Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Revising The City's Investment Policy To Be In Compliance With Revisions To State Statutes, Pursuant To Section 38.76(D)(9) Of The Code Of Ordinances.
Strategic Plan Focus
Financial Management & Administration
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The Investment Policy of the City of Hollywood was revised through Resolution No. 2020-218 in September of 2020 to reflect multiple changes in the investing environment since its last revisions in 1994 and 2013 and then again in March of 2022 to reflect revisions appropriate to the City engaging an investment manager to assist in managing its portfolio. During the revision in 2020, new language was added in a section titled "Socially Responsible Investing" to encourage investments in socially responsible entities that support community wellbeing through safe, clean and environmentally sound practices, and promote equality of rights regardless of race, religion, color, ancestry, age, national origin, gender, marital status, sexual orientation, disability or place of birth, and prohibited direct investments in certain sectors of the economy.
It is now necessary to revise the Policy again.
House Bill 3 ("HB 3"), entitled "Government and Corporate Activism," was signed into law on May 2, 2023. The bill prohibits municipalities from using any environmental, social or governance factors and provides that only "pecuniary factors" as defined within the bill may be used in making investment decisions. The bill prohibits the use of guidance such as the City had added in its Socially Responsible Investing policy language.
In order to be in compliance with State Statutes, the City is revising its policy to remove the section on Socially Responsible Investing (section XII), and adding a new section titled Investment Decisions (section XIX), stating its intent to base investment decisions solely on pecuniary...
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