Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H2763 Compare Versions

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

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2	2	HOUSE DOCKET, NO. 489 FILED ON: 1/9/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 2763
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Antonio F. D. Cabral
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 relative to pension divestment from the Republic of the Union of Myanmar.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Antonio F. D. Cabral13th Bristol1/9/2025 1 of 7
16	16	HOUSE DOCKET, NO. 489 FILED ON: 1/9/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 2763
18	18	By Representative Cabral of New Bedford, a petition (accompanied by bill, House, No. 2763) of
19	19	Antonio F. D. Cabral relative to public pension fund divestment from the Republic of the Union
20	20	of Myanmar. Public Service.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE HOUSE, NO. 2450 OF 2023-2024.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Fourth General Court
26	26	(2025-2026)
27	27	_______________
28	28	An Act relative to pension divestment from the Republic of the Union of Myanmar.
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 “Active business operations”, all business operations with Myanmar that are not inactive
34	34	4business operations.
35	35	5 “Board”, the pension reserves investment management board established in section 23 of
36	36	6chapter 32 of the General Laws.
37	37	7 “Business operations with Myanmar”, providing goods or services deployed to develop
38	38	8petroleum resources, insurance, information technology, gems, and jewelry (collectively referred
39	39	9to as “resources”) in Myanmar, including acquiring, developing, maintaining, owning, selling, 2 of 7
40	40	10possessing, leasing or operating equipment, facilities, personnel, products, services, personal
41	41	11property, real property or any other apparatus of business or commerce and has knowingly on or
42	42	12after February 1, 2021 made an investment or investments in Myanmar of at least $10,000,000
43	43	13over a twelve-month period which directly or significantly contributes to the enhancement of
44	44	14Myanmar’s ability to develop its resources; provided, however, that this definition shall not
45	45	15apply to a company that has inactive business operations with Myanmar.
46	46	16 “Company”, a sole proprietorship, organization, association, corporation, partnership,
47	47	17joint venture, limited partnership, limited liability partnership, limited liability company or other
48	48	18entity or business association, including all wholly owned subsidiaries, majority-owned
49	49	19subsidiaries, parent companies or affiliates of such entities or business associations that exist for
50	50	20profit-making purposes.
51	51	21 “Direct holdings”, all securities of a company held directly by the public fund or in an
52	52	22account or fund in which the public fund owns all shares or interests.
53	53	23 “Government of Myanmar”, the government of the Republic of the Union of Myanmar.
54	54	24 “Inactive business operations”, the continued holding or renewal of rights to property
55	55	25previously operated for the purpose of generating revenues but not presently deployed for such
56	56	26purpose.
57	57	27 “Indirect holdings”, all securities of a company held in an account or fund, such as a
58	58	28mutual fund, managed by 1 or more persons not employed by the public fund, in which the
59	59	29public fund owns shares or interests together with other investors not subject to this act. 3 of 7
60	60	30 “Humanitarian assistance”, means assistance to meet humanitarian needs, including
61	61	31needs for food, medicine, medical supplies and equipment, education, and clothing.
62	62	32 “Public fund”, the Pension Reserves Investment Trust or the Pension Reserves
63	63	33Investment Management Board charged with managing the pooled investment fund consisting of
64	64	34the assets of the State Employees’ and Teachers’ Retirement Systems as well as the assets of
65	65	35local retirement systems under the control of the board.
66	66	36 “Scrutinized company”, any company conducting business operations with Myanmar.
67	67	37 “Substantial action”, adopting, publicizing and implementing a formal plan to cease
68	68	38scrutinized business operations with Myanmar within 1 year and to refrain from any such new
69	69	39business operations with Myanmar.
70	70	40 SECTION 2. Notwithstanding any general or special law to the contrary, within 90 days
71	71	41of the effective date of this act, the public fund shall make its best efforts to facilitate the
72	72	42identification of all scrutinized companies in which the public fund has direct or indirect
73	73	43holdings, excluding those companies that are providing humanitarian assistance to Myanmar.
74	74	44The identification of scrutinized companies shall be the responsibility of an independent, third-
75	75	45party research firm, as identified by the public fund, and based on the criteria set forth in this act.
76	76	46By the first meeting of the public fund following the 90-day period, the public fund shall
77	77	47assemble all scrutinized companies in which it has direct or indirect holdings into a scrutinized
78	78	48companies list. The public fund shall update the scrutinized companies list on a quarterly basis
79	79	49based on evolving information from the independent, third-party research firm.
80	80	50 SECTION 3. Notwithstanding any general or special law to the contrary, the public fund
81	81	51shall adhere to the following procedure for companies on the scrutinized companies list: 4 of 7
82	82	52 (a)(1) The public fund shall determine the companies on the scrutinized companies list,
83	83	53created under section 2, in which the public fund owns direct or indirect holdings.
84	84	54 (2) The public fund shall sell, redeem, divest or withdraw all publicly-traded securities of
85	85	55each company identified in paragraph (1) with active business operations with Myanmar, except
86	86	56as provided in subsection (c) and section 5, according to the following schedule: (i) at least 50
87	87	57per cent of such assets shall be removed from the public fund’s assets under management within
88	88	586 months after the company’s most recent appearance on the scrutinized companies list; and (ii)
89	89	59100 per cent of such assets shall be removed from the public fund’s assets under management
90	90	60within 12 months after the company’s most recent appearance on the scrutinized companies list;
91	91	61provided, however, that this paragraph shall only apply while such company continues to have
92	92	62scrutinized active business operations with Myanmar.
93	93	63 (3) During the time period outlined in paragraph (2), the public fund may sign onto
94	94	64engagement letters or participate in shareholder resolutions regarding the scrutinized business
95	95	65operations of companies identified in paragraph (1) with active or inactive business operations
96	96	66with Myanmar in which the public fund still owns direct or indirect holdings.
97	97	67 (4) If a company identified in paragraph (1) with only inactive business operations with
98	98	68Myanmar converts such operations to active business operations with Myanmar, paragraph (2)
99	99	69shall immediately apply. The company shall also be immediately placed onto the scrutinized
100	100	70companies list.
101	101	71 (b) At no time shall the public fund acquire securities of companies on the scrutinized
102	102	72companies list that have active business operations with Myanmar, except as provided in
103	103	73subsections (c) and (d). 5 of 7
104	104	74 (c) No company which the United States government affirmatively declares to be
105	105	75excluded from its present or future federal sanctions regime relating to the government of
106	106	76Myanmar shall be subject to divestment or an investment prohibition under subsections (a) and
107	107	77(b).
108	108	78 (d) Notwithstanding anything in this act to the contrary, subsections (a) and (b) shall not
109	109	79apply to indirect holdings in actively managed investment funds; provided, however, that the
110	110	80public fund shall submit letters to the managers of such investment funds containing companies
111	111	81with scrutinized active business operations with Myanmar requesting that they consider
112	112	82removing such companies from the investment fund or create a similar actively managed fund
113	113	83with indirect holdings devoid of such companies. If the manager creates a similar fund, the
114	114	84public fund shall replace all applicable investments with investments in the similar fund in an
115	115	85expedited timeframe consistent with prudent investing standards. For the purposes of this
116	116	86section, private equity funds shall be deemed to be actively managed investment funds.
117	117	87 SECTION 4. Notwithstanding any general or special law to the contrary, with respect to
118	118	88actions taken in compliance with this act, the public fund shall be exempt from any conflicting
119	119	89statutory or common law obligations, including any such obligations with respect to the choice
120	120	90of asset managers, investment funds or investments for the public fund’s securities portfolios and
121	121	91all good faith determinations regarding companies as required by this act.
122	122	92 SECTION 5. Notwithstanding any general or special law to the contrary, the public fund
123	123	93shall be permitted to cease divesting from certain scrutinized companies under subsection (a) of
124	124	94section 3, reinvest in certain scrutinized companies from which it divested under said subsection
125	125	95(a) of said section 3 or continue to invest in certain scrutinized companies from which it has not 6 of 7
126	126	96yet divested upon clear and convincing evidence showing that the total and aggregate value of all
127	127	97assets under management by, or on behalf of, the public fund becomes: (i) equal to or less than
128	128	9899.5 per cent; or (ii) 100 per cent less 50 basis points of the hypothetical value of all assets under
129	129	99management by, or on behalf of, the public fund assuming no divestment for any company had
130	130	100occurred under said subsection (a) of said section 3. Cessation of divestment, reinvestment or
131	131	101any subsequent ongoing investment authorized by this section shall be strictly limited to the
132	132	102minimum steps necessary to avoid the contingency set forth in the preceding sentence.
133	133	103 For any cessation of divestment, and in advance of such cessation, authorized by this
134	134	104subsection, the public fund shall provide a written report to the attorney general, the senate and
135	135	105house committees on ways and means and the joint committee on public service, updated semi-
136	136	106annually thereafter as applicable, setting forth the reasons and justification, supported by clear
137	137	107and convincing evidence, for its decisions to cease divestment of holdings in companies on the
138	138	108scrutinized companies list or to reinvest or remain invested in companies with scrutinized active
139	139	109business operations with Myanmar.
140	140	110 SECTION 6. The public fund shall file a copy of the scrutinized companies list with the
141	141	111clerks of the senate and the house of representatives and the attorney general within 30 days after
142	142	112the list is created. Annually thereafter, the public fund shall file a report with the clerks of the
143	143	113senate and the house of representatives and the attorney general that includes: (1) the most recent
144	144	114scrutinized companies list; (2) all investments sold, redeemed, divested or withdrawn in
145	145	115compliance with subsection (a) of section 3; (3) all prohibited investments from which the public
146	146	116fund has not yet divested under subsection (b) of said section 3; and (4) any progress made under
147	147	117subsection (d) of said section 3. 7 of 7
148	148	118 SECTION 7. This act shall expire upon the United States Department of State removing
149	149	119its sanctions against Myanmar.
150	150	120 SECTION 8. The treasurer shall conform all public fund investments related to
151	151	121companies doing business with Myanmar with 50 U.S.C. 1701.