S 3847: Requires SUNY and CUNY trustees to refrain from investing in and subsequently divest from stocks, debt or other securities of certain publicly traded fossil fuel companies.

  
  STATE OF NEW YORK ________________________________________________________________________ 3847 2025-2026 Regular Sessions  IN SENATE January 30, 2025 ___________ Introduced by Sens. HOYLMAN-SIGAL, KRUEGER, SERRANO -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education AN ACT to amend the education law, in relation to requiring SUNY and CUNY trustees refrain from investing in and subsequently divest from stocks, debt or other securities of certain publicly traded fossil fuel companies The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The education law is amended by adding a new section 355-f 2 to read as follows: 3 § 355-f. Divestment from fossil fuels. 1. (a) On or after July first, 4 two thousand twenty-six, the board of trustees shall not invest any 5 monies in any stocks, debt or other securities of any corporation or 6 company, or any subsidiary, affiliate or parent of any corporation or 7 company, among the two hundred largest publicly traded fossil fuel 8 companies, as established by carbon content in the companies' proven 9 oil, gas and coal reserves. 10 (b) On or before January first, two thousand thirty, the board of 11 trustees shall divest from any stocks, debt or other securities of any 12 corporation or company, or any subsidiary, affiliate or parent of any 13 corporation or company, among the two hundred largest publicly traded 14 fossil fuel companies, as established by carbon content in the compa- 15 nies' proven oil, gas and coal reserves, except that divestment from 16 stocks or other securities of companies engaged in the mining, 17 extraction or production of coal shall be completed no later than one 18 year after the effective date of this subdivision. 19 (c) The board of trustees shall be permitted to cease divesting from 20 companies under paragraph (a) of this subdivision, reinvest in companies 21 from which it divested under paragraph (a) of this subdivision, or 22 continue to invest in companies from which it has not yet divested upon EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07173-01-5 
 S. 3847 2 1 clear and convincing evidence showing that as a direct result of such 2 divestment, the total and aggregate value of all assets under management 3 by, or on behalf of, the board of trustees becomes or shall become: (i) 4 equal to or less than ninety-nine and one-half percent; or (ii) one 5 hundred percent less fifty basis points of the hypothetical value of all 6 assets under management by, or on behalf of, the board of trustees 7 assuming no divestment from any company had occurred under said para- 8 graph (a) of this subdivision. Cessation of divestment, reinvestment or 9 any subsequent ongoing investment authorized by this section shall be 10 strictly limited to the minimum steps necessary to avoid the contingency 11 set forth in the preceding sentence. For any cessation of divestment, 12 and in advance of such cessation, authorized by this subdivision, the 13 board of trustees shall provide a written report to the attorney general 14 and the senate and assembly standing committees on higher education, 15 updated semi-annually thereafter as applicable, setting forth the 16 reasons and justification, supported by clear and convincing evidence, 17 for its decisions to cease divestment, to reinvest or to remain invested 18 in fossil fuel companies. 19 2. (a) On or after July first, two thousand twenty-six, an affiliated 20 nonprofit organization or foundation shall not invest any monies in any 21 stocks, debt or other securities of any corporation or company, or any 22 subsidiary, affiliate or parent of any corporation or company, among the 23 two hundred largest publicly traded fossil fuel companies, as estab- 24 lished by carbon content in the companies' proven oil, gas and coal 25 reserves. 26 (b) On or before January first, two thousand thirty, an affiliated 27 nonprofit organization or foundation shall divest from any stocks, debt 28 or other securities of any corporation or company, or any subsidiary, 29 affiliate or parent of any corporation or company, among the two hundred 30 largest publicly traded fossil fuel companies, as established by carbon 31 content in the companies' proven oil, gas and coal reserves, except that 32 divestment from stocks or other securities of companies engaged in the 33 mining, extraction or production of coal shall be completed no later 34 than one year after the effective date of this subdivision. 35 (c) An affiliated nonprofit organization or foundation shall be 36 permitted to cease divesting from companies under paragraph (a) of this 37 subdivision, reinvest in companies from which it divested under para- 38 graph (a) of this subdivision, or continue to invest in companies from 39 which it has not yet divested upon clear and convincing evidence showing 40 that as a direct result of such divestment, the total and aggregate 41 value of all assets under management by, or on behalf of, an affiliated 42 nonprofit organization or foundation becomes or shall become: (i) equal 43 or less than ninety-nine and one-half percent; or (ii) one hundred 44 percent less fifty basis points of the hypothetical value of all assets 45 under management by, or on behalf of, an affiliated nonprofit organiza- 46 tion or foundation assuming no divestment from any company had occurred 47 under said paragraph (a) of this subdivision. Cessation of divestment, 48 reinvestment or any subsequent ongoing investment authorized by this 49 section shall be strictly limited to the minimum steps necessary to 50 avoid the contingency set forth in the preceding sentence. For any 51 cessation of divestment, and in the advance of such cessation, author- 52 ized by this subdivision, an affiliated nonprofit organization or foun- 53 dation shall provide a written report to the attorney general and the 54 senate and assembly standing committees on higher education, updated 55 semi-annually thereafter as applicable, setting forth the reasons and 56 justification, supported by clear and convincing evidence, for its deci- 
 S. 3847 3 1 sions to cease divestment, to reinvest or to remain invested in fossil 2 fuel companies. 3 3. As used within this section, "an affiliated nonprofit organization 4 or foundation" means an organization or foundation formed under the 5 not-for-profit corporation law or any other entity formed for the bene- 6 fit of or controlled by the state university of New York or its respec- 7 tive universities, colleges, community colleges, campuses or subdivi- 8 sions, including the research foundation of the state university of New 9 York, to assist in meeting the specific needs of, or providing a direct 10 benefit to, the respective university, college, community college, 11 campus or subdivision or the university as a whole, that has control of, 12 manages or receives fifty thousand dollars or more annually, including 13 alumni associations. 14 § 2. The education law is amended by adding a new section 6234-a to 15 read as follows: 16 § 6234-a. Divestment from fossil fuels. 1. (a) On or after July first, 17 two thousand twenty-six, the board of trustees shall not invest any 18 monies in any stocks, debt or other securities of any corporation or 19 company, or any subsidiary, affiliate or parent of any corporation or 20 company, among the two hundred largest publicly traded fossil fuel 21 companies, as established by carbon content in the companies' proven 22 oil, gas and coal reserves. 23 (b) On or before January first, two thousand thirty, the board of 24 trustees shall divest from any stocks, debt or other securities of any 25 corporation or company, or any subsidiary, affiliate or parent of any 26 corporation or company, among the two hundred largest publicly traded 27 fossil fuel companies, as established by carbon content in the compa- 28 nies' proven oil, gas and coal reserves, except that divestment from 29 stocks or other securities of companies engaged in the mining, 30 extraction or production of coal shall be completed no later than one 31 year after the effective date of this subdivision. 32 (c) The board of trustees shall be permitted to cease divesting from 33 companies under paragraph (a) of this subdivision, reinvest in companies 34 from which it divested under paragraph (a) of this subdivision, or 35 continue to invest in companies from which it has not yet divested upon 36 clear and convincing evidence showing that as a direct result of such 37 divestment, the total and aggregate value of all assets under management 38 by, or on behalf of, the board of trustees becomes or shall become: (i) 39 equal to or less than ninety-nine and one-half percent; or (ii) one 40 hundred percent less fifty basis points of the hypothetical value of all 41 assets under management by, or on behalf of, the board of trustees 42 assuming no divestment from any company had occurred under said para- 43 graph (a) of this subdivision. Cessation of divestment, reinvestment or 44 any subsequent ongoing investment authorized by this section shall be 45 strictly limited to the minimum steps necessary to avoid the contingency 46 set forth in the preceding sentence. For any cessation of divestment, 47 and in advance of such cessation, authorized by this subdivision, the 48 board of trustees shall provide a written report to the attorney general 49 and the senate and assembly standing committees on higher education, 50 updated semi-annually thereafter as applicable, setting forth the 51 reasons and justification, supported by clear and convincing evidence, 52 for its decisions to cease divestment, to reinvest or to remain invested 53 in fossil fuel companies. 54 2. (a) On or after July first, two thousand twenty-six, an affiliated 55 nonprofit organization or foundation shall not invest any monies in any 56 stocks, debt or other securities of any corporation or company, or any 
 S. 3847 4 1 subsidiary, affiliate or parent of any corporation or company, among the 2 two hundred largest publicly traded fossil fuel companies, as estab- 3 lished by carbon content in the companies' proven oil, gas and coal 4 reserves. 5 (b) On or before January first, two thousand thirty, an affiliated 6 nonprofit organization or foundation shall divest from any stocks, debt 7 or other securities of any corporation or company, or any subsidiary, 8 affiliate or parent of any corporation or company, among the two hundred 9 largest publicly traded fossil fuel companies, as established by carbon 10 content in the companies' proven oil, gas and coal reserves, except that 11 divestment from stocks or other securities of companies engaged in the 12 mining, extraction or production of coal shall be completed no later 13 than one year after the effective date of this subdivision. 14 (c) An affiliated nonprofit organization or foundation shall be 15 permitted to cease divesting from companies under paragraph (a) of this 16 subdivision, reinvest in companies from which it divested under para- 17 graph (a) of this subdivision, or continue to invest in companies from 18 which it has not yet divested upon clear and convincing evidence showing 19 that as a direct result of such divestment, the total and aggregate 20 value of all assets under management by, or on behalf of, an affiliated 21 nonprofit organization or foundation becomes or shall become: (i) equal 22 to or less than ninety-nine and one-half percent; or (ii) one hundred 23 percent less fifty basis points of the hypothetical value of all assets 24 under management by, or on behalf of, an affiliated nonprofit organiza- 25 tion or foundation assuming no divestment from any company had occurred 26 under said paragraph (a) of this subdivision. Cessation of divestment, 27 reinvestment or any subsequent ongoing investment authorized by this 28 section shall be strictly limited to the minimum steps necessary to 29 avoid the contingency set forth in the preceding sentence. For any 30 cessation of divestment, and in advance of such cessation, authorized by 31 this subdivision, an affiliated nonprofit organization or foundation 32 shall provide a written report to the attorney general and the senate 33 and assembly standing committees on higher education, updated semi-annu- 34 ally thereafter as applicable, setting forth the reasons and justifica- 35 tion, supported by clear and convincing evidence, for its decisions to 36 cease divestment, to reinvest or to remain invested in fossil fuel 37 companies. 38 3. As used within this section, "an affiliated nonprofit organization 39 or foundation" means an organization or foundation formed under the 40 not-for-profit corporation law or any other entity formed for the bene- 41 fit of or controlled by the city university of New York or its respec- 42 tive universities, colleges, community colleges, campuses or subdivi- 43 sions, including the research foundation of the city university of New 44 York, to assist in meeting the specific needs of, or providing a direct 45 benefit to, the respective university, college, community college, 46 campus or subdivision or the university as a whole, that has control of, 47 manages or receives fifty thousand dollars or more annually, including 48 alumni associations. 49 § 3. This act shall take effect on July 1, 2026.