PRIOR PRINTER'S NO. 2879 PRINTER'S NO. 2970
No. 2149 Session of 2001
INTRODUCED BY HASAY, CALTAGIRONE, PERZEL, MUNDY, M. BAKER, BARD,
BELFANTI, BENNINGHOFF, CAPPELLI, CREIGHTON, CURRY, DALLY,
DeLUCA, FAIRCHILD, FICHTER, FREEMAN, GANNON, GEIST, GEORGE,
HARHAI, HENNESSEY, HERSHEY, HESS, KELLER, KENNEY, PHILLIPS,
ROBERTS, RUBLEY, SATHER, SCHRODER, SCRIMENTI, SEMMEL, SHANER,
B. SMITH, SOLOBAY, R. STEVENSON, T. STEVENSON, STURLA, SURRA,
TANGRETTI, E. Z. TAYLOR, TRICH, WATSON, WILT, G. WRIGHT,
YOUNGBLOOD, FRANKEL, TURZAI, MAHER, PALLONE, WANSACZ, TIGUE,
McGEEHAN, BUNT, FLICK, HORSEY, HABAY, ADOLPH, J. TAYLOR,
STABACK AND BROWNE, NOVEMBER 15, 2001
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, DECEMBER 3, 2001
AN ACT
1 Amending the act of February 17, 1906 (1st Sp.Sess., P.L.45,
2 No.11), entitled "An act to regulate the deposits of State
3 funds, to prescribe the method of selecting State
4 depositories, to limit the amount of State deposits, to
5 provide for the security of such deposits, to fix the rate of
6 interest thereon, to provide for the publication of monthly
7 statements of moneys in the general and sinking funds, to
8 declare it a misdemeanor to give or take anything of value
9 for obtaining the same, and prescribing penalties for
10 violations of this act," prohibiting investments in countries
11 identified as sponsors of terrorism.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The act of February 17, 1906 (1st Sp.Sess.,
15 P.L.45, No.11), entitled "An act to regulate the deposits of
16 State funds, to prescribe the method of selecting State
17 depositories, to limit the amount of State deposits, to provide
18 for the security of such deposits, to fix the rate of interest
1 thereon, to provide for the publication of monthly statements of
2 moneys in the general and sinking funds, to declare it a
3 misdemeanor to give or take anything of value for obtaining the
4 same, and prescribing penalties for violations of this act," is
5 amended by adding a section to read:
6 Section 3.2. No funds shall be invested under this act in <--
7 any stock or obligation of any corporation doing business,
8 either by itself or through any subsidiary or affiliate, in any
9 country identified by the United States Department of State as a
10 sponsor of foreign terrorist organizations.
11 SECTION 3.2. (A) THE GENERAL ASSEMBLY FINDS THAT FOREIGN <--
12 TERRORISTS AND THOSE ORGANIZATIONS AND COUNTRIES WHO SHELTER,
13 HARBOR AND SUPPORT THEM POSE A GRAVE THREAT TO THE SECURITY AND
14 WELL-BEING OF ALL THE CITIZENS AND INSTITUTIONS OF THIS
15 COMMONWEALTH. AS SUCH IT IS IMPERATIVE THAT THE DEPOSITORIES OF
16 MONEYS OF THIS COMMONWEALTH, THE PENNSYLVANIA MUNICIPAL
17 RETIREMENT FUND AND MUNICIPAL PENSION PLANS IN THIS COMMONWEALTH
18 SHALL PRUDENTLY MANAGE AND INVEST SAID MONEYS, AS MORE
19 PARTICULARLY SET FORTH IN SUBSECTIONS (B), (C) AND (D), TO
20 ENSURE THAT FOREIGN TERRORISTS AND THOSE ORGANIZATIONS AND
21 COUNTRIES WHO SHELTER, HARBOR AND SUPPORT THEM DERIVE NO BENEFIT
22 FROM SAID INVESTMENTS.
23 (B) ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION, A
24 DEPOSITORY OF COMMONWEALTH FUNDS, MONEYS OF THE PENNSYLVANIA
25 MUNICIPAL RETIREMENT FUND OR MUNICIPAL PENSION PLAN FUNDS SHALL
26 NOT INVEST ANY MONEYS OR ASSETS ON DEPOSIT WITH IT IN THE
27 STOCKS, SECURITIES OR OTHER OBLIGATIONS OF ANY PERSON OR COUNTRY
28 SPECIFICALLY IDENTIFIED BY THE OFFICE OF FOREIGN ASSET CONTROL
29 OF THE UNITED STATES DEPARTMENT OF THE TREASURY AS SUPPORTING
30 FOREIGN TERRORISM AND AGAINST WHICH ECONOMIC, TRADE OR OTHER
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1 SANCTIONS HAVE BEEN IMPOSED BY THE PRESIDENT OF THE UNITED
2 STATES PURSUANT TO THE CONSTITUTION AND LAWS OF THE UNITED
3 STATES, INCLUDING THE TRADING WITH THE ENEMY ACT (40 STAT. 411,
4 50 U.S.C. APP § 1 ET SEQ.), THE INTERNATIONAL EMERGENCY ECONOMIC
5 POWERS ACT (PUBLIC LAW 95-223, 50 U.S.C. § 1701 ET SEQ.), THE
6 NATIONAL EMERGENCIES ACT (PUBLIC LAW 94-412, 50 U.S.C. § 1601 ET
7 SEQ.), THE ARMS EXPORT CONTROL ACT (22 U.S.C. §§ 2797B-2797C),
8 SECTION 5 OF THE UNITED NATIONS PARTICIPATION ACT OF 1945 (22
9 U.S.C. § 287C) AND 3 U.S.C. § 301 (RELATING TO GENERAL
10 AUTHORIZATION TO DELEGATE FUNCTIONS; PUBLICATION OF DELEGATION).
11 THE RESTRICTION SHALL BE TO THE EXTENT PRESCRIBED BY THE
12 PRESIDENT OF THE UNITED STATES, UNLESS OTHERWISE SUBSEQUENTLY
13 WAIVED. IN THE EVENT THAT SUCH A DEPOSITORY BECOMES AWARE THAT
14 IT HAS INVESTED IN VIOLATION OF THIS SUBSECTION THEN THAT
15 DEPOSITORY SHALL IMMEDIATELY MOVE TO DIVEST ITSELF OF THE
16 INVESTMENT IN A FIDUCIARILY PRUDENT MANNER.
17 (C) (1) WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS
18 SECTION AND ON OR BEFORE THE FIRST OF JANUARY OF EACH YEAR
19 THEREAFTER, EACH DEPOSITORY SHALL COMPLETE A COMPREHENSIVE
20 REVIEW OF ITS INVESTMENTS TO DETERMINE COMPLIANCE WITH THE
21 REQUIREMENTS OF SUBSECTION (B). IN THE EVENT SUCH DEPOSITORY
22 BECOMES AWARE THAT IT HAS INVESTED IN VIOLATION OF THIS SECTION
23 THEN THAT DEPOSITORY SHALL IMMEDIATELY MOVE TO DIVEST ITSELF OF
24 THE INVESTMENT IN A FIDUCIARILY PRUDENT MANNER.
25 (2) WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS
26 SECTION, AND ON OR BEFORE THE FIRST DAY OF JANUARY OF EACH YEAR
27 THEREAFTER, EACH DEPOSITORY OF STATE FUNDS OR FUNDS OF THE
28 PENNSYLVANIA MUNICIPAL RETIREMENT FUND SHALL CERTIFY TO THE
29 STATE TREASURER COMPLIANCE WITH THE REQUIREMENTS OF SUBSECTION
30 (B), AND EACH DEPOSITORY OF FUNDS OF A MUNICIPAL PENSION PLAN
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1 SHALL CERTIFY TO THE AUDITOR GENERAL COMPLIANCE WITH THE
2 REQUIREMENTS OF SUBSECTION (B).
3 (D) ALL EXISTING AND FUTURE INVESTMENT MANAGERS RETAINED BY
4 THE DEPOSITORY ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION
5 WHO INVEST IN THE NAME OF THE DEPOSITORY SHALL BE NOTIFIED BY
6 THE DEPOSITORY OF THEIR OBLIGATION TO CONDUCT THEIR INVESTMENT
7 ACTIVITIES ON BEHALF OF THE DEPOSITORY IN A MANNER DESIGNED TO
8 COMPLY WITH THE REQUIREMENTS OF SUBSECTION (B).
9 (E) AS USED IN THIS SECTION "PERSON" SHALL INCLUDE A
10 CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, BUSINESS
11 TRUST, OTHER ASSOCIATION, GOVERNMENT ENTITY, OTHER THAN THE
12 UNITED STATES OF AMERICA AND THE STATES THAT COMPRISE IT,
13 ESTATE, TRUST, FOUNDATION OR NATURAL PERSON.
14 Section 2. This act shall take effect immediately.
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