| 25 | | - | Section 1. (NEW) (Effective October 1, 2019): (a) For the purposes of 1 |
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| 26 | | - | this section: 2 |
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| 27 | | - | (1) "Company" means any corporation, utility, partnership, joint 3 |
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| 28 | | - | venture, franchisor, franchisee, trust, entity investment vehicle, 4 |
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| 29 | | - | financial institution or other entity or business association, including 5 |
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| 30 | | - | all wholly-owned subsidiaries, majority-owned subsidiaries, parent 6 |
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| 31 | | - | companies or affiliates of such entities or business associations, that 7 |
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| 32 | | - | exist for the purpose of making profit; 8 |
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| 33 | | - | (2) "Holding debt in Puerto Rico" means holding general obligation 9 |
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| 34 | | - | bonds or other debt instruments issued by Puerto Rico; 10 |
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| 35 | | - | (3) "Invest" means the commitment of funds or other assets to a 11 |
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| 36 | | - | company, including, but not limited to, the ownership or control of a 12 |
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| 37 | | - | share or interest in the company, and the ownership or control of a 13 |
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| 38 | | - | bond or other debt instrument by the company; and 14 |
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| 39 | | - | Committee Bill No. 6874 |
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| 40 | | - | |
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| 41 | | - | |
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| 42 | | - | LCO No. 5044 2 of 3 |
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| 43 | | - | |
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| 44 | | - | (4) "Puerto Rico" means the Commonwealth of Puerto Rico, 15 |
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| 45 | | - | including its government, and any of its agencies, instrumentalities or 16 |
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| 46 | | - | political subdivisions, but does not include the United States 17 |
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| 47 | | - | government. 18 |
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| 48 | | - | (b) The State Treasurer shall review the major investment holdings 19 |
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| 49 | | - | of the state for the purpose of determining the extent to which state 20 |
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| 50 | | - | funds are invested in companies holding debt in Puerto Rico. 21 |
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| 51 | | - | Whenever feasible and consistent with the fiduciary duties of the 22 |
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| 52 | | - | Treasurer, the Treasurer shall encourage companies in which state 23 |
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| 53 | | - | funds are invested and that are holding debt in Puerto Rico, as 24 |
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| 54 | | - | identified by the United States Department of Treasury, the United 25 |
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| 55 | | - | States Government Accountability Office or the Treasurer, to act 26 |
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| 56 | | - | responsibly and not take actions that promote or otherwise add to the 27 |
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| 57 | | - | fiscal or humanitarian crisis in Puerto Rico. 28 |
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| 58 | | - | (c) The State Treasurer may divest state funds, decide to not further 29 |
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| 59 | | - | invest state funds or not enter into any future investment in any 30 |
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| 60 | | - | company holding debt in Puerto Rico. In determining whether to 31 |
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| 61 | | - | divest state funds in accordance with this subsection, the factors which 32 |
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| 62 | | - | the Treasurer shall consider shall include, but not be limited to, the 33 |
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| 63 | | - | extent of any humanitarian activities undertaken by such company in 34 |
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| 64 | | - | Puerto Rico, the amount of debt in Puerto Rico held by such company 35 |
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| 65 | | - | and any other factor that the Treasurer deems prudent. If the Treasurer 36 |
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| 66 | | - | determines that divestment of state funds is warranted from a 37 |
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| 67 | | - | company in which state funds are invested due to such company 38 |
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| 68 | | - | holding debt in Puerto Rico, the Treasurer shall give notice to such 39 |
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| 69 | | - | company that such funds shall be divested from such company for as 40 |
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| 70 | | - | long as such company is holding debt in Puerto Rico. 41 |
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| 71 | | - | (d) The State Treasurer shall, at least once each fiscal year, provide a 42 |
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| 72 | | - | report to the Investment Advisory Council on actions taken by the 43 |
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| 73 | | - | Treasurer pursuant to this section. 44 |
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| 74 | | - | Committee Bill No. 6874 |
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| 75 | | - | |
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| 76 | | - | |
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| 77 | | - | LCO No. 5044 3 of 3 |
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| 78 | | - | |
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| 79 | | - | This act shall take effect as follows and shall amend the following |
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| 80 | | - | sections: |
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| 81 | | - | |
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| 82 | | - | Section 1 October 1, 2019 New section |
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| 83 | | - | |
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| 24 | + | That chapter 32 of the general statutes be amended to authorize the 1 |
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| 25 | + | State Treasurer to divest and decide to not further invest state funds in 2 |
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| 26 | + | any company that holds bonds or other debt of the Commonwealth of 3 |
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| 27 | + | Puerto Rico. 4 |
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