Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H2591 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 2335 FILED ON: 1/19/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 2591
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Jay D. Livingstone
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act requiring public pension fund divestment from ammunition and firearms.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Jay D. Livingstone8th Suffolk1/19/2023Deborah B. Goldberg (Treasurer
16	16	and Receiver General)
17	17	Treasurer, Office of the State
18	18	Treasurer and Receiver General
19	19	1/19/2023Lindsay N. Sabadosa1st Hampshire3/3/2023 1 of 6
20	20	HOUSE DOCKET, NO. 2335 FILED ON: 1/19/2023
21	21	HOUSE . . . . . . . . . . . . . . . No. 2591
22	22	By Representative Livingstone of Boston, a petition (accompanied by bill, House, No. 2591) of
23	23	Jay D. Livingstone, Deborah B. Goldberg (Treasurer and Receiver General) and Lindsay N.
24	24	Sabadosa relative to requiring public pension fund divestment from ammunition and firearms.
25	25	Public Service.
26	26	The Commonwealth of Massachusetts
27	27	_______________
28	28	In the One Hundred and Ninety-Third General Court
29	29	(2023-2024)
30	30	_______________
31	31	An Act requiring public pension fund divestment from ammunition and firearms.
32	32	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
33	33	of the same, as follows:
34	34	1 SECTION 1. As used in this act the following words shall, unless the context clearly
35	35	2requires otherwise, have the following meanings:-
36	36	3 “Ammunition”, ammunition as defined in section 121 of chapter 140 of the General
37	37	4Laws, as amended by section 18 of the acts of 2017.
38	38	5 “Ammunition manufacturing company”, a company that derives more than 15 per cent of
39	39	6its revenues from the manufacture of ammunition offered for sale for non-law enforcement or
40	40	7non-military purposes.
41	41	8 “Ammunition retailing company”, a company that derives more than 15 per cent of its
42	42	9revenues from the sale of ammunition for non-law enforcement or non-military purposes.
43	43	10 “Board”, the Pension Reserves Investment Management Board established in section 23
44	44	11of chapter 32 of the General Laws. 2 of 6
45	45	12 “Company”, a sole proprietorship, organization, association, corporation, partnership,
46	46	13joint venture, limited partnership, limited liability partnership, limited liability company or other
47	47	14entity or business association, including all wholly-owned subsidiaries, majority-owned
48	48	15subsidiaries, parent companies or affiliates of such entities or business associations that exist for
49	49	16profit-making purposes.
50	50	17 “Direct holdings”, all securities of a company held directly by the public fund or in an
51	51	18account or fund in which the public fund owns all shares or interests.
52	52	19 "Firearm", an assault weapon, firearm, large capacity weapon, machine gun, rifle, sawed-
53	53	20off shotgun, or shotgun as defined by section 121 of chapter 140 of the General Laws, as
54	54	21amended by section 18 of the acts of 2017.
55	55	22 “Firearm manufacturing company”, a company that derives more than 15 per cent of its
56	56	23revenues from the manufacture of firearms offered for sale for non-law enforcement or non-
57	57	24military purposes.
58	58	25 “Firearm retailing company”, a company that derives more than 15 per cent of its
59	59	26revenues from the sale of firearms for non-law enforcement or non-military purposes.
60	60	27 “Firearm Accessory”, a bump stock, large capacity feeding device, or trigger crank as
61	61	28defined in section 121 of chapter 140, as amended by section 18 of the acts of 2017.
62	62	29 “Firearm accessory manufacturing company”, a company that derives more than 15 per
63	63	30cent of its revenues from the manufacture of firearm accessories for sale for non-law
64	64	31enforcement or non-military purposes. 3 of 6
65	65	32 “Firearm accessory retailing company”, a company that derives more than 15 per cent of
66	66	33its revenues from the sale of firearm accessories for non-law enforcement or non-military
67	67	34purposes.
68	68	35 “Indirect holdings”, all securities of a company held in an account or fund, such as a
69	69	36mutual fund, managed by 1 or more persons not employed by the public fund, in which the
70	70	37public fund owns shares or interests together with other investors not subject to this act.
71	71	38 “Public fund”, the Pension Reserves Investment Trust or the Pension Reserves
72	72	39Investment Management Board charged with managing the pooled investment fund consisting of
73	73	40the assets of the state employees’ and teachers’ retirement systems as well as the assets of local
74	74	41retirement systems under the control of the board.
75	75	42 “Scrutinized company,” any ammunition, firearm or firearm accessory manufacturing or
76	76	43retailing companies.
77	77	44 SECTION 2. Notwithstanding any general or special law to the contrary, within 90 days
78	78	45of enactment, the public fund shall make its best efforts to facilitate the identification of all
79	79	46scrutinized companies in which the public fund has direct or indirect holdings. The identification
80	80	47of scrutinized companies shall be performed by an independent, third-party research firm
81	81	48selected by the public fund and based on the criteria set forth in this act.
82	82	49 By the first meeting of the public fund following the 90-day period, the public fund and
83	83	50shall assemble all scrutinized companies in which it has direct or indirect holdings into a
84	84	51scrutinized companies list. The public fund shall update the scrutinized companies list on a
85	85	52quarterly basis based on evolving information from the independent, third-party research firm. 4 of 6
86	86	53 SECTION 3. Notwithstanding any general or special law to the contrary, it shall be the
87	87	54settled policy of the public fund and of the board of the public fund not to invest in any
88	88	55ammunition, firearm or firearm accessory manufacturing or retailing companies. The public fund
89	89	56shall sell, redeem, divest or withdraw all publicly-traded securities of each company identified
90	90	57pursuant to section 2 of this act within 12 months after the company’s most recent appearance on
91	91	58the scrutinized companies list. This section shall not apply to indirect holdings in actively
92	92	59managed investment funds; provided, however, that the public fund shall submit letters to the
93	93	60managers of any such investment funds that contain companies identified pursuant to section 2 of
94	94	61this act, requesting that they remove such companies from the investment fund or create a similar
95	95	62actively managed fund with indirect holdings devoid of such companies.
96	96	63 SECTION 4. Notwithstanding any general or special law to the contrary, with respect to
97	97	64actions taken in compliance with this act, the public fund shall be exempt from any conflicting
98	98	65statutory or common law obligation, including any such obligations with respect to choice of
99	99	66asset managers, investment funds or investments for the public fund’s securities portfolios and
100	100	67all good faith determinations regarding companies identified pursuant to section 2 of this act.
101	101	68 SECTION 5. Notwithstanding any general or special law to the contrary, the public fund
102	102	69shall be permitted to cease divesting from companies identified pursuant to section 2 of this act,
103	103	70to reinvest in companies identified pursuant to section 2 of this act, or to continue to invest in
104	104	71companies pursuant to section 2 of this act from which it has not yet divested upon clear and
105	105	72convincing evidence showing that the value for all assets under management by the public fund
106	106	73becomes equal to or less than 99.5 per cent (50 basis points) of the hypothetical value of all
107	107	74assets under management by the public fund assuming no divestment for any company had
108	108	75occurred under said subsection. Cessation of divestment, reinvestment or any subsequent 5 of 6
109	109	76ongoing investment authorized by this section shall be strictly limited to the minimum steps
110	110	77necessary to avoid the contingency set forth in the preceding sentence.
111	111	78 For any cessation of divestment, and in advance of any cessation of divestment
112	112	79authorized by this subsection, the public fund shall provide a written report to the attorney
113	113	80general, the senate and house committees on ways and means and the joint committee on public
114	114	81service, updated annually thereafter as applicable, setting forth the reasons and justification,
115	115	82supported by clear and convincing evidence, for its decisions to cease divestment, to reinvest or
116	116	83to remain invested in companies identified pursuant to section 2.
117	117	84 SECTION 6. Present, future and former board members of the public fund, jointly and
118	118	85individually, state officers and employees, and investment managers under contract with the
119	119	86public fund shall be indemnified from the General Fund and held harmless by the
120	120	87Commonwealth from all claims, demands, suits, actions, damages, judgments, costs, charges and
121	121	88expenses, including court costs and attorney’s fees, and against all liability, losses, and damages
122	122	89of any nature whatsoever that these present, future, or former board members, officers,
123	123	90employees, or contract investment managers shall or may at any time sustain by reason of any
124	124	91decision to restrict, reduce, or eliminate investments in ammunition, firearm, or firearm
125	125	92accessory manufacturing or retailing companies.
126	126	93 SECTION 7. The public fund shall file a copy of the scrutinized companies list with the
127	127	94attorney general and with the clerks of the senate and the house of representatives within 30 days
128	128	95after the list is prepared. Annually thereafter, the public fund shall file a report with the attorney
129	129	96general and with the clerks of the senate and the house of representatives, that includes: (i) the
130	130	97most recent scrutinized companies list; (ii) all investments sold, redeemed, divested or 6 of 6
131	131	98withdrawn in compliance with this act within the preceding year; and (iii) all investments
132	132	99prohibited by this act from which the public fund has not yet divested.
133	133	100