PRIOR PRINTER'S NO. 2880 PRINTER'S NO. 2971
No. 2150 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, STABACK, BROWNE AND J. TAYLOR, NOVEMBER 15, 2001
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, DECEMBER 3, 2001
AN ACT 1 Amending Title 71 (State Government) of the Pennsylvania 2 Consolidated Statutes, prohibiting investments in countries 3 identified as sponsors of terrorism. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Title 71 of the Pennsylvania Consolidated 7 Statutes is amended by adding a section to read: 8 § 5941. Prohibition of investments in countries identified as <-- 9 sponsors of terrorism. 10 No funds shall be invested under this subchapter in any stock 11 or obligation of any corporation doing business, either by 12 itself or through any subsidiary or affiliate, in any country 13 identified by the United States Department of State as a sponsor 14 of foreign terrorist organizations.
1 § 5941. TERRORISM-RELATED INVESTMENTS. <-- 2 (A) FINDINGS AND POLICY STATEMENT.--THE GENERAL ASSEMBLY 3 FINDS THAT FOREIGN TERRORISTS AND THOSE ORGANIZATIONS AND 4 COUNTRIES WHO SHELTER, HARBOR AND SUPPORT THEM, POSE A GRAVE 5 THREAT TO THE SECURITY AND WELL-BEING OF ALL THE CITIZENS AND 6 INSTITUTIONS OF THIS COMMONWEALTH, INCLUDING SPECIFICALLY THE 7 MEMBERS OF THE SYSTEM. AS SUCH IT IS IMPERATIVE THAT THE ASSETS 8 OF THE FUND BE PRUDENTLY MANAGED AND INVESTED, AS MORE 9 PARTICULARLY SET FORTH IN SUBSECTIONS (B), (C) AND (D), TO 10 ENSURE THAT FOREIGN TERRORISTS AND THOSE ORGANIZATIONS AND 11 COUNTRIES WHO SHELTER, HARBOR AND SUPPORT THEM DERIVE NO BENEFIT 12 FROM SAID INVESTMENTS. 13 (B) PROHIBITED INVESTMENTS.--ON AND AFTER THE EFFECTIVE DATE 14 OF THIS SECTION, THE BOARD SHALL NOT INVEST IN THE STOCKS, 15 SECURITIES OR OTHER OBLIGATIONS OF ANY PERSON OR COUNTRY 16 SPECIFICALLY IDENTIFIED BY THE OFFICE OF FOREIGN ASSET CONTROL 17 OF THE UNITED STATES DEPARTMENT OF THE TREASURY AS SUPPORTING 18 FOREIGN TERRORISM AND AGAINST WHICH ECONOMIC, TRADE OR OTHER 19 SANCTIONS HAVE BEEN IMPOSED BY THE PRESIDENT OF THE UNITED 20 STATES PURSUANT TO THE CONSTITUTION AND LAWS OF THE UNITED 21 STATES, INCLUDING THE TRADING WITH THE ENEMY ACT (40 STAT. 411, 22 50 U.S.C. APP § 1 ET SEQ.), THE INTERNATIONAL EMERGENCY ECONOMIC 23 POWERS ACT (PUBLIC LAW 95-223, 50 U.S.C. § 1701 ET SEQ.), THE 24 NATIONAL EMERGENCIES ACT (PUBLIC LAW 94-412, 50 U.S.C. § 1601 ET 25 SEQ.), THE ARMS EXPORT CONTROL ACT (22 U.S.C. §§ 2797B-2797C), 26 SECTION 5 OF THE UNITED NATIONS PARTICIPATION ACT OF 1945 (22 27 U.S.C. § 287C) AND 3 U.S.C. § 301 (RELATING TO GENERAL 28 AUTHORIZATION TO DELEGATE FUNCTIONS; PUBLICATION OF DELEGATION). 29 THE RESTRICTION SHALL BE TO THE EXTENT PRESCRIBED BY THE 30 PRESIDENT OF THE UNITED STATES, UNLESS OTHERWISE SUBSEQUENTLY 20010H2150B2971 - 2 -
1 WAIVED. IN THE EVENT THE BOARD BECOMES AWARE THAT IT HAS 2 INVESTED IN VIOLATION OF THIS SUBSECTION THEN THE BOARD SHALL 3 IMMEDIATELY MOVE TO DIVEST ITSELF OF THE INVESTMENT IN A 4 FIDUCIARILY PRUDENT MANNER. 5 (C) PORTFOLIO REVIEW.--WITHIN 90 DAYS OF THE EFFECTIVE DATE 6 OF THIS SECTION AND AT LEAST ANNUALLY THEREAFTER, THE BOARD 7 SHALL COMPLETE A COMPREHENSIVE REVIEW OF ITS INVESTMENTS TO 8 DETERMINE COMPLIANCE WITH THE REQUIREMENTS OF SUBSECTION (B). IN 9 THE EVENT THE BOARD BECOMES AWARE THAT IT HAS INVESTED IN 10 VIOLATION OF THIS SECTION THEN THE BOARD SHALL IMMEDIATELY MOVE 11 TO DIVEST ITSELF OF THE INVESTMENT IN A FIDUCIARILY PRUDENT 12 MANNER. 13 (D) INVESTMENT MANAGERS.--ALL EXISTING AND FUTURE INVESTMENT 14 MANAGERS RETAINED BY THE BOARD ON OR AFTER THE EFFECTIVE DATE OF 15 THIS SECTION WHO INVEST IN THE NAME OF THE SYSTEM SHALL BE 16 NOTIFIED BY THE BOARD OF THEIR OBLIGATION TO CONDUCT THEIR 17 INVESTMENT ACTIVITIES ON BEHALF OF THE BOARD IN A MANNER 18 DESIGNED TO COMPLY WITH THE REQUIREMENTS OF SUBSECTION (B). 19 (E) PERSON DEFINED.--AS USED IN THIS SECTION "PERSON" SHALL 20 INCLUDE A CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, 21 BUSINESS TRUST, OTHER ASSOCIATION, GOVERNMENT ENTITY, OTHER THAN 22 THE UNITED STATES OF AMERICA AND THE STATES THAT COMPRISE IT, 23 ESTATE, TRUST, FOUNDATION OR NATURAL PERSON. 24 Section 2. This act shall take effect immediately. J30L71MRD/20010H2150B2971 - 3 -