S.B. 112
         RETIREMENT SYSTEM DIVESTMENT

Senate Committee Amendments

Amendment 1 February 4, 2011 8:54 AM



Senator Curtis S. Bramble proposes the following amendments:

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)
  (i)       "Direct holdings" means all publicly traded equity securities of a company that are

             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
  direct holdings       in a scrutinized company:

             85          (a) for public funds managed within the office, by not investing in
  direct holdings in       a scrutinized

             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   }
  direct holdings be acquired       in a scrutinized company.

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