By Mr. Joyce, a petition (accompanied by bill, Senate,
No. 2383) of Brian A. Joyce, Mark C. Montigny, Bruce E.
Tarr, Bradley H. Jones, Jr. and other members of the
General Court for legislation relative to the divestment |
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, as appearing in the 2004 official edition, is hereby amended by
inserting after section 5C the following new section:-
“Section 5D. (a) The state treasurer shall not knowingly permit, whenever feasible, the
investment of any of the funds of the commonwealth, including but not limited
to all pension and annuity funds, in the stock, securities or other obligations
of any corporation, which directly, or through a subsidiary, engage in business
with, or with any instrumentality of, any state designated by the United States
Department of State as a state sponsor of terrorism under the provisions of 22
U.S.C. 2371, 22 U.S.C 2780, or 50 U.S.C. app. 2405(j), or any other applicable
federal law, except for those corporations specified in paragraph (b) of this
section.
(b) The prohibitions contained in
paragraph (a) shall not apply to any corporation that is primarily engaged in
supplying goods or services intended to relieve human suffering, a corporation
that promotes public health, education, journalistic, religious, or welfare
activities, or a
(c) The state treasurer shall make every reasonable effort to sell, redeem,
divest or withdraw any investment currently held in violation of the provisions
of paragraph (a) of this section within one year from the passage of this act.
(d) The state treasurer shall annually issue a report, not later than January
30 each year, listing all corporations which the Commonwealth has divested
funds from, under the provisions of paragraph (c) of this section, during the
previous calendar year. The state
treasurer shall also list any and all corporations known to the treasurer which
directly, or through a subsidiary, engage in business with, or with any
instrumentality of, any country designated by the United States Department of
State as a state sponsor of terrorism under the provisions of 22 U.S.C. 2371,
22 U.S.C 278, or 50 U.S.C. app. 2405(j) or any other applicable federal
law. The treasurer may utilize all
information available to make such determinations.
SECTION 2. Notwithstanding any special or general law to
the contrary, no contributory retirement system operating under the terms of
section 1 to 28, inclusive, of chapter 32, including those operating under the
terms of section 19 of chapter 34B, shall permit the investment of any funds in
the stock, securities or other obligations in any corporation listed by the
state treasurer under the provisions of paragraph (c) of section 1 of this
act. Moreover, within one year of a
corporation being listed on said report any aforementioned contributory
retirement system shall make every reasonable effort to sell, redeem, divest or
withdraw any investment currently held in such a corporation.
SECTION 3. The State Treasurer may continue any existing
or and make new investments in any corporation prohibited from investment under
the provisions of section 1 of this act; if, by a majority vote of investment
advisory council, said council moves to exempt any such designated
country. Such exemption must be made
prior to April 1 in any given year and shall be applicable until March 31 of the
following year.
SECTION 4. 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.
