PRIOR PRINTER'S NO. 19 PRINTER'S NO. 1337
No. 16 Session of 1987
INTRODUCED BY RICHARDSON, IRVIS, LINTON, FATTAH, PRESTON, CARN,
EVANS, DEAL, ROEBUCK, DeWEESE, KUKOVICH, FEE, COHEN, BLAUM,
LEVDANSKY, JOSEPHS, CAWLEY, FREEMAN, WAMBACH, WOZNIAK,
HUGHES, VEON, HAYDEN AND PISTELLA, JANUARY 28, 1987
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, APRIL 28, 1987
AN ACT
1 Amending Title 24 (Education) of the Pennsylvania Consolidated
2 Statutes, prohibiting investments in corporations doing <--
3 business HAVING BUSINESS OPERATIONS in the Republic of South <--
4 Africa or Namibia.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Title 24 of the Pennsylvania Consolidated
8 Statutes is amended by adding a section to read:
9 § 8526. 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
17 effective date of this section.
1 § 8526. PROHIBITED INVESTMENTS. <--
2 (A) REPUBLIC OF SOUTH AFRICA OR NAMIBIA.--THE BOARD SHALL
3 NOT INVEST ANY OF THE FUND IN ANY STOCK OR FINANCIAL OBLIGATION
4 OF ANY CORPORATION OR BUSINESS HAVING "BUSINESS OPERATIONS"
5 EITHER DIRECTLY OR THROUGH A SUBSIDIARY OR AFFILIATE IN THE
6 AFRICAN COUNTRIES OF THE REPUBLIC OF SOUTH AFRICA OR NAMIBIA.
7 (B) DIVESTITURE.--NOTWITHSTANDING ANY OTHER PROVISION OF
8 THIS SUBCHAPTER TO THE CONTRARY, THE TRUSTEES SHALL SELL,
9 TRANSFER, DISPOSE OF AND OTHERWISE DIVEST THEMSELVES OF ANY
10 SECURITY OR INVESTMENT IN CORPORATIONS OR OTHER BUSINESSES
11 HAVING "BUSINESS OPERATIONS" EITHER DIRECTLY OR THROUGH A
12 SUBSIDIARY OR AFFILIATE IN THE AFRICAN COUNTRIES OF THE REPUBLIC
13 OF SOUTH AFRICA OR NAMIBIA.
14 (C) FIDUCIARY DUTY.--IN CARRYING OUT THEIR RESPONSIBILITY
15 UNDER THIS SUBCHAPTER, THE TRUSTEES SHALL CONSULT WITH THE
16 INFORMATION AND LISTS PREPARED BY THE STATE TREASURER, ACTING AS
17 A CLEARINGHOUSE FOR SUCH INFORMATION PURSUANT TO SECTION 3.2 OF
18 THE ACT OF FEBRUARY 17, 1906 (SP.SESS., P.L.45, NO.11), ENTITLED
19 "AN ACT TO REGULATE THE DEPOSITS OF STATE FUNDS, TO PRESCRIBE
20 THE METHOD OF SELECTING STATE DEPOSITORIES, TO LIMIT THE AMOUNT
21 OF STATE DEPOSITS, TO PROVIDE FOR THE SECURITY OF SUCH DEPOSITS,
22 TO FIX THE RATE OF INTEREST THEREON, TO PROVIDE FOR THE
23 PUBLICATION OF MONTHLY STATEMENTS OF MONEYS IN THE GENERAL AND
24 SINKING FUNDS, TO DECLARE IT A MISDEMEANOR TO GIVE OR TAKE
25 ANYTHING OF VALUE FOR OBTAINING THE SAME, AND PRESCRIBING
26 PENALTIES FOR VIOLATIONS OF THIS ACT."
27 (D) PREMATURE OR IMPRUDENT SALE.--NOTHING IN THIS AMENDATORY
28 ACT SHALL BE CONSTRUED TO REQUIRE THE PREMATURE OR OTHERWISE
29 IMPRUDENT SALE, REDEMPTION, DIVESTMENT OR WITHDRAWAL OF
30 INVESTMENT, BUT SUCH SALE, REDEMPTION, DIVESTMENT OR WITHDRAWAL
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1 SHALL BE COMPLETED NOT LATER THAN 18 MONTHS FOLLOWING THE
2 EFFECTIVE DATE OF THIS AMENDATORY ACT.
3 (E) INDEMNIFICATION.--IN EXECUTING THE REQUIREMENTS OF THIS
4 AMENDATORY ACT, THE PRESENT, FUTURE AND FORMER MEMBERS OF THE
5 BOARD ACTING AS TRUSTEES OF THE FUND, ALL PRESENT, FUTURE AND
6 FORMER OFFICERS AND EMPLOYEES OF THE PUBLIC SCHOOL EMPLOYEES'
7 RETIREMENT BOARD AND ALL PRESENT, FUTURE AND FORMER INVESTMENT
8 MANAGERS UNDER CONTRACT WITH THE PUBLIC SCHOOL EMPLOYEES'
9 RETIREMENT BOARD ARE HEREBY JOINTLY AND INDIVIDUALLY INDEMNIFIED
10 FROM ALL CLAIMS, DEMANDS, SUITS, ACTIONS, CHARGES AND EXPENSES
11 SUSTAINED BY THEM AT ANYTIME BY REASON OF HAVING RESTRICTED,
12 REDUCED OR ELIMINATED INVESTMENTS IN SOUTH AFRICA AND NAMIBIA.
13 (F) DEFINITIONS.--AS USED IN THIS SECTION, THE TERM
14 "BUSINESS OPERATIONS" MEANS THE MAINTENANCE OF EQUIPMENT,
15 FACILITIES, PERSONNEL OR ANY OTHER APPARATUS OF BUSINESS OR
16 COMMERCE, INCLUDING THE OWNERSHIP OR POSSESSION OF REAL OR
17 PERSONAL PROPERTY LOCATED IN SOUTH AFRICA OR NAMIBIA.
18 Section 2. This act shall take effect immediately.
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