The public employees' retirement association (PERA) board (board) is required to create an exclusion list of all fossil fuel companies in whose stocks, securities, equities, assets, or other obligations PERA has any money or assets directly invested. The board is required to notify any company on the list of its inclusion on the list and of the divestment requirements of the bill. The board is required to periodically update the exclusion list.
A company that was included on the exclusion list may request that it be removed from the list on the basis of clear and convincing evidence that it is not currently a fossil fuel company or that it will no longer meet such definition by a certain date.
Within 6 months from the completion of the exclusion list, the board is required to issue a determination as to whether divestment from the companies on the exclusion list complies with the board's fiduciary obligations. If the board determines that divestment from any company on the exclusion list does not comply with its fiduciary obligations, the board will remove the company from the exclusion list.
Beginning one year after the effective date of the bill, the board is required to:
- Divest the funds managed by PERA (fund) of any stocks, securities, equities, assets, or other obligations of companies on the exclusion list in which any money or assets of the fund are directly invested; and
- Cease new direct investments of any money or assets of the fund in any stocks, securities, or other obligations of any company that is a fossil fuel company.
The board is required to complete divestment from fossil fuel companies by a specified date.
Beginning one year after the effective date of the bill, the board is required to endeavor to ensure that no money or assets of the fund are invested in an indirect investment vehicle unless the board is satisfied that such indirect investment vehicle is unlikely to have in excess of 2% of its assets directly or indirectly invested in fossil fuel companies.
The board is required to issue periodic reports to the members of the pension review commission of the general assembly outlining all actions taken to comply with the requirements of the bill.
(Note: This summary applies to this bill as introduced.)