HB 339-FN - AS INTRODUCED
2023 SESSION
23-0064
04/10
HOUSE BILL 339-FN
AN ACT prohibiting the investment of state funds in any company participating in a boycott of Israel.
SPONSORS: Rep. Spillane, Rock. 2; Rep. Weyler, Rock. 14; Rep. Ulery, Hills. 13; Rep. Edwards, Rock. 31
COMMITTEE: Executive Departments and Administration
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ANALYSIS
This bill provides that no funds from the retirement system or the public employee's deferred compensation plan shall be invested with any company that is boycotting Israel.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0064
04/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT prohibiting the investment of state funds in any company participating in a boycott of Israel.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Retirement System; Management of Funds; Investing Assets; Boycott of Israel. 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) No portion of the retirement system portfolio shall be invested in any company that is involved in a boycott of Israel.
(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 Public Employees Deferred Compensation Plan; Investments. Amend RSA 101-B:5 to read as follows:
101-B:5 Investments.
I. Subject to the provisions of paragraph II, investment permitted under this plan may include fixed annuities, variable annuities, life insurance, mutual funds, bank accounts, and such other investments as the commission may approve. Such investments shall be underwritten and offered in compliance with applicable federal and state laws and regulations by persons who are duly authorized by the commission in accordance with the provisions of this chapter.
II.(a) No portion of the plan portfolio shall be invested in any company that is involved in a boycott of Israel. This prohibition shall not apply to indirect holdings in actively managed investment funds.
(b) For actions taken in compliance with this subparagraph, including all good faith determinations regarding companies, the plan administrator, custodian, trustee, and designees, 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 plan's securities portfolios.
3 Effective Date. This act shall take effect 60 days after its passage.
23-0064
1/5/23
HB 339-FN- FISCAL NOTE
AS INTRODUCED
AN ACT prohibiting the investment of state funds in any company participating in a boycott of Israel.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
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STATE: | FY 2023 | FY 2024 | FY 2025 | FY 2026 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ X ] Other - Other Various State Funds | |||
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COUNTY: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable |
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LOCAL: |
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Revenue | $0 | $0 | $0 | $0 |
Expenditures | $0 | Indeterminable | Indeterminable | Indeterminable |
METHODOLOGY:
This bill provides that no funds from the retirement system or the public employee's deferred
compensation plan shall be invested with any company that is boycotting Israel.
The New Hampshire Retirement System (NHRS) states the restrictions on investments could have a negative impact on returns making it impossible to determine if there would be an impact on employer contribution rates. The NHRS also states there will be a cost to administering the provisions, however, the cost is indeterminable. The provisions of this bill will result in an indeterminable impact on State, county and local expenditures starting in FY 2024 and forward.
The Department of Administrative Services states this bill will not have an impact as they assume the bill as written would exempt companies that are contained in a mutual fund, such as an index funds which may have hundreds of individual companies represented in the funds. The Department also assume there will be no costs to the state or any political subdivision participating in the deferred compensation plan per RSA 101-B:8.
AGENCIES CONTACTED:
New Hampshire Retirement System and Department of Administrative Services