New York Assembly Bill A01516

New York 2025-2026 Regular Session

• Introduced: 1/10/25
• Refer: 1/10/25
• Refer: 1/7/26

Caption

Provides for limitations on investments of public pension funds and state contracts; prohibits the investment of the available monies of the common retirement fund in any stocks, securities, equities, assets or other obligations of any corporation or company, or any subsidiary, affiliate or parent of any corporation or company, engaged in the boycott of Israel, including Iran-restricted companies and Sudan-restricted companies; prohibits any firm, partnership or corporation that boycotts Israel, that is an Iran-restricted company or that is a Sudan-restricted company from contracting with the state.

Summary

Bill A01516 amends the retirement and social security law and the state finance law to impose restrictions on investments made by public pension funds and to disqualify certain companies from contracting with the state. Specifically, the bill prohibits the investment of the common retirement fund in any entities that engage in boycotting Israel, as well as those classified as Iran-restricted or Sudan-restricted companies. The comptroller is tasked with creating and maintaining an exclusion list of such companies, with a requirement to divest from any direct investments in these entities within a specified timeframe. Additionally, the bill mandates that any firm or corporation that falls under these categories is disqualified from entering into contracts with the state.

Impact

This legislation will significantly alter the investment strategies of public pension funds in New York by restricting them from investing in certain companies based on their political activities and affiliations. It will also affect the state’s procurement processes, as companies that engage in boycotts of Israel or are linked to Iran or Sudan will be barred from state contracts. This could lead to a reevaluation of existing contracts and investments, and may influence the behavior of companies regarding their international relations and business practices to remain eligible for state contracts.

Sentiment

The sentiment surrounding Bill A01516 appears to be mixed, with supporters emphasizing the importance of aligning state investments with ethical considerations regarding international relations, particularly concerning Israel. Opponents, however, express concerns about the potential for the bill to limit investment opportunities and infringe on free market principles. The lack of voting history and committee transcripts makes it difficult to gauge the full extent of public and legislative sentiment on this issue.

Contention

Notable points of contention include the implications of restricting investments based on political criteria, which some argue could lead to unintended economic consequences or discrimination against companies based on their political stances. Critics may also argue that such restrictions could limit the financial returns of public pension funds, while proponents assert that ethical considerations should take precedence in investment decisions. The debate may also touch on broader issues of free speech and economic boycotts.