STATE OF NEW YORK
        ________________________________________________________________________
                                          2035
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 22, 2019
                                       ___________
        Introduced  by  M.  of  A.  ORTIZ, JAFFEE, ARROYO, TAYLOR, COOK, D'URSO,
          WRIGHT -- Multi-Sponsored by -- M.  of  A.  SIMON  --  read  once  and
          referred to the Committee on Governmental Employees
        AN  ACT  to amend the retirement and social security law, in relation to
          enacting the "firearms and tobacco divestment act"
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  This act shall be known and may be cited as the "firearms
     2  and tobacco divestment act".
     3    § 2. Section 423 of the retirement and social security law, as amended
     4  by chapter 770 of the laws of 1970, is amended to read as follows:
     5    § 423. Investments.   [a.] 1.  On  and  after  April  first,  nineteen
     6  hundred  sixty-seven,  the comptroller shall invest the available monies
     7  of the common retirement fund in any investments and securities  author-
     8  ized  by  law for each retirement system and shall hold such investments
     9  in his name as trustee of such fund, notwithstanding any other provision
    10  of this chapter. Participating interests in such  investments  shall  be
    11  credited  to each retirement system in the manner and at the time speci-
    12  fied in [paragraph] subdivision two of section four  hundred  twenty-two
    13  of this article.
    14    [b.]  2.  (a)  To assist in the management of the monies of the common
    15  retirement fund, the comptroller shall appoint  an  investment  advisory
    16  committee  consisting of not less than seven members who shall serve for
    17  his term of office. A vacancy occurring from any cause other than  expi-
    18  ration  of  term shall be filled by the comptroller for the remainder of
    19  the term. Each member of the committee shall be experienced in the field
    20  of investments and shall have served, or shall be serving, as  a  senior
    21  officer  or  member of the board of an insurance company, banking corpo-
    22  ration or other financial or investment organization  authorized  to  do
    23  business  in the state of New York. The committee shall advise the comp-
    24  troller on investment policies relating to  the  monies  of  the  common
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05836-01-9

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     1  retirement  fund  and  shall  review,  from time to time, the investment
     2  portfolio of the fund and make such recommendations  as  may  be  deemed
     3  necessary.
     4    (b) The comptroller shall appoint a separate mortgage advisory commit-
     5  tee,  with  the advice and consent of the investment advisory committee,
     6  to review proposed mortgage and real estate investments  by  the  common
     7  retirement  fund. In making investments, as authorized by law, the comp-
     8  troller shall be guided by policies established by each  committee  from
     9  time  to  time; and, in the event the mortgage advisory committee disap-
    10  proves a proposed mortgage or real estate investment, such shall not  be
    11  made.
    12    (c)  No officer or employee of any state department or agency shall be
    13  eligible for  membership  on  either  committee.  Each  committee  shall
    14  convene  periodically  on  call  of  the  comptroller, or on call of the
    15  chairman. The members of each committee shall be entitled to  reimburse-
    16  ment  for  their  actual  and  necessary  expenses  but shall receive no
    17  compensation for their services.
    18    3. (a) Notwithstanding any provision of law to the contrary, the comp-
    19  troller shall not have the power to invest the available monies  of  the
    20  common  retirement  fund  in any stocks, debt or other securities of any
    21  corporation or company, or any subsidiary, affiliate or  parent  of  any
    22  corporation  or  company,  engaged  in  the  manufacture of firearms, as
    23  defined in section 265.00 of the penal law. The  comptroller  shall,  in
    24  accordance with sound investment criteria and consistent with his or her
    25  fiduciary obligations, divest any such stocks or other securities wheth-
    26  er  they  are  owned  directly  or held through separate accounts or any
    27  commingled funds.  Divestment  pursuant  to  this  subdivision  must  be
    28  completed within five years of the effective date of this subdivision.
    29    (b)  The comptroller shall be permitted to cease divesting from compa-
    30  nies under paragraph (a) of this subdivision, reinvest in companies from
    31  which it divested under paragraph (a) of this subdivision,  or  continue
    32  to invest in companies from which it has not yet divested upon clear and
    33  convincing  evidence showing that as a direct result of such divestment,
    34  the total and aggregate value of all assets under management by,  or  on
    35  behalf of, the common retirement fund becomes or shall become: (i) equal
    36  to  or  less  than ninety-nine and one-half percent; or (ii) one hundred
    37  percent less fifty basis points of the hypothetical value of all  assets
    38  under  management by, or on behalf of, the common retirement fund assum-
    39  ing no divestment from any company had occurred under said paragraph (a)
    40  of this subdivision. Cessation of divestment, reinvestment or any subse-
    41  quent ongoing investment authorized by this section  shall  be  strictly
    42  limited  to  the  minimum  steps  necessary to avoid the contingency set
    43  forth in the preceding sentence. For any cessation of divestment, and in
    44  advance of such cessation, authorized by  this  subdivision,  the  comp-
    45  troller  shall  provide  a  written  report to the attorney general, the
    46  senate standing committee on civil service and pensions, and the  assem-
    47  bly  standing committee on governmental employees, updated semi-annually
    48  thereafter as applicable, setting forth the reasons  and  justification,
    49  supported  by  clear and convincing evidence, for its decisions to cease
    50  divestment, to reinvest or to remain invested in  companies  engaged  in
    51  the  manufacture  of firearms, as defined in section 265.00 of the penal
    52  law.
    53    (c) Within sixty days of the effective date of this  subdivision,  the
    54  comptroller  shall  facilitate the identification of companies in compa-
    55  nies engaged in the manufacture  of  firearms,  as  defined  in  section
    56  265.00  of  the  penal  law  from  which  the  common retirement fund is

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     1  required to divest under paragraph (a) of this subdivision, and  file  a
     2  copy of this list with the attorney general, the senate standing commit-
     3  tee  on  civil service and pensions, and the assembly standing committee
     4  on  governmental  employees.  Annually thereafter, the public fund shall
     5  file a report with the attorney general, the senate  standing  committee
     6  on  civil  service  and pensions, and the assembly standing committee on
     7  governmental  employees  that  includes:  (i)  all   investments   sold,
     8  redeemed, divested or withdrawn in compliance with paragraph (a) of this
     9  subdivision;  and  (ii) all prohibited investments from which the common
    10  retirement fund has not yet divested under paragraph (a) of this  subdi-
    11  vision.
    12    4. (a) Notwithstanding any provision of law to the contrary, the comp-
    13  troller  shall  not have the power to invest the available monies of the
    14  common retirement fund in any stocks, debt or other  securities  of  any
    15  corporation  or  company,  or any subsidiary, affiliate or parent of any
    16  corporation or company, engaged in the manufacture of  tobacco  products
    17  as  defined  in  section  thirteen  hundred ninety-nine-aa of the public
    18  health law. The comptroller shall, in accordance with  sound  investment
    19  criteria  and  consistent  with his or her fiduciary obligations, divest
    20  any such stocks or other securities whether they are owned  directly  or
    21  help  through  separate  accounts  or  any  commingled funds. Divestment
    22  pursuant to this subdivision must be completed within five years of  the
    23  effective date of this subdivision.
    24    (b)  The comptroller shall be permitted to cease divesting from compa-
    25  nies under paragraph (a) of this subdivision, reinvest in companies from
    26  which it divested under paragraph (a) of this subdivision,  or  continue
    27  to invest in companies from which it has not yet divested upon clear and
    28  convincing  evidence showing that as a direct result of such divestment,
    29  the total and aggregate value of all assets under management by,  or  on
    30  behalf of, the common retirement fund becomes or shall become: (i) equal
    31  to  or  less  than ninety-nine and one-half percent; or (ii) one hundred
    32  percent less fifty basis points of the hypothetical value of all  assets
    33  under  management by, or on behalf of, the common retirement fund assum-
    34  ing no divestment from any company had occurred under said paragraph (a)
    35  of this subdivision. Cessation of divestment, reinvestment or any subse-
    36  quent ongoing investment authorized by this section  shall  be  strictly
    37  limited  to  the  minimum  steps  necessary to avoid the contingency set
    38  forth in the preceding sentence. For any cessation of divestment, and in
    39  advance of such cessation, authorized by  this  subdivision,  the  comp-
    40  troller  shall  provide  a  written  report to the attorney general, the
    41  senate standing committee on civil service and pensions, and the  assem-
    42  bly  standing committee on governmental employees, updated semi-annually
    43  thereafter as applicable, setting forth the reasons  and  justification,
    44  supported  by  clear and convincing evidence, for its decisions to cease
    45  divestment, to reinvest or to remain invested in  companies  engaged  in
    46  the  manufacture  of  tobacco  products  as  defined in section thirteen
    47  hundred ninety-nine-aa of the public health law.
    48    (c) Within sixty days of the effective date of this  subdivision,  the
    49  comptroller  shall  facilitate the identification of companies in compa-
    50  nies, engaged in the manufacture  of  tobacco  products  as  defined  in
    51  section  thirteen  hundred  ninety-nine-aa of the public health law from
    52  which the common retirement fund is required to divest  under  paragraph
    53  (a)  of this subdivision, and file a copy of this list with the attorney
    54  general, the senate standing committee on civil  service  and  pensions,
    55  and  the assembly standing committee on governmental employees. Annually
    56  thereafter, the public fund shall file a report with the attorney gener-

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     1  al, the senate standing committee on civil service and pensions, and the
     2  assembly standing committee on governmental employees that includes: (i)
     3  all investments sold, redeemed, divested or withdrawn in compliance with
     4  paragraph  (a)  of this subdivision; and (ii) all prohibited investments
     5  from which the common retirement fund has not yet divested  under  para-
     6  graph (a) of this subdivision.
     7    § 3. This act shall take effect immediately.