Bill
H 2900
Massachusetts public pension funds must identify and divest from all direct and indirect holdings in ammunition, firearms, and firearm accessories within 12 months.
Purpose and overall intent
- This bill would require Massachusetts public pension funds to divest from investments in companies involved in the manufacture or sale of ammunition and firearms (and related firearm accessories) for non-law enforcement or non-military purposes.
- The underlying policy goal is to align pension fund investments with stated public policy values by removing financial exposure to certain firearms and ammunition-related businesses.
Key definitions (Section 1)
- Ammunition: as defined in section 121 of chapter 140, General Laws (as amended by 2017 provisions).
- Ammunition manufacturing/retailing company: derives more than 15% of revenues from ammunition manufacturing or sale for non-law enforcement/military purposes.
- Firearm manufacturing/retailing company: derives more than 15% of revenues from firearms manufacturing or sale for non-law enforcement/military purposes.
- Firearm accessory manufacturing/retailing company: derives more than 15% of revenues from firearm accessories for non-law enforcement/military purposes; “firearm accessory” examples include bump stocks, large-capacity feeding devices, or trigger cranks.
- Firearm: defined to include assault weapons and other specified firearm types (as per General Laws).
- Direct holdings vs. indirect holdings: direct holdings are securities the public fund directly owns; indirect holdings are securities in funds or accounts managed by others where the public fund holds shares jointly with other investors.
- Public fund: the Pension Reserves Investment Management Board (PRIM) and related assets for state employees’, teachers’ retirement systems, and local retirement systems.
Core requirements (Section 2–3)
- Within 30 days of enactment, the public fund must identify all direct and indirect holdings in ammunition, firearm, and firearm accessory manufacturing or retailing companies.
- The fund must file a list of these holdings with the Attorney General and the clerks of the Senate and House.
Divestment mandate and timelines
- It is a settled policy of the public fund not to invest in identified ammunition/firearm/firearm accessory companies.
- The fund must sell, redeem, divest, or withdraw all publicly-traded securities of each identified company within 12 months of enactment.
- Indirect holdings: the fund must issue letters to managers of such investment funds requesting removal of identified companies or the creation of a similar fund that excludes them.
Exemptions, protections, and discretionary decisions (Sections 4–5)
- The public fund would be exempt from conflicting laws when taking compliance actions (e.g., regarding asset managers and investments).
- The fund may cease divestment, reinvest, or continue to hold investments in identified companies if there is clear and convincing evidence that the fund’s asset value would be no more than 99.5% of the hypothetical value had no divestment occurred (a 50 basis point threshold). Any cessation decisions must be justified in writing to the Attorney General and to legislative committees, updated annually as applicable.
- The cessation/reinvestment provisions are to be used only to the minimum extent necessary to avoid that 0.5% value drop.
Indemnification and governance (Section 6 and related)
- Board members, state officers, and investment managers would be indemnified and held harmless by the Commonwealth from related claims and costs. (Text provided is truncated for this section; the intent appears to shield officials and managers from certain liabilities arising from actions under the act.)
Procedural and timeline highlights
- Introduced: February 27, 2025.
- Referred to: Committee on Public Service.
- Hearing: Scheduled for July 16, 2025, 1:00 PM–5:00 PM in room A-2.
- Status notes indicate related activity in the 2025-2026 session, with HD 1565 noted as related/replacing another version.
Impact and who is affected
- Directly affects the Commonwealth’s public pension funds (PRIM and related boards) and their asset managers.
- Requires rapid inventory of holdings (within 30 days) and a one-year horizon to complete divestment from identified ammunition and firearm-related companies.
- Affects both direct holdings and, for indirect holdings, puts pressure on fund managers to remove such companies from investment funds or restructure to exclude them.
Compiled from official sources — confirm details with the bill’s official record.
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