Download Zipped Amended WordPerfect HB0039.ZIP
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 39

This document includes House Committee Amendments incorporated into the bill on Mon, Feb 4, 2008 at 4:03 PM by ddonat. --> This document includes House Floor Amendments incorporated into the bill on Wed, Feb 20, 2008 at 11:51 AM by jeyring. -->              1     





Chief Sponsor: Julie Fisher

Senate Sponsor: Margaret Dayton

             8      LONG TITLE
             9      Committee Note:
             10          The Retirement and Independent Entities Interim Committee recommended this bill.
             11      General Description:
             12          This bill modifies the Utah State Retirement and Insurance Benefit Act by restricting
             13      investment of funds in certain entities.
             14      Highlighted Provisions:
             15          This bill:
             16          .    provides certain definitions;
             17          .    requires the Utah State Retirement Board to ensure that the monies of the Utah State
             18      Retirement Investment Fund are not invested in any business operations with a
             19      publicly traded foreign company that has certain business operations with the
             20      country of Iran;
             21          .    exempts private equity H. [ and ] , .H alternative investments H. , and commingled
             21a      funds .H from application of the section;
             22          .    requires the board to make rules to implement certain provisions, including
             23      identifying scrutinized companies and providing notice of potential investment
             24      withdrawal;
             25          .    requires the board to divest of any investments in scrutinized companies provided
             26      that divestment is not at a loss;
             27          .    indemnifies board members when divesting in compliance with the section; and

             28          .    exempts monies invested in a defined contribution plan from the investment
             29      restrictions.
             30      Monies Appropriated in this Bill:
             31          None
             32      Other Special Clauses:
             33          None
             34      Utah Code Sections Affected:
             35      ENACTS:
             36          49-11-306, Utah Code Annotated 1953
             38      Be it enacted by the Legislature of the state of Utah:
             39          Section 1. Section 49-11-306 is enacted to read:
             40          49-11-306. Definitions -- Investment prohibitions -- Rules -- Exceptions.
             41          (1) As used in this section:
             42          (a) (i) "Business operations" means engaging in commerce in any form, including
             43      acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating any
             44      apparatus of business or commerce, which includes equipment, facilities, personnel, products,
             45      services, personal property, and real property.
             46          (ii) "Business operations" does not include providing humanitarian aid.
             47          (b) H. [ (i) ] .H "Scrutinized company" means a publicly traded foreign company that:
             48           H. [ (A) (I) (Aa) ] (i)(A) .H has business operations that involve a contract with or
             48a1      provision of
             48a      supplies or
             49      services to a scrutinized entity;
             50           H. [ (II) ] [ (Bb) ] (B) .H has any direct or indirect equity share, consortium, or project
             50a      commissioned by a
             51      scrutinized entity; or
             52           H. [ (III) ] [ (Cc) ] (C) .H is involved in a consortium or project commissioned by a
             52a1      scrutinized
             52a      entity; H. [ and ]
             53           [ (B) (I) ] [ (II) ] (ii)(A) .H has more than 5% of the company's total revenues or assets
             53a      linked to a
             54      scrutinized entity; and
             55           H. [ (II) ] [ (III) ] (B) .H has failed to adopt, publicize, and implement a formal plan to
             55a      reduce the
             56      investment to 5% or below within one year; or
             57           H. [ (C) ] [ (B) ] (iii) .H has, with actual knowledge, on or after August 5, 1996, made an
             57a      investment of $20
             58      million or more, or any combination of investments which in the aggregate exceeds $20 million

             59      in any 12-month period, in a scrutinized entity.
             60      H. [ (ii) "Scrutinized company" does not mean private equity and other alternative
             61      investments.
] .H

             62          (c) (i) "Scrutinized entity" means the government of, the governmental
             63      instrumentalities of, and any company or organization owned or controlled by the Islamic
             64      Republic of Iran.
             65          (ii) Notwithstanding Subsection (1)(c)(i), "scrutinized entity" does not include the
             66      government of, the governmental instrumentalities of, or any company or organization owned
             67      or controlled by a country or entity that:
             68          (A) has been removed from the United States Department of State's list of countries
             69      that have been determined to repeatedly provide support for acts of international terrorism; and
             70          (B) pursuant to the Iran and Libya Sanctions Act of 1996, Pub. L. No. 104-172, as
             71      amended, has been determined and certified to have ceased its efforts to design, develop,
             72      manufacture, or acquire a nuclear explosive device or related materials and technology.
             73          (2) (a) Notwithstanding any other provision of this part and subject to federal
             74      limitations, the board shall ensure that the monies of the Utah State Retirement Investment
             75      Fund are not invested in a scrutinized company or a scrutinized entity in accordance with the
             76      provisions of Subsections (2)(b) and (c).
             77          (b) Subject to the provisions of Subsection (2)(c), any divestment of holdings required
             78      under Subsection (2)(a) shall be completed in at least the following time frames which shall
             79      begin on H. [ May 5, 2008 ] July 1, 2009 .H :
             80          (i) 33% within 180 days;
             81          (ii) 66% within 360 days; and
             82          (iii) 100% within 540 days.
             83          (c) Notwithstanding the provisions of Subsections (2)(a) and (b), the board H. :
             83a          (i) .H is not
             84      required to divest any holdings at a loss, to be calculated on cost basis H. [ . ] ; and
             84a          (ii) is not required to divest from investments in private equity, alternative investments,
             84b      or commingled funds. .H
             85          (d) The board, including present and former board members, is not liable for breach of
             86      fiduciary duty by reason of any decision to avoid, restrict, reduce, or eliminate investments in a
             87      scrutinized company in accordance with the requirements of this section.
             88          (3) The board shall make rules to provide procedures for:
             89          (a) identifying and maintaining a list of scrutinized companies;

             90          (b) determining what investments are made in a scrutinized company or scrutinized
             91      entity;
             92          (c) providing notice that the Utah State Retirement Investment Fund has identified a
             93      company as a scrutinized company and will withdraw its investment in the scrutinized
             94      company, which notice may provide up to 90 days for the company to provide evidence that it
             95      is not a scrutinized entity before divestment occurs; and
             96          (d) implementing other provisions required by this section.
             97          (4) The provisions of this section do not apply to monies invested in a defined
             98      contribution plan as defined in Section 49-11-102 .

Legislative Review Note
    as of 11-14-07 12:56 PM

Office of Legislative Research and General Counsel

[Bill Documents][Bills Directory]