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Senate File 98 - IntroducedA Bill ForAn Act 1relating to the investment of certain public funds in
2companies that are owned or controlled by Chinese military
3or government services.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 12.8, subsection 1, Code 2023, is amended
2to read as follows:
31. The treasurer of state shall invest or deposit, subject
4to chapters 12F, 12H, and 12J, and 12K and as provided by law,
5any of the public funds not currently needed for operating
6expenses and shall do so upon receipt of monthly notice from
7the director of the department of administrative services of
8the amount not so needed. In the event of loss on redemption
9or sale of securities invested as prescribed by law, and if
10the transaction is reported to the executive council, neither
11the treasurer nor director of the department of administrative
12services is personally liable but the loss shall be charged
13against the funds which would have received the profits or
14interest of the investment and there is appropriated from the
15funds the amount so required.
16 Sec. 2. NEW SECTION. 12K.1 Definitions.
17As used in this chapter, unless the context otherwise
18requires:
191. “Company” means any business or business entity that is
20publicly traded and that is not based in the United States.
212. “Direct holdings” in a company means all securities of
22a company held directly by the public fund or in an account or
23fund in which the public fund owns all shares or interests.
243. “Indirect holdings” in a company means all securities
25of a company held in an account or fund managed by one or more
26persons not employed by the public fund, in which the public
27fund owns shares or interests together with other investors not
28subject to the provisions of this chapter. Indirect holdings
29include but are not limited to mutual funds, fund of funds,
30private equity funds, hedge funds, and real estate funds.
314. “Prohibited company” means a company that is owned or
32controlled by Chinese military or government services and has
33been designated by the United States government as a company
34that citizens of the United States are restricted or prohibited
35from entering into transactions with, including a designation
-1-1in any of the following lists:
2a. The bureau of industry and security’s entity list.
3b. The bureau of industry and security’s military end user
4list.
5c. The department of defense’s communist Chinese military
6companies list.
7d. The office of foreign assets control’s foreign sanctions
8evaders list.
9e. The office of foreign assets control’s list of foreign
10financial institutions subject to correspondent account or
11payable-through account sanctions.
12f. The office of foreign assets control’s non-SDN Iran
13sanctions list.
14g. The office of foreign assets control’s non-SDN
15Palestinian legislative council list.
16h. The office of foreign assets control’s sectoral sanctions
17identifications list.
18i. The office of foreign assets control’s specially
19designated nationals and blocked persons list.
20j. “Public fund” means the treasurer of state, the state
21board of regents, the public safety peace officers’ retirement
22system created in chapter 97A, the Iowa public employees’
23retirement system created in chapter 97B, the statewide fire
24and police retirement system created in chapter 411, or the
25judicial retirement system created in chapter 602.
26 Sec. 3. NEW SECTION. 12K.2 Identification of companies —
27notice.
281. a. By January 1, 2024, a public fund shall identify or
29have identified all prohibited companies in which the public
30fund has direct or indirect holdings and shall create and make
31available to the public a prohibited companies list for that
32public fund. The public fund shall review and update, if
33necessary, the prohibited companies list on a quarterly basis
34thereafter.
35b. In identifying or having identified prohibited companies,
-2-1the public fund may review and rely, in the best judgment of
2the public fund, on publicly available information and other
3information that may be provided by nonprofit organizations,
4research firms, international organizations, and government
5entities. The public fund may also contact asset managers
6and institutional investors for the public fund to identify
7prohibited companies based upon industry-recognized lists of
8such companies that the public fund may have indirect holdings
9in.
10c. The Iowa public employees’ retirement system, acting
11on behalf of the system and other public funds subject to
12this section, may develop and issue a request for proposals
13for third-party services to complete the identification of
14prohibited companies and the compilation of a prohibited
15companies list. The request for proposals may request bids for
16optional services related to this purpose, including but not
17limited to provision of notice of such prohibited companies
18as required in subsection 2. The Iowa public employees’
19retirement system shall consult with all other public funds
20regarding the development of the request for proposals, however
21selection of a successful proposal and the final scope of
22services to be provided shall be determined only by those
23public funds that have agreed to utilize the third-party
24services. If more than one public fund decides to utilize the
25third-party services, the participating public funds shall
26equally share the costs of such services.
272. For each company on the prohibited companies list in
28which a public fund has direct or indirect holdings, the public
29fund shall send or have sent a written notice informing the
30company of the requirements of this chapter. The public fund
31or its representative shall continue to provide such written
32notice on an annual basis if the company remains a prohibited
33company.
343. If a public fund determines that a company may be subject
35to inclusion on the prohibited companies list, the public fund
-3-1shall scrutinize and engage the company for a period of not
2more than twelve months and shall include the company on the
3prohibited companies list if the public fund determines that
4the company is a prohibited company.
5 Sec. 4. NEW SECTION. 12K.3 Divestment.
61. A public fund shall not acquire any direct holdings in
7publicly traded securities of a prohibited company.
82. a. A public fund shall sell, redeem, divest, or
9withdraw all direct holdings in publicly traded securities of
10a prohibited company no later than one hundred eighty days
11following the date the company is included on the prohibited
12companies list.
13b. This subsection shall not be construed to require the
14premature or otherwise imprudent sale, redemption, divestment,
15or withdrawal of an investment, but such sale, redemption,
16divestment, or withdrawal shall be completed as provided by
17this subsection.
18 Sec. 5. NEW SECTION. 12K.4 Reports.
191. Each public fund shall, within thirty days after the
20prohibited companies list is created or updated as required by
21section 12K.2, make the list available to the public.
222. On October 1, 2024, and each October 1 thereafter, each
23public fund shall make available to the public, and file with
24the general assembly, an annual report covering the prior
25fiscal year that includes all of the following:
26a. The prohibited companies list as of the end of the fiscal
27year.
28b. A summary of all written notices sent as required by
29section 12K.2 during the fiscal year.
30c. All investments sold, redeemed, divested, or withdrawn as
31provided in section 12K.3 during the fiscal year.
32d. A list of indirect holdings of the public fund in
33publicly traded securities of prohibited companies and the
34percentage of the total portfolio of the public fund the
35indirect holdings of securities in prohibited companies
-4-1represent.
2 Sec. 6. NEW SECTION. 12K.5 Legal obligations.
3With respect to actions taken in compliance with this
4chapter, including all good-faith determinations regarding
5companies as required by this chapter, the public fund
6shall be exempt from any conflicting statutory or common law
7obligations, including any such obligations with respect to
8choice of asset managers, investment funds, or investments for
9the public fund’s securities portfolios.
10 Sec. 7. NEW SECTION. 12K.6 Applicability.
11The requirements of sections 12K.2, 12K.3, and 12K.4 shall
12not apply if the United States Congress or president of the
13United States, through legislation or executive order, declares
14that mandatory divestment of the type provided for in this
15chapter interferes with the conduct of United States foreign
16policy.
17 Sec. 8. Section 97A.7, subsection 1, Code 2023, is amended
18to read as follows:
191. The board of trustees shall be the trustees of the
20retirement fund created by this chapter as provided in section
2197A.8 and shall have full power to invest and reinvest funds
22subject to the terms, conditions, limitations, and restrictions
23imposed by subsection 2 and chapters 12F, 12H, and 12J, and
2412K and subject to like terms, conditions, limitations, and
25restrictions said trustees shall have full power to hold,
26purchase, sell, assign, transfer, or dispose of any of the
27securities and investments of the retirement fund which have
28been invested, as well as of the proceeds of said investments
29and any moneys belonging to the retirement fund. The board
30of trustees may authorize the treasurer of state to exercise
31any of the duties of this section. When so authorized the
32treasurer of state shall report any transactions to the board
33of trustees at its next monthly meeting.
34 Sec. 9. Section 97B.4, subsection 5, Code 2023, is amended
35to read as follows:
-5- 15. Investments. The system, through the chief investment
2officer, shall invest, subject to chapters 12F, 12H, and 12J,
3and 12K and in accordance with the investment policy and
4goal statement established by the board, the portion of the
5retirement fund which, in the judgment of the system, is not
6needed for current payment of benefits under this chapter
7subject to the requirements of section 97B.7A.
8 Sec. 10. Section 262.14, unnumbered paragraph 1, Code 2023,
9is amended to read as follows:
10The board may invest funds belonging to the institutions,
11subject to chapters 12F, 12H, and 12J, and 12K and the
12following regulations:
13 Sec. 11. Section 411.7, subsection 1, Code 2023, is amended
14to read as follows:
151. The board of trustees is the trustee of the fire
16and police retirement fund created in section 411.8 and
17shall annually establish an investment policy to govern the
18investment and reinvestment of the moneys in the fund, subject
19to the terms, conditions, limitations, and restrictions
20imposed by subsection 2 and chapters 12F, 12H, and 12J, and
2112K. Subject to like terms, conditions, limitations, and
22restrictions the system has full power to hold, purchase, sell,
23assign, transfer, or dispose of any of the securities and
24investments in which the fund has been invested, as well as of
25the proceeds of the investments and any moneys belonging to the
26fund.
27 Sec. 12. Section 602.9111, subsection 1, Code 2023, is
28amended to read as follows:
291. So much of the judicial retirement fund as may not be
30necessary to be kept on hand for the making of disbursements
31under this article shall be invested by the treasurer of
32state in any investments authorized for the Iowa public
33employees’ retirement system in section 97B.7A and subject to
34the requirements of chapters 12F, 12H, and 12J, and 12K, and
35the earnings therefrom shall be credited to the fund. The
-6-1treasurer of state may execute contracts and agreements with
2investment advisors, consultants, and investment management and
3benefit consultant firms in the administration of the judicial
4retirement fund.
5EXPLANATION
6The inclusion of this explanation does not constitute agreement with
7the explanation’s substance by the members of the general assembly.
8This bill relates to the investment of certain public funds
9in companies that are owned or controlled by Chinese military
10or government services.
11The bill defines “company” as any business or business
12entity that is publicly traded and that is not based in the
13United States. The bill defines “direct holdings” in a company
14as all securities of a company held directly by the public
15fund or in an account or fund in which the public fund owns
16all shares or interests. The bill defines “indirect holdings”
17in a company as all securities of a company held in an account
18or fund managed by one or more persons not employed by the
19public fund, in which the public fund owns shares or interests
20together with other investors not subject to the provisions
21of this new Code chapter 12K. The bill defines “prohibited
22company” as a company that is owned or controlled by Chinese
23military or government services and designated by the United
24States government as a company that citizens are restricted
25or prohibited from entering into transactions with. The bill
26defines “public fund” as the treasurer of state, the state
27board of regents, the public safety peace officers’ retirement
28system, the Iowa public employees’ retirement system (IPERS),
29the statewide fire and police retirement system, or the
30judicial retirement system.
31The bill requires a public fund to identify all prohibited
32companies in which the public fund has direct or indirect
33holdings by January 1, 2024. Additionally, the bill requires
34a public fund to create and make available to the public a
35prohibited companies list and review and update the list
-7-1on a quarterly basis. The bill authorizes a public fund
2to review and rely on publicly available information and
3information from other sources when identifying prohibited
4companies. The bill also authorizes IPERS to develop and issue
5a request for proposals for third-party services to complete
6the identification of prohibited companies and the compilation
7of the prohibited companies list. The bill requires a
8public fund to send notice to all companies on the prohibited
9companies list on an annual basis informing the company of
10the requirements of the new Code chapter. The bill requires
11public funds to scrutinize and engage with companies the fund
12identifies for possible inclusion as a prohibited company for a
13period of not more than 12 months.
14The bill prohibits a public fund from acquiring direct
15holdings in publicly traded securities of a prohibited company.
16The bill requires a public fund to sell, redeem, divest, or
17withdraw all direct holdings in publicly traded securities of a
18prohibited company no later than 180 days following the date
19the company becomes a prohibited company.
20The bill requires each public fund, within 30 days after the
21prohibited companies list is created or updated, to make the
22list available to the public. Additionally, the bill requires
23a public fund to make available to the public and file with the
24general assembly an annual report beginning October 1, 2024,
25and each October 1 thereafter.
26The bill provides that, with respect to actions taken
27in compliance with the Code chapter, the public fund shall
28be exempt from any conflicting statutory or common law
29obligations, including any such obligations in respect to
30choice of asset managers, investment funds, or investments for
31the public fund’s securities portfolios.
32The bill provides that the provisions related to the
33creation of a prohibited companies list, divestment of publicly
34traded securities of a prohibited company, and reporting shall
35not apply if the United States Congress or president of the
-8-1United States declares that mandatory divestment of the type
2provided for in the Code chapter interferes with the conduct of
3United States foreign policy.
4The bill makes conforming changes to Code sections 12.8,
597A.7, 97B.4, 262.14, 411.7, and 602.9111.
-9-ec/rn
2companies that are owned or controlled by Chinese military
3or government services.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 12.8, subsection 1, Code 2023, is amended
2to read as follows:
31. The treasurer of state shall invest or deposit, subject
4to chapters 12F, 12H, and 12J, and 12K and as provided by law,
5any of the public funds not currently needed for operating
6expenses and shall do so upon receipt of monthly notice from
7the director of the department of administrative services of
8the amount not so needed. In the event of loss on redemption
9or sale of securities invested as prescribed by law, and if
10the transaction is reported to the executive council, neither
11the treasurer nor director of the department of administrative
12services is personally liable but the loss shall be charged
13against the funds which would have received the profits or
14interest of the investment and there is appropriated from the
15funds the amount so required.
16 Sec. 2. NEW SECTION. 12K.1 Definitions.
17As used in this chapter, unless the context otherwise
18requires:
191. “Company” means any business or business entity that is
20publicly traded and that is not based in the United States.
212. “Direct holdings” in a company means all securities of
22a company held directly by the public fund or in an account or
23fund in which the public fund owns all shares or interests.
243. “Indirect holdings” in a company means all securities
25of a company held in an account or fund managed by one or more
26persons not employed by the public fund, in which the public
27fund owns shares or interests together with other investors not
28subject to the provisions of this chapter. Indirect holdings
29include but are not limited to mutual funds, fund of funds,
30private equity funds, hedge funds, and real estate funds.
314. “Prohibited company” means a company that is owned or
32controlled by Chinese military or government services and has
33been designated by the United States government as a company
34that citizens of the United States are restricted or prohibited
35from entering into transactions with, including a designation
-1-1in any of the following lists:
2a. The bureau of industry and security’s entity list.
3b. The bureau of industry and security’s military end user
4list.
5c. The department of defense’s communist Chinese military
6companies list.
7d. The office of foreign assets control’s foreign sanctions
8evaders list.
9e. The office of foreign assets control’s list of foreign
10financial institutions subject to correspondent account or
11payable-through account sanctions.
12f. The office of foreign assets control’s non-SDN Iran
13sanctions list.
14g. The office of foreign assets control’s non-SDN
15Palestinian legislative council list.
16h. The office of foreign assets control’s sectoral sanctions
17identifications list.
18i. The office of foreign assets control’s specially
19designated nationals and blocked persons list.
20j. “Public fund” means the treasurer of state, the state
21board of regents, the public safety peace officers’ retirement
22system created in chapter 97A, the Iowa public employees’
23retirement system created in chapter 97B, the statewide fire
24and police retirement system created in chapter 411, or the
25judicial retirement system created in chapter 602.
26 Sec. 3. NEW SECTION. 12K.2 Identification of companies —
27notice.
281. a. By January 1, 2024, a public fund shall identify or
29have identified all prohibited companies in which the public
30fund has direct or indirect holdings and shall create and make
31available to the public a prohibited companies list for that
32public fund. The public fund shall review and update, if
33necessary, the prohibited companies list on a quarterly basis
34thereafter.
35b. In identifying or having identified prohibited companies,
-2-1the public fund may review and rely, in the best judgment of
2the public fund, on publicly available information and other
3information that may be provided by nonprofit organizations,
4research firms, international organizations, and government
5entities. The public fund may also contact asset managers
6and institutional investors for the public fund to identify
7prohibited companies based upon industry-recognized lists of
8such companies that the public fund may have indirect holdings
9in.
10c. The Iowa public employees’ retirement system, acting
11on behalf of the system and other public funds subject to
12this section, may develop and issue a request for proposals
13for third-party services to complete the identification of
14prohibited companies and the compilation of a prohibited
15companies list. The request for proposals may request bids for
16optional services related to this purpose, including but not
17limited to provision of notice of such prohibited companies
18as required in subsection 2. The Iowa public employees’
19retirement system shall consult with all other public funds
20regarding the development of the request for proposals, however
21selection of a successful proposal and the final scope of
22services to be provided shall be determined only by those
23public funds that have agreed to utilize the third-party
24services. If more than one public fund decides to utilize the
25third-party services, the participating public funds shall
26equally share the costs of such services.
272. For each company on the prohibited companies list in
28which a public fund has direct or indirect holdings, the public
29fund shall send or have sent a written notice informing the
30company of the requirements of this chapter. The public fund
31or its representative shall continue to provide such written
32notice on an annual basis if the company remains a prohibited
33company.
343. If a public fund determines that a company may be subject
35to inclusion on the prohibited companies list, the public fund
-3-1shall scrutinize and engage the company for a period of not
2more than twelve months and shall include the company on the
3prohibited companies list if the public fund determines that
4the company is a prohibited company.
5 Sec. 4. NEW SECTION. 12K.3 Divestment.
61. A public fund shall not acquire any direct holdings in
7publicly traded securities of a prohibited company.
82. a. A public fund shall sell, redeem, divest, or
9withdraw all direct holdings in publicly traded securities of
10a prohibited company no later than one hundred eighty days
11following the date the company is included on the prohibited
12companies list.
13b. This subsection shall not be construed to require the
14premature or otherwise imprudent sale, redemption, divestment,
15or withdrawal of an investment, but such sale, redemption,
16divestment, or withdrawal shall be completed as provided by
17this subsection.
18 Sec. 5. NEW SECTION. 12K.4 Reports.
191. Each public fund shall, within thirty days after the
20prohibited companies list is created or updated as required by
21section 12K.2, make the list available to the public.
222. On October 1, 2024, and each October 1 thereafter, each
23public fund shall make available to the public, and file with
24the general assembly, an annual report covering the prior
25fiscal year that includes all of the following:
26a. The prohibited companies list as of the end of the fiscal
27year.
28b. A summary of all written notices sent as required by
29section 12K.2 during the fiscal year.
30c. All investments sold, redeemed, divested, or withdrawn as
31provided in section 12K.3 during the fiscal year.
32d. A list of indirect holdings of the public fund in
33publicly traded securities of prohibited companies and the
34percentage of the total portfolio of the public fund the
35indirect holdings of securities in prohibited companies
-4-1represent.
2 Sec. 6. NEW SECTION. 12K.5 Legal obligations.
3With respect to actions taken in compliance with this
4chapter, including all good-faith determinations regarding
5companies as required by this chapter, the public fund
6shall be exempt from any conflicting statutory or common law
7obligations, including any such obligations with respect to
8choice of asset managers, investment funds, or investments for
9the public fund’s securities portfolios.
10 Sec. 7. NEW SECTION. 12K.6 Applicability.
11The requirements of sections 12K.2, 12K.3, and 12K.4 shall
12not apply if the United States Congress or president of the
13United States, through legislation or executive order, declares
14that mandatory divestment of the type provided for in this
15chapter interferes with the conduct of United States foreign
16policy.
17 Sec. 8. Section 97A.7, subsection 1, Code 2023, is amended
18to read as follows:
191. The board of trustees shall be the trustees of the
20retirement fund created by this chapter as provided in section
2197A.8 and shall have full power to invest and reinvest funds
22subject to the terms, conditions, limitations, and restrictions
23imposed by subsection 2 and chapters 12F, 12H, and 12J, and
2412K and subject to like terms, conditions, limitations, and
25restrictions said trustees shall have full power to hold,
26purchase, sell, assign, transfer, or dispose of any of the
27securities and investments of the retirement fund which have
28been invested, as well as of the proceeds of said investments
29and any moneys belonging to the retirement fund. The board
30of trustees may authorize the treasurer of state to exercise
31any of the duties of this section. When so authorized the
32treasurer of state shall report any transactions to the board
33of trustees at its next monthly meeting.
34 Sec. 9. Section 97B.4, subsection 5, Code 2023, is amended
35to read as follows:
-5- 15. Investments. The system, through the chief investment
2officer, shall invest, subject to chapters 12F, 12H, and 12J,
3and 12K and in accordance with the investment policy and
4goal statement established by the board, the portion of the
5retirement fund which, in the judgment of the system, is not
6needed for current payment of benefits under this chapter
7subject to the requirements of section 97B.7A.
8 Sec. 10. Section 262.14, unnumbered paragraph 1, Code 2023,
9is amended to read as follows:
10The board may invest funds belonging to the institutions,
11subject to chapters 12F, 12H, and 12J, and 12K and the
12following regulations:
13 Sec. 11. Section 411.7, subsection 1, Code 2023, is amended
14to read as follows:
151. The board of trustees is the trustee of the fire
16and police retirement fund created in section 411.8 and
17shall annually establish an investment policy to govern the
18investment and reinvestment of the moneys in the fund, subject
19to the terms, conditions, limitations, and restrictions
20imposed by subsection 2 and chapters 12F, 12H, and 12J, and
2112K. Subject to like terms, conditions, limitations, and
22restrictions the system has full power to hold, purchase, sell,
23assign, transfer, or dispose of any of the securities and
24investments in which the fund has been invested, as well as of
25the proceeds of the investments and any moneys belonging to the
26fund.
27 Sec. 12. Section 602.9111, subsection 1, Code 2023, is
28amended to read as follows:
291. So much of the judicial retirement fund as may not be
30necessary to be kept on hand for the making of disbursements
31under this article shall be invested by the treasurer of
32state in any investments authorized for the Iowa public
33employees’ retirement system in section 97B.7A and subject to
34the requirements of chapters 12F, 12H, and 12J, and 12K, and
35the earnings therefrom shall be credited to the fund. The
-6-1treasurer of state may execute contracts and agreements with
2investment advisors, consultants, and investment management and
3benefit consultant firms in the administration of the judicial
4retirement fund.
5EXPLANATION
6The inclusion of this explanation does not constitute agreement with
7the explanation’s substance by the members of the general assembly.
8This bill relates to the investment of certain public funds
9in companies that are owned or controlled by Chinese military
10or government services.
11The bill defines “company” as any business or business
12entity that is publicly traded and that is not based in the
13United States. The bill defines “direct holdings” in a company
14as all securities of a company held directly by the public
15fund or in an account or fund in which the public fund owns
16all shares or interests. The bill defines “indirect holdings”
17in a company as all securities of a company held in an account
18or fund managed by one or more persons not employed by the
19public fund, in which the public fund owns shares or interests
20together with other investors not subject to the provisions
21of this new Code chapter 12K. The bill defines “prohibited
22company” as a company that is owned or controlled by Chinese
23military or government services and designated by the United
24States government as a company that citizens are restricted
25or prohibited from entering into transactions with. The bill
26defines “public fund” as the treasurer of state, the state
27board of regents, the public safety peace officers’ retirement
28system, the Iowa public employees’ retirement system (IPERS),
29the statewide fire and police retirement system, or the
30judicial retirement system.
31The bill requires a public fund to identify all prohibited
32companies in which the public fund has direct or indirect
33holdings by January 1, 2024. Additionally, the bill requires
34a public fund to create and make available to the public a
35prohibited companies list and review and update the list
-7-1on a quarterly basis. The bill authorizes a public fund
2to review and rely on publicly available information and
3information from other sources when identifying prohibited
4companies. The bill also authorizes IPERS to develop and issue
5a request for proposals for third-party services to complete
6the identification of prohibited companies and the compilation
7of the prohibited companies list. The bill requires a
8public fund to send notice to all companies on the prohibited
9companies list on an annual basis informing the company of
10the requirements of the new Code chapter. The bill requires
11public funds to scrutinize and engage with companies the fund
12identifies for possible inclusion as a prohibited company for a
13period of not more than 12 months.
14The bill prohibits a public fund from acquiring direct
15holdings in publicly traded securities of a prohibited company.
16The bill requires a public fund to sell, redeem, divest, or
17withdraw all direct holdings in publicly traded securities of a
18prohibited company no later than 180 days following the date
19the company becomes a prohibited company.
20The bill requires each public fund, within 30 days after the
21prohibited companies list is created or updated, to make the
22list available to the public. Additionally, the bill requires
23a public fund to make available to the public and file with the
24general assembly an annual report beginning October 1, 2024,
25and each October 1 thereafter.
26The bill provides that, with respect to actions taken
27in compliance with the Code chapter, the public fund shall
28be exempt from any conflicting statutory or common law
29obligations, including any such obligations in respect to
30choice of asset managers, investment funds, or investments for
31the public fund’s securities portfolios.
32The bill provides that the provisions related to the
33creation of a prohibited companies list, divestment of publicly
34traded securities of a prohibited company, and reporting shall
35not apply if the United States Congress or president of the
-8-1United States declares that mandatory divestment of the type
2provided for in the Code chapter interferes with the conduct of
3United States foreign policy.
4The bill makes conforming changes to Code sections 12.8,
597A.7, 97B.4, 262.14, 411.7, and 602.9111.
-9-ec/rn