S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9015
 
                           I N  A S S E M B L Y
 
                             January 12, 2018
                                ___________
 
 Introduced  by  M.  of  A.  O'DONNELL  --  read once and referred to the
   Committee on Governmental Employees
 
 AN ACT to amend the retirement and social security law, in  relation  to
   prohibiting the investment of common retirement funds in private pris-
   ons
 
   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:
   § 423-D. INVESTMENTS IN PRIVATE PRISONS. 1. NO MONIES  OF  THE  COMMON
 RETIREMENT  FUND  SHALL  BE INVESTED IN THE STOCKS, SECURITIES, OR OTHER
 OBLIGATIONS OF ANY INSTITUTION, COMPANY,  OR  SUBSIDIARY  THAT  OWNS  OR
 INVESTS  IN  A  FOR-PROFIT  INSTITUTION  THAT  OWNS  OR CONTRACTS WITH A
 GOVERNMENT TO MANAGE OR RUN A PRISON.
   2. NOTWITHSTANDING ANY OTHER PROVISION OF  LAW  TO  THE  CONTRARY,  NO
 LATER  THAN ONE YEAR AFTER THE EFFECTIVE DATE OF THIS ACT, ANY MONEYS OR
 ASSETS OF THE COMMON RETIREMENT FUND WHICH SHALL REMAIN OR  BE  INVESTED
 IN  THE  STOCKS,  SECURITIES,  OR  OTHER OBLIGATIONS OF ANY INSTITUTION,
 COMPANY, OR SUBSIDIARY OF A COMPANY THAT OWNS OR INVESTS IN A FOR-PROFIT
 INSTITUTION THAT OWNS OR CONTRACTS WITH A GOVERNMENT TO MANAGE OR RUN  A
 PRISON SHALL BE WITHDRAWN.
   3. THE COMPTROLLER SHALL, IN ACCORDANCE WITH SOUND INVESTMENT CRITERIA
 AND  CONSISTENT  WITH  HIS OR HER FIDUCIARY OBLIGATIONS, DIVEST ANY SUCH
 STOCKS, SECURITIES, OR OTHER OBLIGATIONS WHETHER THEY ARE OWNED DIRECTLY
 OR HELD THROUGH SEPARATE ACCOUNTS OR ANY  COMMINGLED  FUNDS.  THE  COMP-
 TROLLER  SHALL  STRIVE  TO  MAXIMIZE  THE  POTENTIAL VALUE OF ALL ASSETS
 LIQUIDATED UNDER THIS SECTION IN DETERMINING WHAT POINT TO CONDUCT  SALE
 OR  LIQUIDATION,  AND MAY EFFECTUATE SALE OF ASSETS PURSUANT TO SUBDIVI-
 SION TWO OF THIS SECTION AT ANY POINT WITHIN ONE YEAR AFTER  THE  EFFEC-
 TIVE  DATE  OF  THIS ACT ON THE BASIS OF POTENTIAL LOSS FROM THE SALE OF
 THE RELEVANT ASSETS COMPARED TO THE VALUE OF THE ASSETS AT THE  TIME  OF
 PURCHASE. PROVIDED, HOWEVER, THAT IF THE VALUE OF THE ASSETS ARE GREATER
 ON  THE  EFFECTIVE  DATE  OF  THIS ACT THAN ON THE DATE OF PURCHASE, THE
 COMPTROLLER SHALL BEGIN SALE OR LIQUIDATION OF SUCH ASSETS IMMEDIATELY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14057-01-7

 A. 9015                             2
 
   4. ON OR BEFORE SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS  ACT,  THE
 COMPTROLLER  SHALL  ISSUE A REPORT TO THE GOVERNOR, THE TEMPORARY PRESI-
 DENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY AND SHALL MAKE  SUCH
 REPORT PUBLICLY AVAILABLE ON ALL ACTIONS TAKEN PURSUANT TO THIS SECTION,
 INCLUDING  INVESTMENT  ACTIONS  TAKEN  AND, IF INVESTMENT ACTION HAS NOT
 BEEN TAKEN PURSUANT TO SUBDIVISION THREE OF THIS  SECTION,  THE  REASONS
 FOR  THE  COMPTROLLER'S INACTION AND PLANS FOR FULL COMPLIANCE WITH THIS
 SECTION.
   § 2. This act shall take effect immediately.