2012 -- S 3061

=======

LC02790

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO PUBLIC FINANCES -- STATE INVESTMENTS--NORTHERN IRELAND

     Introduced By: Senator Maryellen Goodwin

     Date Introduced: June 08, 2012

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 35-10-14 of the General Laws in Chapter 35-10 entitled "State

1-2

Investment Commission" is hereby amended to read as follows:

1-3

     35-10-14. Investment in corporations doing business in Northern Ireland. -- (a)

1-4

Notwithstanding any general or special law or regulation to the contrary, the general treasurer,

1-5

acting as the treasurer/custodian of the state employees' retirement system and the teachers'

1-6

retirement system, and as the chairperson of the state investment commission, is authorized and

1-7

directed to monitor, by reference to reports of the investor responsibility research center or such

1-8

other sources as he or she may deem useful and appropriate, the extent to which corporations

1-9

organized under the laws of the United States or the several states and operating in Northern

1-10

Ireland, in which the assets of the retirement systems or of the pension reserves investment trust

1-11

fund are invested, adhere to principals of nondiscrimination in employment and freedom of

1-12

workplace opportunity. In conducting the survey, the general treasurer may utilize any

1-13

information presently available relative to similar pension plans. In making this determination,

1-14

the general treasurer shall consider, without limitation, the following standards for corporate

1-15

activity:

1-16

      (1) Equal access to employment, promotion, and job-preservation without regard to

1-17

religious affiliation or other minority status;

1-18

      (2) The promotion of religious tolerance within the workplace, and the eradication of any

1-19

manifestations of religious and other illegal discrimination;

2-20

      (3) Adherence to other legal and regulatory guidelines for nondiscrimination and

2-21

equality of opportunity existing in Northern Ireland; and

2-22

      (4) Adherence to the MacBride Principles for Northern Ireland, so-called.

2-23

      (b) The general treasurer shall set forth the results of the investigation by filing a report

2-24

for the preceding calendar year with the clerks of the house of representatives and of the senate

2-25

not later than December 31 April 15 of each year. The report shall include, but not be limited to,

2-26

the names and addresses of all United States corporations operating in Northern Ireland in which

2-27

the assets of the retirement systems or trust fund are invested, and the findings of the general

2-28

treasurer relative to these corporations' adherence to the standards for corporate activity as set

2-29

forth in subsection (a) the findings of the general treasurer relative to the adherence to the

2-30

standards for corporate activity as set forth in subsection (a) for all United States corporations

2-31

operating in Northern Ireland in which the assets of the retirement systems or trust fund are

2-32

invested. The general treasurer shall also report his or her recommendations, if any, consistent

2-33

with prudent fiduciary practice, based upon the findings of the investigation. The report shall be

2-34

available for public inspection in the offices of the clerks of the house of representatives and of

2-35

the senate, and in the office of the general treasurer.

2-36

      (c) The general treasurer, subject to the approval of the commission, shall, where

2-37

necessary, appropriate, and consistent with prudent standards for fiduciary practice, support

2-38

shareholder petitions or initiatives requiring corporate action in compliance with the standards for

2-39

nondiscrimination set forth in this section.

2-40

      (d) It is not the intent of this section to diminish the present portfolio and it is not the

2-41

intent of this section to injure the fragile economy of Northern Ireland. The general treasurer, in

2-42

accordance with sound investment criteria, is encouraged to make future pension fund

2-43

investments in United States firms which conduct business in Northern Ireland and which abide

2-44

by the MacBride Principles of fair employment. Should all or any of the United States firms in

2-45

which Rhode Island state pension funds are invested refuse to comply with the MacBride

2-46

Principles, the general treasurer, in accordance with sound investment criteria, does have the

2-47

option and is encouraged to remove these funds and invest them in United States firms which

2-48

conduct business in Northern Ireland and which abide by the MacBride Principles of fair

2-49

employment.

2-50

     SECTION 2. This act shall take effect upon passage.

=======

LC02790

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC FINANCES -- STATE INVESTMENTS--NORTHERN IRELAND

***

3-1

     This act would change the reporting date for the treasurer’s report on Northern Ireland

3-2

investments from December 31 to April 15 of each year. It would also reduce the amount of

3-3

information required in the report.

3-4

     This act would take effect upon passage.

=======

LC02790

=======