Bill > S1350

This bill mandates that the Pension Reserves Investment Management Board (referred to as the "public fund" or "Board"), which manages retirement assets for state employees, teachers, and local retirement systems, must divest from companies identified as "fossil fuel companies." A fossil fuel company is defined as one classified in sectors like coal, integrated oil and gas, or oil and gas exploration and production. Within five years of the bill's effective date, the public fund must sell off all publicly traded securities in these companies, with at least 20% divested each year. The bill also prohibits the public fund from acquiring new investments in fossil fuel companies. While there are exceptions for indirect holdings in actively managed investment funds, the public fund must still engage with fund managers to encourage the removal of fossil fuel companies or the creation of alternative funds. The bill provides an exemption from conflicting investment obligations for actions taken to comply with these divestment requirements and outlines specific financial thresholds that, if met due to divestment, would allow the public fund to cease or reverse divestment, requiring detailed reporting to state officials.