Hawaii Senate Bill SB2388

Hawaii 2024 Regular Session

• Introduced: 1/19/24
• Refer: 1/22/24

Caption

Relating To The Employees' Retirement System.

Impact

If enacted, SB2388 will require the Employees' Retirement System to create a 'scrutinized companies list' identifying those companies with active business links to Russia and Belarus. Companies on this list will have a time frame to either cease such operations or face mandated divestment by the public fund. This legislation will also necessitate annual reporting to the legislature on the actions taken regarding these scrutinized companies, ensuring transparency in the divestment process.

Summary

SB2388 aims to prohibit the Employees' Retirement System from acquiring securities of companies that maintain active business operations in Russia or Belarus. This measure is a response to the ongoing Russo-Ukrainian War, emphasizing the state's interest in avoiding financial complicity with entities that support the invasion of Ukraine. The bill defines active business operations broadly, including various forms of commerce such as leasing, selling, and operating facilities or equipment linked to these countries.

Contention

Points of contention surrounding the bill include concerns about potential economic impacts on domestic portfolios and the efficacy of the divestment vs. engagement strategies. Supporters argue this bill is crucial for aligning state financial policies with humanitarian principles as it seeks to address systematic atrocities reported in Ukraine. Conversely, critics may argue that the bill could harm legitimate business efforts that do not support the war, potentially leading to a loss of investment opportunities for the state's retirement system.