BILL NUMBER: S954
SPONSOR: BRISPORT
 
TITLE OF BILL:
An act to amend the education law, in relation to requiring the New York
state teachers' retirement system to divest the retirement system of any
investments in corporations or companies included on an exclusion list
of coal producers and oil and gas producers
 
SUMMARY OF PROVISIONS:
Section 1 defines the legislation as the "Teachers' Fossil Fuel Divest-
ment Act."
Section 2 sets forth the legislative findings.
Section 3 amends the education law, by adding new section 508-b, and
sets forth the criteria for the New York State Teachers' Retirement
System to divest from fossil fuels.
Section 4 sets forth the effective date.
 
JUSTIFICATION:
Climate change is a real and serious threat to the health, welfare, and
prosperity of all New Yorkers, now and in the future. Maintaining the
status quo of fossil fuel energy production will lead to catastrophic
results. Accordingly, this legislation requires that the New York State
Teachers' Retirement System divest from fossil fuels, so that the value
created by New York State's teachers is not used to make investments
that threaten the future they are working to build.
In July 2019, New York State passed the climate leadership and community
protection act, and committed to reducing statewide greenhouse gas emis-
sions by eighty-five percent by two thousand fifty, and net zero emis-
sions in all sectors of the economy. Other cities and states have chosen
to pursue similar paths to reduce greenhouse gas emissions. However,
there is much more that New York needs to do in order to reach these
ambitious goals. Redirecting substantial finances away from fossil fuel
investments is one important way to address this challenge.
Across the country and the world, pension fund divestment has become a
common and responsible approach to climate change. Many cities and
states have recognized the harmful effects of investing in fossil fuels,
and have committed to divesting. Over 1,100 institutional investors
representing more than $11 trillion in holdings have chosen to pursue
full or partial divestment from fossil fuel producers, including the New
York City Employees Retirement System, the endowment and pension funds
of the University of California system, and the sovereign wealth funds
of Norway and Ireland. Even the New York City Teachers' Retirement
System has taken steps towards divestment.
There is no dispute under New York law, nor could there be, that the
legislature has the power to restrict the classes of investments for New
York State public pension funds. Divestment 'has proven to be safe and
prudent, as there are ample investments that are available that do not
present the same harms presented by investing in fossil fuel companies.
Since New York owes duties to its residents, and the New York State
Teachers' Retirement System owes duties to future beneficiaries, it is
appropriate and prudent to act to divest and phase out investments in
fossil fuels. This is the responsible course of action, which promotes
human interests, quality of life, public safety and security, and ulti-
mately will help mitigate the future adverse effects of climate change.
Accordingly, it is appropriate to amend the education law to legally
require such divestment, and ensure a legal path towards an expeditious
and safe transition away from fossil fuels.
 
PRIOR LEGISLATIVE HISTORY:
2021-2022: S4783A; 2023-24: S899
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
This bill will have no effect on revenue or spending.
 
EFFECTIVE DATE:
This bill is effective immediately.