Prohibits investment fund managers from investing the state's special funds monies in companies and in nations that support terrorism. (7/1/17) (REF NO IMPACT See Note)
Impact
The legislation introduces a systematic approach to screening investments within Louisiana's special funds to identify and divest from any that may unintentionally support terrorist entities. This requires the treasurer to perform screenings and mandates investment fund managers to certify compliance regarding prohibited investments. With regular reporting schedules set in place, the bill aims to enhance transparency in state financial dealings, which could foster public trust in government investment strategies.
Summary
Senate Bill 223 aims to establish regulations on investment fund managers regarding the investment of state's special funds. Specifically, the bill prohibits these managers from investing in any company or nation identified as supporting terrorist activities, particularly focusing on nations like Iran, Sudan, and Syria. The intent is to ensure that taxpayer money is not indirectly supporting terrorism, thereby reinforcing the state's commitment to global security and ethical investment practices.
Sentiment
The overall sentiment around SB223 appears to lean towards a supportive view among legislators who prioritize national security concerns and ethical financial practices. However, potential contention may arise regarding the implications for investment opportunities, as some may argue that stringent regulations could limit the financial growth potential of state investments. Nonetheless, proponents view it as a necessary protective measure for the citizens and the state.
Contention
Key points of contention may involve debates about the definitions of 'prohibited nations' and the processes by which these assessments are made. Critics may argue that such definitions should be periodically reviewed to adapt to changing political climates, and there may be discussions regarding the implications for diversification of state funds. Concerns regarding the possible economic impacts on investment returns due to restrictions imposed by this bill may also be raised.
Prohibiting discrimination by financial services companies on the basis of social credit score and requiring registered investment advisers to obtain written consent from clients prior to investing client moneys in mutual funds, equity funds, companies and financial institutions that engage in ideological boycotts.
State Board of Investment prohibited from investing in companies that boycott mining, energy production, production agriculture, or commercial lumber production; State Board of Investment required to divest from companies boycotting said industries; state agency contracts prohibited; and certain financial institution discrimination prohibited.
Prohibits investment by State of pension and annuity funds in, and requires divestment from, companies involved in production or maintenance of nuclear weapons.
Prohibits a contractor or subcontractor of the Louisiana Pregnancy and Baby Care initiative from conditioning services on religious requirements (OR SEE FISC NOTE GF EX)