2012 -- H 8050

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LC02341

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO PUBLIC FINANCES -- STATE INVESTMENTS--NORTHERN IRELAND

     Introduced By: Representatives Martin, and Ucci

     Date Introduced: April 05, 2012

     Referred To: House Finance

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 35-10-14 of the General Laws in Chapter 35-10 entitled "State

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Investment Commission" is hereby amended to read as follows:

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     35-10-14. Investment in corporations doing business in Northern Ireland. -- (a)

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Notwithstanding any general or special law or regulation to the contrary, the general treasurer,

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acting as the treasurer/custodian of the state employees' retirement system and the teachers'

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retirement system, and as the chairperson of the state investment commission, is authorized and

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directed to monitor, by reference to reports of the investor responsibility research center or such

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other sources as he or she may deem useful and appropriate, the extent to which corporations

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organized under the laws of the United States or the several states and operating in Northern

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Ireland, in which the assets of the retirement systems or of the pension reserves investment trust

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fund are invested, adhere to principals of nondiscrimination in employment and freedom of

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workplace opportunity. In conducting the survey, the general treasurer may utilize any

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information presently available relative to similar pension plans. In making this determination,

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the general treasurer shall consider, without limitation, the following standards for corporate

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activity:

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      (1) Equal access to employment, promotion, and job-preservation without regard to

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religious affiliation or other minority status;

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      (2) The promotion of religious tolerance within the workplace, and the eradication of any

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manifestations of religious and other illegal discrimination;

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      (3) Adherence to other legal and regulatory guidelines for nondiscrimination and

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equality of opportunity existing in Northern Ireland; and

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      (4) Adherence to the MacBride Principles for Northern Ireland, so-called.

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      (b) The general treasurer shall set forth the results of the investigation by filing a report

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for the preceding calendar year with the clerks of the house of representatives and of the senate

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not later than December 31 April 15 of each year. The report shall include, but not be limited to,

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the names and addresses of all United States corporations operating in Northern Ireland in which

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the assets of the retirement systems or trust fund are invested, and the findings of the general

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treasurer relative to these corporations' adherence to the standards for corporate activity as set

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forth in subsection (a) the findings of the general treasurer relative to the adherence to the

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standards for corporate activity as set forth in subsection (a) for all United States corporations

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operating in Northern Ireland in which the assets of the retirement systems or trust fund are

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invested. The general treasurer shall also report his or her recommendations, if any, consistent

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with prudent fiduciary practice, based upon the findings of the investigation. The report shall be

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available for public inspection in the offices of the clerks of the house of representatives and of

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the senate, and in the office of the general treasurer.

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      (c) The general treasurer, subject to the approval of the commission, shall, where

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necessary, appropriate, and consistent with prudent standards for fiduciary practice, support

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shareholder petitions or initiatives requiring corporate action in compliance with the standards for

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nondiscrimination set forth in this section.

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      (d) It is not the intent of this section to diminish the present portfolio and it is not the

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intent of this section to injure the fragile economy of Northern Ireland. The general treasurer, in

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accordance with sound investment criteria, is encouraged to make future pension fund

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investments in United States firms which conduct business in Northern Ireland and which abide

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by the MacBride Principles of fair employment. Should all or any of the United States firms in

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which Rhode Island state pension funds are invested refuse to comply with the MacBride

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Principles, the general treasurer, in accordance with sound investment criteria, does have the

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option and is encouraged to remove these funds and invest them in United States firms which

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conduct business in Northern Ireland and which abide by the MacBride Principles of fair

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employment.

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     SECTION 2. This act shall take effect upon passage.

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LC02341

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PUBLIC FINANCES -- STATE INVESTMENTS--NORTHERN IRELAND

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     This act would change the reporting date for the treasurer’s report on Northern Ireland

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investments from December 31 to April 15 of each year. It would also reduce the amount of

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information required in the report.

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     This act would take effect upon passage.

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LC02341

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