HB-6479, As Passed Senate, December 20, 2018
November 7, 2018, Introduced by Rep. Johnson and referred to the Committee on Financial Liability Reform.
A bill to amend 2008 PA 234, entitled
"Divestment from terror act,"
by amending section 2 (MCL 129.292).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Active business operations" means all business operations
that are not inactive business operations. Active business
operations do not include the activities of any business, legal, or
governmental entity or institution that provides humanitarian aid
to the people of any state sponsors of terror.
(b) "Business operations" means engaging in commerce in any
form with a state sponsor of terror, including by acquiring,
developing, maintaining, owning, selling, possessing, leasing, or
operating equipment, facilities, personnel, products, services,
personal property, real property, or any other apparatus of
business or commerce.
(c) "Company" means any sole proprietorship, organization,
association, corporation, partnership, joint venture, limited
partnership, limited liability partnership, limited liability
company, or other entity or business association, including all
wholly owned subsidiaries, majority-owned subsidiaries, parent
companies, or affiliates of those entities or business
associations, that exists for profit-making purposes.
(d) "Direct holdings" in a company means all securities of
that company held directly by the fiduciary or in an account or
fund in which the fiduciary owns all shares or interests.
(e) "Fiduciary" means any of the following:
(i) The Michigan legislative retirement system board of
trustees for the Tier 1 retirement plan available under the
Michigan legislative retirement system act, 1957 PA 261, MCL
38.1001 to 38.1080.
(ii) The state treasurer for all of the following:
(A) The state police retirement system created under the state
police retirement act of 1986, 1986 PA 182, MCL 38.1601 to
38.1648.38.1675.
(B) The Tier 1 retirement plan available under the judges
retirement act of 1992, 1992 PA 234, MCL 38.2101 to 38.2670.
(C) The Tier 1 retirement plan available under the state
employees retirement act, 1943 PA 240, MCL 38.1 to 38.69.
(D) The public school employees retirement system created
under the public school employees retirement act of 1979, 1980 PA
300,
MCL 38.1301 to 38.1408.38.1437.
(iii) The state treasurer in connection with his or her duties
under any of the following:
(A) 1946 (1st Ex Sess) PA 9, MCL 35.602 to 35.610.
(B) 1855 PA 105, MCL 21.141 to 21.147.
(C) Section 7 of the Michigan trust fund act, 2000 PA 489, MCL
12.257.
(D) Children's trust fund under 1982 PA 249, MCL 21.171 to
21.172.
(E) The McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972
PA 239, MCL 432.1 to 432.47.
(F) Section 503b of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.503b.
(iv) The board of trustees of a community college subject to
the community college act of 1966, 1966 PA 331, MCL 389.1 to
389.195.
(v) The board of directors of the Michigan education trust
described in section 10 of the Michigan education trust act, 1986
PA 316, MCL 390.1430.
(vi) The board of the Michigan strategic fund under the
Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094.
(f) "Inactive business operations" means the mere continued
holding or renewal of rights to property previously operated for
the purpose of generating revenues but not presently deployed for
that purpose.
(g) "Indirect holdings" in a company means all securities of
that company held in an account or fund, including a mutual fund or
other commingled fund, managed by 1 or more persons not employed by
the fiduciary, in which the fiduciary owns shares or interests
together with other investors not subject to the provisions of this
act.
(h) "Scrutinized company" means, except for a company
described in subdivision (i), and for a social development company
or a company that only meets the criteria of this subdivision
because an independently owned franchisee of that company is a
scrutinized company, any company that has business operations that
involve contracts with or provision of supplies or services to a
state sponsor of terror; companies in which a state sponsor of
terror has any direct or indirect equity share, consortiums, or
projects commissioned by a state sponsor of terror; or companies
involved in consortiums and projects commissioned by a state
sponsor of terror and 1 or more of the following:
(i) More than 10% of the company's total revenues or assets
are directly invested in or earned from or significantly
contributed to a state sponsor of terror and the company has failed
to take substantial action.
(ii) The company has, with actual knowledge, made an
investment of $20,000,000.00 or more, or any combination of
investments of at least $10,000,000.00 each, which in the aggregate
equals or exceeds $20,000,000.00 in any 12-month period, and which
directly or significantly contributes to a state sponsor of terror,
and the company has failed to take substantial action.
(i) A scrutinized company does not mean a company which the
United States government has excluded from any present federal
sanctions regime relating to a state sponsor of terror, or which
has obtained from the United States government an applicable
license or approval to conduct a transaction with a state sponsor
of terror.
(j) "Social development company" means a company licensed by
the United States department of treasury pursuant to the federal
trade sanction reform and export enhancement act of 2000, P.L. 106-
387, or a company lawfully operating under the laws of another
country, whose primary purpose in a state sponsor of terror is to
provide humanitarian goods or services including, food, other
agricultural products, supplies or infrastructure, clothing,
shelter, medicines or medical equipment, educational opportunities,
journalism-related activities, information or information
materials, spiritual-related activities, general consumer goods, or
services of a purely clerical or reporting nature, to aid the
inhabitants of a state sponsor of terror.
(k) "State sponsor of terror" means, subject to section 10 as
to applicability, any country determined by the United States
secretary
Secretary of state State to have repeatedly
provided
support for acts of international terrorism.
(l) "Substantial action" means adopting, publicizing, and
implementing a formal plan to cease scrutinized business operations
within 1 year and to refrain from any new business operations.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6475 (request no.
05259'18) of the 99th Legislature is enacted into law.