HB21-1246 Summary

• PERA board must create an exclusion list within 6 months identifying all fossil fuel companies in which the fund has direct investments, based on Global Industry Classification Standard codes for coal, integrated oil and gas, and exploration and production sectors.

• Board must determine within 6 months of list completion whether divestment complies with fiduciary obligations; companies removed from the list if divestment is found not to comply.

• Beginning one year after enactment, board must divest all direct investments in excluded companies and cease new direct investments in any fossil fuel companies, with divestment completed within 5 years.

• Companies may request removal from the exclusion list by providing clear and convincing evidence they are no longer fossil fuel companies or will cease being one by January 1, 2031.

• Board must endeavor to ensure indirect investments do not exceed 2% of assets in fossil fuel companies and must issue annual reports to the pension review commission beginning two years after enactment.