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Chapter 7. Prohibited Business Arrangements of California Government Code >> Division 4. >> Title 2. >> Part 2. >> Chapter 7.
The definitions in this section shall govern the
construction and interpretation of this chapter.
(a) "Investment" or "invest" means the commitment of funds or other assets to a business firm, including a loan or other extension of credit made to that firm, or security given for the other assets to that business enterprise, or the beneficial ownership or control of a share or interest in that business firm, or of a bond or other debt instrument issued by that business firm.
(b) "Business firm" means any foreign or domestic organization, association, corporation, partnership, venture, or other entity, its subsidiary, or affiliate which exists for profitmaking purposes or to otherwise secure economic advantage, other than a financial institution.
(c) "Financial institution" means any foreign or domestic bank, bank holding company, savings and loan association, or credit union, or any foreign or domestic insurance company, brokerage firm, securities firm, investment company, mortgage banking company, finance company, personal property broker, mortgage loan broker, or consumer credit company, or any affiliate or subsidiary thereof.
(d) "Business arrangements" means projects, ventures, undertakings, contractual relations, or other efforts requiring ongoing or periodic performance by either or both parties.
(e) "Discriminatory business practices" means business arrangements that are prohibited by Sections 16721 and 16721.5 of the Business and Professions Code.
(f) "State trust moneys" means funds administered by the Public Employees' Retirement Fund, the Legislators' Retirement Fund, the State Teachers' Retirement Fund, the Judges' Retirement Fund, the Judges' Retirement System II Fund, the Volunteer Firefighter Fund, the General Fund portion of the University of California Retirement Fund, and any funds invested pursuant to this part.
(g) "State trust fund" means the Public Employees' Retirement Fund, the Legislators' Retirement Fund, the State Teachers' Retirement Fund, the Judges' Retirement Fund, the Judges' Retirement System II Fund, the Volunteer Firefighter Fund, and any investment fund created by this part.
(h) "State moneys" means all money, bonds, and securities in possession of or collected by any state agency.
(i) "Compliance with the Arab League's economic boycott of Israel" means taking any action, with respect to the boycott of Israel by Arab countries, which is prohibited by the United States Export Administration Act of 1979.
(a) "Investment" or "invest" means the commitment of funds or other assets to a business firm, including a loan or other extension of credit made to that firm, or security given for the other assets to that business enterprise, or the beneficial ownership or control of a share or interest in that business firm, or of a bond or other debt instrument issued by that business firm.
(b) "Business firm" means any foreign or domestic organization, association, corporation, partnership, venture, or other entity, its subsidiary, or affiliate which exists for profitmaking purposes or to otherwise secure economic advantage, other than a financial institution.
(c) "Financial institution" means any foreign or domestic bank, bank holding company, savings and loan association, or credit union, or any foreign or domestic insurance company, brokerage firm, securities firm, investment company, mortgage banking company, finance company, personal property broker, mortgage loan broker, or consumer credit company, or any affiliate or subsidiary thereof.
(d) "Business arrangements" means projects, ventures, undertakings, contractual relations, or other efforts requiring ongoing or periodic performance by either or both parties.
(e) "Discriminatory business practices" means business arrangements that are prohibited by Sections 16721 and 16721.5 of the Business and Professions Code.
(f) "State trust moneys" means funds administered by the Public Employees' Retirement Fund, the Legislators' Retirement Fund, the State Teachers' Retirement Fund, the Judges' Retirement Fund, the Judges' Retirement System II Fund, the Volunteer Firefighter Fund, the General Fund portion of the University of California Retirement Fund, and any funds invested pursuant to this part.
(g) "State trust fund" means the Public Employees' Retirement Fund, the Legislators' Retirement Fund, the State Teachers' Retirement Fund, the Judges' Retirement Fund, the Judges' Retirement System II Fund, the Volunteer Firefighter Fund, and any investment fund created by this part.
(h) "State moneys" means all money, bonds, and securities in possession of or collected by any state agency.
(i) "Compliance with the Arab League's economic boycott of Israel" means taking any action, with respect to the boycott of Israel by Arab countries, which is prohibited by the United States Export Administration Act of 1979.
On or after January 1, 1994, state trust moneys shall not
be used to make additional or new investments or to renew existing
investments in business firms that engage in discriminatory business
practices in furtherance of or in compliance with the Arab League's
economic boycott of Israel.
Section 16649.81 shall not apply to any business firm
which, by resolution of its governing body, adopts a policy not to
renew existing, expand existing, or engage in new, discriminatory
business practices in furtherance of or in compliance with the Arab
League's economic boycott of Israel. The resolution required by this
section shall include the following statement: "____ (name of
business firm) agrees not to renew existing, expand existing, or
engage in new, discriminatory business practices in furtherance of or
in compliance with the Arab League's economic boycott of Israel."
On or after January 1, 1994, state trust moneys shall not
be used to make additional or new investments or to renew existing
investments in financial institutions that engage in discriminatory
business practices in furtherance of or in compliance with the Arab
League's economic boycott of Israel.
Section 16649.83 shall not apply to any financial
institution which, by resolution of its governing body, adopts a
policy not to renew existing, expand existing, or engage in new,
discriminatory business practices in furtherance of or in compliance
with the Arab League's economic boycott of Israel. The resolution
required by this section shall include the following statement: "____
(name of financial institution) agrees not to renew existing, expand
existing, or engage in new, discriminatory business practices in
furtherance of or in compliance with the Arab League's economic
boycott of Israel."
(a) A copy of a resolution, as described in Sections
16649.82 and 16649.84, shall be submitted to the Treasurer and to the
chief administrative officer of each state trust fund. Information
shall also be submitted by business firms that provides a description
of the discriminatory business practices in furtherance of or in
compliance with the Arab League's economic boycott of Israel in
existence as of the date of the resolution.
(b) The copy of a resolution shall be accompanied by a certification, under penalty of perjury, that the adopted policy is being complied with. Annually thereafter a certification, under penalty of perjury, that the adopted policy is being complied with shall be submitted to the Treasurer.
(c) The resolution and the information submitted to the Treasurer shall be deemed public documents and shall be open to public inspection.
(b) The copy of a resolution shall be accompanied by a certification, under penalty of perjury, that the adopted policy is being complied with. Annually thereafter a certification, under penalty of perjury, that the adopted policy is being complied with shall be submitted to the Treasurer.
(c) The resolution and the information submitted to the Treasurer shall be deemed public documents and shall be open to public inspection.
Beginning January 1, 1995, and continuing thereafter
until January 1, 1998, state trust funds shall annually reduce by
one-third the value of their respective investments in business firms
and financial institutions that engage in discriminatory business
practices in furtherance of or in compliance with the Arab League's
economic boycott of Israel.
Effective January 1, 1998, state trust funds shall not
make or hold any investment in any business firm or financial
institution that engages in discriminatory business practices in
furtherance of or in compliance with the Arab League's economic
boycott of Israel.
State moneys shall not be deposited with financial
institutions that, following January 1, 1994, engage in
discriminatory business practices in furtherance of or in compliance
with the Arab League's economic boycott of Israel.
The prohibitions contained in Sections 16649.83,
16649.87, 16649.88, and 16649.89, shall not apply to any loan or
extension of credit for which an agreement is entered into before the
date of enactment of this chapter.
Present, future, and former members of the governing
board of any trust fund, jointly and individually, state officers and
employees, and investment managers under contract with the state
shall be indemnified from the General Fund by the State of California
from all claims, demands, suits, actions, damages, judgments, costs,
charges and expenses, including court costs and attorney's fees, and
against all liability, losses, and damages of any nature whatsoever
that these present, future, or former board members, officers,
employees, or contract investment managers shall or may at any time
sustain by reason of any decision to restrict, reduce, or eliminate
investments pursuant to this chapter.
Present, future, and former Regents of the University of
California, jointly and individually, officers and employees of the
University of California, and investment managers under contract with
the University of California shall be indemnified from the General
Fund by the State of California from all claims, demands, suits,
actions, damages, judgments, costs, charges, and expenses, including
court costs and attorney's fees and against all liability, losses,
and damages of any nature whatsoever that these present, future, or
former regents, officers, employees, or contract investment managers
shall or may at any time sustain by reason of any decision to
restrict, reduce, or eliminate university investments pursuant to
this chapter.
This chapter shall not apply to any Internal Revenue Code
Section 457, 401(k), or 403(b) defined contribution plan
administered by the Department of Human Resources.
(a) Nothing in this chapter shall prohibit a business
firm from utilizing a single resolution to satisfy the requirements
of both Sections 16649.82 and 16641.5, provided that the specific
requirements of Sections 16649.82 and 16641.5 are each fully complied
with in the single resolution.
(b) Nothing in this chapter shall prohibit a financial institution from utilizing a single resolution to satisfy the requirements of both Sections 16649.84 and 16642.5, provided that the specific requirements of Sections 16649.84 and 16642.5 are each fully complied with in the single resolution.
(c) Nothing in this chapter shall prohibit a business firm or financial institution from utilizing a single certification to satisfy the requirements of both Sections 16649.86 and 16643, provided that the specific requirements of Sections 16649.86 and 16643 are each fully complied with in the single certification.
(b) Nothing in this chapter shall prohibit a financial institution from utilizing a single resolution to satisfy the requirements of both Sections 16649.84 and 16642.5, provided that the specific requirements of Sections 16649.84 and 16642.5 are each fully complied with in the single resolution.
(c) Nothing in this chapter shall prohibit a business firm or financial institution from utilizing a single certification to satisfy the requirements of both Sections 16649.86 and 16643, provided that the specific requirements of Sections 16649.86 and 16643 are each fully complied with in the single certification.
