(1) The aggregate transaction costs in excess of five hundred thousand dollars;
(2) The selling of global public equity interests would result in a loss on secondary markets; or
(3) The divestment would fail to comply with federal or state law or other legal obligations.
The board shall determine whether to cease or defer divestment and resume investment during any period in which the entity or product has not returned to being a restricted entity or restricted investment product only if certain conditions outlined in the act are met.
Additionally, the act provides that on or before December 31, 2025, and annually thereafter, the board shall submit a report to the General Assembly, which shall include certain information listed in the act including all publicly traded securities sold, redeemed, divested, or withdrawn in compliance with this act and all commingled funds that are exempted from divestment.
This act does not apply to divestment of existing investments in private market funds nor to indirect holdings in actively managed investment funds. If a manager or investment fiduciary creates a similar actively managed investment fund without the restricted entities, the board shall replace all applicable investments with the investments in the similar actively managed investment fund within a period consistent with prudent investing standards.
This act is similar to HB 1869 (2024).
KATIE O'BRIEN
Statutes affected: