LRB-3046/1
ARG:wlj
2017 - 2018 LEGISLATURE
April 20, 2017 - Introduced by Senators Vinehout and Johnson, cosponsored by
Representatives Zamarripa and Subeck. Referred to Committee on Financial
Services, Constitution and Federalism.
SB210,1,3 1An Act to amend 25.182; and to create 25.17 (14m) (d) and 25.183 (4) of the
2statutes; relating to: prohibiting the Investment Board from making certain
3investments.
Analysis by the Legislative Reference Bureau
This bill prohibits, with exceptions, the State of Wisconsin Investment Board
(SWIB) from investing in securities of any company that has entered into a contract
with the federal government to plan, design, or construct a wall along the southern
border between the United States and Mexico pursuant to a presidential executive
order. Within 30 days after the effective date of the bill, SWIB must make its best
efforts to identify all companies that contract to build a border wall and make a list
of these companies. SWIB must update this list at least quarterly. For each company
included on this list, SWIB must send a written notice to the company informing the
company that SWIB is prohibited from investing in the company and of the reason
for this prohibition. SWIB may remove a company from the list one year after the
company completes all work related to the border wall or one year after the contract
termination date, whichever is later. After 30 days following the effective date of the
bill, SWIB may not make any new investment in securities of any company included
on the list. If at this time SWIB already maintains investments in companies
included on the list, SWIB must divest itself of these investments within
approximately six months. If SWIB later updates its list and adds a company in
which SWIB already maintains an investment, SWIB must divest itself of the
investment within six months after the company is added to the list. However, these

investment prohibitions do not apply to investments made by external managers
with whom SWIB has contracted, investments in mutual funds and other
commingled instruments, and investments in private equity funds. The bill also
requires SWIB to include, in an annual report that under current law SWIB submits
to the legislature, SWIB's most recent list and other information relating to SWIB's
divestment from companies that contract to build a border wall.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB210,1 1Section 1. 25.17 (14m) (d) of the statutes is created to read:
SB210,2,52 25.17 (14m) (d) The most recent list under s. 25.183 (4) (b) 1. and other
3information relating to the board's efforts to satisfy the requirements under s. 25.183
4(4), including, as applicable, the board's status of divestment from companies that
5contract to build a border wall.
SB210,2 6Section 2. 25.182 of the statutes is amended to read:
SB210,2,13 725.182 Management authority for certain funds. In addition to the
8management authority provided under any other provision of law, and
9notwithstanding any limitation on the board's management authority provided
10under any other provision of law except s. 25.183 (4), the board shall have authority
11to manage the money and property of the core retirement investment trust and,
12subject to s. 25.17 (5), the variable retirement investment trust in any manner that
13does not violate the standard of responsibility specified in s. 25.15 (2).
SB210,3 14Section 3. 25.183 (4) of the statutes is created to read:
SB210,2,1615 25.183 (4) Investments in companies that contract to build a border wall.
16(a) In this subsection:
SB210,2,1717 1. “Company” has the meaning given for business entity in s. 13.62 (5).
SB210,3,5
12. “Company that contracts to build a border wall" means a company that has
2entered into a contract with the federal government to plan, design, or construct a
3southern border wall pursuant to section 4 of Executive Order 13767 of the President
4of the United States, Border Security and Immigration Enforcement Improvements,
5January 25, 2017.
SB210,3,66 3. “Project completion” means the later of the following:
SB210,3,87 a. The date that a company that contracts to build a border wall completes all
8work under the contract specified in subd. 2.
SB210,3,99 b. Any contract termination date included in the contract specified in subd. 2.
SB210,3,1410 (b) 1. No later than the 30th day beginning after the effective date of this
11subdivision .... [LRB inserts date], the board shall make its best efforts to identify all
12companies that contract to build a border wall and shall make a list of such
13companies. At least quarterly, the board shall update this list after again making
14its best efforts to identify all companies that contract to build a border wall.
SB210,3,1615 2. For purposes of subd. 1., the board's best efforts to identify companies that
16contract to build a border wall shall, at a minimum, include all of the following:
SB210,3,1917 a. Contacting the federal Department of Homeland Security to obtain relevant
18information regarding companies that contract to build a border wall, including, if
19necessary, making federal Freedom of Information Act requests.
SB210,3,2220 b. Reviewing publicly available information regarding companies that contract
21to build a border wall, including information provided by nonprofit organizations,
22research firms, and government entities.
SB210,3,2423 c. Contacting other institutional investors known to the board to have
24undertaken to identify companies that contract to build a border wall.
SB210,4,3
13. The board shall send a written notice to each company included on the list
2under subd. 1. informing the company that the board is prohibited from investing in
3the company and of the reason for this prohibition.
SB210,4,54 4. The board may remove a company that contracts to build a border wall from
5the list under subd. 1. one year after the company's project completion.
SB210,4,106 (c) Notwithstanding s. 25.15 (2), but subject to pars. (d) to (f), after the 30th day
7beginning after the effective date of this paragraph .... [LRB inserts date], the board
8may not invest any of the moneys in funds under its management in any equity or
9debt securities of any company that contracts to build a border wall included on the
10board's most recent list under par. (b) 1.
SB210,4,1511 (d) 1. Notwithstanding s. 25.15 (2), but subject to pars. (e) and (f), if the board,
12on the 30th day beginning after the effective date of this subdivision .... [LRB inserts
13date], maintains any investment prohibited under par. (c), the board shall divest
14itself of the investment not later than the first day of the 7th month beginning after
15the effective date of this subdivision .... [LRB inserts date].
SB210,4,2016 2. Notwithstanding s. 25.15 (2), but subject to pars. (e) and (f), if upon its
17quarterly review the board updates its list under par. (b) 1. to add a company in which
18the board maintains an investment prohibited under par. (c), the board shall divest
19itself of the investment not later than 6 months after the company is added to the list
20under par. (b) 1.
SB210,4,2421 (e) In determining whether an investment is prohibited under pars. (c) and (d),
22the board may rely on 3rd-party information about a company available from any
23research or screening service contracted by the board or from any other pension fund
24or investment adviser.
SB210,4,2525 (f) This subsection does not apply to any of the following:
SB210,5,2
11. Investments made for the board by investment advisers with which the
2board has contracted to manage and control board assets under s. 25.18 (2) (e).
SB210,5,53 2. Investments by the board in mutual funds, index funds, or similar
4commingled investment instruments in which the board does not directly hold a
5company's security in its own name or as nominee.
SB210,5,66 3. Investments by the board in private equity funds.
SB210,5,77 (End)
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