S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4827
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 23, 2023
                                ___________
 
 Introduced  by M. of A. PALMESANO, ANGELINO, BLANKENBUSH, BYRNES, DeSTE-
   FANO, GALLAHAN, J. M. GIGLIO, JENSEN, McDONOUGH, TAGUE  --  read  once
   and referred to the Committee on Governmental Employees
 
 AN  ACT  to amend the retirement and social security law, in relation to
   enacting the "cobalt and lithium mining and production divestment act"

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "cobalt and lithium mining and production divestment act".
   § 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  INVOLVED  IN
 COBALT  AND  LITHIUM  MINING AND PRODUCTION. 1. FOR THE PURPOSES OF THIS
 SECTION, "COBALT AND LITHIUM MINING AND PRODUCTION" SHALL MEAN  EXPLORA-
 TION, EXTRACTION, DRILLING, PRODUCTION, REFINING, PROCESSING OR DISTRIB-
 UTION  ACTIVITIES  RELATED TO COBALT AND LITHIUM, FOR THE MANUFACTURE OF
 BATTERIES USED IN LARGE-SCALE BATTERY STORAGE  POWER  STATIONS  AND  THE
 PRIMARY  PROPULSION  SYSTEMS  FOR  ELECTRIC VEHICLES, INCLUDING, BUT NOT
 LIMITED TO, CARS, TRUCKS AND BOATS.
   2. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO  THE  CONTRARY,  ON  OR
 AFTER  THE  EFFECTIVE  DATE  OF THIS SECTION, NO MONIES OR ASSETS OF THE
 COMMON RETIREMENT FUND SHALL BE INVESTED IN THE  STOCKS,  SECURITIES  OR
 OTHER  OBLIGATIONS  OF ANY INSTITUTION OR COMPANY ENGAGING IN COBALT AND
 LITHIUM MINING OR PRODUCTION FOR THE MANUFACTURE OF  BATTERIES  USED  IN
 LARGE-SCALE  BATTERY  STORAGE  POWER STATIONS AND THE PRIMARY PROPULSION
 SYSTEMS FOR ELECTRIC VEHICLES, IF SUCH COMPANY CANNOT ESTABLISH  THROUGH
 APPROVED INDEPENDENT MONITORING THAT THEIR MINING OPERATION DOES NOT USE
 CHILD  LABOR  AND THAT ADULT MINERS AND OTHER WORKERS ARE EMPLOYED UNDER
 CONDITIONS THAT MEET ACCEPTED  CRITERIA  UNDER  INTERNATIONAL  STANDARDS
 SUCH AS THE CONVENTIONS OF THE INTERNATIONAL LABOR ORGANIZATION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08493-01-3
 A. 4827                             2
              

 
   (B) NOTWITHSTANDING ANY PROVISION 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
 ASSOCIATED  WITH,  THE MINING OR PRODUCTION OF COBALT OR LITHIUM, AND NO
 SUCH ASSETS SHALL BE INVESTED IN THE STOCKS, SECURITIES OR  OTHER  OBLI-
 GATIONS OF ANY COMPANY WHICH DIRECTLY OR THROUGH A SUBSIDIARY IS ENGAGED
 IN  BUSINESS IN OR WITH COBALT OR LITHIUM MINING AND PRODUCTION, IF SUCH
 BANK OR FINANCIAL INSTITUTION CANNOT ESTABLISH  THROUGH  APPROVED  INDE-
 PENDENT  MONITORING THAT THEIR MINING OPERATION DOES NOT USE CHILD LABOR
 AND THAT ADULT MINERS AND OTHER WORKERS ARE  EMPLOYED  UNDER  CONDITIONS
 THAT  MEET  ACCEPTED  CRITERIA UNDER INTERNATIONAL STANDARDS SUCH AS THE
 CONVENTIONS OF THE INTERNATIONAL LABOR ORGANIZATION.
   3. (A) WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF  THIS  SECTION,  THE
 COMPTROLLER  SHALL CREATE AN EXCLUSION LIST CONSISTING OF ALL COBALT AND
 LITHIUM PRODUCERS IN WHICH STOCKS, SECURITIES, EQUITIES, ASSETS OR OTHER
 OBLIGATIONS THE COMMON RETIREMENT FUND HAS ANY MONIES OR ASSETS DIRECTLY
 INVESTED.
   (B) UPON COMPLETION, SUCH EXCLUSION LIST SHALL BE MADE PUBLICLY AVAIL-
 ABLE AND A COPY SHALL BE SENT TO THE TEMPORARY PRESIDENT OF  THE  SENATE
 AND THE SPEAKER OF THE ASSEMBLY.
   (C)  WITHIN SIXTY DAYS AFTER THE COMPLETION OF THE EXCLUSION LIST, 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  COMP-
 TROLLER  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.
   (D)  THE COMPTROLLER SHALL, IN ACCORDANCE WITH SOUND INVESTMENT CRITE-
 RIA AND CONSISTENT WITH HIS OR HER FIDUCIARY OBLIGATIONS, TAKE APPROPRI-
 ATE ACTION TO SELL, REDEEM, DIVEST OR WITHDRAW ANY  INVESTMENT  HELD  IN
 VIOLATION  OF  THE  PROVISIONS  OF  THIS SECTION. SUCH SALE, REDEMPTION,
 DIVESTMENT OR WITHDRAWAL SHALL BE COMPLETED NOT LATER THAN  THREE  YEARS
 AFTER THE EFFECTIVE DATE OF THIS SECTION.
   (E)  THIS  SECTION  SHALL NOT BE CONSTRUED TO REQUIRE THE PREMATURE OR
 OTHERWISE IMPRUDENT SALE, REDEMPTION, DIVESTMENT  OR  WITHDRAWAL  OF  AN
 INVESTMENT.
   § 3. This act shall take effect immediately.