What's happening
This bill requires SUNY and CUNY, and their affiliated nonprofits, to divest from the 200 largest publicly traded fossil fuel companies.
Why it matters
Sets a clear timeline for action. The bill requires that SUNY, CUNY, and their affiliated nonprofits stop new investments in the top 200 fossil fuel companies by July 1, 2020, and fully divest existing holdings by January 1, 2024 (with coal-related investments divested even sooner). This creates a defined, enforceable schedule for shifting public university assets away from fossil fuels.
Covers affiliated entities and foundations. The legislation includes not just the universities themselves but also their affiliated nonprofit organizations and foundations (including alumni associations and research foundations), closing loopholes that could allow continued fossil fuel investment through these channels.
Allows for financial “hardship” exceptions with strict oversight. If clear and convincing evidence shows that divestment would significantly harm the total value of assets under management (dropping below set thresholds), institutions can pause or reverse divestment—but only to the minimum extent necessary. They must provide detailed, semi-annual public reports justifying such decisions, increasing transparency and accountability.
Signals a shift in public values and investment strategy. By mandating divestment from major fossil fuel companies, the bill positions New York’s public universities as leaders in climate responsibility, potentially influencing broader public and private investment trends and aligning institutional practices with state climate goals.
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Who cares
SUNY and CUNY trustees
The bill would prohibit new investments in covered fossil fuel companies starting July 1, 2020, and require divestment by January 1, 2024, with an earlier deadline for coal holdings and a limited financial-loss exception.
University-affiliated foundations and alumni associations
Qualifying entities controlling, managing or receiving at least $50,000 annually would face the same investment restrictions and divestment requirements.
Major publicly traded fossil fuel companies
The restrictions would cover the 200 largest companies ranked by carbon content in proven oil, gas and coal reserves, along with their subsidiaries, affiliates and parents.
Attorney general and legislative higher education committees
They would receive written justifications before covered investors cease divestment under the financial-loss exception, with updates every six months as applicable.
Headline styles
Divest Public Colleges from Fossil Fuels
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to higher education
- Referred to higher education
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1829
2019-2020 Regular Sessions
IN SENATE
January 16, 2019
Introduced by Sens. HOYLMAN, KRUEGER -- 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 Assembly, do enact as follows:
Section 1. The education law is amended by adding a new section 355-d to read as follows:
§ 355-d. Divestment from fossil fuels. 1. (a) On or after July first, two thousand twenty, the board of trustees shall not invest any monies in any stocks, debt or other securities of any corporation or company, or any subsidiary, affiliate or parent of any corporation or company, among the two hundred largest publicly traded fossil fuel companies, as established by carbon content in the companies' proven oil, gas and coal reserves.
(b) On or before January first, two thousand twenty-four, the board of trustees shall divest from any stocks, debt or other securities of any corporation or company, or any subsidiary, affiliate or parent of any corporation or company, among the two hundred largest publicly traded fossil fuel companies, as established by carbon content in the companies' proven oil, gas and coal reserves, except that divestment from stocks or other securities of companies engaged in the mining, extraction or production of coal shall be completed no later than one year after the effective date of this subdivision.
(c) The board of trustees shall be permitted to cease divesting from companies under paragraph (a) of this subdivision, reinvest in companies from which it divested under paragraph (a) of this subdivision, or continue to invest in companies from which it has not yet divested upon clear and convincing evidence showing that as a direct result of such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07852-01-9
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divestment, the total and aggregate value of all assets under management by, or on behalf of, the board of trustees becomes or shall become: (i) equal to or less than ninety-nine and one-half percent; or (ii) one hundred percent less fifty basis points of the hypothetical value of all assets under management by, or on behalf of, the board of trustees assuming no divestment from any company had occurred under said paragraph (a) of this subdivision. Cessation of divestment, reinvestment or any subsequent ongoing investment authorized by this section shall be strictly limited to the minimum steps necessary to avoid the contingency set forth in the preceding sentence. For any cessation of divestment, and in advance of such cessation, authorized by this subdivision, the board of trustees shall provide a written report to the attorney general and the senate and assembly standing committees on higher education, updated semi-annually thereafter as applicable, setting forth the reasons and justification, supported by clear and convincing evidence, for its decisions to cease divestment, to reinvest or to remain invested in fossil fuel companies.
2. (a) On or after July first, two thousand twenty, an affiliated nonprofit organization or foundation shall not invest any monies in any stocks, debt or other securities of any corporation or company, or any subsidiary, affiliate or parent of any corporation or company, among the two hundred largest publicly traded fossil fuel companies, as established by carbon content in the companies' proven oil, gas and coal reserves.
(b) On or before January first, two thousand twenty-four, an affiliated nonprofit organization or foundation shall divest from any stocks, debt or other securities of any corporation or company, or any subsidiary, affiliate or parent of any corporation or company, among the two hundred largest publicly traded fossil fuel companies, as established by carbon content in the companies' proven oil, gas and coal reserves, except that divestment from stocks or other securities of companies engaged in the mining, extraction or production of coal shall be completed no later than one year after the effective date of this subdivision.
(c) An affiliated nonprofit organization or foundation shall be permitted to cease divesting from companies under paragraph (a) of this subdivision, reinvest in companies from which it divested under paragraph (a) of this subdivision, or continue to invest in companies from which it has not yet divested upon clear and convincing evidence showing that as a direct result of such divestment, the total and aggregate value of all assets under management by, or on behalf of, an affiliated nonprofit organization or foundation becomes or shall become: (i) equal or less than ninety-nine and one-half percent; or (ii) one hundred percent less fifty basis points of the hypothetical value of all assets under management by, or on behalf of, an affiliated nonprofit organization or foundation assuming no divestment from any company had occurred under said paragraph (a) of this subdivision. Cessation of divestment, reinvestment or any subsequent ongoing investment authorized by this section shall be strictly limited to the minimum steps necessary to avoid the contingency set forth in the preceding sentence. For any cessation of divestment, and in the advance of such cessation, authorized by this subdivision, an affiliated nonprofit organization or foundation shall provide a written report to the attorney general and the senate and assembly standing committees on higher education, updated semi-annually thereafter as applicable, setting forth the reasons and justification, supported by clear and convincing evidence, for its deci-
S. 1829 3
sions to cease divestment, to reinvest or to remain invested in fossil fuel companies.
3. As used within this section, "an affiliated nonprofit organization or foundation" means an organization or foundation formed under the not-for-profit corporation law or any other entity formed for the benefit of or controlled by the state university of New York or its respective universities, colleges, community colleges, campuses or subdivisions, including the research foundation of the state university of New York, to assist in meeting the specific needs of, or providing a direct benefit to, the respective university, college, community college, campus or subdivision or the university as a whole, that has control of, manages or receives fifty thousand dollars or more annually, including alumni associations.
§ 2. The education law is amended by adding a new section 6234-a to read as follows:
§ 6234-a. Divestment from fossil fuels. 1. (a) On or after July first, two thousand twenty, the board of trustees shall not invest any monies in any stocks, debt or other securities of any corporation or company, or any subsidiary, affiliate or parent of any corporation or company, among the two hundred largest publicly traded fossil fuel companies, as established by carbon content in the companies' proven oil, gas and coal reserves.
(b) On or before January first, two thousand twenty-four, the board of trustees shall divest from any stocks, debt or other securities of any corporation or company, or any subsidiary, affiliate or parent of any corporation or company, among the two hundred largest publicly traded fossil fuel companies, as established by carbon content in the companies' proven oil, gas and coal reserves, except that divestment from stocks or other securities of companies engaged in the mining, extraction or production of coal shall be completed no later than one year after the effective date of this subdivision.
(c) The board of trustees shall be permitted to cease divesting from companies under paragraph (a) of this subdivision, reinvest in companies from which it divested under paragraph (a) of this subdivision, or continue to invest in companies from which it has not yet divested upon clear and convincing evidence showing that as a direct result of such divestment, the total and aggregate value of all assets under management by, or on behalf of, the board of trustees becomes or shall become: (i) equal to or less than ninety-nine and one-half percent; or (ii) one hundred percent less fifty basis points of the hypothetical value of all assets under management by, or on behalf of, the board of trustees assuming no divestment from any company had occurred under said paragraph (a) of this subdivision. Cessation of divestment, reinvestment or any subsequent ongoing investment authorized by this section shall be strictly limited to the minimum steps necessary to avoid the contingency set forth in the preceding sentence. For any cessation of divestment, and in advance of such cessation, authorized by this subdivision, the board of trustees shall provide a written report to the attorney general and the senate and assembly standing committees on higher education, updated semi-annually thereafter as applicable, setting forth the reasons and justification, supported by clear and convincing evidence, for its decisions to cease divestment, to reinvest or to remain invested in fossil fuel companies.
2. (a) On or after July first, two thousand twenty, an affiliated nonprofit organization or foundation shall not invest any monies in any stocks, debt or other securities of any corporation or company, or any
S. 1829 4
subsidiary, affiliate or parent of any corporation or company, among the two hundred largest publicly traded fossil fuel companies, as established by carbon content in the companies' proven oil, gas and coal reserves.
(b) On or before January first, two thousand twenty-four, an affiliated nonprofit organization or foundation shall divest from any stocks, debt or other securities of any corporation or company, or any subsidiary, affiliate or parent of any corporation or company, among the two hundred largest publicly traded fossil fuel companies, as established by carbon content in the companies' proven oil, gas and coal reserves, except that divestment from stocks or other securities of companies engaged in the mining, extraction or production of coal shall be completed no later than one year after the effective date of this subdivision.
(c) An affiliated nonprofit organization or foundation shall be permitted to cease divesting from companies under paragraph (a) of this subdivision, reinvest in companies from which it divested under paragraph (a) of this subdivision, or continue to invest in companies from which it has not yet divested upon clear and convincing evidence showing that as a direct result of such divestment, the total and aggregate value of all assets under management by, or on behalf of, an affiliated nonprofit organization or foundation becomes or shall become: (i) equal to or less than ninety-nine and one-half percent; or (ii) one hundred percent less fifty basis points of the hypothetical value of all assets under management by, or on behalf of, an affiliated nonprofit organization or foundation assuming no divestment from any company had occurred under said paragraph (a) of this subdivision. Cessation of divestment, reinvestment or any subsequent ongoing investment authorized by this section shall be strictly limited to the minimum steps necessary to avoid the contingency set forth in the preceding sentence. For any cessation of divestment, and in advance of such cessation, authorized by this subdivision, an affiliated nonprofit organization or foundation shall provide a written report to the attorney general and the senate and assembly standing committees on higher education, updated semi-annually thereafter as applicable, setting forth the reasons and justification, supported by clear and convincing evidence, for its decisions to cease divestment, to reinvest or to remain invested in fossil fuel companies.
3. As used within this section, "an affiliated nonprofit organization or foundation" means an organization or foundation formed under the not-for-profit corporation law or any other entity formed for the benefit of or controlled by the city university of New York or its respective universities, colleges, community colleges, campuses or subdivisions, including the research foundation of the city university of New York, to assist in meeting the specific needs of, or providing a direct benefit to, the respective university, college, community college, campus or subdivision or the university as a whole, that has control of, manages or receives fifty thousand dollars or more annually, including alumni associations.
§ 3. This act shall take effect on July 1, 2020.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
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
Summary of specific provisions
Section 1 of the bill amends the education law by adding a new section 355-d. Section 355-d of the education law requires the SUNY Board of Trustees and SUNY affiliated nonprofit organizations or foundations to cease new investments in the 200 largest publicly traded fossil fuel companies by July 1, 2018, and to divest from any current investments im such companies by January 1, 2022.
The Board of Trustees and affiliated nonprofit organizations or founda- tions would be permitted to cease divesting under limited circumstances upon clear and convincing evidence that such divestment has directly resulted in the total and aggregate value of all assets under management by, or on behalf of, the Board of Trustees and affiliated nonprofit organizations or foundations falling below a specified threshold.
Section 2 of the bill amends the education law by adding a new section 6234a. Section 6234-a of the education law requires the CUNY Board of Trustees and CUNY affiliated nonprofit organizations or foundations to cease new investments in the 200 largest publicly traded fossil fuel companies by July 1, 2018, and to divest from any current investments in such companies by January 1, 2022.
The Board of Trustees and affiliated nonprofit organizations or founda- tions would be permitted to cease divesting under limited circumstances upon clear and convincing evidence that such divestment has directly resulted in the total and aggregate value of all assets under management by, or on behalf of, the Board of Trustees and affiliated nonprofit organizations or foundations falling below a specified threshold.
Section 3 of the bill sets an effective date of July 1, 2018.
Justification
Human-induced climate change is a growing threat to the future of our planet. Its impacts are already evident, with annual record-setting high temperatures, widespread droughts, drastic sea level rise, and other effects that are potentially catastrophic to the environment, public health, the economy, and the very survival of humanity. strong action to sever ties with dirty, outdated fossil fuel companies that are fail- ing to adapt to a changing planet.
Prior legislative history
S.5647 of 2017-2018 (Hoylman): Died in Higher Education
Fiscal implications
To be determined.
Effective date
This act shall take effect on July 1, 2018.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.