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.