HLS 23RS-642 REENGROSSED
2023 Regular Session
HOUSE CONCURRENT RESOL UTION NO. 70
BY REPRESENTATIVES BEAULLIEU, BUTLER, CARRIER, ECHOLS, ILLG,
MCKNIGHT, THOMPSON, AND WRIGHT
RETIREMENT SYSTEMS: Requests retirement systems and the state treasurer to report
on companies that do not invest in certain energy companies
1 A CONCURRENT RESOL UTION
2To urge and request the state treasurer and the state and statewide retirement systems to
3 report on investment advisors and companies used by the treasurer and the retirement
4 systems respectively that discriminate against the fossil fuel industry through
5 environmental, social, and governance policies; on their investment of state and
6 pension or defined benefit plan funds using nonpecuniary factors; and on the asset
7 allocation of all their investments.
8 WHEREAS, Louisiana ranks third in natural gas production and proved reserves
9among the states; and
10 WHEREAS, Louisiana accounts for about nine percent of the United States of
11America's total marketed natural gas production; and
12 WHEREAS, Louisiana's fourteen oil refineries account for nearly one-fifth of the
13nation's refining capacity and can process about three million barrels of crude oil per day;
14and
15 WHEREAS, it is the duty of the state treasurer and boards of trustees of Louisiana's
16state and statewide retirement systems to responsibly and prudently invest money; and
17 WHEREAS, investing the monies of the state and the retirement systems, the
18treasurer, the boards of trustees, the asset managers, the investment advisors, and all other
19fiduciaries must comply with the highest standards of loyalty and integrity to their
20beneficiaries; and
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HCR NO. 70
1 WHEREAS, the United States Department of Labor made clear in recent years that
2fiduciaries responsible for investing should only consider financial factors in evaluating
3funds for investment potential and that "fiduciaries may not sacrifice investment returns or
4assume greater investment risks as a means of promoting collateral social policy goals"; and
5 WHEREAS, Louisiana and its state and statewide retirement systems should take
6their fiduciary responsibilities seriously when investing.
7 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
8urge and request the state treasurer and the state and statewide retirement systems to report
9on investment advisors and companies used by the treasurer and the retirement systems
10respectively that discriminate against the fossil fuel industry through environmental, social,
11and governance policies; on their investment of state and pension or defined benefit plan
12funds using nonpecuniary factors; and on the asset allocation of all their investments.
13 BE IT FURTHER RESOLVED, that the director of each state or statewide retirement
14system and the state treasurer shall submit a report to the legislature that includes the
15following:
16 (1) The name of any investment management company, investment advisor, mutual
17fund, or other entity under contract with the system that uses nonpecuniary factors for
18investment purposes on behalf of the retirement system. "Nonpecuniary" factors include
19environmental, social, or governance factors which do not have a material connection to the
20risk-adjusted return of an investment.
21 (2) The name of any entity under contract that is known to boycott energy
22companies. The list shall also state the aggregate amount that the listed entity has invested
23in Louisiana public companies and in oil and gas companies in the United States and
24Louisiana. "Boycott" means terminating business activities or engaging in refusals to deal
25with an industry in a discriminatory manner.
26 (3) The amount of state and pension or defined benefit plan funds invested with each
27entity identified under item (1) or (2), the date the entity was first hired, and the percentage
28of the system's portfolio with each such entity, both individually and in the aggregate if more
29than one is reported.
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HCR NO. 70
1 (4) The equity, fixed income, and industry sector investment allocation of all state
2and pension or defined benefit plan funds including the name of the investment manager.
3 (5) The allocation of all investments in Louisiana, within the United States, and
4outside the United States.
5 BE IT FURTHER RESOLVED, that the state treasurer and the director of each state
6or statewide retirement system shall submit the report to the legislature in accordance with
7R.S. 24:772 no later than October 1, 2023.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HCR 70 Reengrossed 2023 Regular Session Beaullieu
Requests the state treasurer and the state and statewide retirement systems to report on
investment advisors and companies used by the treasurer and the retirement systems
respectively that discriminate against the fossil fuel industry through environmental, social,
and governance policies; on their investment of state and pension plan funds using
nonpecuniary factors; and on the asset allocation of all their investments, prior to October 1,
2023.
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Limit funds to be included in reports to state and pension or defined benefit plan
funds.
2. Add definitions of "nonpecuniary" and "boycott".
3. Request that reports include the aggregate amount of money an entity has
invested in La. public companies and in oil and gas companies in the U.S. and
La.
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