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SENATE DOCKET, NO. 377 FILED ON: 1/13/2023
SENATE . . . . . . . . . . . . . . No. 1690
The Commonwealth of Massachusetts
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PRESENTED BY:
Adam Gomez
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act requiring public pension fund divestment from ammunition and firearms.
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PETITION OF:
NAME:DISTRICT/ADDRESS :Adam GomezHampdenDeborah B. Goldberg, Treasurer and
Receiver General
Treasurer 1 of 6
SENATE DOCKET, NO. 377 FILED ON: 1/13/2023
SENATE . . . . . . . . . . . . . . No. 1690
By Mr. Gomez, a petition (accompanied by bill, Senate, No. 1690) of Adam Gomez and Deborah
B. Goldberg, Treasurer and Receiver General for legislation relative to require public pension
fund divestment from ammunition and firearms. Public Service.
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act requiring public pension fund divestment from ammunition and firearms.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. As used in this act the following words shall, unless the context clearly
2requires otherwise, have the following meanings:-
3 “Ammunition”, ammunition as defined in section 121 of chapter 140 of the General
4Laws, as amended by section 18 of the acts of 2017.
5 “Ammunition manufacturing company”, a company that derives more than 15 per cent of
6its revenues from the manufacture of ammunition offered for sale for non-law enforcement or
7non-military purposes.
8 “Ammunition retailing company”, a company that derives more than 15 per cent of its
9revenues from the sale of ammunition for non-law enforcement or non-military purposes.
10 “Board”, the Pension Reserves Investment Management Board established in section 23
11of chapter 32 of the General Laws. 2 of 6
12 “Company”, a sole proprietorship, organization, association, corporation, partnership,
13joint venture, limited partnership, limited liability partnership, limited liability company or other
14entity or business association, including all wholly-owned subsidiaries, majority-owned
15subsidiaries, parent companies or affiliates of such entities or business associations that exist for
16profit-making purposes.
17 “Direct holdings”, all securities of a company held directly by the public fund or in an
18account or fund in which the public fund owns all shares or interests.
19 "Firearm", an assault weapon, firearm, large capacity weapon, machine gun, rifle, sawed-
20off shotgun, or shotgun as defined by section 121 of chapter 140 of the General Laws, as
21amended by section 18 of the acts of 2017.
22 “Firearm manufacturing company”, a company that derives more than 15 per cent of its
23revenues from the manufacture of firearms offered for sale for non-law enforcement or non-
24military purposes.
25 “Firearm retailing company”, a company that derives more than 15 per cent of its
26revenues from the sale of firearms for non-law enforcement or non-military purposes.
27 “Firearm Accessory”, a bump stock, large capacity feeding device, or trigger crank as
28defined in section 121 of chapter 140, as amended by section 18 of the acts of 2017.
29 “Firearm accessory manufacturing company”, a company that derives more than 15 per
30cent of its revenues from the manufacture of firearm accessories for sale for non-law
31enforcement or non-military purposes. 3 of 6
32 “Firearm accessory retailing company”, a company that derives more than 15 per cent of
33its revenues from the sale of firearm accessories for non-law enforcement or non-military
34purposes.
35 “Indirect holdings”, all securities of a company held in an account or fund, such as a
36mutual fund, managed by 1 or more persons not employed by the public fund, in which the
37public fund owns shares or interests together with other investors not subject to this act.
38 “Public fund”, the Pension Reserves Investment Trust or the Pension Reserves
39Investment Management Board charged with managing the pooled investment fund consisting of
40the assets of the state employees’ and teachers’ retirement systems as well as the assets of local
41retirement systems under the control of the board.
42 “Scrutinized company,” any ammunition, firearm or firearm accessory manufacturing or
43retailing companies.
44 SECTION 2. Notwithstanding any general or special law to the contrary, within 90 days
45of enactment, the public fund shall make its best efforts to facilitate the identification of all
46scrutinized companies in which the public fund has direct or indirect holdings. The identification
47of scrutinized companies shall be performed by an independent, third-party research firm
48selected by the public fund and based on the criteria set forth in this act.
49 By the first meeting of the public fund following the 90-day period, the public fund and
50shall assemble all scrutinized companies in which it has direct or indirect holdings into a
51scrutinized companies list. The public fund shall update the scrutinized companies list on a
52quarterly basis based on evolving information from the independent, third-party research firm. 4 of 6
53 SECTION 3. Notwithstanding any general or special law to the contrary, it shall be the
54settled policy of the public fund and of the board of the public fund not to invest in any
55ammunition, firearm or firearm accessory manufacturing or retailing companies. The public fund
56shall sell, redeem, divest or withdraw all publicly-traded securities of each company identified
57pursuant to section 2 of this act within 12 months after the company’s most recent appearance on
58the scrutinized companies list. This section shall not apply to indirect holdings in actively
59managed investment funds; provided, however, that the public fund shall submit letters to the
60managers of any such investment funds that contain companies identified pursuant to section 2 of
61this act, requesting that they remove such companies from the investment fund or create a similar
62actively managed fund with indirect holdings devoid of such companies.
63 SECTION 4. Notwithstanding any general or special law to the contrary, with respect to
64actions taken in compliance with this act, the public fund shall be exempt from any conflicting
65statutory or common law obligation, including any such obligations with respect to choice of
66asset managers, investment funds or investments for the public fund’s securities portfolios and
67all good faith determinations regarding companies identified pursuant to section 2 of this act.
68 SECTION 5. Notwithstanding any general or special law to the contrary, the public fund
69shall be permitted to cease divesting from companies identified pursuant to section 2 of this act,
70to reinvest in companies identified pursuant to section 2 of this act, or to continue to invest in
71companies pursuant to section 2 of this act from which it has not yet divested upon clear and
72convincing evidence showing that the value for all assets under management by the public fund
73becomes equal to or less than 99.5 per cent (50 basis points) of the hypothetical value of all
74assets under management by the public fund assuming no divestment for any company had
75occurred under said subsection. Cessation of divestment, reinvestment or any subsequent 5 of 6
76ongoing investment authorized by this section shall be strictly limited to the minimum steps
77necessary to avoid the contingency set forth in the preceding sentence.
78 For any cessation of divestment, and in advance of any cessation of divestment
79authorized by this subsection, the public fund shall provide a written report to the attorney
80general, the senate and house committees on ways and means and the joint committee on public
81service, updated annually thereafter as applicable, setting forth the reasons and justification,
82supported by clear and convincing evidence, for its decisions to cease divestment, to reinvest or
83to remain invested in companies identified pursuant to section 2.
84 SECTION 6. Present, future and former board members of the public fund, jointly and
85individually, state officers and employees, and investment managers under contract with the
86public fund shall be indemnified from the General Fund and held harmless by the
87Commonwealth from all claims, demands, suits, actions, damages, judgments, costs, charges and
88expenses, including court costs and attorney’s fees, and against all liability, losses, and damages
89of any nature whatsoever that these present, future, or former board members, officers,
90employees, or contract investment managers shall or may at any time sustain by reason of any
91decision to restrict, reduce, or eliminate investments in ammunition, firearm, or firearm
92accessory manufacturing or retailing companies.
93 SECTION 7. The public fund shall file a copy of the scrutinized companies list with the
94attorney general and with the clerks of the senate and the house of representatives within 30 days
95after the list is prepared. Annually thereafter, the public fund shall file a report with the attorney
96general and with the clerks of the senate and the house of representatives, that includes: (i) the
97most recent scrutinized companies list; (ii) all investments sold, redeemed, divested or 6 of 6
98withdrawn in compliance with this act within the preceding year; and (iii) all investments
99prohibited by this act from which the public fund has not yet divested.