Bill > H2904

This bill provides Massachusetts independent retirement systems (public pension systems overseen by the public employee retirement administration commission) with the explicit legal authority to divest from fossil fuel companies. The bill defines fossil fuel companies using specific Global Industry Classification Standard codes in sectors such as coal and consumable fuels, integrated oil and gas, and oil and gas exploration and production. Under this legislation, retirement system boards can choose to fully or partially remove investments in these companies, following the existing procurement process outlined in section 23B of chapter 32 of the General Laws. Additionally, the bill allows these retirement systems to invest in index funds or other investment vehicles that may exclude fossil fuel companies, giving them more flexibility in managing their investment portfolios. The bill aims to provide public pension systems with greater discretion in making environmentally conscious investment decisions without mandating divestment, but instead offering the option to move away from fossil fuel investments. The legislation would take effect immediately upon passage.

Labor and Employment

https://malegislature.gov/Bills/194/H2904