PRIOR PRINTER'S NO. 16 PRINTER'S NO. 1334
No. 13 Session of 1987
INTRODUCED BY RICHARDSON, IRVIS, LINTON, FATTAH, PRESTON, CARN,
DEAL, EVANS, ROEBUCK, DeWEESE, KUKOVICH, FEE, COLAFELLA,
McHALE, BLAUM, COHEN, LEVDANSKY, JOSEPHS, E. Z. TAYLOR,
CAWLEY, FREEMAN, WAMBACH, WOZNIAK, VEON, HAYDEN AND HUGHES,
JANUARY 28, 1987
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, APRIL 28, 1987
AN ACT
1 Amending Title 71 (State Government) of the Pennsylvania
2 Consolidated Statutes, prohibiting investments in
3 corporations doing business HAVING BUSINESS OPERATIONS in the <--
4 Republic of South Africa or Namibia.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Title 71 of the Pennsylvania Consolidated
8 Statutes is amended by adding a section to read:
9 § 5940. Prohibited investments. <--
10 (a) Republic of South Africa or Namibia.--The board shall
11 not invest any of the fund in any stock or obligation of any
12 corporation doing business, either by itself or through any
13 subsidiary or affiliate, in the Republic of South Africa or
14 Namibia.
15 (b) Divestment.--The board shall divest itself of any
16 investment as described in subsection (a) within one year of the
1 effective date of this section.
2 § 5940. PROHIBITED INVESTMENTS. <--
3 (A) REPUBLIC OF SOUTH AFRICA OR NAMIBIA.--THE BOARD SHALL
4 NOT INVEST ANY OF THE FUND IN ANY STOCK OR FINANCIAL OBLIGATION
5 OF ANY CORPORATION OR BUSINESS HAVING "BUSINESS OPERATIONS"
6 EITHER DIRECTLY OR THROUGH A SUBSIDIARY OR AFFILIATE IN THE
7 AFRICAN COUNTRIES OF THE REPUBLIC OF SOUTH AFRICA OR NAMIBIA.
8 (B) DIVESTITURE REQUIRED.--NOTWITHSTANDING ANY OTHER
9 PROVISION OF THIS SUBCHAPTER TO THE CONTRARY, THE TRUSTEES SHALL
10 SELL, TRANSFER, DISPOSE OF, AND OTHERWISE DIVEST THEMSELVES OF
11 ANY SECURITY OR INVESTMENT IN CORPORATIONS OR OTHER BUSINESS
12 HAVING "BUSINESS OPERATIONS" EITHER DIRECTLY OR THROUGH A
13 SUBSIDIARY OR AFFILIATE IN THE AFRICAN COUNTRIES OF THE REPUBLIC
14 OF SOUTH AFRICA OR NAMIBIA.
15 (C) DEFINITION.--AS USED IN THIS SECTION:
16 "BUSINESS OPERATIONS." AS USED IN SUBSECTIONS (A) AND (B)
17 SHALL MEAN THE MAINTENANCE OF EQUIPMENT, FACILITIES, PERSONNEL,
18 OR ANY OTHER APPARATUS OF BUSINESS OR COMMERCE, INCLUDING THE
19 OWNERSHIP OR POSSESSION OF REAL OR PERSONAL PROPERTY LOCATED IN
20 SOUTH AFRICA OR NAMIBIA.
21 (D) FIDUCIARY DUTY.--IN CARRYING OUT THEIR RESPONSIBILITY
22 UNDER THIS SUBCHAPTER, THE TRUSTEES SHALL CONSULT WITH THE
23 INFORMATION AND LISTS PREPARED BY THE STATE TREASURER, ACTING AS
24 A CLEARINGHOUSE FOR SUCH INFORMATION PURSUANT TO SECTION 3.2 OF
25 THE ACT OF FEBRUARY 17, 1906 (SP.SESS., P.L.45, NO.11), ENTITLED
26 "AN ACT TO REGULATE THE DEPOSITS OF STATE FUNDS, TO PRESCRIBE
27 THE METHOD OF SELECTING STATE DEPOSITORIES, TO LIMIT THE AMOUNT
28 OF STATE DEPOSITS, TO PROVIDE FOR THE SECURITY OF SUCH DEPOSITS,
29 TO FIX THE RATE OF INTEREST THEREON, TO PROVIDE FOR THE
30 PUBLICATION OF MONTHLY STATEMENTS OF MONEYS IN THE GENERAL AND
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1 SINKING FUNDS, TO DECLARE IT A MISDEMEANOR TO GIVE OR TAKE
2 ANYTHING OF VALUE FOR OBTAINING THE SAME, AND PRESCRIBING
3 PENALTIES FOR VIOLATIONS OF THIS ACT."
4 (E) PREMATURE OR IMPRUDENT SALES.--NOTHING IN THIS SECTION
5 SHALL BE CONSTRUED TO REQUIRE THE PREMATURE OR OTHERWISE
6 IMPRUDENT SALE, REDEMPTION, DIVESTMENT OR WITHDRAWAL OF
7 INVESTMENT, BUT SUCH SALE, REDEMPTION, DIVESTMENT OR WITHDRAWAL
8 SHALL BE COMPLETED NOT LATER THAN 18 MONTHS FOLLOWING THE
9 EFFECTIVE DATE OF THIS SECTION.
10 (F) INDEMNIFICATION.--IN EXECUTING THE REQUIREMENTS OF THIS
11 AMENDATORY ACT, THE PRESENT, FUTURE AND FORMER MEMBERS OF THE
12 BOARD ACTING AS TRUSTEES OF THE FUND, ALL PRESENT, FUTURE AND
13 FORMER INVESTMENT MANAGERS UNDER CONTRACT WITH THE STATE
14 EMPLOYEES' RETIREMENT BOARD AND ALL PRESENT, FUTURE AND FORMER
15 OFFICERS, OFFICIALS AND EMPLOYEES OF THE STATE EMPLOYEES'
16 RETIREMENT BOARD ARE HEREBY JOINTLY AND INDIVIDUALLY INDEMNIFIED
17 FROM ALL CLAIMS, DEMANDS, SUITS, ACTIONS, CHARGES AND EXPENSES
18 SUSTAINED BY THEM AT ANYTIME BY REASON OF HAVING RESTRICTED,
19 REDUCED OR ELIMINATED INVESTMENTS IN SOUTH AFRICA AND NAMIBIA.
20 Section 2. This act shall take effect immediately.
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