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An Act Regarding State Investments and the Dakota Access Pipeline
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §135-B  is enacted to read:
§ 135-B. Limitation on deposits; Dakota Access pipeline
Notwithstanding section 135 or any other provision of law to the contrary, the Treasurer of State may not deposit the money of the State in any national bank or in any banking institution, trust company, state or federal savings and loan association or mutual savings bank that is providing funds, extending credit or otherwise engaged in financing the construction of the Dakota Access pipeline. For the purposes of this section, "Dakota Access pipeline" means the oil pipeline designed to connect the Bakken oil fields in North Dakota to Illinois, traveling through South Dakota and Iowa, constructed by Dakota Access, LLC.
Sec. 2.  5 MRSA §138-A  is enacted to read:
§ 138-A. Limitation on investments; Dakota Access pipeline
Notwithstanding section 138 or any other provision of law to the contrary, the Treasurer of State may not invest any permanent funds held in trust by the State in the securities of any corporation or company or any subsidiary, affiliate or parent of any corporation or company that is providing funds, extending credit or otherwise engaged in financing the construction of the Dakota Access pipeline. For the purposes of this section, "Dakota Access pipeline" means the oil pipeline designed to connect the Bakken oil fields in North Dakota to Illinois, traveling through South Dakota and Iowa, constructed by Dakota Access, LLC.
Sec. 3.  5 MRSA §1957  is enacted to read:
§ 1957. Dakota Access pipeline
 
1.  Divestment.     The Board of Trustees of the Maine Public Employees Retirement System shall review the extent to which the assets of any state pension or annuity fund are invested in the stocks, securities or other obligations of any corporation or company, or any subsidiary, affiliate or parent of any corporation or company, constructing or funding the construction of the Dakota Access pipeline. Except as provided in subsection 2, the board shall, in accordance with sound investment criteria and consistent with the board's fiduciary obligations, divest any such holdings and may not invest any assets in any such stocks, securities or other obligations. Divestment pursuant to this subsection must be complete by January 1, 2019. For the purposes of this section, "Dakota Access pipeline" means the oil pipeline designed to connect the Bakken oil fields in North Dakota to Illinois, traveling through South Dakota and Iowa, constructed by Dakota Access, LLC.
 
2.  Exemption.     Short-term investment funds that commingle commercial paper or futures and other commingled investment or index funds are exempt from the restrictions imposed by this section.
 
SUMMARY
This bill prohibits the Treasurer of State from depositing funds in any bank that is providing funds, extending credit or otherwise engaged in financing the construction of the Dakota Access pipeline. This bill also prohibits the Treasurer of State from investing in the securities of a corporation or company or other entity that is providing funds, extending credit or otherwise engaged in financing the construction of the Dakota Access pipeline.
This bill requires the Maine Public Employees Retirement System to divest its holdings in any corporation or company that is constructing or funding construction of the so-called Dakota Access pipeline. The bill requires divestment to be completed by January 1, 2019.