Bill > H2983

This bill establishes new investment guidelines for the Massachusetts Pension Reserve Investment Management (MassPRIM), focusing on responsible and ethical investment practices for domestic equity investments in private real estate, private equity, and private infrastructure. For investments where MassPRIM has over 50% equity, developers and operators must use "responsible contractors" who pay fair wages, provide benefits, and follow specific labor practices. Contractors can be excluded from bidding if they have been debarred for wage violations. For investments with 50% or less equity, the Chief Investment Officer (CIO) is encouraged to prefer managers who follow these practices. The bill requires the CIO to carefully vet external managers, considering their regulatory compliance, labor relations, environmental records, and potential job impacts. Managers must disclose past policy non-compliance and demonstrate risk management capabilities. The CIO is prohibited from approving investments that could eliminate public sector jobs or pose reputational risks to retirement systems. External managers must be selected through competitive bidding and evaluated on their potential for competitive returns. The provisions aim to ensure that MassPRIM's investments not only generate financial returns but also maintain ethical and socially responsible standards. The act will take effect 180 days after enactment, with the CIO able to take preparatory administrative actions in advance.

Labor and Employment

https://malegislature.gov/Bills/194/H2983