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Mr. President:
The Retirement and Independent Entities Committee reports a favorable recommendation
on S.B. 112, RETIREMENT SYSTEM DIVESTMENT, by Senator C. Bramble, with the
following amendments:
Respectfully,
Daniel R. Liljenquist
Voting: 6-0-0
1. Page
1, Lines 13 through 20
:
13
This bill:
. modifies the definition of direct holdings to exclude holdings that are part of
a passive indexing investment strategy;
14
. requires the Utah State Retirement Office to include data designed to explain
the
15
extent to which public fund investments in scrutinized companies are being
16
prevented;
17
. requires the Utah State Retirement Office to prevent the
investment of
public funds
}
acquisition of direct holdings
18
in a scrutinized company by adjusting future investment practices within the office
19
and by stipulating in future investment management contracts that no new
20
investments may be made
}
direct holdings be acquired
in a scrutinized
company; and
2. Page
2, Lines 47 through 49
:
47
(d)
48
held directly by the public fund or in an account or fund in which the public fund owns all
49
shares or interests.
(ii) "Direct holdings" does not include publicly traded equity securities of a company held as
part of a passive indexing investment strategy.
3. Page
3, Line 83 through Page 4, Line 91
:
83
(6) Beginning July 1, 2011, using the most current list assembled under Subsection
(2),
84
the office shall prevent the investment of public funds
85
(a) for public funds managed within the office, by not investing in
86
company; and
87
(b) for public funds managed by contract by a professional investment manager:
88
(i) for existing contracts, by requesting that no more
investments be
made
}
direct holdings be acquired
in a
89
scrutinized company; and
90
(ii) for future contracts, by stipulating in the contract that no new
investments
may be
91
made
}
Committee Chair
3 SB0112.SC1.wpd /BNC CJD/MDA 2/14/11 4:37 pm
Bill Number
*SB0112*
SB0112