§ 5-10.2-14-10 — Prohibited contracting; replacement of service provider; exception

(a) In accordance with the board's duty
under section 9 of this chapter, and except as provided in subsection
(c), the board shall not:
(1) enter a contract; or
(2) modify, amend, or continue a contract;
with a service provider that has made an ESG commitment unless
taking the action described in subdivisions (1) and (2) violates the
board's fiduciary duty to the system's participants and beneficiaries.
(b) The board shall replace a service provider that has made an ESG
commitment with a service provider that is comparable in financial
performance, so as not to violate the board's fiduciary duty to the
system's participants and beneficiaries. If the board replaces a service
provider, it shall do so within a reasonable time, but not later than one
hundred eighty (180) days after receiving notice from the treasurer of
state of the service provider's ESG commitment.
(c) If the board determines that there is not a comparable service
provider to replace a service provider under subsection (b), the board
shall continue contracting with the service provider that has made an
ESG commitment. The board shall include in its minutes the:
(1) decision that a comparable service provider does not exist;
and
(2) evidence supporting the decision under subdivision (1).

Legislative History

As added by P.L.206-2023, SEC.1.