House
File
2331
H-8012
Amend
House
File
2331
as
follows:
1
1.
Page
5,
after
line
16
by
inserting:
2
<
Sec.
___.
NEW
SECTION
.
12K.1
Legislative
findings
3
and
intent.
4
The
general
assembly
is
deeply
concerned
over
5
the
impact
of
fossil
fuels
on
global
climate
change.
6
Therefore,
the
general
assembly
intends
that
state
7
funds
and
funds
administered
by
the
state,
including
8
public
employee
retirement
funds,
should
not
be
9
invested
in
fossil
fuel
companies.
10
Sec.
___.
NEW
SECTION
.
12K.2
Definitions.
11
As
used
in
this
chapter,
unless
the
context
12
otherwise
requires:
13
1.
“Company”
means
any
business
or
business
entity
14
that
is
publicly
traded.
15
2.
“Direct
holdings”
in
a
company
means
all
16
publicly
traded
securities
of
that
company
that
are
17
held
directly
by
the
public
fund
in
an
actively
managed
18
account
or
fund
in
which
the
public
fund
owns
all
19
shares
or
interests.
20
3.
“Indirect
holdings”
in
a
company
means
all
21
securities
of
that
company
that
are
held
in
an
account
22
or
fund
managed
by
one
or
more
persons
not
employed
by
23
the
public
fund,
in
which
the
public
fund
owns
shares
24
or
interests
together
with
other
investors
not
subject
25
to
the
provisions
of
this
chapter.
Indirect
holdings
26
include
but
are
not
limited
to
mutual
funds,
fund
of
27
funds,
index
funds,
private
equity
funds,
hedge
funds,
28
and
real
estate
funds.
29
4.
“Public
fund”
means
the
treasurer
of
state,
30
the
state
board
of
regents,
the
public
safety
peace
31
officers’
retirement
system
created
in
chapter
97A,
the
32
Iowa
public
employees’
retirement
system
created
in
33
chapter
97B,
the
statewide
fire
and
police
retirement
34
system
created
in
chapter
411,
or
the
judicial
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5
#1.
retirement
system
created
in
chapter
602.
1
5.
“Scrutinized
company”
means
any
company
included
2
on
a
publicly
available
list
identifying
the
one
3
hundred
largest
public
coal
companies
and
one
hundred
4
largest
public
oil
and
gas
reserve
owners
based
on
the
5
potential
carbon
dioxide
emissions
of
their
reported
6
reserves.
7
Sec.
___.
NEW
SECTION
.
12K.3
Identification
of
8
companies
——
notice.
9
1.
a.
By
March
1,
2017,
the
public
fund
shall
10
make
its
best
efforts
to
identify
or
have
identified
11
all
scrutinized
companies
in
which
the
public
fund
has
12
direct
or
indirect
holdings
or
could
possibly
have
13
such
holdings
in
the
future
and
shall
create
and
make
14
available
to
the
public
a
scrutinized
companies
list
15
for
that
public
fund.
The
public
fund
shall
review
16
on
an
annual
basis
and
update,
if
necessary,
the
17
scrutinized
companies
list.
18
b.
In
making
its
best
efforts
to
identify
or
have
19
identified
scrutinized
companies,
the
public
fund
may
20
review
and
rely,
in
the
best
judgment
of
the
public
21
fund,
on
publicly
available
information
regarding
22
companies,
and
including
other
information
that
may
be
23
provided
by
nonprofit
organizations,
research
firms,
24
international
organizations,
and
government
entities.
25
The
public
fund
may
also
contact
asset
managers
and
26
institutional
investors
for
the
public
fund
to
identify
27
scrutinized
companies
based
upon
industry-recognized
28
lists
of
such
companies
that
the
public
fund
may
have
29
indirect
holdings
in.
30
c.
The
Iowa
public
employees’
retirement
system,
31
acting
on
behalf
of
the
system
and
other
public
funds
32
subject
to
this
section,
may
develop
and
issue
a
33
request
for
proposals
for
third-party
services
to
34
complete
the
identification
of
scrutinized
companies
35
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5
and
the
compilation
of
a
scrutinized
companies
list.
1
The
Iowa
public
employees’
retirement
system
shall
2
consult
with
all
other
public
funds
on
the
development
3
of
the
request
for
proposals.
However,
selection
of
a
4
successful
proposal
and
the
final
scope
of
services
to
5
be
provided
shall
be
determined
only
by
those
public
6
funds
that
have
agreed
to
utilize
the
third-party
7
services.
If
more
than
one
public
fund
decides
to
8
utilize
the
third-party
services,
the
participating
9
public
funds
shall
equally
share
the
costs
of
such
10
services.
11
2.
a.
For
each
company
on
the
scrutinized
12
companies
list,
the
public
fund
shall
send
or
have
sent
13
a
written
notice
informing
the
company
of
its
status
as
14
a
scrutinized
company
and
that
it
may
become
subject
15
to
divestment
and
restrictions
on
investment
in
the
16
company
by
the
public
fund.
The
notice
shall
offer
17
the
company
the
opportunity
to
clarify
its
activities
18
or
to
cease
its
activities
causing
its
inclusion
on
19
the
scrutinized
company
list.
The
public
fund
or
its
20
representative
shall
continue
to
provide
such
written
21
notice
on
an
annual
basis
if
the
company
remains
a
22
scrutinized
company.
23
b.
If,
following
notice
as
provided
by
this
24
section,
a
scrutinized
company
ceases
activity
that
25
designates
it
as
a
scrutinized
company
and
submits
26
a
written
statement
to
the
public
fund
that
it
has
27
ceased
engaging
in
activities
that
designates
it
as
a
28
scrutinized
company,
the
company
shall
be
removed
from
29
the
scrutinized
companies
list.
30
Sec.
___.
NEW
SECTION
.
12K.4
Prohibited
31
investments
——
divestment.
32
1.
The
public
fund
shall
not
acquire
publicly
33
traded
securities
of
a
company
on
the
public
fund’s
34
most
recent
scrutinized
companies
list
so
long
as
35
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5
such
company
remains
on
the
public
fund’s
scrutinized
1
companies
list
as
provided
in
this
chapter.
2
2.
a.
The
public
fund
shall
sell,
redeem,
divest,
3
or
withdraw
all
publicly
traded
securities
of
a
company
4
on
the
public
fund’s
list
of
scrutinized
companies,
5
so
long
as
the
company
remains
on
that
list,
within
6
eighteen
months
following
the
first
written
notice
7
sent
to
the
scrutinized
company
as
required
by
section
8
12K.3.
9
b.
This
subsection
shall
not
be
construed
to
10
require
the
premature
or
otherwise
imprudent
sale,
11
redemption,
divestment,
or
withdrawal
of
an
investment,
12
but
such
sale,
redemption,
divestment,
or
withdrawal
13
shall
be
completed
as
provided
by
this
subsection.
14
3.
The
requirements
of
this
section
shall
not
15
apply
to
indirect
holdings
of
a
scrutinized
company.
16
The
public
fund
shall,
however,
submit
letters
to
17
the
managers
of
such
investment
funds
containing
18
scrutinized
companies
requesting
that
they
consider
19
removing
such
companies
from
the
fund
or
create
a
20
similar
fund
with
indirect
holdings
devoid
of
such
21
companies.
If
the
manager
creates
a
similar
fund
22
with
indirect
holdings
devoid
of
such
companies,
the
23
public
fund
is
encouraged
to
replace
all
applicable
24
investments
with
investments
in
the
similar
fund
25
consistent
with
prudent
investing
standards.
26
Sec.
___.
NEW
SECTION
.
12K.5
Reports.
27
1.
Scrutinized
companies
list.
Each
public
fund
28
shall,
within
thirty
days
after
the
scrutinized
29
companies
list
is
created
or
updated
as
required
by
30
section
12K.3,
make
the
list
available
to
the
public.
31
2.
Annual
report.
On
October
1,
2017,
and
each
32
October
1
thereafter,
each
public
fund
shall
make
33
available
to
the
public,
and
file
with
the
general
34
assembly,
an
annual
report
covering
the
prior
fiscal
35
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5
year
that
includes
the
following:
1
a.
The
scrutinized
companies
list
as
of
the
end
of
2
the
fiscal
year.
3
b.
A
summary
of
all
written
notices
sent
as
4
required
by
section
12K.3
during
the
fiscal
year.
5
c.
All
investments
sold,
redeemed,
divested,
or
6
withdrawn
as
provided
in
section
12K.4
during
the
7
fiscal
year.
8
Sec.
___.
NEW
SECTION
.
12K.6
Legal
obligations
——
9
immunity.
10
With
respect
to
actions
taken
in
compliance
with
11
this
chapter,
including
all
good-faith
determinations
12
regarding
companies
as
required
by
this
chapter,
13
the
public
fund
shall
be
immune
from
any
liability
14
and
exempt
from
any
conflicting
statutory
or
common
15
law
obligations,
including
any
such
obligations
16
in
respect
to
choice
of
asset
managers,
investment
17
funds,
or
investments
for
the
public
fund’s
securities
18
portfolios.
>
19
2.
Title
page,
line
2,
after
<
Israel
>
by
inserting
20
<
and
fossil
fuel
companies
>
21
3.
By
renumbering
as
necessary.
22
______________________________
KELLEY
of
Jasper
-5-
HF2331.2658
(2)
86
ec/sc
5/
5
#2.
#3.