Bill > HB1378

This bill mandates that the Indiana public retirement system, which manages funds like the state teachers' retirement fund and the public employees' retirement fund, must divest from businesses identified as engaging in "boycott, divest from, or sanction Israel activity," meaning actions that penalize, inflict economic harm on, or limit commercial relations with Israel or businesses operating there. The system's board is required to create and maintain a list of these "restricted businesses," notify them of their status, and offer them an opportunity to cease such activities within 90 days to avoid divestment. If a business continues its activities, the system must sell off its holdings within 15 months, with at least half sold within nine months, and is prohibited from acquiring new securities from these businesses. Exceptions exist for certain passively managed funds where divestment costs are disproportionately high, and for businesses specifically excluded from federal sanctions. The bill also requires annual reports to the legislative council detailing divestment actions and provides civil immunity and indemnification for state and system officials acting in good faith to comply with these provisions, while also allowing for reinvestment under specific financial conditions to avoid negative impacts on the overall asset value.