A bill for an act concerning public contracts by public funds with companies that boycott certain companies or that engage in nonpecuniary social investment policies.(Formerly HF 2.)
Impact
The legislation introduces a new code chapter that will require public funds, including public retirement systems and state-managed funds, to terminate any contracts with companies that are identified as engaging in boycotts or nonpecuniary social investments. This means that public funds will have to scrutinize their existing contracts and ensure compliance with the stated restrictions. The bill aims to shield public finances from political agendas that might jeopardize financial performance and restricts public fund investment behaviors, potentially reshaping the investment strategy of state-managed entities.
Summary
House File 653 addresses the limitations on public funds in contracting with companies that engage in what the bill terms as boycotts of certain companies or participate in nonpecuniary social investment policies. The bill specifically seeks to prevent state funds from engaging with entities that refuse to invest in companies related to the fossil fuel industry, firearms, and other specific sectors without reasonable business justification. In effect, HF653 creates guidelines to protect the financial interests of the state and its citizens by maintaining the integrity of public investments.
Contention
Debate surrounding HF653 centers on the implications of restricting contracts based on the criteria of boycotting and nonpecuniary investments. Critics argue that the bill could impose undue constraints on public funds to address significant social and environmental issues, effectively curbing the ability of these funds to engage in socially responsible investing. Supporters maintain that it is necessary to protect public funds from investments that do not align with the financial interests of Iowans. The clash between fiscal responsibility and ethical investment creates a contentious climate as the bill progresses through the legislature.
Similar To
A bill for an act relating to public contracts, public fund investing, and lending practices with certain companies that engage in economic boycotts based on environmental, social, or governance criteria, and including effective date and applicability provisions.(See HF 653.)
A bill for an act concerning public contracts with companies that boycott certain companies or that engage in nonpecuniary social investment policies.(Formerly SSB 1094.)
A bill for an act concerning public contracts with companies that boycott certain companies or that engage in nonpecuniary social investment policies.(See SF 507.)
A bill for an act relating to public contracts, public fund investing, and lending practices with certain companies that engage in economic boycotts based on environmental, social, or governance criteria, and including effective date and applicability provisions.(See HF 653.)
A bill for an act relating to the investment of certain public funds in certain companies, concerning companies that are owned or controlled by Chinese military or government services and public fund review requirements. (Formerly SF 98.) Effective date: 07/01/2023.
A bill for an act relating to the investment of certain public funds in companies that are owned or controlled by Chinese military or government services.(See SF 418.)