Relating to the notification and reporting duties of a state governmental entity with public retirement system investment holdings in Sudan or Iran.
Impact
The bill amends the Government Code to specify the timelines and requirements for reporting investment holdings. For instance, it requires state entities to notify the comptroller within 30 days of receiving lists of relevant companies. Further, it establishes a timeline for filing public reports that include details about investments sold, prohibited investments, and significant changes resulting from compliance with various sections of the code. Such measures aim to promote responsible investment practices among governmental entities and align them with public sentiments regarding ethical investment.
Summary
House Bill 3071 addresses the notification and reporting duties of state governmental entities regarding public retirement system investment holdings in countries like Sudan and Iran. This legislation is designed to enhance transparency in how state funds are allocated in relation to these nations, reflecting a broader initiative to divest from regions with human rights concerns or controversial governmental practices. By mandating reports and notifications concerning such investments, the bill aims to ensure that state entities are accountable for their financial decisions regarding these countries.
Contention
While the bill is generally aimed at enhancing accountability, it clarifies the state's position on investments that may contribute to international issues surrounding human rights. Notably, there may be debates around the effectiveness of such measures, as critics could argue that merely reporting on investments does not necessarily lead to impactful change. Furthermore, there could be concerns regarding how these reporting requirements may affect investment strategies and the fiscal responsibilities of state entities towards their beneficiaries.
Relating to authorized investments of public money by certain governmental entities and the confidentiality of certain information related to those investments.
Relating to the fiduciary responsibility of the governing body of the public retirement systems in this state and the investment managers and proxy advisors acting on behalf of those systems.
Relating to the transfer and statutory novation of insurance policies from a transferring insurer to an assuming insurer through an insurance business transfer plan; authorizing fees.
Relating to state contracts with Chinese companies and investments in Chinese companies and certain companies doing business with China; authorizing a civil penalty.
Relating to the fiduciary responsibility of governmental entities and the investment agents, plan administrators, or qualified vendors acting on behalf of those entities.