General Assembly Substitute Bill No. 5733
January Session, 2015 *_____HB05733ENV___032615____*
General Assembly
Substitute Bill No. 5733
January Session, 2015
*_____HB05733ENV___032615____*
AN ACT AUTHORIZING THE STATE TREASURER TO DIVEST FUNDS FROM FOSSIL FUEL COMPANIES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2015) (a) For the purposes of this section:
(1) "Company" means any corporation, utility, partnership, joint venture, franchisor, franchisee, trust, entity investment vehicle, financial institution or other entity or business association, including all wholly-owned subsidiaries, majority-owned subsidiaries, parent companies or affiliates of such entities or business associations, that exist for the purpose of making profit;
(2) "Fossil fuel company" means any company that is involved in the exploration and production of fuel that is formed from plant or animal remains, including coal, oil or natural gas; and
(3) "Investment" means the commitment of state pension funds or other assets to a company through an actively managed investment account that holds publicly traded equities. "Investment" does not include an investment in a passive index fund or a private commingled fund in which state funds are invested.
(b) The State Treasurer shall review the major investments of the state for the purpose of determining the extent to which state funds are invested in fossil fuel companies. Whenever feasible and consistent with the fiduciary duties of the Treasurer, the Treasurer shall encourage fossil fuel companies in which state funds are invested to take actions to reduce environmental harm and preserve the sustainability of such companies.
(c) The Treasurer may divest, decide to not further invest state funds or to not enter into any future investment in any fossil fuel company. In the event that the Treasurer determines that divestment of state funds from a fossil fuel company is warranted, the Treasurer shall give notice of such determination to such company.
(d) The Treasurer shall, at least once per fiscal year, provide reports to the Investment Advisory Council on actions taken by the Treasurer pursuant to the provisions of this section.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2015 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2015
New section
ENV Joint Favorable Subst.
ENV
Joint Favorable Subst.