Senate Bill S2477

2011-2012 Legislative Session

Relates to prohibiting investment of certain public funds in companies doing business in Sudan

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Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to civil service and pensions
Jan 21, 2011	referred to civil service and pensions

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2011-S2477 (ACTIVE) - Details

Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Add §423-d, R & SS L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S2612
2013-2014: S1266

2011-S2477 (ACTIVE) - Summary

Relates to prohibiting investment of funds of the common retirement fund in companies doing business in Sudan and requires divestiture of any such investments within three years.

2011-S2477 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S2477

TITLE OF BILL:
An act
to amend the retirement and social security law, in relation to
prohibiting investment of certain public funds in companies doing
business in Sudan

PURPOSE:
Directs the New York State Comptroller and all state governmental
entities to cease and desist from the investment of public monies in
companies, corporations or other business entities which are
conducting business or maintaining commercial ties with the
government of Sudan or its governmental subdivisions.

SUMMARY OF PROVISIONS:
Amends Retirement and Social Security Law by adding a new § 423-d, to
prohibit New York State from investing in business or commercial
entities which maintain economic ties with the Sudanese government.

EXISTING LAW:
Nothing in current law prohibits such investment.

JUSTIFICATION:
The Darfur region of western Sudan is site of the 21st century's first
great episode of genocide. In February 2003, an insurgency war

exploded out of decades of economic and political marginalization.
Khartoum's military response to the rebellion has been to attack the
livelihood of the civilian populations perceived as supporting the
insurgents, including the wholesale destruction of villages, water
sources, food and seed stocks, agricultural animals and tools, and
other precious resources. It has also meant the mass execution of men
and boys, the systematic rape of women and girls, and ultimately the
displacement of more than 2 million people. More than 250,000 have
died; hundreds of thousands face death from malnutrition and
appalling conditions in camps that have become breeding grounds for
disease.

In the face of international indifference to this situation, New York
State should join the divestment campaign targeting multinational
corporations that provide critical economic, commercial, and
financial support to Khartoum.

LEGISLATIVE HISTORY:
2009-10: S.2612 - Referred to Civil Service; Reported to Finance
2007-08: S.2924 - Referred to Civil Service and Pensions
2005-06: S.5723 - Referred to Civil Service and Pensions

FISCAL IMPLICATIONS:

This bill would require that any assets of the Common Retirement Fund
invested in any company doing business in or with Sudan or with
agencies or instrumentalities be divested not later than three years
following the date of enactment of this legislation. This bill would
decrease the number of investment choices available for investment by
the Common Retirement Fund.


Presumably this could lead to a lower rate of return on the Fund's
investments, decreasing the probability of achieving our actuarial
assumed rate of return, currently at 8%. A diminished rate of return
would cause an increase in the contributions of the State of New York
and the participating employers in the New York State and Local
Employees' Retirement System and the New York State and Local Police
and Fire Retirement System. There also would be additional
administrative costs to identify companies that are doing business in
or with Sudan.*

*Provided by the Office of the New York State Comptroller.

EFFECTIVE DATE:
Immediately upon enactment.

2011-S2477 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2477

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 21, 2011
                               ___________

Introduced by Sens. PERKINS, BRESLIN, DIAZ, DILAN, DUANE, HASSELL-THOMP-
  SON,  KRUEGER, KRUGER, MONTGOMERY, OPPENHEIMER, PARKER, SERRANO, SMITH
  -- read twice and ordered printed, and when printed to be committed to
  the Committee on Civil Service and Pensions

AN ACT to amend the retirement and social security law, in  relation  to
  prohibiting  investment  of  certain  public  funds in companies doing
  business in Sudan

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. 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 SUDAN. 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 SUDAN OR WITH AGENCIES OR INSTRUMENTALITIES
THEREOF. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NO ASSETS
OF ANY PENSION OR ANNUITY FUND  UNDER  THE  JURISDICTION  OF  THE  COMP-
TROLLER,  SHALL  BE  INVESTED IN ANY BANK OR FINANCIAL INSTITUTION WHICH
DIRECTLY OR THROUGH A SUBSIDIARY HAS OUTSTANDING LOANS TO  OR  FINANCIAL
ACTIVITIES IN SUDAN 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
SUDAN 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06893-02-1

S. 2477                             2

  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 2. This act shall take effect immediately.
  FISCAL NOTE.-- This bill would require that any assets of  the  Common
Retirement  Fund Invested in any company doing business in or with Sudan
or with agencies or instrumentalities be divested not later  than  three
years following the date of enactment of this legislation.
  If  this  bill  is enacted, it would decrease the number of investment
choices available for investment by the Common Retirement Fund.  Presum-
ably this could lead to a lower rate of return  on  the  Fund's  invest-
ments,  decreasing  the  probability  of achieving our actuarial assumed
rate of return, currently at 7.5%. A diminished  rate  of  return  would
cause  an increase in the contributions of the State of New York and the
participating employers in the  New  York  State  and  Local  Employees'
Retirement  System  and  the  New  York  State and Local Police and Fire
Retirement System. There also would be additional  administrative  costs
to identify companies that are doing business in or with Sudan.
  This  estimate,  dated  January  21,  2011,  and intended for use only
during the  2011  Legislative  Session,  is  Fiscal  Note  No.  2011-96,
prepared  by  the  Actuary  for  the New York State and Local Employees
Retirement System and the New York  State  and  Local  Police  and  Fire
Retirement System.

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Senate Bill S2477

Sponsored By

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

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co-Sponsors

2011-S2477 (ACTIVE) - Details

2011-S2477 (ACTIVE) - Summary

2011-S2477 (ACTIVE) - Sponsor Memo

2011-S2477 (ACTIVE) - Bill Text download pdf

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Sponsored By

Archive: Last Bill Status - In Senate Committee Civil Service And Pensions Committee

Actions

co-Sponsors

2011-S2477 (ACTIVE) - Details

2011-S2477 (ACTIVE) - Summary

2011-S2477 (ACTIVE) - Sponsor Memo

2011-S2477 (ACTIVE) - Bill Text download pdf

Comments