24-54.8-202. Transactions prohibited by the public employees' retirement association - companies that have economic prohibitions against Israel - restricted companies list. (1) By January 1, 2017, the public employees' retirement association created in article 51 of this title shall make its best efforts to identify all restricted companies in which the association has direct holdings or could possibly have such holdings in the future and assemble those companies into a list of restricted companies. These efforts shall include the following, as appropriate in the judgment of the association:
(a) Reviewing and relying on publicly available information regarding companies that have economic prohibitions against Israel, including information provided by nonprofit organizations, research firms, and government entities;
(b) Contacting asset managers contracted by the association that invest in companies that have economic prohibitions against Israel;
(c) Contacting other institutional investors that have divested from or engaged with companies that have economic prohibitions against Israel; and
(d) Retaining an independent research firm or organization to identify companies that have economic prohibitions against Israel. It shall be reasonable and sufficient for the association to rely on information and work product obtained from such research firm or organization; except that the board of trustees of the public employees' retirement association shall review and approve any companies identified by an independent research firm before including such companies on the list of restricted companies pursuant to this subsection (1).
(2) The public employees' retirement association shall review the list of restricted companies on a biannual basis based on evolving information from, among other sources, those listed in subsection (1) of this section.
(3) The public employees' retirement association shall adhere to the following procedures for companies on the list of restricted companies:
(a) For each company newly identified in subsection (1) of this section, the association shall send a written notice informing the company of its status and that it may become subject to divestment by the association.
(b) If, following the association's engagement pursuant to this subsection (3) with a restricted company, that company ceases activity that designates it as a company that has economic prohibitions against Israel, the company shall be removed from the list of restricted companies and the provisions of this section shall cease to apply to it unless it resumes such activities.
(c) If, after one hundred eighty days following the association's first engagement with a company pursuant to paragraph (b) of this subsection (3), the company remains a restricted company, the association shall instruct its investment advisors to sell, redeem, divest, or withdraw all direct holdings of restricted companies from the association's assets under management in an orderly and fiduciarily responsible manner within twelve months after the company's most recent appearance on the list of restricted companies.
) of this subsection (3), the company remains a restricted company, the association shall instruct its investment advisors to sell, redeem, divest, or withdraw all direct holdings of restricted companies from the association's assets under management in an orderly and fiduciarily responsible manner within twelve months after the company's most recent appearance on the list of restricted companies.
(d) If, upon the commencement of the date of divestment, the association does not own direct holdings in a company on the list of restricted companies, the association is prohibited from acquiring direct holdings in any company on the list of restricted companies during the time that it remains on the list.
(4) Notwithstanding any other provision of this part 2, the holdings in the public employees' retirement association's defined contribution plans are not subject to this part 2.
(5) Upon request, and at least annually, the public employees' retirement association shall make available on its website information regarding investments sold, redeemed, divested, or withdrawn in compliance with this section.
(6) Notwithstanding any provision of this section to the contrary, the public employees' retirement association may cease divesting from companies pursuant to subsection (3) of this section if clear and convincing evidence shows that the value for all assets under management by the association becomes equal to or less than ninety-nine and one-half percent, or fifty basis points, of the hypothetical value of all assets under management by the association assuming no divestment for any company had occurred pursuant to subsection (3) of this section.
(7) With respect to actions taken in compliance with this part 2, including all good-faith determinations regarding companies as required by this section, the public employees' retirement association is exempt from any conflicting statutory or common law obligations, including any fiduciary duties and any obligations with respect to choice of asset managers, investment funds, or investments for the association's securities portfolios.
(8) With respect to all actions taken in good faith compliance with this part 2, the public employees' retirement association, its board of directors, individual board members, agents, trustees, officers, employees, custodians, and fiduciaries shall be immune from any liability.
