Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1690 Compare Versions

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

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 377 FILED ON: 1/13/2023
3	3	SENATE . . . . . . . . . . . . . . No. 1690
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Adam Gomez
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 :Adam GomezHampdenDeborah B. Goldberg, Treasurer and
16	16	Receiver General
17	17	Treasurer 1 of 6
18	18	SENATE DOCKET, NO. 377 FILED ON: 1/13/2023
19	19	SENATE . . . . . . . . . . . . . . No. 1690
20	20	By Mr. Gomez, a petition (accompanied by bill, Senate, No. 1690) of Adam Gomez and Deborah
21	21	B. Goldberg, Treasurer and Receiver General for legislation relative to require public pension
22	22	fund divestment from ammunition and firearms. Public Service.
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Third General Court
26	26	(2023-2024)
27	27	_______________
28	28	An Act requiring public pension fund divestment from ammunition and firearms.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 SECTION 1. As used in this act the following words shall, unless the context clearly
32	32	2requires otherwise, have the following meanings:-
33	33	3 “Ammunition”, ammunition as defined in section 121 of chapter 140 of the General
34	34	4Laws, as amended by section 18 of the acts of 2017.
35	35	5 “Ammunition manufacturing company”, a company that derives more than 15 per cent of
36	36	6its revenues from the manufacture of ammunition offered for sale for non-law enforcement or
37	37	7non-military purposes.
38	38	8 “Ammunition retailing company”, a company that derives more than 15 per cent of its
39	39	9revenues from the sale of ammunition for non-law enforcement or non-military purposes.
40	40	10 “Board”, the Pension Reserves Investment Management Board established in section 23
41	41	11of chapter 32 of the General Laws. 2 of 6
42	42	12 “Company”, a sole proprietorship, organization, association, corporation, partnership,
43	43	13joint venture, limited partnership, limited liability partnership, limited liability company or other
44	44	14entity or business association, including all wholly-owned subsidiaries, majority-owned
45	45	15subsidiaries, parent companies or affiliates of such entities or business associations that exist for
46	46	16profit-making purposes.
47	47	17 “Direct holdings”, all securities of a company held directly by the public fund or in an
48	48	18account or fund in which the public fund owns all shares or interests.
49	49	19 "Firearm", an assault weapon, firearm, large capacity weapon, machine gun, rifle, sawed-
50	50	20off shotgun, or shotgun as defined by section 121 of chapter 140 of the General Laws, as
51	51	21amended by section 18 of the acts of 2017.
52	52	22 “Firearm manufacturing company”, a company that derives more than 15 per cent of its
53	53	23revenues from the manufacture of firearms offered for sale for non-law enforcement or non-
54	54	24military purposes.
55	55	25 “Firearm retailing company”, a company that derives more than 15 per cent of its
56	56	26revenues from the sale of firearms for non-law enforcement or non-military purposes.
57	57	27 “Firearm Accessory”, a bump stock, large capacity feeding device, or trigger crank as
58	58	28defined in section 121 of chapter 140, as amended by section 18 of the acts of 2017.
59	59	29 “Firearm accessory manufacturing company”, a company that derives more than 15 per
60	60	30cent of its revenues from the manufacture of firearm accessories for sale for non-law
61	61	31enforcement or non-military purposes. 3 of 6
62	62	32 “Firearm accessory retailing company”, a company that derives more than 15 per cent of
63	63	33its revenues from the sale of firearm accessories for non-law enforcement or non-military
64	64	34purposes.
65	65	35 “Indirect holdings”, all securities of a company held in an account or fund, such as a
66	66	36mutual fund, managed by 1 or more persons not employed by the public fund, in which the
67	67	37public fund owns shares or interests together with other investors not subject to this act.
68	68	38 “Public fund”, the Pension Reserves Investment Trust or the Pension Reserves
69	69	39Investment Management Board charged with managing the pooled investment fund consisting of
70	70	40the assets of the state employees’ and teachers’ retirement systems as well as the assets of local
71	71	41retirement systems under the control of the board.
72	72	42 “Scrutinized company,” any ammunition, firearm or firearm accessory manufacturing or
73	73	43retailing companies.
74	74	44 SECTION 2. Notwithstanding any general or special law to the contrary, within 90 days
75	75	45of enactment, the public fund shall make its best efforts to facilitate the identification of all
76	76	46scrutinized companies in which the public fund has direct or indirect holdings. The identification
77	77	47of scrutinized companies shall be performed by an independent, third-party research firm
78	78	48selected by the public fund and based on the criteria set forth in this act.
79	79	49 By the first meeting of the public fund following the 90-day period, the public fund and
80	80	50shall assemble all scrutinized companies in which it has direct or indirect holdings into a
81	81	51scrutinized companies list. The public fund shall update the scrutinized companies list on a
82	82	52quarterly basis based on evolving information from the independent, third-party research firm. 4 of 6
83	83	53 SECTION 3. Notwithstanding any general or special law to the contrary, it shall be the
84	84	54settled policy of the public fund and of the board of the public fund not to invest in any
85	85	55ammunition, firearm or firearm accessory manufacturing or retailing companies. The public fund
86	86	56shall sell, redeem, divest or withdraw all publicly-traded securities of each company identified
87	87	57pursuant to section 2 of this act within 12 months after the company’s most recent appearance on
88	88	58the scrutinized companies list. This section shall not apply to indirect holdings in actively
89	89	59managed investment funds; provided, however, that the public fund shall submit letters to the
90	90	60managers of any such investment funds that contain companies identified pursuant to section 2 of
91	91	61this act, requesting that they remove such companies from the investment fund or create a similar
92	92	62actively managed fund with indirect holdings devoid of such companies.
93	93	63 SECTION 4. Notwithstanding any general or special law to the contrary, with respect to
94	94	64actions taken in compliance with this act, the public fund shall be exempt from any conflicting
95	95	65statutory or common law obligation, including any such obligations with respect to choice of
96	96	66asset managers, investment funds or investments for the public fund’s securities portfolios and
97	97	67all good faith determinations regarding companies identified pursuant to section 2 of this act.
98	98	68 SECTION 5. Notwithstanding any general or special law to the contrary, the public fund
99	99	69shall be permitted to cease divesting from companies identified pursuant to section 2 of this act,
100	100	70to reinvest in companies identified pursuant to section 2 of this act, or to continue to invest in
101	101	71companies pursuant to section 2 of this act from which it has not yet divested upon clear and
102	102	72convincing evidence showing that the value for all assets under management by the public fund
103	103	73becomes equal to or less than 99.5 per cent (50 basis points) of the hypothetical value of all
104	104	74assets under management by the public fund assuming no divestment for any company had
105	105	75occurred under said subsection. Cessation of divestment, reinvestment or any subsequent 5 of 6
106	106	76ongoing investment authorized by this section shall be strictly limited to the minimum steps
107	107	77necessary to avoid the contingency set forth in the preceding sentence.
108	108	78 For any cessation of divestment, and in advance of any cessation of divestment
109	109	79authorized by this subsection, the public fund shall provide a written report to the attorney
110	110	80general, the senate and house committees on ways and means and the joint committee on public
111	111	81service, updated annually thereafter as applicable, setting forth the reasons and justification,
112	112	82supported by clear and convincing evidence, for its decisions to cease divestment, to reinvest or
113	113	83to remain invested in companies identified pursuant to section 2.
114	114	84 SECTION 6. Present, future and former board members of the public fund, jointly and
115	115	85individually, state officers and employees, and investment managers under contract with the
116	116	86public fund shall be indemnified from the General Fund and held harmless by the
117	117	87Commonwealth from all claims, demands, suits, actions, damages, judgments, costs, charges and
118	118	88expenses, including court costs and attorney’s fees, and against all liability, losses, and damages
119	119	89of any nature whatsoever that these present, future, or former board members, officers,
120	120	90employees, or contract investment managers shall or may at any time sustain by reason of any
121	121	91decision to restrict, reduce, or eliminate investments in ammunition, firearm, or firearm
122	122	92accessory manufacturing or retailing companies.
123	123	93 SECTION 7. The public fund shall file a copy of the scrutinized companies list with the
124	124	94attorney general and with the clerks of the senate and the house of representatives within 30 days
125	125	95after the list is prepared. Annually thereafter, the public fund shall file a report with the attorney
126	126	96general and with the clerks of the senate and the house of representatives, that includes: (i) the
127	127	97most recent scrutinized companies list; (ii) all investments sold, redeemed, divested or 6 of 6
128	128	98withdrawn in compliance with this act within the preceding year; and (iii) all investments
129	129	99prohibited by this act from which the public fund has not yet divested.