S T A T E O F N E W Y O R K
________________________________________________________________________
2513
2011-2012 Regular Sessions
I N A S S E M B L Y
January 19, 2011
___________
Introduced by M. of A. FITZPATRICK, WEISENBERG, CASTELLI -- read once
and referred to the Committee on Governmental Employees
AN ACT to amend the retirement and social security law, in relation to
the investment of public pension funds in companies doing business in
Iran and providing for the repeal of such provisions upon expiration
thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings. The legislature finds that: 1. the
United Nations Security Council voted unanimously for an additional
embargo on Iranian arms exports, and calls for nations and institutions
to bar new grants or loans to Iran except for humanitarian and develop-
mental purposes;
2. publicly traded companies in the United States are substantially
restricted from doing business in or with foreign states such as Iran
that the United States Department of State has identified as sponsoring
terrorism;
3. all United States and foreign entities that have invested more than
$20 million in Iran's energy sector since August 5, 1996, are subject to
sanctions under United States law pursuant to the Iran and Libya Sanc-
tions Act of 1996;
4. the United States renewed the Iran and Libya Sanctions Act of 1996
in 2001 and 2006;
5. foreign entities have invested in Iran's petroleum-energy sector
despite United States and United Nations sanctions against Iran;
6. public retirement systems in the state currently invest on the
behalf of the citizens of New York in publicly traded foreign companies
that may be at risk due to business ties with foreign states such as
Iran that sponsor terrorism and are involved in the proliferation of
weapons of mass destruction;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02716-01-1
A. 2513 2
7. excluding companies with business activities in foreign states such
as Iran that sponsor terrorism and divesting from public portfolios will
help protect the public retirement systems in this state from investment
losses related to these business activities and may improve the invest-
ment performance of the public retirement systems; and
8. it is unconscionable for this state to invest in foreign companies
with business activities benefiting foreign states such as Iran that
commit egregious violations of human rights and sponsor terrorism.
S 2. The retirement and social security law is amended by adding a new
section 423-d to read as follows:
S 423-D. INVESTMENT OF CERTAIN PUBLIC FUNDS IN COMPANIES DOING BUSI-
NESS IN IRAN. 1. ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION, NO
MONEYS OR ASSETS OF THE COMMON RETIREMENT FUND SHALL BE INVESTED IN THE
STOCKS, SECURITIES OR OTHER OBLIGATIONS OF ANY INSTITUTION OR COMPANY
DOING BUSINESS IN OR WITH IRAN OR WITH AGENCIES OR INSTRUMENTALITIES
THEREOF. NOTWITHSTANDING ANY PROVISIONS OF LAW TO THE CONTRARY, NO
ASSETS OF ANY PENSION OR ANNUITY FUND UNDER THE JURISDICTION OF THE
COMPTROLLER, SHALL BE INVESTED IN ANY BANK OR FINANCIAL INSTITUTION
WHICH DIRECTLY OR THROUGH A SUBSIDIARY HAS OUTSTANDING LOANS TO OR
FINANCIAL ACTIVITIES IN IRAN OR ITS INSTRUMENTALITIES AND NO SUCH ASSETS
SHALL BE INVESTED IN THE STOCKS, SECURITIES OR OTHER OBLIGATIONS OF ANY
COMPANY WHICH DIRECTLY OR THROUGH A SUBSIDIARY IS ENGAGED IN BUSINESS IN
OR WITH IRAN OR ITS INSTRUMENTALITIES.
2. THE COMPTROLLER SHALL TAKE APPROPRIATE ACTION TO SELL, REDEEM,
DIVEST OR WITHDRAW ANY INVESTMENT HELD IN VIOLATION OF THE PROVISIONS OF
THIS SECTION. THIS SECTION SHALL NOT BE CONSTRUED TO REQUIRE THE PREMA-
TURE OR OTHERWISE IMPRUDENT SALE, REDEMPTION, DIVESTMENT OR WITHDRAWAL
OF AN INVESTMENT, BUT SUCH SALE, REDEMPTION, DIVESTMENT OR WITHDRAWAL
SHALL BE COMPLETED NOT LATER THAN THREE YEARS FOLLOWING THE EFFECTIVE
DATE OF THIS SECTION.
3. WITHIN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION, THE
COMPTROLLER SHALL FILE WITH THE LEGISLATURE A REPORT OF ALL INVESTMENTS
HELD AS OF THE EFFECTIVE DATE OF THIS SECTION WHICH ARE IN VIOLATION OF
THE PROVISIONS OF THIS SECTION. EVERY YEAR THEREAFTER, THE COMPTROLLER
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 WHICH THE COMPTROLLER HAS
MADE SINCE THE PREVIOUS REPORT AND SINCE THE EFFECTIVE DATE OF THIS
SECTION.
S 3. This act shall take effect immediately and shall expire and be
deemed repealed once both of the following have occurred:
(1) Iran has been removed from the United States Department of State's
list of countries which have been determined to have repeatedly provided
support for acts of international terrorism; and
(2) The President determines and certifies to the appropriate congres-
sional committees that Iran has ceased its efforts to design, develop,
manufacture, or acquire a nuclear explosive device or related materials
and technology.
The comptroller shall notify the legislative bill drafting commission
upon the occurrence of both of the events described in subdivisions one
and two of this section in order that the commission may maintain an
accurate and timely effective database of the official text of the laws
of the state of New York in furtherance of effecting the provisions of
section 44 of the legislative law and section 70-b of the public offi-
cers law.