§ 5-10.2-9-26 — Divestment; exemption for certain commingled funds

Indiana § 5-10.2-9-26

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 10.2: PUBLIC RETIREMENT AND DISABILITY
• Ch. 9: Sudan Divestment

Text

(a) Except as provided in sections 28 and 29
of this chapter, if, after ninety (90) days after a fund's (before July 1,
2011) or the system's first engagement with a company under section
24 of this chapter, the company continues to have scrutinized active
business operations, the fund (before July 1, 2011) or system shall sell,
redeem, divest, or withdraw all publicly traded securities of the
company that are held by a fund, as follows:
(1) At least fifty percent (50%) of such assets shall be removed
from a fund's assets under management within nine (9) months
after the company's appearance on the scrutinized company list.
(2) One hundred percent (100%) of such assets shall be removed
from a fund's assets under management within fifteen (15) months
after the company's appearance on the scrutinized company list.
(b) If a company that ceased scrutinized active business operations
following engagement under section 24 of this chapter resumes
scrutinized active business operations, and only while the company
continues to have active business operations, the company shall
immediately be placed back on the scrutinized company list. If a fund
has holdings in the company, the fund (before July 1, 2011) or the
system shall sell, redeem, divest, or withdraw all publicly traded
securities of the company as provided in subsection (a) based on the
date the company is placed back on the scrutinized company list. The
fund (before July 1, 2011) or the system shall send a written notice to
the company indicating that the company was placed back on the
scrutinized company list and is subject to divestment.
(c) The board is not required to divest a fund's holdings in a
passively managed commingled fund that includes a scrutinized
company with active business operations in Sudan if the estimated cost
of divestment of the commingled fund is greater than ten percent (10%)
of the total value of the scrutinized companies with active business
operations held in the commingled fund. The board shall include any
commingled fund that includes a scrutinized company that is exempted
from divestment under this subsection in the board's report submitted
to the legislative council under section 31 of this chapter.

Legislative History

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.59.