Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4819 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	HOUSE . . . . . . . . No. 4819
2	2	The Commonwealth of Massachusetts
3	3	________________________________________
4	4	HOUSE OF REPRESENTATIVES, July 8, 2024.
5	5	The committee on Public Service, to whom was referred the petition
6	6	(accompanied by bill, House, No. 2504) of Mindy Domb and Lindsay N.
7	7	Sabadosa relative to public pension fund divestment from climate risk
8	8	investments and negative economic impacts from carbon producing
9	9	industries, reports recommending that the accompanying bill (House, No.
10	10	4819) ought to pass.
11	11	For the committee,
12	12	KENNETH I. GORDON. 1 of 4
13	13	FILED ON: 6/28/2024
14	14	HOUSE . . . . . . . . . . . . . . . No. 4819
15	15	The Commonwealth of Massachusetts
16	16	_______________
17	17	In the One Hundred and Ninety-Third General Court
18	18	(2023-2024)
19	19	_______________
20	20	An Act to mandate the review of climate risk in order to protect public pension beneficiaries and
21	21	taxpayers.
22	22	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
23	23	of the same, as follows:
24	24	1 SECTION 1. Chapter 29 of the General Laws is hereby amended by adding the following
25	25	2section:-
26	26	3 Section 72. (a) As used in this section the following words shall, unless the context
27	27	4clearly requires otherwise, have the following meanings:-
28	28	5 “Biofuel”, any fuel made from biomass
29	29	6 “Board”, the pension reserves investment management board established pursuant to
30	30	7section 23 of chapter 32.
31	31	8 “Climate risk investments,” any fossil fuel investments or investment in other industries,
32	32	9including, but not limited to biofuel, that may have a negative impact on the global climate, that
33	33	10scientific evidence has established as contributing to climate change, that conflict with or
34	34	11undermine the commonwealth’s climate goals, and that pose a risk to the portfolio performance
35	35	12for beneficiaries of the public fund. 2 of 4
36	36	13 “Committee”, the climate risk investment review committee established pursuant to 14
37	37	14subsection (c).
38	38	15 “Direct holdings”, all securities of a company held directly by the public fund or in an
39	39	16account or fund in which the public fund owns all shares or interests.
40	40	17 “Fossil fuel investments”, any stocks or other securities of a corporation or company
41	41	18within the fossil fuel industry or any subsidiary, affiliate or parent of any corporation or company
42	42	19among the 200 largest publicly traded fossil fuel companies, as established by carbon in the
43	43	20companies’ proven oil, gas and coal reserves.“Indirect holdings”, all securities of a company
44	44	21held in an account or fund, such as a mutual fund, managed by 1 or more persons not employed
45	45	22by the public fund, in which the public fund owns shares or interests together with other
46	46	23investors not subject to this section or section 23C of chapter 32.
47	47	24 “Public fund”, the Pension Reserves Investment Trust or the pension reserves investment
48	48	25management board in charge of managing the pooled investment fund consisting of the assets of
49	49	26the state employees’ and teachers’ retirement systems as well as the assets of local retirement
50	50	27systems under the control of the board.
51	51	28 (b) This section applies only to direct and indirect holdings by the public fund.
52	52	29 (c) There shall be within the office of the treasurer, but not subject to its supervision or
53	53	30control, a Climate Risk Investment Review Committee consisting of the following 12 voting
54	54	31members: the state treasurer or a designee, who shall serve as chair; the secretary of
55	55	32administration and finance or a designee; the comptroller or a designee; the executive director of
56	56	33the public employee retirement administration commission; a member of the pension reserves
57	57	34investment management stewardship and sustainability committee; a member of the 3 of 4
58	58	35Massachusetts state retirement board; one individual appointed by the governor; two individuals
59	59	36appointed by the treasurer; a community representative with climate finance experience;
60	60	37individual appointed by the secretary of energy and environmental affairs who shall be a climate
61	61	38scientist; and the climate chief or a designee. The house and senate chairs and the ranking
62	62	39minority members of the joint committee on financial services and the house and senate chairs
63	63	40and the ranking minority members of the joint committee on telecommunications, utilities and
64	64	41energy shall be nonvoting members of the committee. Each individual appointed by the
65	65	42governor, treasurer and secretary of energy and environmental affairs shall serve terms
66	66	43established by the appointing authority, but not longer than 4 years. Each appointed individual
67	67	44may serve a second or subsequent terms, and each appointed individual may continue to serve
68	68	45after the individual’s term expires if desired by the appointing authority.
69	69	46 (d) The chair shall call meetings of the committee every 8 weeks; provided, however, that
70	70	47the chair may call meetings of the committee more frequently if the chair determines that more
71	71	48frequent meetings of the committee are necessary to perform its duties or fewer meetings if the
72	72	49chair so determines. The chair shall call the first meeting of the committee within four weeks
73	73	50following the designation of all members of the committee.
74	74	51 (e) (1) The committee shall: (i) study and review on a continuing basis any potential
75	75	52financial risk to beneficiaries and taxpayers associated with any climate risk investments in the
76	76	53portfolio. The committee may provide recommendations regarding how to mitigate any such
77	77	54potential risks.
78	78	55 (f) Annually, not later than November 1 of each year, the committee shall file a report
79	79	56with the board, the governor and the clerks of the house of representative and the senate detailing 4 of 4
80	80	57the committee’s findings and any recommendations as to actions regarding climate risk
81	81	58investments, if any.. The committee’s report shall direct the board’s actions. The committee shall
82	82	59have the right to change the date of the report based on the need to expedite implementation of
83	83	60the committee’s recommendations or the need for any extensions if the chair so determines.
84	84	61 (g) The committee shall be subject to sections 18 to 25, inclusive, of chapter 30A and
85	85	62chapter 66. The committee shall provide content and information for a publicly available
86	86	63website, operated and maintained by PRIM, that will describe its membership, activity, and make
87	87	64available all its reports and meeting material no later than 7 days after the meeting of the
88	88	65committee or the filing of a report.