Bill > HB1585

This bill establishes new regulations for public retirement systems in New Hampshire, requiring that all investment and proxy voting decisions be made solely based on financial factors, effectively prohibiting the use of environmental, social, and governance (ESG) criteria in investment strategies. The legislation defines "financial factors" as objectively demonstrable elements that directly and materially impact investment risk or return, and explicitly excludes environmental, social, political, or ideological considerations from investment decision-making. Public retirement systems, including state and local pension plans, must discharge their duties exclusively in the financial interest of participants and beneficiaries, with investments and proxy votes aimed only at providing financial benefits and covering administrative expenses. The bill mandates detailed reporting and transparency, requiring annual public disclosure of proxy voting records, and establishes enforcement mechanisms through the Attorney General's office, which can levy penalties up to $10,000 per violation and seek remedies like cease-and-desist orders or contract terminations. An independent auditor will be appointed to review compliance annually, with the law set to take effect on January 1, 2027, and apply only to new investments, contracts, and proxy votes made after that date.

Government Affairs

https://gc.nh.gov/bill_Status/billinfo.aspx?id=2451&inflect=2