Loading chat...
AL SB151
Bill
AI Summary
-
Establishes investment policy for State Treasurer and Boards of Control of Teachers' Retirement System and Employees' Retirement System of Alabama requiring decisions based solely on pecuniary factors and fiduciary duty to maximize financial benefit.
-
Prohibits these entities from prioritizing environmental, social, and governance (ESG) criteria above or in concert with traditional fiduciary duties, though boards may consider state well-being as a secondary factor.
-
Defines ESG criteria to include energy efficiency, carbon footprint, diversity, racial justice, pay equity, corporate board composition, executive compensation, and political contributions.
-
Prohibits all state agencies and political subdivisions from considering ESG criteria when awarding public contracts wholly funded by state funds for goods, services, and professional services; requires only pecuniary factors be considered.
-
Becomes effective October 1, 2024.
Legislative Description
State Investments and Public Contracts; to prohibit State Treasurer and Board of Control of RSA and TRSA from using ESG factors in investment decisions; may consider pecuniary factors; to prohibit state entities from considering ESG factors when awarding public contracts
Government Administration; Retirement; State & State Officers; State Government
Last Action
Currently Indefinitely Postponed
5/7/2024