38-715

38-715. Director; powers and duties

A. The board shall appoint a director. The term of the director is one year and
expires on June 30. On expiration of a director's term, the board may reappoint the
director for another term. The board may remove the director at any time for cause.

B. The director shall appoint a deputy director and assistant directors with the
approval of the board.

C. The director, under the supervision of the board, shall:

1. Administer this article, except the investment powers and duties of investment
management.

2. Hire employees and services the director deems necessary and prescribe their
duties.

3. Prescribe procedures to be followed by members and their beneficiaries in filing
applications for benefits.

4. Be responsible for:

(a) Income and the collection of income and the accuracy of all expenditures.

(b) Maintaining books and maintaining and processing records of ASRS.

(c) The investment of temporary surplus monies only in obligations of the United
States government or agencies whose obligations are guaranteed by the United States
government, commercial paper or banker's acceptances for a term of not more than fifteen
days.

(d) Providing continuing education programs for the board to keep the board members
informed of current issues and information needed to carry out their duties.

5. Perform additional powers and duties as may be prescribed by the board and
delegated to the director.

D. The director, under the supervision and approval of the board, may:

1. Delegate duties and responsibilities to such state departments as the director
deems feasible and desirable to administer this article.

2. Appoint a custodian for the safekeeping of all investments owned by ASRS and
register stocks, bonds and other investments in the name of a nominee.

3. Invest marketable securities owned by ASRS by entering into security loan
agreements with one or more security lending entities. For the purpose of this
paragraph:

(a) "Marketable securities" means securities that are freely and regularly traded
on recognized exchanges or marketplaces.

(b) "Security loan agreement" means a written contract under which ASRS, as lender,
agrees to lend specific marketable securities for a period of not more than one
year. ASRS, under a security loan agreement, shall retain the right to collect from the
borrower all dividends, interest, premiums and rights and any other distributions to
which ASRS otherwise would have been entitled. During the term of a security loan
agreement ASRS shall waive the right to vote the securities that are the subject of the
agreement. A security loan agreement shall provide for termination by either party on
terms mutually acceptable to the parties. The borrower shall deliver collateral to ASRS
or its designated representative. At all times during the term of any security loan
agreement the collateral shall be in an amount equal to at least one hundred per cent of
the market value of the loaned securities. A security loan agreement shall provide for
payment of additional collateral on a daily basis, or at such other less frequent
intervals as the value of the loaned securities increases. A security loan agreement
with a security lending entity shall contain the terms and conditions of the fees to be
paid to a security lending entity for servicing the security loan agreement. ASRS shall
pay the fees approved by the board to the security lending entity for servicing a
security loan agreement from the revenues of the security lending program.

4. Establish one or more reserve holding accounts, into which the board shall close
periodically the account balances of inactive accounts. If any person files a claim and
furnishes proof of ownership of any amounts in any inactive account the claim shall be
paid from the reserve holding account on the same basis as if no action had been taken
under this paragraph. Interest and supplemental credits shall be allocated to each
reserve holding account on June 30 of each year, as determined by the board. For the
purposes of this paragraph, "inactive account" means an account to which contributions
have not been paid for six months or more.

5. Make retirement under this article effective retroactively to on or after the
day following the date employment is terminated if the member was unable to apply before
the retroactive effective date through no fault of the member.

E. The director, under supervision of the governing committee for tax deferred
annuity and deferred compensation plans, may hire and supervise employees and obtain
services the director deems necessary to administer article 5 of this chapter. The tax
deferred annuity and deferred compensation programs established pursuant to article 5 of
this chapter shall bear the costs for these employees and services.

F. The director and all persons employed by the director are not subject to section
38-611 or title 41, chapter 4, article 5 or 6.