HB 16-1284 Summary

• Creates Part 2 of Article 54.8 of Title 24 requiring the Public Employees' Retirement Association (PERA) to identify and divest from companies with economic prohibitions against Israel by January 1, 2017.

• Defines "economic prohibitions against Israel" as politically motivated actions intended to penalize or limit commercial relations with Israel, including boycotts, divestment, and sanctions, excluding actions permitted under federal anti-boycott laws.

• Requires PERA to compile a restricted companies list using publicly available information, research firms, asset managers, and other institutional investors, with the Board of Trustees reviewing and approving all identified companies.

• Mandates that PERA send written notice to newly identified restricted companies and provide 180 days for engagement; if companies do not cease prohibited activities, PERA must divest all direct holdings within 12 months in an orderly and fiduciary manner.

• Prohibits PERA from acquiring new direct holdings in restricted companies and allows divestment to cease only if clear and convincing evidence shows asset value would decline by 50 basis points (0.5%) due to the divestment policy; excludes defined contribution plans from these requirements.