2023 -- S 0865

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LC000709

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO PUBLIC FINANCE -- IDENTIFICATION OF STATE PENSION FUNDS

WITH MILITARY CONTRACTORS ACT

     Introduced By: Senators Mack, Lauria, Bell, and Gu

     Date Introduced: March 30, 2023

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 35 of the General Laws entitled "PUBLIC FINANCE" is hereby

amended by adding thereto the following chapter:

CHAPTER 10.4

IDENTIFICATION OF STATE PENSION FUNDS WITH MILITARY CONTRACTORS ACT

     35-10.4-1. Short title.

     This chapter shall be known and may be cited as the "Identification of State Pension Funds

with Military Contractors Act".

     35-10.4-2. Definitions.

     As used in this chapter, the following words and terms shall have the following meanings

unless the context shall clearly indicate another or different meaning or intent:

     (1) "Commission" means the state investment commission that oversees the assets of the

employees' retirement system of Rhode Island pursuant to chapter 10 of title 35.

     (2) "Company" means a sole proprietorship, organization, association, corporation,

partnership, joint venture, limited partnership, limited liability partnership, limited liability

company or other entity or business association, including all wholly-owned subsidiaries, majority-

owned subsidiaries, parent companies or affiliates of such entities or business associations that exist

for profit-making purposes.

     (3) "Direct holdings" means all securities of a company held directly by the public fund or

in an account or fund in which the public fund owns all shares or interests.

     (4) "Indirect holdings" means all securities of a company held in an account or fund, such

as a mutual fund or hedge fund managed by one or more persons not employed by the public fund,

in which the public fund owns shares or interests together with other investors not subject to this

chapter.

     (5) "Military contractors" or "military weapon manufacturers" means arms producing

companies, defense contractors or military industries that primarily produce, maintain and store

weapons for the armed forces of nation states or non-state entities. Products include guns,

ammunition, missiles, military aircraft, military vehicles, and military ships.

     (6) "Pension fund" means the pooled investment fund consisting of the assets of the state

employees' and teachers' retirement systems, as well as the assets of local retirement systems under

the control of the state.

     35-10.4-3. Identification of military weapon manufacturers.

     Within six (6) months of the effective date of this chapter, the commission shall identify

all military weapon manufacturers where the pension fund owns direct or indirect holdings and

shall file a list of any such holdings with the office of attorney general, the house of representatives

and the senate.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC FINANCE -- IDENTIFICATION OF STATE PENSION FUNDS

WITH MILITARY CONTRACTORS ACT

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     This act would require the state investment commission to identify pension fund

investments in military weapon manufacturers whether held directly or indirectly.

     This act would take effect upon passage.

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