Bill Summaries: all (2017-2018 Session)

Tracking:
  • Summary date: Jul 28 2017 - View summary

    AN ACT TO REQUIRE STATE DIVESTMENT FROM, AND PROHIBIT STATE AGENCIES FROM CONTRACTING WITH, COMPANIES THAT BOYCOTT ISRAEL AND TO AMEND THE EXISTING SUDAN AND IRAN DIVESTMENT STATUTES. Enacted July 27, 2017. Effective October 1, 2017, except as otherwise provided.


  • Summary date: Jun 21 2017 - View summary

    Senate committee substitute makes the following changes to the 2nd edition.

    Amends the long title.

    Amends proposed GS 147-86.81 (Prohibitions on State investment). Directs the State Treasurer, upon completion of the initial list of restricted companies, to identify any restricted companies in which the NC Retirement System has investments (was, in which the NC Retirement System owns direct holdings and indirect holdings). Amends the timeline for divestment to require divestment within 180 days of the adoption of the list (was, within 180 days of the adoption of the policy).

    Amends GS 147-86.42, defining terms with regard to GS Chapter 147, Article 6D (Sudan (Darfur) Divestment Act). Deletes active business operations, direct holdings, inactive business operations, and indirect holdings. Adds the term investment. Amends the definition of substantial action. Amends terminology to replace the termsscrutinized business operationsandscrutinized companywithrestricted business operationsandrestricted company, respectively. Makes technical and conforming changes.

    Amends GS 147-86.43 (Identification of companies). Replaces existing provisions with the following. Directs the public fund, within 90 days of August 30, 2007, to develop and make publicly available a list of companies it determines to be engaged inrestricted business activities, using specified sources of information, including other state lists of restricted companies under similar laws, and to make every effort to avoid erroneously including a company on the list. Provides notice and comment requirements to the companies that will be included on the list, and provides that if a company demonstrates that it is not engaged in restricted activities, it shall not be included on the list. Directs the public fund to update the list on an annual basis based on evolving information from the listed sources.

    Amends GS 147-86.44 (Required actions). Replaces existing provisions with the following. Prohibits the public fund from investing with companies on the list created under GS 147-86.43. Requires existing investments with companies on the list to be divested within 180 days of the adoption of the list. Exempts companies which the US government affirmatively declares to be excluded from its present or future Sudan-related federal sanctions regime from the divestment and investment prohibitions. Does not require the NC Retirement Systems or the State Treasurer to take action, unless it is determined in good faith by the Treasurer, that the action is consistent with the fiduciary responsibilities of the Retirement Systems and the State Treasurer.

    Amends GS 147-86.45 (Reporting). Replaces existing provisions with the following. Directs the public fund to report to the Joint Legislative Commission on Governmental Operations annually on October 1 on information regarding investments sold, redeemed, divested, or withdrawn under this Article.

    Repeals GS 147-86.47 and GS 147-86.48 (regarding other legal obligations, and reinvestment).

    Amends GS 147-86.56. Amends the legislative findings to state that effectively addressing the need for the State to respond to the policies of Iran in a uniform fashion requires prohibiting contracts withcompanies(was, persons) engaged in investment activities in Iran's energy sector on a statewide basis.

    Amends GS 147-86.57, defining terms with regard to GS Chapter 147, Article 6E (Iran Divestment Act), to define company and make conforming changes.

    Amends GS 147-86.58 (Prohibitions on State investment). Directs the State Treasurer, in making the list of companies that engage in investment activities in Iran, to use any other state lists of restricted companies under similar law, and several other listed sources. Directs the State Treasurer to update the list annually (was, every 180 days). Requires existing investments in a company on the list to be divested within 180 days of the company being placed on the list (was, within 180 days of the adoption of the policy). Makes technical and conforming changes.

    Repeals GS 147-86.59 (Certification required).

    Makes conforming changes to GS 147-86.60.

    Amends GS 147-86.61 (Exceptions). Provides that a company engaged in investment activities in Iran may not be placed on the list if the State Treasurer determines, as currently specified, that the company's investments were made before October 1, 2015, and other currently listed requirements (current law allows the company to contract with the State or a political subdivision, but does not prohibit placing the company on the list). Directs the State Treasurer to update the list annually (was, every 180 days). Makes conforming changes.

    Amends GS 147-86.62 (Report; application). Replaces existing text with the following. Directs the State Treasurer to report to the Joint Legislative Commission on Governmental Operations annually by October 1 on information regarding investments sold, redeemed, divested, or withdrawn under this Article.

    Makes conforming changes to GS 147-86.63.

    Except as otherwise provided, the act is effective October 1, 2017.


  • Summary date: Mar 22 2017 - View summary

    House committee substitute makes the following changes to the 1st edition.

    Deletes a whereas clause.

    Amends the definition of boycott Israel or boycott of Israel in proposed GS 147-86.80(1) to also exclude from the term decisions made for actions with an economic impact of less than $50 million in a 12-month period. Adds the term investment and defines the term to have the same meaning as GS 147-86.57(3). Deletes the terms direct holdings and indirect holdings.

    Amends proposed GS 147-86.81 (Prohibition on State investment), requiring the State Treasurer to develop and make publicly available a list of companies determined to be engaged in a boycott of Israel, to use the following in the development of the list: any other state lists of restricted companies pursuant to similar laws; any federal information or guidance on companies that boycott Israel; and any other credible information provided by nonprofit organizations, research firms, and governmental entities; and generally publicly available information (previous edition called for the use of any federal sanctions lists; information provided by nonprofit organizations, research firms, and governmental entities; and generally available information).

    Amends some of the requirements of the policy the State Treasurer must adopt under GS 147-86.81(a) prohibiting the NC Retirement Systems or the Department of the State Treasurer from directly investing in any company engaged in a boycott of Israel. Prohibits the NC Retirement Systems and the State Treasurer from investing funds with a company identified on the list as a company engaging in restricted investment activities (previous edition prohibited direct investments in a restricted company as well as acquiring securities of restricted companies as part of direct holdings). Directs any existing investment with a company identified as a company engaging in restricted activities to be divested within 180 days of the adoption of the policy under GS 147-86.81(a) (previous edition required the NC Retirement Systems and the State Treasurer to, or instruct all investment advisors to, sell, redeem, divest, or withdraw all direct holdings of restricted company within 90 days after the company is placed on the State Treasurer's list of restricted companies). Deletes provision providing that the prohibitions under subdivision (3) of GS 147-86.81(a)(2) do not apply to the North Carolina Retirement Systems' or the State Treasurer's indirect holdings or private market funds. Provides that nothing in the policy or new Article 6G requires the NC Retirement Systems or the State Treasurer to take action unless it is determined by the State Treasurer, in good faith, that the action is consistent with the fiduciary responsibilities of the Retirement Systems and the State Treasurer (previous edition exempted the NC Retirement Systems and State Treasurer from any conflicting statutory or common law obligations when acting in compliance with the statute in good faith).

    Amends proposed GS 147-86.82 to specify that contracts in existence on October 1, 2017, with restricted companies are allowed to expire in accordance with the terms of the contract, but any contract entered into with a company that is identified as a restricted company at the time of the contract is void (previous edition distinguished a date relating to contracts in existence). Adds new provision to require a State agency to review the information and offer the company an opportunity to respond upon receiving information that the company was not identified as restricted at the time of contract but has later been identified as a restricted company. Allows the State agency to take appropriate action provided by law, rule, or contract if the company fails to demonstrate that the company should not have been identified as a restricted company within 90 days after notification by the State agency. 

    Deletes proposed GS 147-86.74, requiring a State agency to certify that a company that attempts to contract with the State or a political subdivision of the State is not a restricted company at the time the bid is submitted or the contract is entered into, renewed, or assigned. Makes conforming changes.

    Changes the date by which the State Treasurer must annually report to the Joint Legislative Commission on Governmental Operations to October 1 (was, March 1) on information regarding investments sold, redeemed, divested, or withdrawn in compliance with the new Article. 


  • Summary date: Feb 21 2017 - View summary

    Enacts new Article 6G, Divestment from Companies Boycotting Israel, in GS Chapter 147, providing as follows. Requires the State Treasure, no more than 30 days after October 1, 2017, to adopt a policy prohibiting the North Carolina Retirement Systems or the Department of State Treasurer from directly investing in any company engaged in a boycott of Israel. Defines boycott Israel or boycott of Israel as engaging in refusals to deal, terminating business activities, or taking actions that are intended to penalize, inflict economic harm, or otherwise limit commercial relations specifically with Israel, or persons or entities doing business in Israel or in Israeli‑controlled territories; the term excludes decisions made for ordinary business purposes. Sets out the following minimum requirements for the policy: (1) requires the State Treasurer, within 120 days of adoption of the policy, to develop and make publicly available a list of companies determined to be engaged in a boycott of Israel; (2) requires the State Treasurer to identify any restricted companies in which the North Carolina Retirement Systems own direct holdings and indirect holdings; (3) requires the State Treasurer to annually review the list of restricted companies; (4 ) prohibits the North Carolina Retirement Systems and the State Treasurer from making direct investments in a restricted company; (5) requires the North Carolina Retirement Systems and the State Treasurer to sell, redeem, divest, or withdraw all direct holdings of restricted companies and instruct all investment advisors to sell, redeem, divest, or withdraw all direct holdings of restricted companies within 90 days after a company is placed on the State Treasurer's list of restricted companies; and (6) provides that the prohibitions under subdivision (3) do not apply to the North Carolina Retirement Systems' or the State Treasurer's indirect holdings or private market funds. Exempts the North Carolina Retirement Systems and the State Treasurer are from any conflicting statutory or common law obligations.

    Makes a restricted company ineligible to contract with the State or any political subdivision of the State. Voids any contract entered into with a restricted company and specifies that existing contracts with restricted companies are allowed to expire in accordance with the terms of the contract. These restrictions do not apply to contracts valued at $1,000 or less. These restrictions also do not apply when a company fails to meet the certification requirements discussed below but offers to provide the good or service to be contracted for at a cost at least 20% less than the lowest certifying business. 

    Requires a State agency to certify that a company that attempts to contract with the State or a political subdivision of the State is not a restricted company at the time the bid is submitted or the contract is entered into, renewed, or assigned. Requires a State agency to include certification information in the procurement record. Provides that if a State agency and the same company enter into multiple contracts or multiple contract renewals or assumptions within 180 days after a certification is made, a new certification is not needed. Prohibits a company that contracts with the State or a political subdivision of the State from using, on the contract, any subcontractor that is a restricted company. Specifies actions to be taken if a company fails to demonstrate that it should not have been identified as a restricted company within 90 days after the determination of a violation. 

    Requires the State Treasurer to annually report to the Joint Legislative Commission on Governmental Operations by March 1 on information regarding investments sold, redeemed, divested, or withdrawn in compliance with the Article.

    Effective October 1, 2017.

    Effective when the act becomes law, authorizes the State Treasurer to retain the services of consultants, professional individuals, analysts, data collection firms, or other persons possessing specialized skills or knowledge necessary for the proper implementation and administration of the requirements of this act.