Link to Zipped WordPerfect Minutes 7K bytes
Rep. Stephen Sandstrom, Vice Chair
Rep. Brad Daw
Rep. Susan Duckworth
Rep. Neil Hansen
Rep. Wayne Harper
Rep. Merlynn T. Newbold
Rep. Christine Watkins
Members Absent: Rep. Brad Last
Staff Present: Benjamin N. Christensen, Policy Analyst
Becky Lawyer, Kathy Sorg, Committee Secretary
Note: A list of visitors and a copy of handouts are filed with the committee minutes.
Rep. Sandstrom called the meeting to order at 12:22 p.m.
MOTION: Rep. Duckworth moved to approve the minutes of Wednesday, February 24, 2010. Rep. Hansen pointed out an omitted motion to table S.B. 63S2. Rep. Duckworth amended her motion to approve the minutes with the correction. The vote to approve the minutes as amended was unanimous with Rep. Harper and Rep. Newbold absent for the vote.
H.B. 286 Retirement System Divestment (Rep. Julie Fisher)
Rep. Fisher introduced and explained the bill to the committee.
MOTION: Rep. Ipson moved to approve 1st Sub H. B. 286. The motion passed unanimously with Rep. Newbold absent for the vote.
MOTION: Rep. Ipson moved to approve 1st Sub H. B. 286 as follows:
1. Page 1, Lines 16 through 19 :
16 . requires the Retirement Office to prevent the investment of public funds in a
17 scrutinized company by adjusting future investment practices within the office and
18 by stipulating in future investment management contracts, that no new investments
19 may be made
into direct holdings in a scrutinized company; and
2. Page 3, Lines 70 through 76 :
70 (b) The office shall assemble a list of all identified scrutinized companies
under Subsection (2)(a) .
71 (c) The office shall update the list, on an annual basis, with information provided and
72 received from those entities listed in Subsection (2)(a).
73 (3) The office shall prepare an annual report of public fund investments
into direct holdings in scrutinized
75 (4) The report shall include amounts and other data and statistics designed to explain
76 the past and current extent to which public fund investments
into direct holdings in scrutinized companies:
3. Page 3, Line 82 through Page 4, Line 90 :
82 (6) Beginning, July 1, 2010, using the most current list assembled under Subsection
83 (2), the office shall prevent the investment of public funds
into direct holdings in a scrutinized company:
84 (a) for public funds managed within the office, by not investing
in direct holdings in a scrutinized
85 company; and
86 (b) for public funds managed by contract by a professional investment manager:
87 (i) for existing contracts, by requesting that no more investments be made
into direct holdings in a
88 scrutinized company; and
89 (ii) for future contracts, by stipulating in the contract that no new investments may be
into direct holdings in a scrutinized company.
The motion passed unanimously with Rep. Newbold absent for the vote.
Rep. Fisher explained the substitute and amendment to the committee.
Spoke for the bill: Greg Smith, BYU student
Bill Becker, Park City resident
Ron Sevier, Salt Lake City resident
Laura Green, Sandy City resident
Taylor Frank, BYU student
Spoke against the bill: Dan Anderson, Counsel to Utah Retirement Systems
MOTION: Rep. Daw moved to recommend 1st Sub H. B. 286 favorably as amended.
SUBSTITUTE MOTION: Rep. Watkins moved to adjourn. The motion failed with Rep. Duckworth, Rep. Hansen, and Rep. Watkins voting in favor.
The original motion to recommend 1st Sub H. B. 286 favorably as amended passed with Rep. Hansen voting in opposition, and Rep. Duckworth and Rep. Watkins absent for the vote.
MOTION: Rep. Daw moved to adjourn. The motion passed unanimously with Rep. Duckworth and Rep. Watkins absent for the vote.
Rep. Sandstrom adjourned the meeting at 1:03 p.m.
Rep. Don Ipson, Chair