Prohibits retirement systems from investing in companies that boycott energy companies (OR SEE ACTUARIAL NOTE FC SG EX)
Impact
If enacted, HB 25 would significantly alter the investment strategies of Louisiana's retirement systems, mandating that they align with state preferences for energy investments. This could potentially lead to reduced freedoms in selecting diverse investment portfolios, as funds would be restricted from considering companies that have environmentally conscious investment policies. Proponents believe that it safeguards local energy jobs and the economic stability of the energy sector, while opponents may argue it limits responsible investing practices that consider social and environmental governance.
Summary
House Bill 25 aims to prohibit state and statewide retirement systems in Louisiana from investing in companies that engage in boycotts against energy companies. Specifically, the bill targets entities that have policies against investing in, or doing business with, companies within the energy sector, thereby reinforcing support for fossil fuel industries. The intent behind this bill is to ensure that state funds support energy companies, arguing that financial backing is crucial for the ongoing viability of these businesses in a competitive market landscape.
Sentiment
The sentiment surrounding HB 25 is largely supportive from energy sector advocates and those who prioritize job protection in fossil fuel industries, who view the bill as a necessary defense against what they perceive as politically motivated divestment campaigns. Conversely, environmentalists and progressive lawmakers have voiced their concerns, claiming that the bill represents a step backwards in addressing climate concerns and could trap retirement funds in potentially harmful investments.
Contestation
Notable points of contention regarding HB 25 include the broader implications of enforcing investment restrictions based on corporate policies related to energy. Critics suggest that this could undermine efforts to transition towards more sustainable energy sources and force retirement systems into investments that may not align with the growing demand for environmental accountability. This tension highlights the ongoing challenge of balancing economic interests tied to traditional energy models with the increasing push for sustainable and socially responsible investing approaches.
Creates the State Retirement System Investment Committee and consolidates investment duties of the four state retirement systems into such commission (OR SEE ACTUARIAL NOTE)
Prohibits investment fund managers from investing the state's special funds monies in companies and in nations that support terrorism. (7/1/17) (REF NO IMPACT See Note)
State Board of Investment prohibited from investing in companies that boycott mining, energy production, production agriculture, or commercial lumber production; State Board of Investment required to divest from companies boycotting said industries; state agency contracts prohibited; and certain financial institution discrimination prohibited.