S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4277
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2023
                                ___________
 
 Introduced by M. of A. FITZPATRICK, DiPIETRO -- Multi-Sponsored by -- M.
   of A.  MANKTELOW -- read once and referred to the Committee on Govern-
   mental 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.
                                                            LBD08398-01-3
              

 A. 4277                             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.
   § 2. The retirement and social security law is amended by adding a new
 section 423-d to read as follows:
   §  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.
   §  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.