NY State Senate Bill 2023-S6472

Senate Bill S6472

2023-2024 Legislative Session

Prohibits the comptroller from using environment, social, and governance criteria when investing the state pension fund

download bill text pdf

Current Bill Status - In Senate Committee Civil Service And Pensions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to civil service and pensions
Apr 21, 2023	referred to civil service and pensions

2023-S6472 (ACTIVE) - Details

See Assembly Version of this Bill:: A4090
Current Committee:: Senate Civil Service And Pensions
Law Section:: Retirement and Social Security Law
Laws Affected:: Amd §177, R & SS L

2023-S6472 (ACTIVE) - Summary

Prohibits the comptroller from using environment, social, and governance criteria as a screening method for selecting companies and funds to invest the state pension fund in.

2023-S6472 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6472

SPONSOR: LANZA
 
TITLE OF BILL:

An act to amend the retirement and social security law, in relation to
prohibiting the comptroller from using environment, social, and gover-
nance criteria when investing the state pension fund

 
PURPOSE:

To prohibit the state comptroller from using environmental, social and
governance criteria as a screening method for selecting companies and
funds to invest in.

 
SUMMARY OF PROVISIONS:

Section 1: Adds a new paragraph 11 to section 177 of the retirement and
social security law that prohibits the comptroller from using environ-
mental, social and governance criteria as screening method for selecting
companies and funds to invest in.

 
JUSTIFICATION:

Over the last decade, many states, including New York, have begun to use
environmental, social, and governance (ESG) criteria when deciding what
companies and funds their states' money should be invested in. ESG
investing is used to screen investments based on corporate policies and
encourage companies to act responsibly in relation to their internal
environmental, social, and governance policies, rather than their finan-
cial performance. In order to secure our pension fund for future reti-
rees, it is of utmost importance that the Comptroller focus on the
financial health and performance of a company or fund, rather than ESG
practices, so that the State's return on investments are maximized to
its fullest potential. This bill would ensure that the Comptroller
chooses companies and funds to invest in based on their financial
performance, and would prohibit the comptroller from using ESG criteria
when determining what company or fund to invest our money in.

The enactment of this bill would ensure that the Comptroller is invest-
ing the retirement funds based on the best interest of the Fund, which
would result in potential greater investment returns for the State's
pension fund.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None to the State.

 
EFFECTIVE DATE:
Immediately.

2023-S6472 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6472
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              April 21, 2023
                                ___________
 
 Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Civil Service and Pensions
 
 AN ACT to amend the retirement and social security law, in  relation  to
   prohibiting the comptroller from using environment, social, and gover-
   nance criteria when investing the state pension fund

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 177 of the retirement and social  security  law  is
 amended by adding a new subdivision 11 to read as follows:
   11.  THE  TRUSTEE  OR  TRUSTEES  OF SUCH FUND SHALL BE PROHIBITED FROM
 USING ENVIRONMENTAL, SOCIAL, AND  GOVERNANCE  CRITERIA  AS  A  SCREENING
 METHOD FOR SELECTING COMPANIES AND FUNDS TO INVEST IN.
   § 2. This act shall take effect immediately.
 
 
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07962-02-3

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