S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9241--A
 
                           I N  A S S E M B L Y
 
                             February 9, 2022
                                ___________
 
 Introduced  by M. of A. PALMESANO, TAGUE, GALLAHAN, SALKA, BYRNES, McDO-
   NOUGH, J. M. GIGLIO, BLANKENBUSH -- Multi-Sponsored by  --  M.  of  A.
   ANGELINO  --  read  once and referred to the Committee on Governmental
   Employees -- committee discharged, bill amended, ordered reprinted  as
   amended and recommitted to said committee
 
 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.
   (B) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, NO ASSETS OF
 ANY  PENSION  OR  ANNUITY FUND UNDER THE JURISDICTION OF THE COMPTROLLER
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13032-02-2
 A. 9241--A                          2
 
 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.