SENATE DOCKET, NO. 1092 FILED ON: 1/13/2009
SENATE . . . . . . . . . . . . . . No. 1089
The Commonwealth of Massachusetts
_______________
PRESENTED BY:
Brian A. Joyce
_______________
To the Honorable Senate and House of Representatives
of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the passage of the accompanying bill:
An Act relative to the divestment of state assets from nations that sponsor terr
orism.
_______________
PETITION OF:
|
Name:
|
District/Address:
|
|
Brian A. Joyce
|
Norfolk, Bristol and Plymouth
|
|
Bruce E. Tarr
|
First Essex and Middlesex
|
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE SENATE, NO. S02383 OF 2007-2008.]
The Commonwealth of
Massachusetts
_______________
In the Year Two Thousand and Nine
_______________
An Act relative to the divestment of state assets from nations that sponsor terrorism.
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 Genera
l Laws
is hereby amended by inserting after section 5C the following new section:-
“Section 5D. (a) The state treasurer shall not knowingly permit, whenever fea
sible, 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, o
r 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 t
hose 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 tha
t promotes
public health, education, journalistic, religious, or welfare activities, or a United States corporation authorized by the federal government to have businesses operations within the designated countries.
(c) The state treasurer shall make eve
ry 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, no
t 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 corporati
ons 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. 2
371, 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 reti
rement 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 corp
oration 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 effo
rt to sell, redeem, divest or withdraw any investment currently held in such a corporation.
SECTION 3.
The state t
reasurer 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.
S
ECTION 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 benefic
iaries of a retirement system.
