PRIOR PRINTER'S NO. 2883 PRINTER'S NO. 2974
No. 2153 Session of 2001
INTRODUCED BY CALTAGIRONE, HASAY, 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, 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 the act of April 9, 1929 (P.L.343, No.176), entitled,
2 as amended, "An act relating to the finances of the State
3 government; providing for the settlement, assessment,
4 collection, and lien of taxes, bonus, and all other accounts
5 due the Commonwealth, the collection and recovery of fees and
6 other money or property due or belonging to the Commonwealth,
7 or any agency thereof, including escheated property and the
8 proceeds of its sale, the custody and disbursement or other
9 disposition of funds and securities belonging to or in the
10 possession of the Commonwealth, and the settlement of claims
11 against the Commonwealth, the resettlement of accounts and
12 appeals to the courts, refunds of moneys erroneously paid to
13 the Commonwealth, auditing the accounts of the Commonwealth
14 and all agencies thereof, of all public officers collecting
15 moneys payable to the Commonwealth, or any agency thereof,
16 and all receipts of appropriations from the Commonwealth,
17 authorizing the Commonwealth to issue tax anticipation notes
18 to defray current expenses, implementing the provisions of
19 section 7(a) of Article VIII of the Constitution of
20 Pennsylvania authorizing and restricting the incurring of
21 certain debt and imposing penalties; affecting every
22 department, board, commission, and officer of the State
23 government, every political subdivision of the State, and
24 certain officers of such subdivisions, every person,
25 association, and corporation required to pay, assess, or
1 collect taxes, or to make returns or reports under the laws
2 imposing taxes for State purposes, or to pay license fees or
3 other moneys to the Commonwealth, or any agency thereof,
4 every State depository and every debtor or creditor of the
5 Commonwealth," prohibiting investments in corporations doing
6 business in countries which sponsor terrorism.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. The act of April 9, 1929 (P.L.343, No.176), known
10 as The Fiscal Code, is amended by adding a section to read:
11 Section 301.2. Prohibition of Investments in Countries <--
12 Identified as Sponsors of Terrorism.--No funds shall be invested
13 under this act in any stock or obligation of any corporation
14 doing business, either by itself or through any subsidiary or
15 affiliate, in any country identified by the United States
16 Department of State as a sponsor of foreign terrorist
17 organizations. PROHIBITION OF TERRORISM-RELATED INVESTMENTS.-- <--
18 (A) THE GENERAL ASSEMBLY FINDS THAT FOREIGN TERRORISTS AND
19 THOSE ORGANIZATIONS AND COUNTRIES WHO SHELTER, HARBOR AND
20 SUPPORT THEM, POSE A GRAVE THREAT TO THE SECURITY AND WELL-BEING
21 OF ALL THE CITIZENS AND INSTITUTIONS OF THIS COMMONWEALTH. AS
22 SUCH IT IS IMPERATIVE THAT THE FUNDS OF THIS COMMONWEALTH BE
23 PRUDENTLY MANAGED AND INVESTED, AS MORE PARTICULARLY SET FORTH
24 IN SUBSECTIONS (B), (C) AND (D), TO ENSURE THAT FOREIGN
25 TERRORISTS AND THOSE ORGANIZATIONS AND COUNTRIES WHO SHELTER,
26 HARBOR AND SUPPORT THEM DERIVE NO BENEFIT FROM SAID INVESTMENTS.
27 (B) ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION, THE
28 TREASURY DEPARTMENT SHALL NOT INVEST IN THE STOCKS, SECURITIES
29 OR OTHER OBLIGATIONS OF ANY PERSON OR COUNTRY SPECIFICALLY
30 IDENTIFIED BY THE OFFICE OF FOREIGN ASSET CONTROL OF THE UNITED
31 STATES DEPARTMENT OF THE TREASURY AS SUPPORTING FOREIGN
32 TERRORISM AND AGAINST WHICH ECONOMIC, TRADE OR OTHER SANCTIONS
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1 HAVE BEEN IMPOSED BY THE PRESIDENT OF THE UNITED STATES PURSUANT
2 TO THE CONSTITUTION AND LAWS OF THE UNITED STATES, INCLUDING THE
3 TRADING WITH THE ENEMY ACT (40 STAT. 411, 50 U.S.C. APP § 1 ET
4 SEQ.), THE INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT (PUBLIC
5 LAW 95-223, 50 U.S.C. § 1701 ET SEQ.), THE NATIONAL EMERGENCIES
6 ACT (PUBLIC LAW 94-412, 50 U.S.C. § 1601 ET SEQ.), THE ARMS
7 EXPORT CONTROL ACT (22 U.S.C. §§ 2797B-2797C), SECTION 5 OF THE
8 UNITED NATIONS PARTICIPATION ACT OF 1945 (22 U.S.C. § 287C) AND
9 3 U.S.C. § 301 (RELATING TO GENERAL AUTHORIZATION TO DELEGATE
10 FUNCTIONS; PUBLICATION OF DELEGATION). THE RESTRICTION SHALL BE
11 TO THE EXTENT PRESCRIBED BY THE PRESIDENT OF THE UNITED STATES,
12 UNLESS OTHERWISE SUBSEQUENTLY WAIVED. IN THE EVENT THE TREASURY
13 DEPARTMENT BECOMES AWARE THAT IT HAS INVESTED IN VIOLATION OF
14 THIS SUBSECTION THEN IT SHALL IMMEDIATELY MOVE TO DIVEST ITSELF
15 OF THE INVESTMENT IN A FIDUCIARILY PRUDENT MANNER.
16 (C) WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THIS SECTION
17 AND AT LEAST ANNUALLY THEREAFTER, THE TREASURY DEPARTMENT SHALL
18 COMPLETE A COMPREHENSIVE REVIEW OF ITS INVESTMENTS TO DETERMINE
19 COMPLIANCE WITH THE REQUIREMENTS OF SUBSECTION (B). IN THE EVENT
20 THE TREASURY DEPARTMENT BECOMES AWARE THAT IT HAS INVESTED IN
21 VIOLATION OF THIS SECTION THEN IT SHALL IMMEDIATELY MOVE TO
22 DIVEST ITSELF OF THE INVESTMENT IN A FIDUCIARILY PRUDENT MANNER.
23 (D) ALL EXISTING AND FUTURE INVESTMENT MANAGERS RETAINED BY
24 THE TREASURY DEPARTMENT ON OR AFTER THE EFFECTIVE DATE OF THIS
25 SECTION WHO INVEST IN THE NAME OF THE TREASURY DEPARTMENT SHALL
26 BE NOTIFIED OF THEIR OBLIGATION TO CONDUCT THEIR INVESTMENT
27 ACTIVITIES ON ITS BEHALF IN A MANNER DESIGNED TO COMPLY WITH THE
28 REQUIREMENTS OF SUBSECTION (B).
29 (E) AS USED IN THIS SECTION "PERSON" SHALL INCLUDE A
30 CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, BUSINESS
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1 TRUST, OTHER ASSOCIATION, GOVERNMENT ENTITY, OTHER THAN THE
2 UNITED STATES OF AMERICA AND THE STATES THAT COMPRISE IT,
3 ESTATE, TRUST, FOUNDATION OR NATURAL PERSON.
4 Section 2. This act shall take effect immediately.
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