Lemondes, Brown E, Brabenec, DeStefano, Reilly, Fitzpatrick, Angelino, Friend, Gallahan, Giglio,
Durso, Chang, Maher, Miller, Novakhov, Simpson, Smullen
MLTSPNSR
Brook-Krasny
Amd §177, R & SS L
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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A207
SPONSOR: Pirozzolo (MS) 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:
The purpose of this bill is 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 SPECIFIC 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.
Section 2: Sets an immediate effective date
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.
LEGISLATIVE HISTORY:
02/09/2023referred to governmental employees
05/09/2023held for consideration in governmental employees
01/03/2024referred to governmental employees
FISCAL IMPLICATIONS:
The enactment of this bill would ensure that the Comptroller is invest-
ing the retirement fund based on the best interest of the Fund, which
would result in potential greater returns on investment and lower cost
to the State government.
EFFECTIVE DATE:
This act should take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
207
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. PIROZZOLO, LEMONDES, E. BROWN, BRABENEC, DeSTEFA-
NO, REILLY, FITZPATRICK, ANGELINO, FRIEND, GALLAHAN, GIGLIO, DURSO,
CHANG, MAHER, MILLER, NOVAKHOV, SIMPSON, SMULLEN -- Multi-Sponsored by
-- M. of A. BROOK-KRASNY -- read once and referred to the Committee
on Governmental Employees
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:
1 Section 1. Section 177 of the retirement and social security law is
2 amended by adding a new subdivision 11 to read as follows:
3 11. The trustee or trustees of such fund shall be prohibited from
4 using environmental, social, and governance criteria as a screening
5 method for selecting companies and funds to invest in.
6 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00589-01-5
