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Bill

S 7240

Prohibits the comptroller from using environment, social, and governance criteria when investing the state pension fund

2025 Regular Session Introduced by Andrew Lanza

Bill S 7240 prohibits the New York State Comptroller from using ESG criteria for pension fund investments, focusing solely on maximizing financial returns for beneficiaries.

REFERRED TO CIVIL SERVICE AND PENSIONS
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Bill Summary · S 7240

Summary of Bill S 7240

Bill Information

  • Bill Number: S 7240
  • Title: Prohibits the comptroller from using environment, social, and governance criteria when investing the state pension fund
  • Status: Referred to Civil Service and Pensions
  • Introduced: April 07, 2025
  • Classification: Bill

Purpose and Intent

Bill S 7240 aims to restrict the New York State Comptroller from considering environmental, social, and governance (ESG) criteria when making investment decisions for the state pension fund. The intent behind this legislation is to ensure that investment decisions are based solely on financial performance and risk, rather than on ESG factors, which some lawmakers argue can detract from the primary goal of maximizing returns for pension fund beneficiaries.

Key Provisions

  • Prohibition on ESG Criteria: The bill explicitly prohibits the comptroller from using ESG criteria as a basis for investment decisions related to the state pension fund.
  • Focus on Financial Returns: The legislation emphasizes that the primary objective of the pension fund investments should be to achieve the best possible financial returns for the beneficiaries, without consideration of non-financial factors.

Affected Parties

  • New York State Comptroller: The bill directly impacts the responsibilities and investment strategies of the state comptroller, who manages the pension fund.
  • Pension Fund Beneficiaries: The legislation may affect the financial outcomes for current and future beneficiaries of the state pension fund, as it alters the criteria used for investment decisions.
  • Investment Firms: Firms that provide investment services to the state pension fund may need to adjust their strategies and proposals in light of the new restrictions.

Procedural Aspects

  • Current Status: As of April 07, 2025, the bill has been referred to the Civil Service and Pensions Committee for further consideration.
  • Related Legislation: This bill is related to prior-session Bill S 6472 and has a companion bill, A 207, which may address similar issues in the Assembly.

Conclusion

Bill S 7240 represents a significant shift in the investment strategy for the New York State pension fund by prohibiting the use of ESG criteria. If enacted, it could reshape how the state approaches pension fund investments, focusing exclusively on financial metrics and potentially impacting the broader conversation around responsible investing. The bill is currently under review by the Civil Service and Pensions Committee, and its future will depend on legislative discussions and potential amendments.

Compiled from official sources — confirm details with the bill’s official record.

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