PRINTER'S NO. 1738
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1260
Session of
2024
INTRODUCED BY SANTARSIERO, PHILLIPS-HILL, PENNYCUICK,
LANGERHOLC, J. WARD, BAKER, ARGALL, BOSCOLA, MARTIN, FLYNN,
ROTHMAN AND DUSH, JUNE 18, 2024
REFERRED TO STATE GOVERNMENT, JUNE 18, 2024
AN ACT
Prohibiting the State Treasurer, the State Employees' Retirement
System, the Public School Employees' Retirement System and
the Pennsylvania Municipal Retirement System from boycotting
or divesting from Israel; and prohibiting funding to an
institution of higher education that engages in a boycott
against or divestment from Israel.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Stand with
Israel Act.
Section 2. Findings.
The General Assembly finds as follows:
(1) Israel is America's dependable, democratic ally in
the Middle East, an area of paramount strategic importance to
the United States.
(2) It is in the interest of the United States and the
Commonwealth to stand with Israel by promoting trade and
commercial financial activities with Israel and its citizens
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and by discouraging policies that contravene that interest.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Alternative investments." An investment in a private equity
fund, private debt fund, venture fund, real estate fund, hedge
fund or absolute return fund.
"Boycott against or divestment from Israel." Actions that
are intended to financially penalize the government of Israel or
commercial financial activity in Israel.
"Business activities." Owning or controlling property or
assets located in, having employees or facilities located in,
providing goods or services to, having distribution agreements
with, issuing credit or loans to, purchasing bonds or commercial
paper issued by, investing in or having equity ties to or with
Israel or any company or person domiciled in Israel.
"Commercial financial activity in Israel." Any company
having financial business activities in Israel.
"Company." Any sole proprietorship, organization,
association, corporation, partnership, joint venture, limited
partnership, limited liability partnership, limited liability
company or other entity or business association that exists for
the purpose of making profit.
"Direct holdings." All securities of a company or the
government of Israel that are held directly by the public fund.
"Government of Israel." The government of Israel and its
political subdivisions and the instrumentalities and companies
owned or controlled by the government of Israel or its political
subdivisions.
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"Indirect holdings." All securities held in an account or
fund such as a mutual fund managed by one or more persons not
employed by a public fund, in which the public fund owns shares
or interests together with other investors.
"Institution of higher education." Includes any of the
following:
(1) A community college operating under Article XIX-A of
the act of March 10, 1949 (P.L.30, No.14), known as the
Public School Code of 1949.
(2) A university within the State System of Higher
Education.
(3) The Pennsylvania State University.
(4) The University of Pittsburgh.
(5) Temple University.
(6) Lincoln University.
(7) Any other institution that is designated as State-
related by the Commonwealth.
(8) Any accredited private or independent college or
university.
(9) Any private licensed school as defined in the act of
December 15, 1986 (P.L.1585, No.174), known as the Private
Licensed Schools Act.
"Israel." The State of Israel.
"Public fund." Any of the following:
(1) The State Employees' Retirement Fund established
under 71 Pa.C.S. Pt. XXV (relating to retirement for State
employees and officers).
(2) The Public School Employees' Retirement Fund
established under 24 Pa.C.S. Pt. IV (relating to retirement
for school employees).
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(3) The Pennsylvania Municipal Retirement Fund.
(4) Any Commonwealth fund of which the State Treasurer
is the custodian.
Section 4. Prohibition for a public fund.
Notwithstanding any other provision of law, a public fund may
not engage in a boycott against or divestment from Israel
through direct holdings, indirect holdings or alternative
investments of commercial financial activity in Israel or the
government of Israel.
Section 5. Prohibition for institutions of higher education.
Notwithstanding any other provision of law, the Commonwealth
may not provide any funding of any kind directly to an
institution of higher education that engages in a boycott or
divestment from Israel.
Section 6. Fiduciary or prudent investing responsibilities.
A public fund's or institution of higher education's
compliance with this act shall be made in accordance with:
(1) Any applicable fiduciary or prudent investing
responsibilities as found under:
(i) Section 110 of the act of February 1, 1974
(P.L.34, No.15), known as the Pennsylvania Municipal
Retirement Law.
(ii) 20 Pa.C.S. § 7302 (relating to authorized
investments; in general).
(iii) 24 Pa.C.S. § 8521 (relating to management of
fund and accounts).
(iv) 71 Pa.C.S. § 5931 (relating to management of
fund and accounts).
(2) Any obligations with respect to choice of asset
managers, investment funds or investments for the public
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fund's or institution of higher education's securities
portfolios.
Section 7. Nonapplicability.
(a) State Employees' Defined Contribution Plan and
Commonwealth's Deferred Compensation Plan.--The provisions and
restrictions of this act shall not apply to:
(1) The State Employees' Defined Contribution Plan
established under 71 Pa.C.S. Ch. 58 (relating to State
Employees' Defined Contribution Plan).
(2) The Commonwealth's Deferred Compensation Plan
established under section VIII.2 of the act of March 30, 1811
(P.L.145, No.99), referred to as the Settlement of Public
Accounts Act.
(3) The individual investment accounts or the funds and
investments of the participants of the plans.
(b) School Employees' Defined Contribution Plan.--The
provisions and restrictions of this act shall not apply to:
(1) The School Employees' Defined Contribution Plan
established under 24 Pa.C.S. Ch. 84 (relating to School
Employees' Defined Contribution Plan).
(2) The individual investment accounts or the funds and
investments of the participants of the plan.
Section 8. Severability.
If any provision of this act or its application to any person
or circumstances is held invalid, the invalidity shall not
affect other provisions or applications of this act that can be
given effect without the invalid provision or application.
Section 9. Effective date.
This act shall take effect immediately.
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