DEPARTMENT
OF
AUDITS
AND
ACCOUNTS
270 Washington Street, S.W., Suite 1-156
Atlanta, Georgia 30334-8400
270 Washington Street, S.W., Suite 1-156
Atlanta, Georgia 30334-8400
Russell W.
Hinton
State Auditor
(404) 656-2174
State Auditor
(404) 656-2174
March
5, 2008
The
Honorable Bill Heath, ChairmanSenate Retirement
Committee
State Capitol, Room 109
Atlanta, Georgia 30334
State Capitol, Room 109
Atlanta, Georgia 30334
SUBJECT: State
Auditor’s
Certification
Amendment to SB 451 (LC 28 3980)
As Amended (AM 21 3573)
Amendment to SB 451 (LC 28 3980)
As Amended (AM 21 3573)
Dear
Chairman Heath:
As
amended, this bill would create the “Protecting Georgia’s
Investments Act.” Specifically, this bill would provide that public funds
be required to identify all ‘scrutinized companies’ in which the
public fund has direct or indirect holdings. This legislation defines
‘scrutinized companies’ as any company that has, with actual
knowledge, on or after August 5, 1996, made an investment of $20 million or more
in Iran’s petroleum sector which directly or significantly contributes to
the enhancement of Iran’s ability to develop the petroleum resources of
Iran.
This
legislation would require public funds to identify these scrutinized companies
by October 1, 2008 and update their listing of these companies annually. This
bill also outlines the procedures that must be followed by public funds with
direct holdings in any ‘scrutinized companies.’ These procedures
include notifying companies of their status, encouraging the companies to cease
such activities, and divesting securities in such companies under certain
circumstances. This bill provides for certain exclusions and provides for the
termination of these prohibitions if certain Federal action occurs. Under the
proposed amendment, this Act shall be automatically repealed on July 1,
2011.
This
is to certify that this amendment (AM 21 3573) is a nonfiscal amendment as
defined in the Public Retirement Systems Standards Law.
Respectfully,
/s/ Russell W. Hinton
State Auditor
/s/ Russell W. Hinton
State Auditor
RWH/cs