SECOND REGULAR SESSION
HOUSE COMMITTEE SUBSTITUTE FOR
HOUSE BILL NO. 2357
95TH GENERAL ASSEMBLY
5181L.02P D. ADAM CRUMBLISS, Chief Clerk
To amend chapter 105, RSMo, by adding thereto one new section relating to public retirement plans.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 105, RSMo, is amended by adding thereto one new section, to be known as section 105.676, to read as follows:
105.676. 1. As used in this section, the following terms mean:
(1) "Business ties", owning or controlling property or assets located in, having employees or facilities located in, providing goods or services to, obtaining goods or services from, having distribution agreements with, issuance of credit or loans to, purchasing bonds or commercial paper issued by, investing in or having equity ties to or with any country designated by the United States Department of State as state sponsors of terrorism or any company domiciled in any country designated by the United States Department of State as a state sponsor of terrorism or their affiliates thereof;
(2) "Company", any entity capable of affecting commerce, including but not limited to a government, government agency, natural person, legal person, sole proprietorship, partnership, firm, corporation, subsidiary, affiliate, franchisor, franchisee, joint venture, trade association, financial institution, utility, public franchise, provider of financial services, trust, or enterprise or any association thereof;
(3) "Independent research provider", a private United States company that has submitted an affidavit to the state treasurer averring that:
(a) It specializes in identifying and assessing companies that are exposed to global security risk;
(b) It offers credible research on corporate ties to any country designated by the United States Department of State as a state sponsor of terrorism that has been maintained and provided to the market for a minimum of two calendar years; and
(c) It does not have the potential for conflicts of interest stemming from investment banking and corporate finance activities;
(4) Any country designated by the United States Department of State as a state sponsor of terrorism.
2. Notwithstanding any provision of law to the contrary, any asset manager that invests in international equities of publicly-traded foreign companies on behalf of the plan shall attest semiannually in a written statement to the board that they do not hold on behalf of the plan the stock of any foreign company that, according to a reputable independent research provider specializing in global security risk assessment, has active business ties to any country designated by the United States Department of State as a state sponsor of terrorism that are nonhumanitarian in nature. The provisions of this section shall expire with respect to each individual country, irrespective of the countries that still remain prohibited, at such time that the President of the United States affirmatively and unambiguously states by means of, but not limited to, enacted legislation, executive order, or written certification from the President to the United States Congress that the United States Department of State no longer recognizes certain countries as state sponsors of terrorism.
3. Notwithstanding any law to the contrary, the plan and the board shall be exempt from any conflicting statutory obligations, including any such obligations with respect to choice of asset managers, investment funds, or investments for the plan's securities portfolios with respect to actions taken in compliance with this section, including all good faith determinations regarding companies as required by this section.