HB1205 Summary

• Requires each public investment fund to develop, publish, and implement socially responsible investment policies that integrate environmental, social, and governance (ESG) factors into investment decision-making and portfolio management.

• Mandates annual legislative reporting on gross and net rates of return, fees paid to fund managers and related parties, carried interest distributions, and economic benefits to Hawaii including jobs, taxes, and subsidies.

• Establishes definitions for alternative investment vehicles, fund managers, carried interest, and related parties to clarify scope of disclosure requirements for private capital investments.

• Requires private capital vehicles to disclose all in-state investments, jobs created or lost, tax revenues generated, tax benefits received, subsidies, lobbying fees, and environmental and social impact assessments.

• Takes effect July 1, 2021, with initial reports due to the legislature no later than 20 days before the 2022 regular session and annually thereafter.