Session Laws

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to immediately provide for the investment of certain funds in the Republic of South Africa, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 35 of chapter 23A of the General Laws, as appearing in the 1992 Official Edition, is hereby amended by inserting after the word "Africa", in line 101, the following words:- absent compliance with the platform of guiding principles as defined in subdivision (5) of section twenty-three of chapter thirty-two.

SECTION 2. Paragraph (d) of subdivision (1) of said section 23 of said chapter 32, as so appearing, is hereby amended by striking out clause (ii) and inserting in place thereof the following clause:-

(ii) no investment of funds shall be made in any bank or financial institution which directly or through any subsidiary has outstanding loans to any individual corporation engaged in the manufacture, distribution or sale of firearms, munitions, including rubber or plastic bullets, tear gas, armored vehicles, or military aircraft for use or development in any activity in South Africa, and no new investment of funds shall be made in the stocks, securities or other obligations of any company so engaged; provided, however, that if the investment committee elects to invest in banks, financial institutions or any companies doing business in South Africa, excluding the aforementioned, the investment committee shall review the platform of guiding principles defined in subdivision (5) and monies shall be invested as much as reasonably possible in such banks, financial institutions or companies which have adopted said platform of guiding principles so long as such use is consistent with sound investment policy.

SECTION 3. Paragraph (g) of subdivision (2) of said section 23 of said chapter 32, as so appearing, is hereby amended by striking out clause (ii) and inserting in place thereof the following clause:-

(ii) subsequent to the date of such determination no new investment of funds shall be made in any bank or financial institution which directly or through any subsidiary has outstanding loans to any individual corporation engaged in the manufacture, distribution or sale of firearms, munitions, including rubber or plastic bullets, tear gas, armored vehicles, or military aircraft for use or development in any activity in South Africa, and no new investment of funds shall be made in the stocks, securities or other obligations of any company so engaged; provided, however, that if the board elects to invest in banks, financial institutions or any companies doing business in South Africa, excluding the aforementioned, the board shall review the platform of guiding principles defined in subdivision (5) and monies shall be invested as much as reasonably possible in such banks, financial institutions or companies which have adopted said platform of guiding principles so long as such use is consistent with sound investment policy;.

SECTION 4. Paragraph (h) of subdivision (2A) of said section 23 of said chapter 32, as so appearing, is hereby amended by striking out, in line 449 to line 454, inclusive, the words "funds are to be invested in any bank or financial institution which directly or through its subsidiaries has outstanding loans to the Republic of South Africa or its instrumentalities and no assets shall be invested in stocks, securities, or other obligations of any company doing business in or with the Republic of South Africa" and inserting in place thereof the following words:- no investment of funds shall be made in any bank or financial institution which directly or through any subsidiary has outstanding loans to any individual corporation engaged in the manufacture, distribution or sale of firearms, munitions, including rubber or plastic bullets, tear gas, armored vehicles, or military aircraft for use or development in any activity in South Africa, and no new investment of funds shall be made in the stocks, securities or other obligations of any company so engaged; provided, further, that if the board elects to invest in banks, financial institutions or any companies doing business in South Africa, excluding the aforementioned, the board shall review the platform of guiding principles defined in subdivision (5) and monies shall be invested as much as reasonably possible in such banks, financial institutions or companies which have adopted said platform of guiding principles so long as such use is consistent with sound investment policy.

SECTION 5. Said section 23 of said chapter 32, as so appearing, is hereby further amended by adding the following subdivision:-

(5) The platform of guiding principles for investment in South Africa shall mean, without limitation, the following standards of corporate activity:

(a) Worker's rights: companies should uphold worker's rights including the recognition of representative unions and their rights to bargain collectively, to strike, to picket peacefully, the establishment of a policy that strike breakers will not be hired and that investment should enhance employment creation;

(b) Equality of opportunity: companies should eliminate all discrimination on the basis of race, religion, sex, political opinion or physical handicap and implement affirmative action programs;

(c) Environmental protection: investment should incorporate environmentally sound and clean practices and technology;

(d) Training and education: investment should enhance the productive capacities of South Africans, and in particular, institute training and adult education programs for workers in consultation with the trade union movement;

(e) Conditions of work and life: conditions of work and life offered by companies should compare favorably with the best conditions in the relevant sector domestically;

(f) Security of employment: investment should contribute to the security of employment of South Africans;

(g) Empower black business: companies should, where possible, adopt business practices which enhance the development of black business in South Africa.

SECTION 6. Section 12 of chapter 40D of the General Laws, as so appearing, is hereby amended by inserting after the word "Africa", in line 90, the following words:- absent compliance with the platform of guiding principles as defined in subdivision (5) of section twenty-three of chapter thirty-two.

SECTION 7. Section 6 of chapter 64H of the General Laws is hereby amended by striking out, in line 441, as so appearing, the words "except the Republic of South Africa".

SECTION 8. The cities of Boston, Newton, and Watertown may invest their public pension funds in any financial institution or corporation doing business in or with the Republic of South Africa in accordance with the provisions of clause (ii) of paragraph (g) of subdivision (2) of section twenty-three of chapter thirty-two of the General Laws.

SECTION 9. Chapter four hundred and ninety of the acts of nineteen hundred and eighty-four, chapter six hundred and ninety-eight of the acts of nineteen hundred and eighty-five and chapter two hundred and fifty-two of the acts of nineteen hundred and eighty-six are hereby repealed.