By Mr. Guyer of Dalton, petition (accompanied by bill, House, No. 2556) of Denis E. Guyer and Anne M. Gobi for legislation to prohibit the investment of pension or annuity funds of the Commonwealth in companies engaged in business with Sudan. Public Service.

 

The Commonwealth of Massachusetts

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PETITION OF:

 


Denis E. Guyer

Anne M. Gobi

 

 


 

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In the Year Two Thousand and Seven.

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An Act regulating divestment in Sudan.

 

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:


 

SECTION 1. Chapter 10 of the General Laws is hereby amended by inserting after section 5C, as appearing in the 2002 Official Edition, the following section:

Section 5D.  (a) Notwithstanding any general or special law to the contrary, the assets of a pension or annuity fund under the jurisdiction of the treasurer and receiver general of the commonwealth shall not be invested in the stocks, securities or other obligations of a company which directly or through a subsidiary is engaged in business in or with Sudan or its instrumentalities.

(b)  The treasurer shall take appropriate action to sell, redeem, divest or withdraw any investment held in violation of this act. This act shall not be construed to require the premature or otherwise imprudent sale, redemption, divestment or withdrawal of an investment, but such sale, redemption, divestment or withdrawal shall be completed within the following guidelines:

(1) Not less than 30 per cent of a retirement system痴 assets in such companies shall be divested later than 4 months after the effective date of this act.

(2)  Not less than 60 per cent of the retirement system痴 assets in such companies shall be divested later than 8 months after the effective date of this act.

(3)  Not less than 100 per cent of the retirement system痴 assets in such companies shall be divested later than 12 months after the effective date of this act.

(c)  The treasurer shall file with the general court a report of all investments held as of the effective date of this section which are in violation this section. Annually thereafter, the treasurer shall report on all investments sold, redeemed, divested or withdrawn in compliance with this section.

Each report after the initial report shall provide a description of the progress made since the previous report in implementing subsection (b).

(d)  If it is determined by the treasurer that a company, which had previously been considered to have been engaged in business directly or through a subsidiary in or with Sudan or its instrumentalities, has ceased business operations with Sudan or its instrumentalities, then subsections (b) and (c) shall no longer apply to that company.

(e)  In the event that the government of Sudan sufficiently halts the ongoing genocide in Darfur for at least 12 months, as determined by the State Department of the United States, the treasurer shall inform the general court.

SECTION 2. Nothing in this act shall alter or diminish existing fiduciary or statutory obligations and other terms, conditions, and limitations on the investment of retirement system assets for the exclusive interest and benefit of participants and beneficiaries of a retirement system. 

SECTION 3.  The initial report required by subsection (c) of section 5D, inserted by section 1 of this act, shall be filed by the treasurer within 60 days of the effective date of this act.