An Act To Require the Maine State Retirement System To Divest Itself of Holdings in Those Businesses or Corporations Doing Business in the Nation of Sudan and To Repeal Requirements Relating to Shareholder Initiatives by State Officials on State Investments in Northern Ireland Further amend the bill by striking out everything after the enacting clause and before the summary and inserting in its place the following: Sec. 1. 5 MRSA §1955, as amended by PL 1991, c. 537, is repealed. Sec. 2. 5 MRSA §1956 is enacted to read: §1956. Sudan 1. Divestment. The Board of Trustees of the Maine State Retirement System shall review the extent to which the assets of any state pension or annuity fund are invested in the stocks, securities or other obligations of any corporation or company, or any subsidiary, affiliate or parent of any corporation _or company, doing business in or with the nation of Sudan or its instrumentalities. Except as provided in subsection 2, the board Page 1-LR2471(2) COMM/rrEE AMENDMENT
Maine Legislature, Session 122, LD 1758
Committee Amendment CA_A_S493 (Senate)
Committee: Labor, clarifies that the
Amends: 5 MRSA §1955, 5 MRSA §1956

COMMITTEE AMENDMENT 
to S.P. 675, L.D. 1758, Bill, "An 
Act To Require the Maine State Retirement System To Divest Itself 
of Certain Holdings" 
Amend the bill by striking out the title and substituting 
the following: 
'An Act To Require the Maine State Retirement System To Divest 
Itself of Holdings in Those Businesses or Corporations Doing 
Business in the Nation of Sudan and To Repeal 
Requirements 
Relating to Shareholder Initiatives by State Officials on State 
Investments in Northern Ireland' 
Further amend the bill by striking out everything after the 
enacting clause and before the summary and inserting in its place 
the following: 
'Sec. 1. 5 MRSA §1955, as amended by PL 1991, c. 537, is 
repealed. 
Sec. 2. 5 MRSA §1956 is enacted to read: 
§1956. 
Sudan 
1. 
Divestment. 
The Board of Trustees of the Maine State 
Retirement System shall review the extent to which the assets of 
any state pension or annuity fund are invested in the stocks, 
securities or other obligations of any corporation or company, or 
any 
subsidiary, 
affiliate or 
parent 
of 
any 
corporation _or 
company, doing business in or with the nation of Sudan or its 
instrumentalities. 
Except as provided in subsection 2, the board 
COMM/rrEE AMENDMENT 
}",~", 
. ~,;~,~, 
COMMITTEE AMENDMENT .. A .. to S.P. 675, L.D. 1758 
shalL 
in 
accordance 
with 
sound 
investment 
criteria 
and 
consistent with the board's fiduciary obligations, divest any 
such holdings and may not invest any assets in any such 
stoc!~s, 
securities or other obligations. 
Divestment pursuant to this 
subsection must be complete by January 1, 2008. 
z. 
Exemption. 
Short-term investment funds that commingle 
commercial paper or futures and other commingled investment or 
index funds are exempt from the restrictions imposed by this 
section. 
3. 
Report. 
The 
Board of Trustees of ·the Maine 
State 
Retirement System shall report to the joint standing committee of 
the Legislature having jurisdiction over labor matters by January 
1, 2007 and each January 1st thereafter regarding the progress of 
divestment and the implementation of this section. 
4. 
Repeal. 
This section is repealed July 1, 2009.' 
SUMMARY 
This amendment, which is the majority report of the Joint 
Standing 
Committee 
on 
Labor, 
clarifies that 
the 
divestment 
requirement and the investment prohibition apply to all companies 
doing 
business 
in 
or 
with 
the 
nation 
of 
Sudan 
or 
its 
instrumentalities. 
It 
adds 
language 
allowing 
the 
Board 
of 
Trustees of the Maine State Retirement System to divest 
In 
accordance with sound investment criteria and consistent with the 
board's fiduciary obligations, and it requires divestment to be 
complete by January 1, 
2008. 
It provides 
an exemption for 
short-term investment funds that commingle commercial paper or 
futures and for other commingled investment or index funds. 
The 
amendment 
requires 
the 
board 
to 
report 
annually 
to 
the 
Legislature on the progress of divestment and the implementation 
of the statutory section and provides for the repeal of the 
section on July 1, 2009. 
The amendment also repeals the law 
relating to shareholder initiatives by state officials on state 
investments in Northern Ireland. 
FISCAL .:'IOTE REQURED 
(~ee attached) 
COMMITTEE AMENDMENT 
Approved: 02127/06 ~ac::.. 
LD 1758 
LR 2471(02) 
An Act to Require the Maine State Retirement System To Divest Itself of Certain Holdings 
Fiscal Note for Bill as Amended by Committee Amendment ,,A,, 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Undetermined future biennium cost increase -All Funds 
Fiscal Detail and Notes 
This legislation may increase costs to the State and other public employers who make contributions to the Maine State 
Retirement System to fund the pension benefits of State employees, teachers, judges, legislators and municipal 
employees. Divestiture of MSRS holdings in the nation of Sudan may result in the future investment performance of 
the MSRS Trust Funds being lower than the 8% projected investment return currently in place. A lower than 
anticipated return on investment will result in higher contributions from the State and other public employers. The 
actual impact of this measure on investment returns can not be determined at this time. 
LR2471(2) - Fiscal Note - Page 1 of 1