Any other factors affecting the relevant markets in the locality in which the business receiving an investment is located.

     (c) Consider local practices concerning specific trades and types of projects to determine a practical standard for determining fair wages in lieu of the standard wage paid for such trade and projects. In addition, the policy may require a business in which the Corporation invests to engage in broad outreach and a competitive bidding process which invites local trades to suggest contractors whom the local trades believe to be responsible and qualified for a specific project.

     2. Establish policies and procedures for the Corporation, including, without limitation, policies and procedures for:

     (a) The conduct of meetings of the Board.

     (b) Legal representation of the Corporation, the members of the Board and the officers of the Corporation.

     (c) The allocation of the returns on investments, including, without limitation, allocations to the State Permanent School Fund.

     (d) The return of the corpus of investments to investors after a defined investment period of not more than 10 years following the capital drawdown by the manager of a private equity fund, plus any extensions authorized by the partnership agreement of the private equity fund or a majority of the limited partners in the private equity fund.

     3. Establish investment guidelines for the Fund of Funds Manager, for private equity funds in which the Corporation invests and for direct investments and co-investments by the Corporation, including, without limitation, guidelines for:

     (a) The diversification of investments that consider the stage of investment, industry sectors, size of investment and vintage years;

     (b) Negotiating and including in each agreement governing a venture capital co-investment made by the Corporation a provision specifying the requirements of the agreement for which a penalty may be imposed and requiring a penalty to be paid to the Corporation if such a requirement is not met;

     (c) The fees and other compensation to be paid to the managers of private equity funds in which the Corporation invests;

     (d) Contract terms to be negotiated with the managers of private equity funds in which the Corporation invests; and

     (e) The selection of investments to be made by the Corporation.

     4. Establish investment performance benchmarks and objectives.

     5. Establish the roles and responsibilities of the Board, the officers of the Corporation, the Office of the State Treasurer, investment consultants retained by the Corporation, the Office of the Attorney General, the Fund of Funds Manager and the managers of private equity funds in which the Corporation invests.

     6. Establish reporting requirements for the Fund of Funds Manager and for the investments made by the Corporation.

     7. Retain an independent audit firm to conduct audits of the Corporation.

     8. Collaborate with the Nevada System of Higher Education and other educational institutions, the Business Leadership Council established by NAC 355.250 and the Fund of Funds Manager to develop an internship program pursuant to which students are partnered with businesses in which the Corporation invests.

     (Added to NAC by St. Treasurer by R128-11, eff. 2-20-2013)