SENATE DOCKET, NO. 3013        FILED ON: 2/28/2022

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No.         

The Commonwealth of Massachusetts

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PRESENTED BY:

Walter F. Timilty

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to pension divestment from Russia.

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PETITION OF:

SENATE DOCKET, NO. 3013        FILED ON: 2/28/2022

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No.         

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Second General Court
(2021-2022)

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An Act relative to pension divestment from Russia.

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to divest pensions from companies engaging in business operations in Russia, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public peace.
 

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. As used in this act the following words shall have the following meanings:-

“Active business operations”, all business operations that are not inactive business operations.

“Board”, the pension reserves investment management board established pursuant to section 23 of chapter 32 of the General Laws.

“Business operations”, engaging in commerce in any form in Russia, including by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce.

“Company”, any sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company, or other entity or business association, including all wholly-owned subsidiaries, majority-owned subsidiaries, parent companies, or affiliates of such entities or business associations that exist for profit-making purposes.

“Direct holdings”, all securities of a company held directly by the public fund or in an account or fund in which the public fund owns all shares or interests.

“Inactive business operations”, the continued holding or renewal of rights to property previously operated for the purpose of generating revenues but not presently deployed for such purpose.

“Indirect holdings”, all securities of a company held in an account or fund, such as a mutual fund, managed by 1 or more persons not employed by the public fund, in which the public fund owns shares or interests together with other investors not subject to the provisions of this act.

“Public fund”, the Pension Reserves Investment Trust or the Pension Reserves Investment Management Board in charge of managing the pooled investment fund consisting of the assets of the State Employees’ and Teachers’ Retirement Systems as well as the assets of local retirement systems under the control of the board.

SECTION 2. Within 90 days of the effective date of this act, the public fund shall make its best efforts to identify all companies engaged in business operations, in which the public fund has direct or indirect holdings or could possibly have such holdings in the future. The identification of companies shall be the responsibility of an independent, third-party research firm, as identified by the public fund, and based on the criteria set forth in this act.

SECTION 3. (a)(1) The public fund shall immediately determine the companies engaged in business operations, in which the public fund owns direct or indirect holdings;

(2) The public fund shall sell, redeem, divest, or withdraw all publicly-traded securities of a company identified in paragraph (1) with active business operations.

(3) If a company identified in paragraph (1) with only inactive business operations converts such operations to active business operations, paragraph (2) will immediately apply.

SECTION 4. The public fund shall file a report with the clerks of the senate and the house of representatives and the attorney general that includes the list of companies engaged in business operations within 30 days after the list is created. Annually thereafter, the public fund shall file a report to the clerks of the senate and the house of representatives and the attorney general, including but not limited to, all investments sold, redeemed, divested, or withdrawn in compliance with section 3.