S T A T E O F N E W Y O R K
________________________________________________________________________
8271
2021-2022 Regular Sessions
I N A S S E M B L Y
August 25, 2021
___________
Introduced by M. of A. WEPRIN -- read once and referred to the Committee
on Governmental Employees
AN ACT to amend the retirement and social security law and the state
finance law, in relation to limitations on investments of public
pension funds and state contracts
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 423 of the retirement and social security law, as
amended by chapter 770 of the laws of 1970, is amended to read as
follows:
§ 423. Investments. [a.] 1. On and after April first, nineteen
hundred sixty-seven, the comptroller shall invest the available monies
of the common retirement fund in any investments and securities author-
ized by law for each retirement system and shall hold such investments
in his OR HER name as trustee of such fund, notwithstanding any other
provision of this chapter. Participating interests in such investments
shall be credited to each retirement system in the manner and at the
time specified in [paragraph] SUBDIVISION two of section four hundred
twenty-two of this article.
[b.] 2. (A) To assist in the management of the monies of the common
retirement fund, the comptroller shall appoint an investment advisory
committee consisting of not less than seven members who shall serve for
his OR HER term of office. A vacancy occurring from any cause other than
expiration of term shall be filled by the comptroller for the remainder
of the term. Each member of the committee shall be experienced in the
field of investments and shall have served, or shall be serving, as a
senior officer or member of the board of an insurance company, banking
corporation or other financial or investment organization authorized to
do business in the state of New York. The committee shall advise the
comptroller on investment policies relating to the monies of the common
retirement fund and shall review, from time to time, the investment
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11965-01-1
A. 8271 2
portfolio of the fund and make such recommendations as may be deemed
necessary.
(B) The comptroller shall appoint a separate mortgage advisory commit-
tee, with the advice and consent of the investment advisory committee,
to review proposed mortgage and real estate investments by the common
retirement fund. In making investments, as authorized by law, the comp-
troller shall be guided by policies established by each committee from
time to time; and, in the event the mortgage advisory committee disap-
proves a proposed mortgage or real estate investment, such shall not be
made.
(C) No officer or employee of any state department or agency shall be
eligible for membership on either committee. Each committee shall
convene periodically on call of the comptroller, or on call of the
chairman. The members of each committee shall be entitled to reimburse-
ment for their actual and necessary expenses but shall receive no
compensation for their services.
3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMP-
TROLLER SHALL NOT DIRECTLY INVEST THE AVAILABLE MONIES OF THE COMMON
RETIREMENT FUND IN ANY STOCKS, SECURITIES, EQUITIES, ASSETS OR OTHER
OBLIGATIONS OF ANY CORPORATION OR COMPANY, OR ANY SUBSIDIARY, AFFILIATE
OR PARENT OF ANY CORPORATION OR COMPANY, ENGAGED IN THE BOYCOTT OF ISRA-
EL, INCLUDING IRAN-RESTRICTED COMPANIES AND SUDAN-RESTRICTED COMPANIES.
THE COMPTROLLER SHALL, IN ACCORDANCE WITH SOUND INVESTMENT CRITERIA AND
CONSISTENT WITH HIS OR HER FIDUCIARY OBLIGATIONS, DIVEST ANY SUCH
STOCKS, SECURITIES, EQUITIES, ASSETS OR OTHER OBLIGATIONS IN ACCORDANCE
WITH SECTION FOUR HUNDRED TWENTY-THREE-D OF THIS ARTICLE.
§ 2. The retirement and social security law is amended by adding a new
section 423-d to read as follows:
§ 423-D. PROHIBITED TRANSACTIONS; COMPANIES THAT BOYCOTT ISRAEL, IRAN-
RESTRICTED COMPANIES AND SUDAN-RESTRICTED COMPANIES. 1. DEFINITIONS.
FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
A. "BOYCOTT ISRAEL" SHALL MEAN ENGAGING IN ACTIONS THAT ARE POLI-
TICALLY MOTIVATED AND ARE INTENDED TO PENALIZE, INFLICT ECONOMIC HARM
ON, OR OTHERWISE LIMIT COMMERCIAL RELATIONS WITH THE STATE OF ISRAEL OR
CORPORATIONS OR COMPANIES BASED IN THE STATE OF ISRAEL;
B. "DIRECT INVESTMENT" SHALL MEAN OWNERSHIP OF AN INDIVIDUAL STOCK,
SECURITY, EQUITY, ASSET, OR OTHER OBLIGATION OF A CORPORATION OR COMPA-
NY;
C. "EXCLUSION LIST" SHALL MEAN THE LIST CREATED PURSUANT TO PARAGRAPH
A OF SUBDIVISION TWO OF THIS SECTION;
D. "INDIRECT INVESTMENT" SHALL MEAN ALL SECURITIES OF A CORPORATION OR
COMPANY WHICH ARE HELD IN AN ACCOUNT OR FUND MANAGED BY ONE OR MORE
PERSONS NOT EMPLOYED BY THE EMPLOYEES' RETIREMENT SYSTEM, IN WHICH SUCH
RETIREMENT SYSTEM OWNS SHARES OR INTERESTS TOGETHER WITH OTHER INVESTORS
NOT SUBJECT TO THE PROVISIONS OF THIS SECTION;
E. "IRAN-RESTRICTED COMPANY" SHALL MEAN A CORPORATION OR COMPANY: (I)
ENGAGED IN BUSINESS OPERATIONS INVOLVING CONTRACTS WITH, OR THE
PROVISION OF SUPPLIES OR SERVICES TO, THE GOVERNMENT OF IRAN; (II) IN
WHICH THE GOVERNMENT OF IRAN HAS ANY DIRECT OR INDIRECT EQUITY SHARE; OR
(III) INVOLVED IN A PROJECT OR CONSORTIUM COMMISSIONED BY THE GOVERNMENT
OF IRAN; AND:
(1) MORE THAN TEN PERCENT OF REVENUE PRODUCED IN OR ASSETS LOCATED IN
IRAN INVOLVE OIL-RELATED ACTIVITIES OR MINERAL-EXTRACTION ACTIVITIES;
(2) LESS THAN SEVENTY-FIVE PERCENT OF REVENUE PRODUCED IN OR ASSETS
LOCATED IN IRAN INVOLVE CONTRACTS WITH, OR PROVISIONS OF OIL-RELATED OR
A. 8271 3
MINERAL-EXTRACTION PRODUCTS OR SERVICES TO, THE GOVERNMENT OF IRAN, OR A
PROJECT OR CONSORTIUM CREATED EXCLUSIVELY BY SUCH GOVERNMENT; AND
(3) SUCH COMPANY, PROJECT OR CONSORTIUM INVESTS TWENTY MILLION DOLLARS
OR MORE IN ANY ONE YEAR PERIOD, THAT DIRECTLY OR SIGNIFICANTLY CONTRIB-
UTES TO THE ENHANCEMENT OF IRAN'S ABILITY TO DEVELOP PETROLEUM
RESOURCES.
F. "SUDAN-RESTRICTED COMPANY" SHALL MEAN A CORPORATION OR COMPANY: (I)
ENGAGED IN BUSINESS OPERATIONS INVOLVING CONTRACTS WITH, OR THE
PROVISION OF SUPPLIES OR SERVICES TO, THE GOVERNMENT OF SUDAN; (II) IN
WHICH THE GOVERNMENT OF SUDAN HAS ANY DIRECT OR INDIRECT EQUITY SHARE;
(III) INVOLVED IN A PROJECT OR CONSORTIUM COMMISSIONED BY THE GOVERNMENT
OF SUDAN; (IV) WHOLLY OR PARTIALLY MANAGED OR CONTROLLED BY THE GOVERN-
MENT OF SUDAN; (V) IDENTIFIED BY THE FEDERAL OFFICE OF FOREIGN ASSETS
CONTROL AS SPONSORING TERRORIST ACTIVITIES IN SUDAN; AND (VI) THAT IS
ESTABLISHED OR ORGANIZED UNDER THE LAWS OF SUDAN OR WHOSE PRINCIPAL
PLACE OF BUSINESS IS IN SUDAN.
2. EXCLUSION LIST. A. WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS
SECTION, THE COMPTROLLER SHALL CREATE AN EXCLUSION LIST OF ALL IRAN-RES-
TRICTED COMPANIES, SUDAN-RESTRICTED COMPANIES AND COMPANIES THAT BOYCOTT
ISRAEL IN WHICH STOCKS, SECURITIES, EQUITIES, ASSETS OR OTHER OBLI-
GATIONS THE COMMON RETIREMENT FUND HAS ANY MONEYS OR ASSETS DIRECTLY
INVESTED.
B. UPON COMPLETION, SUCH EXCLUSION LIST SHALL BE MADE PUBLICLY AVAIL-
ABLE AND A COPY SHALL BE SENT TO THE GOVERNOR, THE TEMPORARY PRESIDENT
OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY.
C. THE COMPTROLLER SHALL SUBMIT NOTIFICATION TO ANY CORPORATION OR
COMPANY THAT HAS BEEN INCLUDED IN THE EXCLUSION LIST, INFORMING THEM OF
THEIR INCLUSION, AS WELL AS THE REQUIREMENTS OF SUBDIVISIONS THREE AND
FIVE OF THIS SECTION.
D. NO LATER THAN ONE YEAR AFTER THE COMPLETION OF THE EXCLUSION LIST,
AND NO LESS FREQUENTLY THAN QUARTERLY THEREAFTER, THE COMPTROLLER SHALL
UPDATE THE EXCLUSION LIST TO REMOVE ANY CORPORATION OR COMPANY THAT IS
NO LONGER AN IRAN-RESTRICTED COMPANY, SUDAN-RESTRICTED COMPANY OR A
COMPANY THAT BOYCOTTS ISRAEL AND SHALL ADD ANY CORPORATION OR COMPANY
NECESSARY TO COMPLY WITH PARAGRAPH A OF THIS SUBDIVISION, WITH THE
EXCEPTION OF SUCH CORPORATIONS OR COMPANIES REMOVED FROM THE EXCLUSION
LIST PURSUANT TO PARAGRAPH B OF SUBDIVISION FOUR OF THIS SECTION.
3. REMOVAL FROM THE EXCLUSION LIST. A. AT ANY TIME FOLLOWING THE
PUBLICATION OF THE EXCLUSION LIST, ANY CORPORATION OR COMPANY INCLUDED
IN SUCH EXCLUSION LIST MAY SUBMIT TO THE COMPTROLLER A REQUEST FOR
REMOVAL ON THE BASIS OF CLEAR AND CONVINCING EVIDENCE THAT THEY ARE NOT
CURRENTLY AN IRAN-RESTRICTED COMPANY, SUDAN-RESTRICTED COMPANY OR A
COMPANY THAT BOYCOTTS ISRAEL, AS SUCH TERMS ARE DEFINED IN SUBDIVISION
ONE OF THIS SECTION.
B. UPON SATISFACTION THAT A CORPORATION OR COMPANY HAS MET THE
REQUIREMENTS OF PARAGRAPH A OF THIS SUBDIVISION, THE COMPTROLLER SHALL
REMOVE SUCH CORPORATION OR COMPANY FROM THE EXCLUSION LIST AND SHALL
PROVIDE A WRITTEN EXPLANATION FOR SUCH REMOVAL TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY.
4. DETERMINATION OF DIVESTMENT. A. WITHIN ONE YEAR FROM THE COMPLETION
OF THE EXCLUSION LIST THE COMPTROLLER SHALL, IN ACCORDANCE WITH SOUND
INVESTMENT CRITERIA AND CONSISTENT WITH HIS OR HER FIDUCIARY OBLI-
GATIONS, DETERMINE WHETHER DIVESTMENT FROM ANY CORPORATION OR COMPANY ON
THE EXCLUSION LIST PURSUANT TO SUBDIVISION FIVE OF THIS SECTION COMPLIES
WITH HIS OR HER FIDUCIARY OBLIGATIONS.
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B. IF THE COMPTROLLER DETERMINES THAT DIVESTMENT FROM ANY CORPORATION
OR COMPANY ON THE EXCLUSION LIST DOES NOT COMPLY WITH HIS OR HER FIDUCI-
ARY OBLIGATIONS, THAT CORPORATION OR COMPANY SHALL BE REMOVED FROM THE
EXCLUSION LIST.
C. SUBJECT TO THE COMPTROLLER'S DISCRETION, BUT NO LATER THAN THREE
YEARS FROM THE EFFECTIVE DATE OF THIS SECTION, AND EVERY THREE YEARS
THEREAFTER, ANY CORPORATIONS OR COMPANIES REMOVED FROM THE EXCLUSION
LIST PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION SHALL BE RETURNED TO
THE EXCLUSION LIST, SUBJECT TO A NEW DETERMINATION ISSUED AT THAT TIME
PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION.
5. DIVESTMENT. WITHIN ONE YEAR AFTER THE EFFECTIVE DATE OF THIS
SECTION, IN ACCORDANCE WITH SOUND INVESTMENT CRITERIA AND CONSISTENT
WITH HIS OR HER FIDUCIARY OBLIGATIONS, THE COMPTROLLER SHALL: A. DIVEST
THE COMMON RETIREMENT FUND OF ANY STOCKS, SECURITIES, EQUITIES, ASSETS,
OR OTHER OBLIGATIONS OF CORPORATIONS OR COMPANIES ON THE EXCLUSION LIST
IN WHICH ANY MONEYS OR ASSETS OF THE COMMON RETIREMENT FUND ARE DIRECTLY
INVESTED;
B. CEASE NEW DIRECT INVESTMENTS OF ANY MONEYS OR ASSETS OF THE COMMON
RETIREMENT FUND IN ANY STOCKS, SECURITIES, OR OTHER OBLIGATIONS OF ANY
CORPORATION OR COMPANY THAT IS AN IRAN-RESTRICTED COMPANY, SUDAN-RES-
TRICTED COMPANY OR A COMPANY THAT BOYCOTTS ISRAEL; AND
C. ENSURE THAT NO MONEYS OR ASSETS OF THE COMMON RETIREMENT FUND ARE
INDIRECTLY INVESTED UNLESS HE OR SHE IS SATISFIED ON REASONABLE GROUNDS
THAT SUCH INDIRECT INVESTMENT VEHICLE IS UNLIKELY TO HAVE IN EXCESS OF
ONE-HALF OF ONE PERCENT OF ITS ASSETS, AVERAGED ANNUALLY, DIRECTLY OR
INDIRECTLY INVESTED IN AN IRAN-RESTRICTED COMPANY, SUDAN-RESTRICTED
COMPANY OR A COMPANY THAT BOYCOTTS ISRAEL.
§ 3. The state finance law is amended by adding a new section 139-m to
read as follows:
§ 139-M. DISQUALIFICATION TO CONTRACT WITH STATE; COMPANIES THAT
BOYCOTT ISRAEL, IRAN-RESTRICTED COMPANIES AND SUDAN-RESTRICTED COMPA-
NIES. 1. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
A. "BOYCOTT ISRAEL" SHALL MEAN ENGAGING IN ACTIONS THAT ARE POLI-
TICALLY MOTIVATED AND ARE INTENDED TO PENALIZE, INFLICT ECONOMIC HARM
ON, OR OTHERWISE LIMIT COMMERCIAL RELATIONS WITH THE STATE OF ISRAEL OR
CORPORATIONS OR COMPANIES BASED IN THE STATE OF ISRAEL;
B. "IRAN-RESTRICTED COMPANY" SHALL MEAN A CORPORATION OR COMPANY: (I)
ENGAGED IN BUSINESS OPERATIONS INVOLVING CONTRACTS WITH, OR THE
PROVISION OF SUPPLIES OR SERVICES TO, THE GOVERNMENT OF IRAN; (II) IN
WHICH THE GOVERNMENT OF IRAN HAS ANY DIRECT OR INDIRECT EQUITY SHARE; OR
(III) INVOLVED IN A PROJECT OR CONSORTIUM COMMISSIONED BY THE GOVERNMENT
OF IRAN; AND:
(1) MORE THAN TEN PERCENT OF REVENUE PRODUCED IN OR ASSETS LOCATED IN
IRAN INVOLVE OIL-RELATED ACTIVITIES OR MINERAL-EXTRACTION ACTIVITIES;
(2) LESS THAN SEVENTY-FIVE PERCENT OF REVENUE PRODUCED IN OR ASSETS
LOCATED IN IRAN INVOLVE CONTRACTS WITH, OR PROVISIONS OF OIL-RELATED OR
MINERAL-EXTRACTION PRODUCTS OR SERVICES TO, THE GOVERNMENT OF IRAN, OR A
PROJECT OR CONSORTIUM CREATED EXCLUSIVELY BY SUCH GOVERNMENT; AND
(3) SUCH COMPANY, PROJECT OR CONSORTIUM INVESTS TWENTY MILLION DOLLARS
OR MORE IN ANY ONE YEAR PERIOD, THAT DIRECTLY OR SIGNIFICANTLY CONTRIB-
UTES TO THE ENHANCEMENT OF IRAN'S ABILITY TO DEVELOP PETROLEUM
RESOURCES.
C. "SUDAN-RESTRICTED COMPANY" SHALL MEAN A CORPORATION OR COMPANY: (I)
ENGAGED IN BUSINESS OPERATIONS INVOLVING CONTRACTS WITH, OR THE
PROVISION OF SUPPLIES OR SERVICES TO, THE GOVERNMENT OF SUDAN; (II) IN
A. 8271 5
WHICH THE GOVERNMENT OF SUDAN HAS ANY DIRECT OR INDIRECT EQUITY SHARE;
(III) INVOLVED IN A PROJECT OR CONSORTIUM COMMISSIONED BY THE GOVERNMENT
OF SUDAN; (IV) WHOLLY OR PARTIALLY MANAGED OR CONTROLLED BY THE GOVERN-
MENT OF SUDAN; (V) IDENTIFIED BY THE FEDERAL OFFICE OF FOREIGN ASSETS
CONTROL AS SPONSORING TERRORIST ACTIVITIES IN SUDAN; AND (VI) THAT IS
ESTABLISHED OR ORGANIZED UNDER THE LAWS OF SUDAN OR WHOSE PRINCIPAL
PLACE OF BUSINESS IS IN SUDAN.
2. ANY FIRM, PARTNERSHIP OR CORPORATION THAT BOYCOTTS ISRAEL, IS AN
IRAN-RESTRICTED COMPANY OR IS A SUDAN-RESTRICTED COMPANY, SHALL BE
DISQUALIFIED FROM THEREAFTER SELLING TO OR SUBMITTING BIDS TO OR RECEIV-
ING AWARDS FROM OR ENTERING INTO ANY CONTRACTS WITH THE STATE OR ANY
PUBLIC DEPARTMENT, AGENCY OR OFFICIAL THEREOF, FOR GOODS, WORK OR
SERVICES.
3. WHEN ANY FIRM, PARTNERSHIP OR CORPORATION SUBMITS A BID TO ENTER
INTO ANY CONTRACT WITH THE STATE OR ANY PUBLIC DEPARTMENT, AGENCY OR
OFFICIAL THEREOF, FOR GOODS, WORK OR SERVICES, THE COMMISSIONER OF TAXA-
TION AND FINANCE SHALL, BEFORE ACCEPTING ANY BID FROM SUCH FIRM, PART-
NERSHIP OR CORPORATION, CONFIRM THAT SUCH FIRM, PARTNERSHIP OR CORPO-
RATION IS NOT A COMPANY THAT BOYCOTTS ISRAEL, AN IRAN-RESTRICTED COMPANY
OR A SUDAN-RESTRICTED COMPANY. IF THE COMMISSIONER OF TAXATION AND
FINANCE DETERMINES THAT SUCH FIRM, PARTNERSHIP OR CORPORATION IS A
COMPANY THAT BOYCOTTS ISRAEL, AN IRAN-RESTRICTED COMPANY OR A SUDAN-RES-
TRICTED COMPANY, THEN SUCH COMPANY SHALL BE PROHIBITED FROM ENTERING
INTO A CONTRACT WITH THE STATE PURSUANT TO SUBDIVISION ONE OF THIS
SECTION.
§ 4. This act shall take effect immediately.