The bill aims to divest all funds managed by the state investment board from thermal coal companies, citing the environmental and health impacts of coal-fired electricity generation. It establishes a new framework for defining "thermal coal companies" and mandates that the state investment board cease new investments in such companies immediately, with a complete divestment by January 1, 2030. The bill also requires the state investment board to conduct annual reviews of the definition of "thermal coal company" and report any significant changes to the legislature.

Additionally, the bill allows for exceptions where the state investment board may retain investments in thermal coal companies that demonstrate a reasonable transition to clean energy. It outlines the process for identifying thermal coal companies, including the use of the global coal exit list, and mandates the board to monitor these companies' progress towards emissions reduction targets. The state investment board is also required to report annually to the legislature on its divestment actions until all investments in thermal coal companies are eliminated.