S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    881
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 Introduced by M. of A. WEPRIN -- read once and referred to the Committee
   on Governmental Employees
 
 AN  ACT  to  amend  the retirement and social security law and the state
   finance law, in relation  to  limitations  on  investments  of  public
   pension funds and state contracts

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. 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 OR HER 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  specified  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 OR HER term of office. A vacancy occurring from any cause other than
 expiration  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
 corporation  or other financial or investment organization authorized to
 do business in the state of New York. The  committee  shall  advise  the
 comptroller  on investment policies relating to the monies of the common
 retirement fund and shall review, from  time  to  time,  the  investment
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01182-01-3
              

 A. 881                              2
 
 portfolio  of  the  fund  and make such recommendations as may be deemed
 necessary.
   (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. NOTWITHSTANDING ANY PROVISION OF LAW TO  THE  CONTRARY,  THE  COMP-
 TROLLER  SHALL  NOT  DIRECTLY  INVEST THE AVAILABLE MONIES OF THE COMMON
 RETIREMENT FUND IN ANY STOCKS, SECURITIES,  EQUITIES,  ASSETS  OR  OTHER
 OBLIGATIONS  OF ANY CORPORATION OR COMPANY, OR ANY SUBSIDIARY, AFFILIATE
 OR PARENT OF ANY CORPORATION OR COMPANY, ENGAGED IN THE BOYCOTT OF ISRA-
 EL, INCLUDING IRAN-RESTRICTED COMPANIES AND SUDAN-RESTRICTED  COMPANIES.
 THE  COMPTROLLER SHALL, IN ACCORDANCE WITH SOUND INVESTMENT CRITERIA AND
 CONSISTENT WITH HIS  OR  HER  FIDUCIARY  OBLIGATIONS,  DIVEST  ANY  SUCH
 STOCKS,  SECURITIES, EQUITIES, ASSETS OR OTHER OBLIGATIONS IN ACCORDANCE
 WITH SECTION FOUR HUNDRED TWENTY-THREE-D OF THIS ARTICLE.
   § 2. The retirement and social security law is amended by adding a new
 section 423-d to read as follows:
   § 423-D. PROHIBITED TRANSACTIONS; COMPANIES THAT BOYCOTT ISRAEL, IRAN-
 RESTRICTED COMPANIES AND  SUDAN-RESTRICTED  COMPANIES.  1.  DEFINITIONS.
 FOR  THE  PURPOSES  OF  THIS  SECTION THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   A. "BOYCOTT ISRAEL" SHALL MEAN ENGAGING  IN  ACTIONS  THAT  ARE  POLI-
 TICALLY  MOTIVATED  AND  ARE INTENDED TO PENALIZE, INFLICT ECONOMIC HARM
 ON, OR OTHERWISE LIMIT COMMERCIAL RELATIONS WITH THE STATE OF ISRAEL  OR
 CORPORATIONS OR COMPANIES BASED IN THE STATE OF ISRAEL;
   B.  "DIRECT  INVESTMENT"  SHALL MEAN OWNERSHIP OF AN INDIVIDUAL STOCK,
 SECURITY, EQUITY, ASSET, OR OTHER OBLIGATION OF A CORPORATION OR  COMPA-
 NY;
   C.  "EXCLUSION LIST" SHALL MEAN THE LIST CREATED PURSUANT TO PARAGRAPH
 A OF SUBDIVISION TWO OF THIS SECTION;
   D. "INDIRECT INVESTMENT" SHALL MEAN ALL SECURITIES OF A CORPORATION OR
 COMPANY WHICH ARE HELD IN AN ACCOUNT OR FUND  MANAGED  BY  ONE  OR  MORE
 PERSONS  NOT EMPLOYED BY THE EMPLOYEES' RETIREMENT SYSTEM, IN WHICH SUCH
 RETIREMENT SYSTEM OWNS SHARES OR INTERESTS TOGETHER WITH OTHER INVESTORS
 NOT SUBJECT TO THE PROVISIONS OF THIS SECTION;
   E. "IRAN-RESTRICTED COMPANY" SHALL MEAN A CORPORATION OR COMPANY:  (I)
 ENGAGED   IN  BUSINESS  OPERATIONS  INVOLVING  CONTRACTS  WITH,  OR  THE
 PROVISION OF SUPPLIES OR SERVICES TO, THE GOVERNMENT OF  IRAN;  (II)  IN
 WHICH THE GOVERNMENT OF IRAN HAS ANY DIRECT OR INDIRECT EQUITY SHARE; OR
 (III) INVOLVED IN A PROJECT OR CONSORTIUM COMMISSIONED BY THE GOVERNMENT
 OF IRAN; AND:
   (1)  MORE THAN TEN PERCENT OF REVENUE PRODUCED IN OR ASSETS LOCATED IN
 IRAN INVOLVE OIL-RELATED ACTIVITIES OR MINERAL-EXTRACTION ACTIVITIES;
   (2) LESS THAN SEVENTY-FIVE PERCENT OF REVENUE PRODUCED  IN  OR  ASSETS
 LOCATED  IN IRAN INVOLVE CONTRACTS WITH, OR PROVISIONS OF OIL-RELATED OR
 A. 881                              3
 
 MINERAL-EXTRACTION PRODUCTS OR SERVICES TO, THE GOVERNMENT OF IRAN, OR A
 PROJECT OR CONSORTIUM CREATED EXCLUSIVELY BY SUCH GOVERNMENT; AND
   (3) SUCH COMPANY, PROJECT OR CONSORTIUM INVESTS TWENTY MILLION DOLLARS
 OR  MORE IN ANY ONE YEAR PERIOD, THAT DIRECTLY OR SIGNIFICANTLY CONTRIB-
 UTES  TO  THE  ENHANCEMENT  OF  IRAN'S  ABILITY  TO  DEVELOP   PETROLEUM
 RESOURCES.
   F. "SUDAN-RESTRICTED COMPANY" SHALL MEAN A CORPORATION OR COMPANY: (I)
 ENGAGED   IN  BUSINESS  OPERATIONS  INVOLVING  CONTRACTS  WITH,  OR  THE
 PROVISION OF SUPPLIES OR SERVICES TO, THE GOVERNMENT OF SUDAN;  (II)  IN
 WHICH  THE  GOVERNMENT OF SUDAN HAS ANY DIRECT OR INDIRECT EQUITY SHARE;
 (III) INVOLVED IN A PROJECT OR CONSORTIUM COMMISSIONED BY THE GOVERNMENT
 OF SUDAN; (IV) WHOLLY OR PARTIALLY MANAGED OR CONTROLLED BY THE  GOVERN-
 MENT  OF  SUDAN;  (V) IDENTIFIED BY THE FEDERAL OFFICE OF FOREIGN ASSETS
 CONTROL AS SPONSORING TERRORIST ACTIVITIES IN SUDAN; AND  (VI)  THAT  IS
 ESTABLISHED  OR  ORGANIZED  UNDER  THE  LAWS OF SUDAN OR WHOSE PRINCIPAL
 PLACE OF BUSINESS IS IN SUDAN.
   2. EXCLUSION LIST. A. WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF  THIS
 SECTION, THE COMPTROLLER SHALL CREATE AN EXCLUSION LIST OF ALL IRAN-RES-
 TRICTED COMPANIES, SUDAN-RESTRICTED COMPANIES AND COMPANIES THAT BOYCOTT
 ISRAEL  IN  WHICH  STOCKS,  SECURITIES,  EQUITIES, ASSETS OR OTHER OBLI-
 GATIONS THE COMMON RETIREMENT FUND HAS ANY  MONEYS  OR  ASSETS  DIRECTLY
 INVESTED.
   B.  UPON COMPLETION, SUCH EXCLUSION LIST SHALL BE MADE PUBLICLY AVAIL-
 ABLE AND A COPY SHALL BE SENT TO THE GOVERNOR, THE  TEMPORARY  PRESIDENT
 OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY.
   C.  THE  COMPTROLLER  SHALL  SUBMIT NOTIFICATION TO ANY CORPORATION OR
 COMPANY THAT HAS BEEN INCLUDED IN THE EXCLUSION LIST, INFORMING THEM  OF
 THEIR  INCLUSION,  AS WELL AS THE REQUIREMENTS OF SUBDIVISIONS THREE AND
 FIVE OF THIS SECTION.
   D. NO LATER THAN ONE YEAR AFTER THE COMPLETION OF THE EXCLUSION  LIST,
 AND  NO LESS FREQUENTLY THAN QUARTERLY THEREAFTER, THE COMPTROLLER SHALL
 UPDATE THE EXCLUSION LIST TO REMOVE ANY CORPORATION OR COMPANY  THAT  IS
 NO  LONGER  AN  IRAN-RESTRICTED  COMPANY,  SUDAN-RESTRICTED COMPANY OR A
 COMPANY THAT BOYCOTTS ISRAEL AND SHALL ADD ANY  CORPORATION  OR  COMPANY
 NECESSARY  TO  COMPLY  WITH  PARAGRAPH  A  OF THIS SUBDIVISION, WITH THE
 EXCEPTION OF SUCH CORPORATIONS OR COMPANIES REMOVED FROM  THE  EXCLUSION
 LIST PURSUANT TO PARAGRAPH B OF SUBDIVISION FOUR OF THIS SECTION.
   3.  REMOVAL  FROM  THE  EXCLUSION  LIST.  A. AT ANY TIME FOLLOWING THE
 PUBLICATION OF THE EXCLUSION LIST, ANY CORPORATION OR  COMPANY  INCLUDED
 IN  SUCH  EXCLUSION  LIST  MAY  SUBMIT  TO THE COMPTROLLER A REQUEST FOR
 REMOVAL ON THE BASIS OF CLEAR AND CONVINCING EVIDENCE THAT THEY ARE  NOT
 CURRENTLY  AN  IRAN-RESTRICTED  COMPANY,  SUDAN-RESTRICTED  COMPANY OR A
 COMPANY THAT BOYCOTTS ISRAEL, AS SUCH TERMS ARE DEFINED  IN  SUBDIVISION
 ONE OF THIS SECTION.
   B.  UPON  SATISFACTION  THAT  A  CORPORATION  OR  COMPANY  HAS MET THE
 REQUIREMENTS OF PARAGRAPH A OF THIS SUBDIVISION, THE  COMPTROLLER  SHALL
 REMOVE  SUCH  CORPORATION  OR  COMPANY FROM THE EXCLUSION LIST AND SHALL
 PROVIDE A WRITTEN EXPLANATION FOR SUCH  REMOVAL  TO  THE  GOVERNOR,  THE
 TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY.
   4. DETERMINATION OF DIVESTMENT. A. WITHIN ONE YEAR FROM THE COMPLETION
 OF  THE  EXCLUSION  LIST THE COMPTROLLER SHALL, IN ACCORDANCE WITH SOUND
 INVESTMENT CRITERIA AND CONSISTENT  WITH  HIS  OR  HER  FIDUCIARY  OBLI-
 GATIONS, DETERMINE WHETHER DIVESTMENT FROM ANY CORPORATION OR COMPANY ON
 THE EXCLUSION LIST PURSUANT TO SUBDIVISION FIVE OF THIS SECTION COMPLIES
 WITH HIS OR HER FIDUCIARY OBLIGATIONS.
 A. 881                              4
 
   B.  IF THE COMPTROLLER DETERMINES THAT DIVESTMENT FROM ANY CORPORATION
 OR COMPANY ON THE EXCLUSION LIST DOES NOT COMPLY WITH HIS OR HER FIDUCI-
 ARY OBLIGATIONS, THAT CORPORATION OR COMPANY SHALL BE REMOVED  FROM  THE
 EXCLUSION LIST.
   C.  SUBJECT  TO  THE COMPTROLLER'S DISCRETION, BUT NO LATER THAN THREE
 YEARS FROM THE EFFECTIVE DATE OF THIS SECTION,  AND  EVERY  THREE  YEARS
 THEREAFTER,  ANY  CORPORATIONS  OR  COMPANIES REMOVED FROM THE EXCLUSION
 LIST PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION SHALL  BE  RETURNED  TO
 THE  EXCLUSION  LIST, SUBJECT TO A NEW DETERMINATION ISSUED AT THAT TIME
 PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION.
   5. DIVESTMENT. WITHIN ONE  YEAR  AFTER  THE  EFFECTIVE  DATE  OF  THIS
 SECTION,  IN  ACCORDANCE  WITH  SOUND INVESTMENT CRITERIA AND CONSISTENT
 WITH HIS OR HER FIDUCIARY OBLIGATIONS, THE COMPTROLLER SHALL:  A. DIVEST
 THE COMMON RETIREMENT FUND OF ANY STOCKS, SECURITIES, EQUITIES,  ASSETS,
 OR  OTHER OBLIGATIONS OF CORPORATIONS OR COMPANIES ON THE EXCLUSION LIST
 IN WHICH ANY MONEYS OR ASSETS OF THE COMMON RETIREMENT FUND ARE DIRECTLY
 INVESTED;
   B. CEASE NEW DIRECT INVESTMENTS OF ANY MONEYS OR ASSETS OF THE  COMMON
 RETIREMENT  FUND  IN ANY STOCKS, SECURITIES, OR OTHER OBLIGATIONS OF ANY
 CORPORATION OR COMPANY THAT IS AN  IRAN-RESTRICTED  COMPANY,  SUDAN-RES-
 TRICTED COMPANY OR A COMPANY THAT BOYCOTTS ISRAEL; AND
   C.  ENSURE  THAT NO MONEYS OR ASSETS OF THE COMMON RETIREMENT FUND ARE
 INDIRECTLY INVESTED UNLESS HE OR SHE IS SATISFIED ON REASONABLE  GROUNDS
 THAT  SUCH  INDIRECT INVESTMENT VEHICLE IS UNLIKELY TO HAVE IN EXCESS OF
 ONE-HALF OF ONE PERCENT OF ITS ASSETS, AVERAGED  ANNUALLY,  DIRECTLY  OR
 INDIRECTLY  INVESTED  IN  AN  IRAN-RESTRICTED  COMPANY, SUDAN-RESTRICTED
 COMPANY OR A COMPANY THAT BOYCOTTS ISRAEL.
   § 3. The state finance law is amended by adding a new section 139-m to
 read as follows:
   § 139-M. DISQUALIFICATION  TO  CONTRACT  WITH  STATE;  COMPANIES  THAT
 BOYCOTT  ISRAEL,  IRAN-RESTRICTED  COMPANIES AND SUDAN-RESTRICTED COMPA-
 NIES. 1. AS USED IN THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   A.  "BOYCOTT  ISRAEL"  SHALL  MEAN  ENGAGING IN ACTIONS THAT ARE POLI-
 TICALLY MOTIVATED AND ARE INTENDED TO PENALIZE,  INFLICT  ECONOMIC  HARM
 ON,  OR OTHERWISE LIMIT COMMERCIAL RELATIONS WITH THE STATE OF ISRAEL OR
 CORPORATIONS OR COMPANIES BASED IN THE STATE OF ISRAEL;
   B. "IRAN-RESTRICTED COMPANY" SHALL MEAN A CORPORATION OR COMPANY:  (I)
 ENGAGED   IN  BUSINESS  OPERATIONS  INVOLVING  CONTRACTS  WITH,  OR  THE
 PROVISION OF SUPPLIES OR SERVICES TO, THE GOVERNMENT OF  IRAN;  (II)  IN
 WHICH THE GOVERNMENT OF IRAN HAS ANY DIRECT OR INDIRECT EQUITY SHARE; OR
 (III) INVOLVED IN A PROJECT OR CONSORTIUM COMMISSIONED BY THE GOVERNMENT
 OF IRAN; AND:
   (1)  MORE THAN TEN PERCENT OF REVENUE PRODUCED IN OR ASSETS LOCATED IN
 IRAN INVOLVE OIL-RELATED ACTIVITIES OR MINERAL-EXTRACTION ACTIVITIES;
   (2) LESS THAN SEVENTY-FIVE PERCENT OF REVENUE PRODUCED  IN  OR  ASSETS
 LOCATED  IN IRAN INVOLVE CONTRACTS WITH, OR PROVISIONS OF OIL-RELATED OR
 MINERAL-EXTRACTION PRODUCTS OR SERVICES TO, THE GOVERNMENT OF IRAN, OR A
 PROJECT OR CONSORTIUM CREATED EXCLUSIVELY BY SUCH GOVERNMENT; AND
   (3) SUCH COMPANY, PROJECT OR CONSORTIUM INVESTS TWENTY MILLION DOLLARS
 OR MORE IN ANY ONE YEAR PERIOD, THAT DIRECTLY OR SIGNIFICANTLY  CONTRIB-
 UTES   TO  THE  ENHANCEMENT  OF  IRAN'S  ABILITY  TO  DEVELOP  PETROLEUM
 RESOURCES.
   C. "SUDAN-RESTRICTED COMPANY" SHALL MEAN A CORPORATION OR COMPANY: (I)
 ENGAGED  IN  BUSINESS  OPERATIONS  INVOLVING  CONTRACTS  WITH,  OR   THE
 PROVISION  OF  SUPPLIES OR SERVICES TO, THE GOVERNMENT OF SUDAN; (II) IN
 A. 881                              5
 
 WHICH THE GOVERNMENT OF SUDAN HAS ANY DIRECT OR INDIRECT  EQUITY  SHARE;
 (III) INVOLVED IN A PROJECT OR CONSORTIUM COMMISSIONED BY THE GOVERNMENT
 OF  SUDAN; (IV) WHOLLY OR PARTIALLY MANAGED OR CONTROLLED BY THE GOVERN-
 MENT  OF  SUDAN;  (V) IDENTIFIED BY THE FEDERAL OFFICE OF FOREIGN ASSETS
 CONTROL AS SPONSORING TERRORIST ACTIVITIES IN SUDAN; AND  (VI)  THAT  IS
 ESTABLISHED  OR  ORGANIZED  UNDER  THE  LAWS OF SUDAN OR WHOSE PRINCIPAL
 PLACE OF BUSINESS IS IN SUDAN.
   2. ANY FIRM, PARTNERSHIP OR CORPORATION THAT BOYCOTTS  ISRAEL,  IS  AN
 IRAN-RESTRICTED  COMPANY  OR  IS  A  SUDAN-RESTRICTED  COMPANY, SHALL BE
 DISQUALIFIED FROM THEREAFTER SELLING TO OR SUBMITTING BIDS TO OR RECEIV-
 ING AWARDS FROM OR ENTERING INTO ANY CONTRACTS WITH  THE  STATE  OR  ANY
 PUBLIC  DEPARTMENT,  AGENCY  OR  OFFICIAL  THEREOF,  FOR  GOODS, WORK OR
 SERVICES.
   3. WHEN ANY FIRM, PARTNERSHIP OR CORPORATION SUBMITS A  BID  TO  ENTER
 INTO  ANY  CONTRACT  WITH  THE STATE OR ANY PUBLIC DEPARTMENT, AGENCY OR
 OFFICIAL THEREOF, FOR GOODS, WORK OR SERVICES, THE COMMISSIONER OF TAXA-
 TION AND FINANCE SHALL, BEFORE ACCEPTING ANY BID FROM SUCH  FIRM,  PART-
 NERSHIP  OR  CORPORATION,  CONFIRM THAT SUCH FIRM, PARTNERSHIP OR CORPO-
 RATION IS NOT A COMPANY THAT BOYCOTTS ISRAEL, AN IRAN-RESTRICTED COMPANY
 OR A SUDAN-RESTRICTED COMPANY.  IF  THE  COMMISSIONER  OF  TAXATION  AND
 FINANCE  DETERMINES  THAT  SUCH  FIRM,  PARTNERSHIP  OR CORPORATION IS A
 COMPANY THAT BOYCOTTS ISRAEL, AN IRAN-RESTRICTED COMPANY OR A SUDAN-RES-
 TRICTED COMPANY, THEN SUCH COMPANY SHALL  BE  PROHIBITED  FROM  ENTERING
 INTO  A  CONTRACT  WITH  THE  STATE  PURSUANT TO SUBDIVISION ONE OF THIS
 SECTION.
   § 4. This act shall take effect immediately.