(June 3, 2011) — A bill introduced in the New York State Assembly and written by state Comptroller Thomas P. DiNapoli could turn a placement agent ban into law.

The legislation would ban placement agents from conducting business with the $140.6 billion Albany-based New York State Common Retirement Fund (CRF). DiNapoli’s proposed legislation, if enacted, would be the first time such a ban on placement agents was codified into law in the United States.

CRF became the first public pension fund in the nation to ban placement agents when Comptroller DiNapoli issued his Executive Order in April 2009.

“Since I took office, we’ve worked to implement reforms that will help restore integrity and trust in this office and the pension fund,” DiNapoli said in a release. “Banning placement agents and lobbyists from involvement in investments was a big step. Now it’s time to make that ban a permanent part of New York State law.”

He continued: “As long as I’m in office, I will never allow placement agents in CRF deals. But we have to eliminate any potential for abuse in the future. This bill will make sure that the Fund is protected no matter who is comptroller.”

DiNapoli has been consistently vocal about his efforts to address the misdeeds of the previous administration. His top priorities have been to restore the public’s confidence in the integrity of CRF’s investment decision-making process and in the operations of the scheme.

According to a release from the office of the comptroller, the bill defines a “placement agent or intermediary” as any person or entity, including a registered lobbyist, that is directly or indirectly engaged and compensated by an investment manager to promote investments to or solicit investment by the CRF, whether compensated on a flat fee, a contingent fee, or any other basis.