House File 2241 - Introduced
HOUSE FILE
BY PETTENGILL, WESSEL=KROESCHELL,
SWAIM, D. OLSON, BUKTA, D. TAYLOR,
BERRY, DAVITT, T. TAYLOR, JOCHUM,
WINCKLER, LENSING, MILLER,
GASKILL, SCHUELLER, and MURPHY
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act prohibiting investment of certain public funds in
2 companies doing business in Sudan by the treasurer of state,
3 the Iowa public employees' retirement system, and the state
4 board of regents.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. NEW SECTION. 12A.1 LEGISLATIVE FINDINGS AND
1 2 INTENT.
1 3 The general assembly is deeply concerned over the human
1 4 rights situation in Sudan which calls for stepped=up
1 5 international efforts to end the crisis in Sudan's Darfur
1 6 region, and concurs with United States policy which has
1 7 officially declared that genocide is ongoing in the Sudan, and
1 8 demands that the government of Sudan bring an end to these
1 9 atrocities. Therefore, the general assembly intends that
1 10 state funds and funds administered by the state, including
1 11 public employee retirement funds, shall not be invested in
1 12 companies doing business in Sudan, given the ongoing genocide
1 13 in that country, the previous atrocities perpetrated by the
1 14 government of Sudan, and the abysmal human rights situation in
1 15 that country.
1 16 Sec. 2. NEW SECTION. 12A.2 PROHIBITED INVESTMENTS AND
1 17 DEPOSITS.
1 18 1. Assets or funds subject to the requirements of this
1 19 section shall not be invested in the stocks, securities, or
1 20 other obligations of a company which directly or through a
1 21 subsidiary is engaged in business in or with Sudan or its
1 22 instrumentalities.
1 23 2. Persons subject to this section shall take appropriate
1 24 action to sell, redeem, divest, or withdraw any investment
1 25 held in violation of this section. This section shall not be
1 26 construed to require the premature or otherwise imprudent
1 27 sale, redemption, divestment, or withdrawal of an investment,
1 28 but such sale, redemption, divestment, or withdrawal shall be
1 29 completed by July 1, 2007.
1 30 3. If it is determined by the treasurer of state that a
1 31 company, which had previously been considered to have been
1 32 engaged in business directly or through a subsidiary in or
1 33 with Sudan or its instrumentalities, has ceased business
1 34 operations with Sudan or its instrumentalities, then this
1 35 section shall no longer apply to investments in that company.
2 1 Sec. 3. NEW SECTION. 12A.3 REPORTS.
2 2 1. The treasurer of state, the state board of regents, and
2 3 the Iowa public employees' retirement system shall each file a
2 4 report with the general assembly by October 1, 2006, of all
2 5 investments held as of July 1, 2006, which are in violation of
2 6 this chapter.
2 7 2. On July 1, 2007, and each July 1 thereafter, the
2 8 treasurer, state board of regents, and the Iowa public
2 9 employees' retirement system shall each separately file a
2 10 report with the general assembly on all investments sold,
2 11 redeemed, divested, or withdrawn in compliance with this
2 12 chapter and shall provide, if applicable, a description of the
2 13 progress made since the previous report.
2 14 Sec. 4. Section 12.8, unnumbered paragraph 1, Code 2005,
2 15 is amended to read as follows:
2 16 The treasurer of state shall invest or deposit, subject to
2 17 section 12A.2 and as provided by law, any of the public funds
2 18 not currently needed for operating expenses and shall do so
2 19 upon receipt of monthly notice from the director of the
2 20 department of administrative services of the amount not so
2 21 needed. In the event of loss on redemption or sale of
2 22 securities invested as prescribed by law, and if the
2 23 transaction is reported to the executive council, neither the
2 24 treasurer nor director of the department of administrative
2 25 services is personally liable but the loss shall be charged
2 26 against the funds which would have received the profits or
2 27 interest of the investment and there is appropriated from the
2 28 funds the amount so required.
2 29 Sec. 5. Section 97B.4, subsection 5, Code 2005, is amended
2 30 to read as follows:
2 31 5. INVESTMENTS. The system, through the chief investment
2 32 officer, shall invest, subject to section 12A.2 and in
2 33 accordance with the investment policy and goal statement
2 34 established by the board, the portion of the retirement fund
2 35 which, in the judgment of the system, is not needed for
3 1 current payment of benefits under this chapter subject to the
3 2 requirements of section 97B.7A.
3 3 Sec. 6. Section 262.14, unnumbered paragraph 1, Code
3 4 Supplement 2005, is amended to read as follows:
3 5 The board may invest funds belonging to the institutions,
3 6 subject to section 12A.2 and the following regulations:
3 7 EXPLANATION
3 8 This bill prohibits the treasurer of state, the state board
3 9 of regents, and the Iowa public employees' retirement system
3 10 (IPERS) from investing in the stocks, securities, or other
3 11 obligations of a company which directly or through a
3 12 subsidiary is engaged in business in or with Sudan or its
3 13 instrumentalities. The bill provides that current investments
3 14 in violation of the bill be sold or divested by July 1, 2007.
3 15 The bill provides that if the treasurer determines that a
3 16 company is no longer engaged in business with Sudan, each
3 17 entity can again invest in that company. The bill further
3 18 provides that the treasurer, IPERS, and the regents shall each
3 19 file a report with the general assembly by October 1, 2006,
3 20 concerning investments held as of July 1, 2006, which are in
3 21 violation of the bill. Each entity is also required to file
3 22 an annual report by July 1 of each year, beginning July 1,
3 23 2007, concerning their compliance with the bill.
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