Code of the District of Columbia

§ 1–335.03. Required actions.

(a) Except as provided in subsections (c), (d), and (e) of this section, during the period that a company on the scrutinized Company List has Active Business Operations, the Public Fund shall sell, redeem, divest, or withdraw all publicly-traded securities of the company according to the following schedule:

(1) At least 50% of the assets shall be removed from the Public Fund’s assets under management by 6 months after the company’s most recent appearance on the Scrutinized Companies List.

(2) All of such assets shall be removed from the Public Fund’s assets under management within 12 months after the company’s most recent appearance on the Scrutinized Companies List.

(b) Except as provided in subsections (c), (d), and (e) of this section, the Public Fund shall not acquire securities of companies on the Scrutinized Companies List that have Active Business Operations.

(c) A company which the United States government affirmatively declares to be excluded from its present or any future federal sanctions regime relating to Sudan shall not be subject to the divestment or investment prohibition of subsections (a) and (b) of this section.

(d) Notwithstanding anything herein to the contrary, subsections (a) and (b) of this section shall not apply to Indirect Holdings in actively-managed investment funds; provided, that the Public Fund shall submit letters to the managers of actively-managed investment funds containing companies with Scrutinized Active Business Operations requesting that they consider removing such companies from the fund or create a similar actively-managed fund with Indirect Holdings devoid of such companies; provided further, that if the manager creates a similar fund, the Public Fund shall replace all applicable investments with investments in the similar fund in an expedited time period consistent with prudent investing standards. For the purposes of this section, private equity funds shall be deemed to be actively-managed investment funds.

(e) Notwithstanding the foregoing, the District of Columbia Retirement Board shall comply with the requirements of this part only to the extent consistent with:

(1) Its fiduciary duties under Chapters 7 and 9 of this title [§ 1-701 et seq. and § 1-901 et seq.]; and

(2) Section 5 of the Sudan Accountability and Divestment Act of 2007, approved December 31, 2007 (121 Stat. 2516; 50 U.S.C. §  1701, note).


(Feb. 2, 2008, D.C. Law 17-106, § 4, 54 DCR 12223; Mar. 21, 2009, D.C. Law 17-337, § 201(a), 56 DCR 939.)

Section References

This section is referenced in § 1-335.04 and § 1-335.06.

Effect of Amendments

D.C. Law 17-337, in subsecs. (a) and (b), substituted “(c), (d), and (e)” for “(c) and (d)”; and added subsec. (e).