Bill Summary for S 737 (2023-2024)

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Summary date: 

May 2 2023

Bill Information:

View NCGA Bill Details2023-2024 Session
Senate Bill 737 (Public) Filed Thursday, April 6, 2023
AN ACT TO ADDRESS THE USE OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CRITERIA BY STATE AGENCIES AND STATE PENSION PLAN FIDUCIARIES.
Intro. by Craven, Daniel, Overcash.

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Bill summary

Senate committee substitute amends the 1st edition as follows.

Deletes new Article 85, State Employee Retirement Protection Act, in GS Chapter 143.

Amends GS 147-69.7(b) regarding the duties of the State Treasurer in investing and managing assets of funds and programs held by the Treasurer. Eliminates existing authority to consider benefits created by an investment in addition to investment returns only if the State Treasurer determines that the investment providing collateral benefits would be prudent even without the collateral benefits. Adds a new requirement for the State Treasurer, in the evaluation of an investment or evaluation or exercise of any right appurtenant to an investment, consider only pecuniary factors. Defines pecuniary factor to mean one that has a material effect on the financial risk or financial return of an investment based on appropriate investment horizons consistent with the purpose of the fund. Provides for limited evaluation of environmental or social considerations as pecuniary factors. Adds authority for the State Treasurer to, in the evaluation or exercise of any right appurtenant to an investment, reasonably conclude that not exercising such a right is in the best interest of the fund's beneficiaries. 

Makes conforming changes to the act's effective date provision.