Public Investments; to prohibit Board of Control of ERSA and TRSA from investing with restricted entities affiliated with Communist Chinese military companies
Impact
The implications of this bill on state laws include the introduction of stringent criteria for investment by the Teachers' Retirement System and the Employees' Retirement System of Alabama. As outlined in the bill, these systems would be required to divest from any identified restricted entities, thereby enforcing a more cautious approach to public investment. The establishment of a list of restricted entities, curated by the State Auditor, aims to provide clarity and guidance for compliance, affecting both current holdings and future investment strategies of these retirement systems.
Summary
SB251 addresses concerns over financial investments made by Alabama's public retirement systems, specifically targeting investments in entities affiliated with the Communist Chinese military. The bill seeks to align state investment activities with existing federal mandates, particularly those outlined in Presidential Executive Orders aimed at counteracting national security threats. By prohibiting investments in certain publicly traded securities linked to these entities, the legislation intends to mitigate risks perceived from financial ties to the Chinese military infrastructure.
Contention
There are notable points of contention surrounding SB251, especially regarding concerns of overreach and the broader implications for international trade and investment. Opponents may argue that the bill could lead to a chilling effect on investments in potentially vital industries. This legislation’s focus on Chinese entities may also spark debates about economic relationships with global markets, questioning whether such restrictions could harm public investment portfolios or limit growth opportunities for Alabama's retirement funds.
Public Investments; to prohibit Board of Control of ERSA and TRSA from investing with restricted entities affiliated with Communist Chinese military companies
Public Investments; to prohibit Board of Control of Employees' Retirement Systems of Alabama and Teachers' Retirement Systems of Alabama from investing with restricted entities affiliated with Communist Chinese military companies
A bill for an act prohibiting the state board of regents from investing public moneys in companies that are owned or controlled by Chinese military or government services and including effective date provisions.(Formerly HSB 41.)
Relating to public investments; to require the State Treasurer and the Boards of Control of the Retirement Systems of Alabama and the Judicial Retirement Fund to establish and maintain a list of certain companies owned or controlled by Chinese military or government services and designated by the U.S. government as companies with whom U.S. citizens are restricted from entering into transactions; to make this list available to the public; to prohibit the State Treasurer and the Boards of Control of the Retirement Systems of Alabama and the Judicial Retirement Fund from acquiring direct holdings in publicly traded securities of a listed company, and requiring the sale, redemption, divestment, or withdrawal of all direct holdings in publicly traded securities of a listed company within 180 days after the company becomes a listed company; and to define terms.
A bill for an act prohibiting the state board of regents from investing public moneys in companies that are owned or controlled by Chinese military or government services and including effective date provisions.(See HF 181.)
A bill for an act relating to the investment of certain public funds in companies that are owned or controlled by Chinese military or government services.(See SF 418.)
Public Investments; to prohibit Board of Control of ERSA and TRSA from investing with restricted entities affiliated with Communist Chinese military companies
Public Investments; to prohibit Board of Control of Employees' Retirement Systems of Alabama and Teachers' Retirement Systems of Alabama from investing with restricted entities affiliated with Communist Chinese military companies