Bill Text: NH HB1257 | 2022 | Regular Session | Introduced


Bill Title: Requiring the retirement system to divest from investment in companies located in China.

Spectrum: Partisan Bill (Republican 7-0)

Status: (Introduced) 2022-03-12 - Inexpedient to Legislate: Motion Adopted Regular Calendar 312-25 03/10/2022 House Journal 5 [HB1257 Detail]

Download: New_Hampshire-2022-HB1257-Introduced.html

HB 1257-FN - AS INTRODUCED

 

 

2022 SESSION

22-2300

10/05

 

HOUSE BILL 1257-FN

 

AN ACT requiring the retirement system to divest from investment in companies located in China.

 

SPONSORS: Rep. Hopper, Hills. 2; Rep. Aron, Sull. 7; Rep. Love, Rock. 6; Rep. Deshaies, Carr. 6; Rep. Andrus, Merr. 1; Rep. Testerman, Merr. 2; Rep. Khan, Rock. 20

 

COMMITTEE: Executive Departments and Administration

 

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ANALYSIS

 

This bill requires the retirement system investment committee to  sell, redeem, divest, or withdraw from investments in securities of companies that have direct holdings in active business operations located in China.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

22-2300

10/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Two

 

AN ACT requiring the retirement system to divest from investment in companies located in China.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Retirement System; Management of Funds; Investing Assets; China.  Amend RSA 100-A:15, I-a(b)(4) to read as follows:

(4) May invest in any kind of property or type of investment consistent with this section, provided that:

(A)  For any investment in the retirement system portfolio which includes securities of companies that have direct holdings in active business operations located in China, the investment committee shall sell, redeem, divest, or withdraw all publicly traded securities of such companies.

(B)  The requirement in subparagraph (A) shall not apply to indirect holdings in actively managed investment funds.

(C)  For actions taken in compliance with subparagraph (A), including all good faith determinations regarding companies, the investment committee shall be exempt from any conflicting statutory or common law obligations, including any such obligations in respect to choice of asset managers, investment funds, or investments for the retirement system's securities portfolios.

2  Effective Date.  This act shall take effect 60 days after its passage.

 

LBA

22-2300

11/1/21

 

HB 1257-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT requiring the retirement system to divest from investment in companies located in China.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2022

FY 2023

FY 2024

FY 2025

   Appropriation

$0

$0

$0

$0

   Revenue

$0

Indeterminable

Indeterminable

Indeterminable

   Expenditures

$0

$0

$0

$0

Funding Source:

  [    ] General            [    ] Education            [    ] Highway           [ X ] Other - Retirment System Fund

 

 

 

 

 

METHODOLOGY:

This bill requires the New Hampshire Retirement System’s Independent Investment Committee to sell, redeem, divest, or withdraw from any investments in securities of companies that have direct holdings in active business operations located in China.

 

The New Hampshire Retirement System states as of June 30, 2021 the NHRS portfolio directly held the stock of six companies domiciled in China with a market value of just less than $10 million.  Should NHRS be forced to divest these holdings, there is no guarantee such divestment could be timed to ensure a gain on these investments resulting in an indeterminable fiscal impact to the Retirement System Fund.

 

AGENCIES CONTACTED:

New Hampshire Retirement System

 

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