S T A T E O F N E W Y O R K
________________________________________________________________________
10404
I N A S S E M B L Y
April 19, 2018
___________
Introduced by M. of A. ORTIZ -- 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 "firearms and tobacco divestment act"
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. This act shall be known and may be cited as the "firearms
and tobacco divestment act".
§ 2. 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 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 speci-
fied 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 term of office. A vacancy occurring from any cause other than expi-
ration 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 corpo-
ration or other financial or investment organization authorized to do
business in the state of New York. The committee shall advise the comp-
troller on investment policies relating to the monies of the common
retirement fund and shall review, from time to time, the investment
portfolio of the fund and make such recommendations as may be deemed
necessary.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15421-01-8
A. 10404 2
(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. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMP-
TROLLER SHALL NOT HAVE THE POWER TO INVEST THE AVAILABLE MONIES OF THE
COMMON RETIREMENT FUND IN ANY STOCKS, DEBT OR OTHER SECURITIES OF ANY
CORPORATION OR COMPANY, OR ANY SUBSIDIARY, AFFILIATE OR PARENT OF ANY
CORPORATION OR COMPANY, ENGAGED IN THE MANUFACTURE OF FIREARMS, AS
DEFINED IN SECTION 265.00 OF THE PENAL LAW. THE COMPTROLLER SHALL, IN
ACCORDANCE WITH SOUND INVESTMENT CRITERIA AND CONSISTENT WITH HIS OR HER
FIDUCIARY OBLIGATIONS, DIVEST ANY SUCH STOCKS OR OTHER SECURITIES WHETH-
ER THEY ARE OWNED DIRECTLY OR HELD THROUGH SEPARATE ACCOUNTS OR ANY
COMMINGLED FUNDS. DIVESTMENT PURSUANT TO THIS SUBDIVISION MUST BE
COMPLETED WITHIN FIVE YEARS OF THE EFFECTIVE DATE OF THIS SUBDIVISION.
(B) THE COMPTROLLER SHALL BE PERMITTED TO CEASE DIVESTING FROM COMPA-
NIES UNDER PARAGRAPH (A) OF THIS SUBDIVISION, REINVEST IN COMPANIES FROM
WHICH IT DIVESTED UNDER PARAGRAPH (A) OF THIS SUBDIVISION, OR CONTINUE
TO INVEST IN COMPANIES FROM WHICH IT HAS NOT YET DIVESTED UPON CLEAR AND
CONVINCING EVIDENCE SHOWING THAT AS A DIRECT RESULT OF SUCH DIVESTMENT,
THE TOTAL AND AGGREGATE VALUE OF ALL ASSETS UNDER MANAGEMENT BY, OR ON
BEHALF OF, THE COMMON RETIREMENT FUND BECOMES OR SHALL BECOME: (I) EQUAL
TO OR LESS THAN NINETY-NINE AND ONE-HALF PERCENT; OR (II) ONE HUNDRED
PERCENT LESS FIFTY BASIS POINTS OF THE HYPOTHETICAL VALUE OF ALL ASSETS
UNDER MANAGEMENT BY, OR ON BEHALF OF, THE COMMON RETIREMENT FUND ASSUM-
ING NO DIVESTMENT FROM ANY COMPANY HAD OCCURRED UNDER SAID PARAGRAPH (A)
OF THIS SUBDIVISION. CESSATION OF DIVESTMENT, REINVESTMENT OR ANY SUBSE-
QUENT ONGOING INVESTMENT AUTHORIZED BY THIS SECTION SHALL BE STRICTLY
LIMITED TO THE MINIMUM STEPS NECESSARY TO AVOID THE CONTINGENCY SET
FORTH IN THE PRECEDING SENTENCE. FOR ANY CESSATION OF DIVESTMENT, AND IN
ADVANCE OF SUCH CESSATION, AUTHORIZED BY THIS SUBDIVISION, THE COMP-
TROLLER SHALL PROVIDE A WRITTEN REPORT TO THE ATTORNEY GENERAL, THE
SENATE STANDING COMMITTEE ON CIVIL SERVICE AND PENSIONS, AND THE ASSEM-
BLY STANDING COMMITTEE ON GOVERNMENTAL EMPLOYEES, UPDATED SEMI-ANNUALLY
THEREAFTER AS APPLICABLE, SETTING FORTH THE REASONS AND JUSTIFICATION,
SUPPORTED BY CLEAR AND CONVINCING EVIDENCE, FOR ITS DECISIONS TO CEASE
DIVESTMENT, TO REINVEST OR TO REMAIN INVESTED IN COMPANIES ENGAGED IN
THE MANUFACTURE OF FIREARMS, AS DEFINED IN SECTION 265.00 OF THE PENAL
LAW.
(C) WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS SUBDIVISION, THE
COMPTROLLER SHALL FACILITATE THE IDENTIFICATION OF COMPANIES IN COMPA-
NIES ENGAGED IN THE MANUFACTURE OF FIREARMS, AS DEFINED IN SECTION
265.00 OF THE PENAL LAW FROM WHICH THE COMMON RETIREMENT FUND IS
REQUIRED TO DIVEST UNDER PARAGRAPH (A) OF THIS SUBDIVISION, AND FILE A
COPY OF THIS LIST WITH THE ATTORNEY GENERAL, THE SENATE STANDING COMMIT-
TEE ON CIVIL SERVICE AND PENSIONS, AND THE ASSEMBLY STANDING COMMITTEE
A. 10404 3
ON GOVERNMENTAL EMPLOYEES. ANNUALLY THEREAFTER, THE PUBLIC FUND SHALL
FILE A REPORT WITH THE ATTORNEY GENERAL, THE SENATE STANDING COMMITTEE
ON CIVIL SERVICE AND PENSIONS, AND THE ASSEMBLY STANDING COMMITTEE ON
GOVERNMENTAL EMPLOYEES THAT INCLUDES: (I) ALL INVESTMENTS SOLD,
REDEEMED, DIVESTED OR WITHDRAWN IN COMPLIANCE WITH PARAGRAPH (A) OF THIS
SUBDIVISION; AND (II) ALL PROHIBITED INVESTMENTS FROM WHICH THE COMMON
RETIREMENT FUND HAS NOT YET DIVESTED UNDER PARAGRAPH (A) OF THIS SUBDI-
VISION.
4. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMP-
TROLLER SHALL NOT HAVE THE POWER TO INVEST THE AVAILABLE MONIES OF THE
COMMON RETIREMENT FUND IN ANY STOCKS, DEBT OR OTHER SECURITIES OF ANY
CORPORATION OR COMPANY, OR ANY SUBSIDIARY, AFFILIATE OR PARENT OF ANY
CORPORATION OR COMPANY, ENGAGED IN THE MANUFACTURE OF TOBACCO PRODUCTS
AS DEFINED IN SECTION THIRTEEN HUNDRED NINETY-NINE-AA OF THE PUBLIC
HEALTH LAW. THE COMPTROLLER SHALL, IN ACCORDANCE WITH SOUND INVESTMENT
CRITERIA AND CONSISTENT WITH HIS OR HER FIDUCIARY OBLIGATIONS, DIVEST
ANY SUCH STOCKS OR OTHER SECURITIES WHETHER THEY ARE OWNED DIRECTLY OR
HELP THROUGH SEPARATE ACCOUNTS OR ANY COMMINGLED FUNDS. DIVESTMENT
PURSUANT TO THIS SUBDIVISION MUST BE COMPLETED WITHIN FIVE YEARS OF THE
EFFECTIVE DATE OF THIS SUBDIVISION.
(B) THE COMPTROLLER SHALL BE PERMITTED TO CEASE DIVESTING FROM COMPA-
NIES UNDER PARAGRAPH (A) OF THIS SUBDIVISION, REINVEST IN COMPANIES FROM
WHICH IT DIVESTED UNDER PARAGRAPH (A) OF THIS SUBDIVISION, OR CONTINUE
TO INVEST IN COMPANIES FROM WHICH IT HAS NOT YET DIVESTED UPON CLEAR AND
CONVINCING EVIDENCE SHOWING THAT AS A DIRECT RESULT OF SUCH DIVESTMENT,
THE TOTAL AND AGGREGATE VALUE OF ALL ASSETS UNDER MANAGEMENT BY, OR ON
BEHALF OF, THE COMMON RETIREMENT FUND BECOMES OR SHALL BECOME: (I) EQUAL
TO OR LESS THAN NINETY-NINE AND ONE-HALF PERCENT; OR (II) ONE HUNDRED
PERCENT LESS FIFTY BASIS POINTS OF THE HYPOTHETICAL VALUE OF ALL ASSETS
UNDER MANAGEMENT BY, OR ON BEHALF OF, THE COMMON RETIREMENT FUND ASSUM-
ING NO DIVESTMENT FROM ANY COMPANY HAD OCCURRED UNDER SAID PARAGRAPH (A)
OF THIS SUBDIVISION. CESSATION OF DIVESTMENT, REINVESTMENT OR ANY SUBSE-
QUENT ONGOING INVESTMENT AUTHORIZED BY THIS SECTION SHALL BE STRICTLY
LIMITED TO THE MINIMUM STEPS NECESSARY TO AVOID THE CONTINGENCY SET
FORTH IN THE PRECEDING SENTENCE. FOR ANY CESSATION OF DIVESTMENT, AND IN
ADVANCE OF SUCH CESSATION, AUTHORIZED BY THIS SUBDIVISION, THE COMP-
TROLLER SHALL PROVIDE A WRITTEN REPORT TO THE ATTORNEY GENERAL, THE
SENATE STANDING COMMITTEE ON CIVIL SERVICE AND PENSIONS, AND THE ASSEM-
BLY STANDING COMMITTEE ON GOVERNMENTAL EMPLOYEES, UPDATED SEMI-ANNUALLY
THEREAFTER AS APPLICABLE, SETTING FORTH THE REASONS AND JUSTIFICATION,
SUPPORTED BY CLEAR AND CONVINCING EVIDENCE, FOR ITS DECISIONS TO CEASE
DIVESTMENT, TO REINVEST OR TO REMAIN INVESTED IN COMPANIES ENGAGED IN
THE MANUFACTURE OF TOBACCO PRODUCTS AS DEFINED IN SECTION THIRTEEN
HUNDRED NINETY-NINE-AA OF THE PUBLIC HEALTH LAW.
(C) WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS SUBDIVISION, THE
COMPTROLLER SHALL FACILITATE THE IDENTIFICATION OF COMPANIES IN COMPA-
NIES, ENGAGED IN THE MANUFACTURE OF TOBACCO PRODUCTS AS DEFINED IN
SECTION THIRTEEN HUNDRED NINETY-NINE-AA OF THE PUBLIC HEALTH LAW FROM
WHICH THE COMMON RETIREMENT FUND IS REQUIRED TO DIVEST UNDER PARAGRAPH
(A) OF THIS SUBDIVISION, AND FILE A COPY OF THIS LIST WITH THE ATTORNEY
GENERAL, THE SENATE STANDING COMMITTEE ON CIVIL SERVICE AND PENSIONS,
AND THE ASSEMBLY STANDING COMMITTEE ON GOVERNMENTAL EMPLOYEES. ANNUALLY
THEREAFTER, THE PUBLIC FUND SHALL FILE A REPORT WITH THE ATTORNEY GENER-
AL, THE SENATE STANDING COMMITTEE ON CIVIL SERVICE AND PENSIONS, AND THE
ASSEMBLY STANDING COMMITTEE ON GOVERNMENTAL EMPLOYEES THAT INCLUDES: (I)
ALL INVESTMENTS SOLD, REDEEMED, DIVESTED OR WITHDRAWN IN COMPLIANCE WITH
A. 10404 4
PARAGRAPH (A) OF THIS SUBDIVISION; AND (II) ALL PROHIBITED INVESTMENTS
FROM WHICH THE COMMON RETIREMENT FUND HAS NOT YET DIVESTED UNDER PARA-
GRAPH (A) OF THIS SUBDIVISION.
§ 3. This act shall take effect immediately.