Bill Text: NY S01829 | 2019-2020 | General Assembly | Introduced
Bill Title: Requires SUNY and CUNY trustees to refrain from investing in and subsequently divest from stocks, debt or other securities of certain publicly traded fossil fuel companies.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO HIGHER EDUCATION [S01829 Detail]
Download: New_York-2019-S01829-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1829 2019-2020 Regular Sessions IN SENATE January 16, 2019 ___________ Introduced by Sens. HOYLMAN, KRUEGER -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education AN ACT to amend the education law, in relation to requiring SUNY and CUNY trustees refrain from investing in and subsequently divest from stocks, debt or other securities of certain publicly traded fossil fuel companies The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The education law is amended by adding a new section 355-d 2 to read as follows: 3 § 355-d. Divestment from fossil fuels. 1. (a) On or after July first, 4 two thousand twenty, the board of trustees shall not invest any monies 5 in any stocks, debt or other securities of any corporation or company, 6 or any subsidiary, affiliate or parent of any corporation or company, 7 among the two hundred largest publicly traded fossil fuel companies, as 8 established by carbon content in the companies' proven oil, gas and coal 9 reserves. 10 (b) On or before January first, two thousand twenty-four, the board of 11 trustees shall divest from any stocks, debt or other securities of any 12 corporation or company, or any subsidiary, affiliate or parent of any 13 corporation or company, among the two hundred largest publicly traded 14 fossil fuel companies, as established by carbon content in the compa- 15 nies' proven oil, gas and coal reserves, except that divestment from 16 stocks or other securities of companies engaged in the mining, 17 extraction or production of coal shall be completed no later than one 18 year after the effective date of this subdivision. 19 (c) The board of trustees shall be permitted to cease divesting from 20 companies under paragraph (a) of this subdivision, reinvest in companies 21 from which it divested under paragraph (a) of this subdivision, or 22 continue to invest in companies from which it has not yet divested upon 23 clear and convincing evidence showing that as a direct result of such EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07852-01-9S. 1829 2 1 divestment, the total and aggregate value of all assets under management 2 by, or on behalf of, the board of trustees becomes or shall become: (i) 3 equal to or less than ninety-nine and one-half percent; or (ii) one 4 hundred percent less fifty basis points of the hypothetical value of all 5 assets under management by, or on behalf of, the board of trustees 6 assuming no divestment from any company had occurred under said para- 7 graph (a) of this subdivision. Cessation of divestment, reinvestment or 8 any subsequent ongoing investment authorized by this section shall be 9 strictly limited to the minimum steps necessary to avoid the contingency 10 set forth in the preceding sentence. For any cessation of divestment, 11 and in advance of such cessation, authorized by this subdivision, the 12 board of trustees shall provide a written report to the attorney general 13 and the senate and assembly standing committees on higher education, 14 updated semi-annually thereafter as applicable, setting forth the 15 reasons and justification, supported by clear and convincing evidence, 16 for its decisions to cease divestment, to reinvest or to remain invested 17 in fossil fuel companies. 18 2. (a) On or after July first, two thousand twenty, an affiliated 19 nonprofit organization or foundation shall not invest any monies in any 20 stocks, debt or other securities of any corporation or company, or any 21 subsidiary, affiliate or parent of any corporation or company, among the 22 two hundred largest publicly traded fossil fuel companies, as estab- 23 lished by carbon content in the companies' proven oil, gas and coal 24 reserves. 25 (b) On or before January first, two thousand twenty-four, an affil- 26 iated nonprofit organization or foundation shall divest from any stocks, 27 debt or other securities of any corporation or company, or any subsid- 28 iary, affiliate or parent of any corporation or company, among the two 29 hundred largest publicly traded fossil fuel companies, as established by 30 carbon content in the companies' proven oil, gas and coal reserves, 31 except that divestment from stocks or other securities of companies 32 engaged in the mining, extraction or production of coal shall be 33 completed no later than one year after the effective date of this subdi- 34 vision. 35 (c) An affiliated nonprofit organization or foundation shall be 36 permitted to cease divesting from companies under paragraph (a) of this 37 subdivision, reinvest in companies from which it divested under para- 38 graph (a) of this subdivision, or continue to invest in companies from 39 which it has not yet divested upon clear and convincing evidence showing 40 that as a direct result of such divestment, the total and aggregate 41 value of all assets under management by, or on behalf of, an affiliated 42 nonprofit organization or foundation becomes or shall become: (i) equal 43 or less than ninety-nine and one-half percent; or (ii) one hundred 44 percent less fifty basis points of the hypothetical value of all assets 45 under management by, or on behalf of, an affiliated nonprofit organiza- 46 tion or foundation assuming no divestment from any company had occurred 47 under said paragraph (a) of this subdivision. Cessation of divestment, 48 reinvestment or any subsequent ongoing investment authorized by this 49 section shall be strictly limited to the minimum steps necessary to 50 avoid the contingency set forth in the preceding sentence. For any 51 cessation of divestment, and in the advance of such cessation, author- 52 ized by this subdivision, an affiliated nonprofit organization or foun- 53 dation shall provide a written report to the attorney general and the 54 senate and assembly standing committees on higher education, updated 55 semi-annually thereafter as applicable, setting forth the reasons and 56 justification, supported by clear and convincing evidence, for its deci-S. 1829 3 1 sions to cease divestment, to reinvest or to remain invested in fossil 2 fuel companies. 3 3. As used within this section, "an affiliated nonprofit organization 4 or foundation" means an organization or foundation formed under the 5 not-for-profit corporation law or any other entity formed for the bene- 6 fit of or controlled by the state university of New York or its respec- 7 tive universities, colleges, community colleges, campuses or subdivi- 8 sions, including the research foundation of the state university of New 9 York, to assist in meeting the specific needs of, or providing a direct 10 benefit to, the respective university, college, community college, 11 campus or subdivision or the university as a whole, that has control of, 12 manages or receives fifty thousand dollars or more annually, including 13 alumni associations. 14 § 2. The education law is amended by adding a new section 6234-a to 15 read as follows: 16 § 6234-a. Divestment from fossil fuels. 1. (a) On or after July first, 17 two thousand twenty, the board of trustees shall not invest any monies 18 in any stocks, debt or other securities of any corporation or company, 19 or any subsidiary, affiliate or parent of any corporation or company, 20 among the two hundred largest publicly traded fossil fuel companies, as 21 established by carbon content in the companies' proven oil, gas and coal 22 reserves. 23 (b) On or before January first, two thousand twenty-four, the board of 24 trustees shall divest from any stocks, debt or other securities of any 25 corporation or company, or any subsidiary, affiliate or parent of any 26 corporation or company, among the two hundred largest publicly traded 27 fossil fuel companies, as established by carbon content in the compa- 28 nies' proven oil, gas and coal reserves, except that divestment from 29 stocks or other securities of companies engaged in the mining, 30 extraction or production of coal shall be completed no later than one 31 year after the effective date of this subdivision. 32 (c) The board of trustees shall be permitted to cease divesting from 33 companies under paragraph (a) of this subdivision, reinvest in companies 34 from which it divested under paragraph (a) of this subdivision, or 35 continue to invest in companies from which it has not yet divested upon 36 clear and convincing evidence showing that as a direct result of such 37 divestment, the total and aggregate value of all assets under management 38 by, or on behalf of, the board of trustees becomes or shall become: (i) 39 equal to or less than ninety-nine and one-half percent; or (ii) one 40 hundred percent less fifty basis points of the hypothetical value of all 41 assets under management by, or on behalf of, the board of trustees 42 assuming no divestment from any company had occurred under said para- 43 graph (a) of this subdivision. Cessation of divestment, reinvestment or 44 any subsequent ongoing investment authorized by this section shall be 45 strictly limited to the minimum steps necessary to avoid the contingency 46 set forth in the preceding sentence. For any cessation of divestment, 47 and in advance of such cessation, authorized by this subdivision, the 48 board of trustees shall provide a written report to the attorney general 49 and the senate and assembly standing committees on higher education, 50 updated semi-annually thereafter as applicable, setting forth the 51 reasons and justification, supported by clear and convincing evidence, 52 for its decisions to cease divestment, to reinvest or to remain invested 53 in fossil fuel companies. 54 2. (a) On or after July first, two thousand twenty, an affiliated 55 nonprofit organization or foundation shall not invest any monies in any 56 stocks, debt or other securities of any corporation or company, or anyS. 1829 4 1 subsidiary, affiliate or parent of any corporation or company, among the 2 two hundred largest publicly traded fossil fuel companies, as estab- 3 lished by carbon content in the companies' proven oil, gas and coal 4 reserves. 5 (b) On or before January first, two thousand twenty-four, an affil- 6 iated nonprofit organization or foundation shall divest from any stocks, 7 debt or other securities of any corporation or company, or any subsid- 8 iary, affiliate or parent of any corporation or company, among the two 9 hundred largest publicly traded fossil fuel companies, as established by 10 carbon content in the companies' proven oil, gas and coal reserves, 11 except that divestment from stocks or other securities of companies 12 engaged in the mining, extraction or production of coal shall be 13 completed no later than one year after the effective date of this subdi- 14 vision. 15 (c) An affiliated nonprofit organization or foundation shall be 16 permitted to cease divesting from companies under paragraph (a) of this 17 subdivision, reinvest in companies from which it divested under para- 18 graph (a) of this subdivision, or continue to invest in companies from 19 which it has not yet divested upon clear and convincing evidence showing 20 that as a direct result of such divestment, the total and aggregate 21 value of all assets under management by, or on behalf of, an affiliated 22 nonprofit organization or foundation becomes or shall become: (i) equal 23 to or less than ninety-nine and one-half percent; or (ii) one hundred 24 percent less fifty basis points of the hypothetical value of all assets 25 under management by, or on behalf of, an affiliated nonprofit organiza- 26 tion or foundation assuming no divestment from any company had occurred 27 under said paragraph (a) of this subdivision. Cessation of divestment, 28 reinvestment or any subsequent ongoing investment authorized by this 29 section shall be strictly limited to the minimum steps necessary to 30 avoid the contingency set forth in the preceding sentence. For any 31 cessation of divestment, and in advance of such cessation, authorized by 32 this subdivision, an affiliated nonprofit organization or foundation 33 shall provide a written report to the attorney general and the senate 34 and assembly standing committees on higher education, updated semi-annu- 35 ally thereafter as applicable, setting forth the reasons and justifica- 36 tion, supported by clear and convincing evidence, for its decisions to 37 cease divestment, to reinvest or to remain invested in fossil fuel 38 companies. 39 3. As used within this section, "an affiliated nonprofit organization 40 or foundation" means an organization or foundation formed under the 41 not-for-profit corporation law or any other entity formed for the bene- 42 fit of or controlled by the city university of New York or its respec- 43 tive universities, colleges, community colleges, campuses or subdivi- 44 sions, including the research foundation of the city university of New 45 York, to assist in meeting the specific needs of, or providing a direct 46 benefit to, the respective university, college, community college, 47 campus or subdivision or the university as a whole, that has control of, 48 manages or receives fifty thousand dollars or more annually, including 49 alumni associations. 50 § 3. This act shall take effect on July 1, 2020.
