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Minnesota Legislature

Office of the Revisor of Statutes

SF 2277

as introduced - 91st Legislature (2019 - 2020) Posted on 03/11/2019 04:11pm

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5
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A bill for an act
relating to the State Board of Investment; requiring divestment from certain
investments relating to fossil fuels; requiring a report; proposing coding for new
law in Minnesota Statutes, chapter 11A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [11A.245] INVESTMENT IN FOSSIL FUELS.
new text end

new text begin Subdivision 1. new text end

new text begin Short title. new text end

new text begin This section may be cited as the "Fossil Fuel Divestment
Act."
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the
meanings given them in this subdivision.
new text end

new text begin (b) "Direct holdings" means all publicly traded debt and equity securities of a company
that are held directly by the State Board of Investment or held in an account or fund in which
the State Board of Investment owns all shares or interests.
new text end

new text begin (c) "Director" means the executive director of the State Board of Investment.
new text end

new text begin (d) "Fossil fuel company" means any company or corporation or any subsidiary, affiliate,
or parent of any corporation or company, among the two hundred largest publicly traded
fossil fuel companies as established by carbon content in the companies' proven oil, gas,
and coal reserves.
new text end

new text begin (e) "State board" means the State Board of Investment.
new text end

new text begin Subd. 3. new text end

new text begin Combined investment fund. new text end

new text begin The divestment and other requirements of this
section apply only to assets in the Minnesota combined investment funds established under
section 11A.14 and does not apply to any of the other funds managed and administered by
the state board.
new text end

new text begin Subd. 4. new text end

new text begin No new investment. new text end

new text begin The state board shall not invest in stocks, debt, or other
securities of fossil fuel companies.
new text end

new text begin Subd. 5. new text end

new text begin Divestment. new text end

new text begin The state board shall, in accordance with prudent investment
standards, divest from any stocks, debt, or other securities of fossil fuel companies that are
direct holdings of the state board. Divestment pursuant to this subdivision must be completed
by July 1, 2024.
new text end

new text begin Subd. 6. new text end

new text begin Review process. new text end

new text begin A company that has been determined to be a fossil fuel
company by the director may request a review of that determination by submitting to the
director a request for review along with evidence showing that the company does not meet
the definition of a fossil fuel company. Upon receipt by the director of sufficient evidence
showing that such a company is not a fossil fuel company, the company is no longer
considered a fossil fuel company for purposes of the requirements in subdivisions 4 and 5.
new text end

new text begin Subd. 7. new text end

new text begin Reporting. new text end

new text begin By January 15 of each calendar year, the state board shall submit
a report to the chairs and ranking minority members of the legislative committees and
divisions with jurisdiction over the state board. The report must be based on the state board's
holdings and information available as of June 30 of the preceding year. The report must
include:
new text end

new text begin (1) a list of fossil fuel companies;
new text end

new text begin (2) a list of fossil fuel companies in which the state board is invested and the value of
those investments; and
new text end

new text begin (3) a list of the fossil fuel companies from which the state board has divested under this
section and the value of the corresponding divested securities.
new text end

new text begin Subd. 8. new text end

new text begin Other legal obligations. new text end

new text begin The state board is exempt from any statutory or
common law obligations that conflict with actions taken in compliance with this section,
including all good faith determinations under subdivision 6, and determinations regarding
the choice of asset managers, investment funds, or investments.
new text end

new text begin Subd. 9. new text end

new text begin Severability. new text end

new text begin The provisions of this section are severable. If any provision of
this section or its application is held invalid, that invalidity does not affect other provisions
or applications that can be given effect without the invalid provision or application.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end