Bill Text: MS HB325 | 2012 | Regular Session | Introduced
Bill Title: Retirement; prohibit PERS and other agencies from holding equity investments in companies with business ties in certain countries.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2012-03-06 - Died In Committee [HB325 Detail]
Download: Mississippi-2012-HB325-Introduced.html
MISSISSIPPI LEGISLATURE
2012 Regular Session
To: Appropriations
By: Representative Snowden
House Bill 325
AN ACT TO CREATE NEW SECTION 25-11-122, MISSISSIPPI CODE OF 1972, TO DIRECT THE BOARD OF TRUSTEES OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO ISSUE REQUESTS FOR PROPOSALS TO INVESTMENT MANAGERS FOR THE ESTABLISHMENT OF INTERNATIONAL EQUITY INVESTMENT STRATEGIES THAT IDENTIFY AND EXCLUDE ALL GLOBAL SECURITY RISK PROHIBITIVE COMPANIES; TO DEFINE "GLOBAL SECURITY RISK PROHIBITIVE COMPANIES" AS COMPANIES THAT HAVE BUSINESS TIES IN IRAN, NORTH KOREA, SYRIA OR SUDAN; TO DIRECT THE BOARD TO SELECT INVESTMENT MANAGERS FOR ITS INTERNATIONAL EQUITY HOLDINGS THAT ARE BEST SUITED TO MANAGE INTERNATIONAL EQUITY PORTFOLIOS WHILE EXCLUDING GLOBAL SECURITY RISK PROHIBITIVE COMPANIES; TO AMEND SECTIONS 25-11-121 AND 25-11-145, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE INTERNATIONAL EQUITY HOLDINGS OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM SHALL NOT INCLUDE GLOBAL SECURITY RISK PROHIBITIVE COMPANIES; TO PROVIDE AN EXEMPTION FROM THIS REQUIREMENT FOR COMPANIES THAT ARE CERTIFIED AS NONGOVERNMENTAL ORGANIZATIONS BY THE UNITED NATIONS OR THAT ENGAGE SOLELY IN THE PROVISION OF GOODS AND SERVICES THAT RELIEVE HUMAN SUFFERING OR PROMOTE HEALTH OR RELIGIOUS, SPIRITUAL, EDUCATIONAL, HUMANITARIAN OR JOURNALISTIC ACTIVITIES IN THE SPECIFIED COUNTRIES; TO REQUIRE DIVESTITURE OF GLOBAL SECURITY RISK PROHIBITIVE COMPANIES FROM THE ASSETS IN THE INTERNATIONAL EQUITY PORTFOLIOS MANAGED BY THE INVESTMENT MANAGERS SELECTED UNDER THIS ACT, IN ACCORDANCE WITH A CERTAIN SCHEDULE; TO PROHIBIT ALL OTHER STATE AGENCIES AND POLITICAL SUBDIVISIONS FROM INVESTING PUBLIC FUNDS IN ANY COMPANIES OR OTHER ENTITIES THAT HAVE DIRECT FINANCIAL RELATIONSHIPS WITH TERRORIST SPONSORING NATIONS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following shall be codified as Section 25-11-122, Mississippi Code of 1972:
25-11-122. (1) As used in this section, Section 25-11-121 and Section 25-11-145, the following terms shall have the following meanings:
(a) "Business ties" means owning or controlling property or assets located in, having employees or facilities located in, providing goods or services to, obtaining goods or services from, having distribution agreements with, issuance of credit or loans to, purchasing bonds or commercial paper issued by, investing in or having equity ties to or with Iran, North Korea, Syria or Sudan, or any company domiciled in Iran, North Korea, Syria or Sudan, or their affiliates thereof.
(b) "Company" means any entity capable of affecting commerce, including, but not limited to, a government, government agency, natural person, legal person, sole proprietorship, partnership, firm, corporation, subsidiary, affiliate, franchisor, franchisee, joint venture, trade association, financial institution, utility, public franchise, provider of financial services, trust, or enterprise or any association thereof.
(c) "Global security risk prohibitive company" means any foreign company that has active or current business ties in or with Iran, North Korea, Syria or Sudan, as determined by an independent, third-party research firm that specializes in global security risk.
(d) "Independent, third-party research firm" means a private United States company that has submitted an affidavit to the board averring that:
(i) It specializes in identifying and assessing companies that are exposed to global security risk;
(ii) It offers credible research on corporate ties to Iran, North Korea, Syria and/or Sudan that has been maintained and provided to the market for a minimum of one (1) calendar year; and
(iii) It does not have the potential for conflicts of interest stemming from investment banking and corporate finance activities.
(e) "Iran" means the Islamic Republic of Iran.
(f) "North Korea" means the Democratic People's Republic of North Korea.
(g) "Syria" refers to the Syrian Arab Republic.
(h) "Sudan" means the Islamic Republic of Sudan.
(2) Not later than September 1, 2012, the board shall issue Requests for Proposals (RFPs) to investment managers for the establishment of international actively or passively managed equity investment strategies that identify and exclude all global security risk prohibitive companies. Those RFPs shall stipulate that as a requisite for being selected to manage an international equity portfolio on behalf of the system, the respondent must attest that no global security risk prohibitive companies will be included in the portfolio held on behalf of the system after the date specified in Section 25-11-121(14) for full divestiture, and must provide its plan for ensuring compliance.
(3) On or before January 1, 2013, the board shall select investment managers for the international equity holdings of the system that, in the view of the board, are best suited to manage international equity portfolios while excluding global security risk prohibitive companies. Each investment manager selected shall certify to the board on a quarterly basis that the portfolio excludes global security risk prohibitive companies in accordance with the schedule provided in Section 25-11-121(14). If the board finds that an investment manager with which it has contracted has not complied with the divestiture requirements, or includes global security risk prohibitive companies in the portfolio held on behalf of the system at any future time, the board shall notify the manager that it has ninety (90) days to become compliant. If the manager fails to comply within that ninety-day period, the board shall immediately issue a new RFP and terminate the contract with the manager. That manager shall be suspended from conducting business with the board for a period of six (6) months beginning from the acceptance of the new investment manager's contract.
SECTION 2. Section 25-11-121, Mississippi Code of 1972, is amended as follows:
25-11-121. (1) The board shall, from time to time, determine the current requirements for benefit payments and administrative expense that will be maintained as a cash working balance, except that the cash working balance shall not exceed at any time an amount necessary to meet the current obligations of the system for a period of ninety (90) days. Any amounts in excess of the cash working balance shall be invested, as follows, at such periodic intervals as the board may determine; however, all purchases shall be made from competitive offerings except short-term obligations referred to in paragraph (d) of this subsection (1):
(a) Bonds, notes, certificates and other valid general obligations of the State of Mississippi, or of any county, or of any city, or of any supervisors district of any county of the State of Mississippi, or of any school district bonds of the State of Mississippi; notes or certificates of indebtedness issued by the Veterans' Home Purchase Board of Mississippi, provided that the notes or certificates of indebtedness are secured by the pledge of collateral equal to two hundred percent (200%) of the amount of the loan, which collateral is also guaranteed at least for fifty percent (50%) of the face value by the United States government, and provided that not more than five percent (5%) of the total investment holdings of the system shall be in Veterans' Home Purchase Board notes or certificates at any time; real estate mortgage loans one hundred percent (100%) insured by the Federal Housing Administration on single family homes located in the State of Mississippi, where monthly collections and all servicing matters are handled by Federal Housing Administration approved mortgagees authorized to make such loans in the State of Mississippi;
(b) State of Mississippi highway bonds;
(c) Funds may be deposited in any institution insured by the Federal Deposit Insurance Corporation that maintains a facility that takes deposits in the State of Mississippi or a custodial bank;
(d) Corporate bonds and taxable municipal bonds rated by a United States Securities and Exchange Commission designated Nationally Recognized Statistical Rating Organization; or corporate short-term obligations of corporations or of wholly owned subsidiaries of corporations, whose short-term obligations are rated A-2 or better by Standard and Poor's, rated P-2 or better by Moody's Investment Service, F-2 or better by Fitch Ratings, Ltd., or the equivalent of these ratings if assigned by another United States Securities and Exchange Commission designated Nationally Recognized Statistical Rating Organization;
(e) Bonds of the Tennessee Valley Authority;
(f) Bonds, notes, certificates and other valid obligations of the United States, and other valid obligations of any federal instrumentality that issues securities under authority of an act of Congress and are exempt from registration with the Securities and Exchange Commission;
(g) Bonds, notes, debentures and other securities issued by any federal instrumentality and fully guaranteed by the United States;
(h) Interest-bearing bonds or notes that are general obligations of any other state in the United States or of any city or county in that state, provided that the city or county had a population as shown by the federal census next preceding the investment of not less than twenty-five thousand (25,000) inhabitants and provided that the state, city or county has not defaulted for a period longer than thirty (30) days in the payment of principal or interest on any of its general obligation indebtedness during a period of ten (10) calendar years immediately preceding the investment;
(i) Bonds of established non-United States companies and foreign government securities rated by a recognized rating agency. The board may take requisite action to effectuate or hedge transactions through foreign banks, including the purchase and sale, transfer, exchange, or otherwise disposal of, and generally deal in foreign exchange through the use of foreign currency, interbank forward contracts, futures contracts, options contracts, swaps and other related derivative instruments, notwithstanding any other provisions of this article to the contrary;
(j) Shares of stocks, common and/or preferred, of corporations created by or existing under the laws of the United States or any state, district or territory thereof and shares of stocks and convertible securities of non-United States companies; provided that:
(i) The maximum investments in stocks shall not exceed eighty percent (80%) of the total book value of the total investment fund of the system;
(ii) The stock of the corporation shall:
1. Be listed on a national stock exchange; or
2. Be traded in the over-the-counter market, provided that price quotations for those over-the-counter stocks are quoted by the National Association of Securities Dealers Automated Quotation System (NASDAQ);
(iii) The outstanding shares of the corporation shall have a total market value of not less than Fifty Million Dollars ($50,000,000.00);
(iv) The amount of investment in any one (1) corporation shall not exceed three percent (3%) of the book value of the assets of the system;
(v) The shares of any one (1) corporation owned by the system shall not exceed five percent (5%) of that corporation's outstanding stock.
The board may take requisite action to effectuate or hedge transactions for shares of stocks and convertible securities of non-United States companies through foreign banks, including the purchase and sale, transfer, exchange, or otherwise disposal of, and generally deal in foreign exchange through the use of foreign currency, interbank forward contracts, futures contracts, options contracts, swaps and other related derivative instruments, notwithstanding any other provisions of this article to the contrary;
(k) Covered call and put options on securities traded on one or more of the regulated exchanges;
(l) Pooled or commingled funds managed by a corporate trustee or by a Securities and Exchange Commission registered investment advisory firm retained as an investment manager by the board of trustees, and shares of investment companies and unit investment trusts registered under the Investment Company Act of 1940, where the pooled or commingled funds or shares are comprised of common or preferred stocks, bonds, money market instruments or other investments authorized under this section. The investment in commingled funds or shares shall be held in trust. The total book value of investments under this paragraph shall at no time exceed five percent (5%) of the total book value of all investments of the system. Any investment manager approved by the board of trustees shall invest the commingled funds or shares as a fiduciary;
(m) Pooled or commingled real estate funds or real estate securities managed by a corporate trustee or by a Securities and Exchange Commission registered investment advisory firm retained as an investment manager by the board of trustees. The investment in commingled funds or shares shall be held in trust. The total book value of investments under this paragraph shall at no time exceed ten percent (10%) of the total book value of all investments of the system. Any investment manager approved by the board of trustees shall invest the commingled funds or shares as a fiduciary. The ten percent (10%) limitation in this paragraph shall not be subject to the five percent (5%) limitation in paragraph (l) of this subsection;
(n) Types of investments not specifically authorized by this subsection if the investments are in the form of a separate account managed by a Securities and Exchange Commission registered investment advisory firm retained as an investment manager by the board; or a limited partnership or commingled fund approved by the board; provided that the total book value of investments under this paragraph shall at no time exceed ten percent (10%) of the total book value of all investments of the system. Any person or entity who exercises any discretionary authority or discretionary control respecting management of the separate account, limited partnership or commingled fund, or who exercises any authority or control respecting management or disposition of the assets of the separate account, limited partnership or commingled fund, shall exercise that authority or control as a fiduciary.
(2) All investments shall be acquired by the board at prices not exceeding the prevailing market values for the securities.
(3) Any limitations * * * set forth in this section shall be applicable only at the time of purchase and shall not require the liquidation of any investment at any time, except as may be required to meet the divestiture requirements of subsection (14) of this section. All investments shall be clearly marked to indicate ownership by the system and to the extent possible shall be registered in the name of the system.
(4) Subject to the above terms, conditions, limitations and restrictions, the board shall have power to sell, assign, transfer and dispose of any of the securities and investments of the system, provided that the sale, assignment or transfer has the majority approval of the entire board. The board may employ or contract with investment managers, evaluation services or other such services as determined by the board to be necessary for the effective and efficient operation of the system.
(5) Except as otherwise provided in this section, no trustee and no employee of the board shall have any direct or indirect interest in the income, gains or profits of any investment made by the board, nor shall any such person receive any pay or emolument for his services in connection with any investment made by the board. No trustee or employee of the board shall become an endorser or surety, or in any manner an obligor for money loaned by or borrowed from the system.
(6) All interest derived from investments and any gains from the sale or exchange of investments shall be credited by the board to the account of the system.
(7) The board of trustees annually shall credit regular interest on the mean amount for the preceding year in each of the reserves maintained by the board, with the exception of the expense account. This credit shall be made annually from interest and other earnings on the invested assets of the system. Any additional amount required to meet the regular interest on the funds of the system shall be charged to the employer's accumulation account, and any excess of earnings over the regular interest required shall be credited to the employer's accumulation account. Regular interest shall mean such per centum rate to be compounded annually as * * * determined by the board of trustees.
(8) The board of trustees shall be the custodian of the funds of the system. All expense vouchers and retirement allowance payrolls shall be certified by the executive director, who shall furnish the board a surety bond in a company authorized to do business in Mississippi in such an amount as * * * required by the board, the premium to be paid by the board from the expense account.
(9) For the purpose of meeting disbursements for retirement allowances, annuities and other payments, cash may be kept available, not exceeding the requirements of the system for a period of ninety (90) days, on deposit in one or more banks or trust companies organized under the laws of the State of Mississippi or the laws of the United States, provided that the sum on deposit in any one (1) bank or trust company shall not exceed thirty-five percent (35%) of the paid-up capital and regular surplus of the bank or trust company.
(10) Except as otherwise provided, the monies or properties of the * * * system that are deposited in any bank or banks of the United States shall, where possible, be safeguarded and guaranteed by the posting as security by the depository of bonds, notes and other securities purchasable by the system, as provided elsewhere in this section. The bonds, notes and other securities offered as security shall be posted to the credit of the system by the depository with the board or with an unaffiliated bank or trust company domiciled within the United States or the State of Mississippi acceptable to both the board and to the fiscal agent bank. If the board and the fiscal agent bank cannot reach an agreement, the bonds, notes and other securities shall be deposited in a bank or trust company designated by the State Commissioner of Banking and Consumer Finance. * * * However, * * * bonds or notes of the United States government owned by the system may be deposited for safekeeping in any federal reserve bank.
(11) The board of trustees shall determine the degree of collateralization necessary for both foreign and domestic demand deposit accounts in addition to that which is guaranteed by the Federal Deposit Insurance Corporation or such other federal insurance program as may be in effect.
(12) The board, the executive director and employees shall discharge their duties with respect to the investments of the system solely for the interest of the system with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent investor acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims, including diversifying the investments of the system so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so. The board, the executive director and employees are not liable for breach of their fiduciary duty to the system by reason of any decision to restrict, reduce, or eliminate investments in global security risk prohibitive companies in accordance with the requirements of subsection (14) of this section and Section 25-11-122.
(13) Documentary material or data made or received by the system that consists of trade secrets or commercial or financial information that relates to the investments of the system shall be exempt from the Mississippi Public Records Act of 1983 if the disclosure of the material or data is likely to impair the system's ability to obtain such information in the future, or is likely to cause substantial harm to the competitive position of the person or entity from whom the information was obtained.
(14) (a) The international equity holdings of the system shall not include global security risk prohibitive companies, in accordance with the schedule provided in paragraph (b) of this subsection. However, companies that are certified as Nongovernmental Organizations (NGOs) by the United Nations, or that, according to an independent, third-party research firm, engage solely in the provision of goods and services that relieve human suffering or promote health or religious, spiritual, educational, humanitarian or journalistic activities in Iran, North Korea, Syria or Sudan are exempt from the exclusion and divestiture requirements of this subsection.
(b) Not later than July 1, 2013, no more than fifty percent (50%) of the assets in the international equity portfolios managed by the investment managers selected under Section 25-11-122 may include global security risk prohibitive companies. Not later than January 1, 2014, and annually thereafter, none of the assets in the international equity portfolios managed by the investment managers selected under Section 25-11-122 may include global security risk prohibitive companies.
(c) The provisions of this subsection (14) shall expire relative to each specific country individually at such time the President of the United States affirmatively and unambiguously states, by means including, but not limited to, enacted legislation, executive order or written certification from the President to Congress, that the United States Department of State no longer recognizes Iran, North Korea, Syria or Sudan as state sponsors of terrorism.
SECTION 3. Section 25-11-145, Mississippi Code of 1972, is amended as follows:
25-11-145. (1) The provisions of this section shall become effective from and after July 1 of the year in which Section 25-11-143 becomes effective as provided in subsection (1) of Section 25-11-143.
(2) In managing the funds received for the insurance program established in Section 25-11-143, the board from time to time shall determine the current requirements for payments and administrative expense that will be maintained as a cash working balance, except that the cash working balance shall not exceed at any time an amount necessary to meet the current obligations of the fund for a period of ninety (90) days. Any amounts in excess of the cash working balance shall be invested, as follows, at such periodic intervals as the board may determine:
(a) Funds may be deposited in federally insured institutions;
(b) Corporate and taxable municipal bonds of investment grade as rated by Standard and Poor's or by Moody's Investment Service, with bonds rated BAA/BBB not to exceed five percent (5%) of the book value of the total fixed income investments, or corporate short-term obligations of corporations or of
wholly owned subsidiaries of corporations, whose short-term obligations are rated A-3 or better by Standard and Poor's or rated P-3 or better by Moody's Investment Service;
(c) Bonds of the Tennessee Valley Authority; bonds, notes, certificates and other valid obligations of the United States, and other valid obligations of any federal instrumentality that issues securities under authority of an act of Congress and are exempt from registration with the Securities and Exchange Commission; bonds, notes, debentures and other securities issued by any federal instrumentality and fully guaranteed by the United States;
(d) Interest-bearing bonds or notes that are general obligations of any other state in the United States or of any city or county in that state, provided that the state, city or county has not defaulted for a period longer than thirty (30) days in the payment of principal or interest on any of its general obligation indebtedness during a period of ten (10) calendar years immediately preceding the investment;
(e) Shares of stocks, common and/or preferred, of corporations created by, or existing under, the laws of the United States or any state, district or territory thereof, provided that:
(i) The maximum investments in stocks shall not exceed fifty percent (50%) of the book value of the total investment fund;
(ii) The stock of the corporation shall be listed on a national stock exchange, or be traded in the over-the-counter market;
(iii) The outstanding shares of the corporation shall have a total market value of not less than Fifty Million Dollars ($50,000,000.00);
(iv) The amount of investment in any one (1) corporation shall not exceed three percent (3%) of the book value of the total investment fund; and
(v) The shares of any one (1) corporation owned by the fund shall not exceed five percent (5%) of that corporation's outstanding stock;
(f) Bonds rated Single A or better, stocks and convertible securities of established non-United States companies, and in foreign government securities rated Single A or better by a recognized rating agency, provided that the total book value of investments under this paragraph at no time shall exceed thirty percent (30%) of the total book value of the total investment fund. The board may take requisite action to effectuate or hedge those transactions through foreign or domestic banks, including the purchase and sale, transfer, exchange, or otherwise disposal of, and generally deal in foreign exchange through the use of foreign currency, interbank forward contracts, futures contracts, options contracts, swaps and other related derivative instruments;
(g) Covered call and put options on securities traded on one or more of the regulated exchanges;
(h) Pooled or commingled funds managed by a corporate trustee or by a Securities and Exchange Commission registered investment advisory firm retained as an investment manager by the board of trustees, and shares of investment companies and unit investment trusts registered under the Investment Company Act of 1940, where the pooled or commingled funds or shares are comprised of common or preferred stocks, bonds, money market instruments or other investments authorized under this section. The investment in commingled funds or shares shall be held in trust. Any investment manager approved by the board of trustees shall invest the commingled funds or shares as a fiduciary;
(i) Pooled or commingled real estate funds or real estate securities managed by a corporate trustee or by a Securities and Exchange Commission registered investment advisory firm retained as an investment manager by the board of trustees, provided that the total book value of investments under this paragraph at no time shall exceed five percent (5%) of the total book value of all investments of the total investment fund. The investment in commingled funds or shares shall be held in trust. Any investment manager approved by the board of trustees shall invest the commingled funds or shares as a fiduciary.
(3) All investments shall be acquired at prices not exceeding the prevailing market values for the securities.
(4) Any limitations set forth in this section shall be applicable only at the time of purchase and shall not require the liquidation of any investment at any time, except as may be required to meet the divestiture requirements of subsection (13) of this section. All investments shall be clearly marked to indicate ownership by the fund and to the extent possible shall be registered in the name of the fund.
(5) Subject to the preceding terms, conditions, limitations and restrictions, the board shall have power to sell, assign, transfer and dispose of any of the securities and investments of the fund, provided that the sale, assignment or transfer has the majority approval of the entire board. The board may employ or contract with investment managers, evaluation services or other such services as determined by the board to be necessary for the effective and efficient operation of the fund.
(6) Except as otherwise provided in this section, no trustee and no employee of the board shall have any direct or indirect interest in the income, gains or profits of any investment made by the board, nor shall any such person receive any pay or emolument for his services in connection with any investment made by the board. No trustee or employee of the board shall become an endorser or surety, or in any manner an obligor for money loaned by or borrowed from the fund.
(7) All interest derived from investments and any gains from the sale or exchange of investments shall be credited by the board to the account of the fund.
(8) The board of trustees shall be the custodian and fiduciary of the fund.
(9) For the purpose of meeting disbursements, cash may be kept available, not exceeding the requirements of the fund for a period of ninety (90) days, on deposit in one or more banks or trust companies organized under the laws of the State of Mississippi or the laws of the United States, provided that the sum on deposit in any one (1) bank or trust company shall not exceed thirty-five percent (35%) of the paid-up capital and regular surplus of the bank or trust company.
(10) The board of trustees shall determine the degree of collateralization necessary for both foreign and domestic demand deposit accounts in addition to that which is guaranteed by the Federal Deposit Insurance Corporation or such other federal insurance program as may be in effect.
(11) The board, the executive director and employees shall discharge their duties with respect to the investments of the system solely for the interest of the fund with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent investor acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims, including diversifying the investments of the system so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so. The board, the executive director and employees are not liable for breach of their fiduciary duty to the system by reason of any decision to restrict, reduce, or eliminate investments in global security risk prohibitive companies in accordance with the requirements of subsection (13) of this section and Section 25-11-122.
(12) Investment management fees and costs shall be paid from the fund.
(13) (a) The international equity holdings of the system shall not include global security risk prohibitive companies, in accordance with the schedule provided in paragraph (b) of this subsection. However, companies that are certified as Nongovernmental Organizations (NGOs) by the United Nations, or that, according to an independent, third-party research firm, engage solely in the provision of goods and services that relieve human suffering or promote health or religious, spiritual, educational, humanitarian or journalistic activities in Iran, North Korea, Syria or Sudan are exempt from the exclusion and divestiture requirements of this subsection.
(b) Not later than July 1, 2013, no more than fifty percent (50%) of the assets in the international equity portfolios managed by the investment managers selected under Section 25-11-122 may include global security risk prohibitive companies. Not later than January 1, 2014, and annually thereafter, none of the assets in the international equity portfolios managed by the investment managers selected under Section 25-11-122 may include global security risk prohibitive companies.
(c) The provisions of this subsection (13) shall expire relative to each specific country individually at such time the President of the United States affirmatively and unambiguously states, by means including, but not limited to, enacted legislation, executive order or written certification from the President to Congress, that the United States Department of State no longer recognizes Iran, North Korea, Syria or Sudan as state sponsors of terrorism.
SECTION 4. In addition to the requirements imposed on the Public Employees' Retirement System by Sections 25-11-122, 25-11-121(14) and 25-11-145(13), all other agencies of the state and political subdivisions thereof that invest any public funds shall enact all necessary provisions and take all necessary actions to ensure that no public funds are invested in global security risk prohibitive companies as defined in Section 25-11-122 or in any other entities that have direct financial relationships with the United States State Department-designated terrorist-sponsoring states, including the governments of Iran, North Korea, Syria and Sudan, and to replace any investment holdings that are divested with comparable investments within a reasonable time. The provisions of this section shall not apply to any company or other entity that is providing humanitarian aid for the citizens of these nations.
SECTION 5. This act shall take effect and be in force from and after July 1, 2012.
