Bill Summary for S 329 (2017-2018)

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Summary date: 

Mar 21 2017

Bill Information:

View NCGA Bill Details2017-2018 Session
Senate Bill 329 (Public) Filed Tuesday, March 21, 2017
AN ACT REQUIRING STATE DIVESTMENT FROM, AND PROHIBITING STATE AGENCIES FROM CONTRACTING WITH, COMPANIES THAT BOYCOTT ISRAEL.
Intro. by Tucker, Gunn, Brock.

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Bill summary

Includes several whereas clauses.

Enacts new Article 6G, Divestment from Companies Boycotting Israel, in GS Chapter 147, providing as follows. Requires the State Treasurer, 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 Israeliā€‘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 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 company identified as a restricted company at the time of contract. Requires the 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. Specifies that contracts in existence on October 1, 2017, with restricted companies are allowed to expire in accordance with the terms of the contract.Ā 

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.