Alabama 2024 Regular Session

Alabama Senate Bill SB251 Compare Versions

Only one version of the bill is available at this time.

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1	1	SB251INTRODUCED
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3	3	SB251
4	4	VKT8PVL-1
5	5	By Senators Jones, Shelnutt, Allen, Williams, Melson, Beasley,
6	6	Kitchens, Butler, Barfoot, Kelley, Sessions, Roberts, Weaver,
7	7	Livingston, Reed, Price, Chesteen, Carnley, Stutts, Givhan,
8	8	Hovey, Waggoner
9	9	RFD: Veterans and Military Affairs
10	10	First Read: 21-Mar-24
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18	18	8 VKT8PVL-1 03/19/2024 TRP (L)tgw 2024-1027
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20	20	First Read: 21-Mar-24
21	21	SYNOPSIS:
22	22	Under existing law, the Board of Control of the
23	23	Retirement Systems of Alabama is authorized to act as
24	24	trustee of several funds and is granted full power to
25	25	invest and reinvest funds.
26	26	This bill would enforce the prohibition placed
27	27	on investment activities by certain Presidential
28	28	Executive Orders addressing an identified national
29	29	emergency regarding the threat from securities
30	30	investments that finance Communist Chinese military
31	31	companies.
32	32	This bill would prohibit the purchase or sale of
33	33	any publicly traded securities to or from certain
34	34	entities affiliated with Communist Chines military
35	35	companies or any publicly traded securities that are
36	36	derivative of such securities or are designed to
37	37	provide investment exposure to such securities.
38	38	The bills would also provide for certain
39	39	definitions.
40	40	A BILL
41	41	TO BE ENTITLED
42	42	AN ACT
43	43	Relating to public investments; to add Section
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71	71	28 SB251 INTRODUCED
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73	73	Relating to public investments; to add Section
74	74	16-25-20.1, to the Code of Alabama 1975, to prohibit the Board
75	75	of Control of the Teachers' Retirement System of Alabama from
76	76	making certain investments; and to add Section 36-27-25.1 to
77	77	prohibit the Board of Control for the Employees' Retirement
78	78	System of Alabama from making certain investments.
79	79	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
80	80	Section 1. Sections 16-25-20.1 and 36-27-25.1 are
81	81	added to the Code of Alabama 1975, to read as follows:
82	82	§16-25-20.1
83	83	(a) as used in this section, the following terms have
84	84	the following meanings:
85	85	(1) INVESTMENT ACTIVITIES. The act of investing or the
86	86	lending of assets of the Teachers' Retirement System of
87	87	Alabama.
88	88	(2) RESTRICTED ENTITY. All of the following:
89	89	a. A Chinese Entity that is:
90	90	1. Designated by Presidential Executive Order 13959,
91	91	relating to addressing the threat from securities investments
92	92	that finance Communist Chinese military companies;
93	93	2. Designated by Presidential Executive Order 14105(88
94	94	Fed. Reg. 54867), relating to addressing United States
95	95	investments in certain national security technologies and
96	96	products in countries of concern; and
97	97	3. Included in the List of Specially Designated
98	98	Nationals and Blocked Persons maintained by the U.S.
99	99	Department of the Treasury, Office of Foreign Assets Control.
100	100	b. A Chinese Entity that is:
101	101	1. Included on the Non-SDN Chinese Military-Industrial
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131	131	1. Included on the Non-SDN Chinese Military-Industrial
132	132	Complex Companies List (NS-CMIC List) maintained by the U.S.
133	133	Department of the Treasury Office of Foreign Assets Control
134	134	under Executive Order 14032;
135	135	2. A Chinese military company or a military-civil
136	136	fusion contributor and included on the list maintained by the
137	137	Department of Defense in accordance with Section 1260H(b)of
138	138	the National Defense Authorization Act for Fiscal Year 2021;
139	139	3. Included on the list required under Section 1237 of
140	140	the National Defense Authorization Act for Fiscal Year 1999;
141	141	4. Included on the Entity List in 15 C.F.R. Supplement
142	142	No. 4 to Part 744 of the federal government's Export
143	143	Administration Regulations;
144	144	5. Included on the Denied Persons List described in 15
145	145	C.F.R. § 764.3(a)(2) of the federal government's Export
146	146	Administration Regulations;
147	147	6. Included on the Unverified List set forth in 15
148	148	C.F.R. Supplement No.6 to Part 744 of the Export
149	149	Administration Regulations;
150	150	7. Included on the Military End User List set forth in
151	151	15 C.F.R. Supplement No.7 to Part 744 of the Export
152	152	Administration Regulations;
153	153	8. Produces or provides communications equipment or
154	154	service on the list published by the Federal Communications
155	155	Commission under 47 U.S.C. § 1601(a) of the Secure and Trusted
156	156	Communications Networks Act of 2019;
157	157	9. Included on the Uyghur Forced Labor Prevention Act
158	158	Entity List maintained by the Department of Homeland Security;
159	159	10. Included on the Withhold Release Orders and
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189	189	10. Included on the Withhold Release Orders and
190	190	Findings List maintained by the Commissioner of U.S. Customs
191	191	and Border Protection pursuant to the Uyghur Forced Labor
192	192	Prevention Act 88 Fed. Reg. 85899;
193	193	11. Included on the list of covered issuers, as defined
194	194	in Section 104 of the Sarbanes Oxley Act of 2002 15 U.S.C. §
195	195	7214, maintained by the Securities and Exchange Commission;
196	196	and
197	197	12. Otherwise included on any other list maintained by
198	198	the United States Government that designates a Chinese entity
199	199	for a restriction relating to investment, contracting, or
200	200	procurement.
201	201	c. A Chinese entity otherwise subject to the control of
202	202	a Chinese entity listed in paragraph a. or b.
203	203	d. Any agency or instrumentality of the People's
204	204	Republic of China.
205	205	(b) The State Auditor or his or her designee, no later
206	206	than January 1, 2025, shall create a list of restricted
207	207	entities and shall update the list each six months. The
208	208	retirement system shall not engage in investment activities
209	209	with a listed restricted entity.
210	210	(c) Upon publication of the restricted entity list, the
211	211	Board of Control of the retirement system shall identify any
212	212	holdings of the retirement system in such a restricted entity
213	213	and, acting as a prudent investor, shall expeditiously divest
214	214	from any holdings or other investment activity in that entity.
215	215	§36-27-25.1
216	216	(a) as used in this section, the following terms have
217	217	the following meanings:
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247	247	the following meanings:
248	248	(1) INVESTMENT ACTIVITIES. The act of investing or the
249	249	lending of assets of the retirement systems.
250	250	(2) RESTRICTED ENTITY. All of the following:
251	251	a. A Chinese Entity that is:
252	252	1. Designated by Presidential Executive Order 13959,
253	253	relating to addressing the threat from securities investments
254	254	that finance Communist Chinese military companies;
255	255	2. Designated by Presidential Executive Order 14105 (88
256	256	Fed. Reg. 54867), relating to addressing United States
257	257	investments in certain national security technologies and
258	258	products in countries of concern; and
259	259	3. Included in the List of Specially Designated
260	260	Nationals and Blocked Persons maintained by the U.S.
261	261	Department of the Treasury, Office of Foreign Assets Control.
262	262	b. A Chinese Entity that is:
263	263	1. Included on the Non-SDN Chinese Military-Industrial
264	264	Complex Companies List (NS-CMIC List) maintained by the Office
265	265	of Foreign Assets Control Department of the Treasury under
266	266	Executive Order 14032;
267	267	2. A Chinese military company or a military-civil
268	268	fusion contributor and included on the list maintained by the
269	269	Department of Defense in accordance with Section 1260H(b) of
270	270	the National Defense Authorization Act for Fiscal Year 2021;
271	271	3. Included on the list required under Section 1237 of
272	272	the National Defense Authorization Act for Fiscal Year 1999;
273	273	4. Included on the Entity List in 15 C.F.R. Supplement
274	274	No. 4 to Part 744 of the federal government's Export
275	275	Administration Regulations;
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305	305	Administration Regulations;
306	306	5. Included on the Denied Persons List described in 15
307	307	C.F.R. § 764.3(a)(2) of the federal government's Export
308	308	Administration Regulations;
309	309	6. Included on the Unverified List set fort in 15
310	310	C.F.R. Supplement No.6 to Part 744 of the Export
311	311	Administration Regulations;
312	312	7. Included on the Military End User List set forth in
313	313	15 C.F.R. Supplement No.7 to Part 744 of the Export
314	314	Administration Regulations;
315	315	8. Produces or provides communications equipment or
316	316	service on the list published by the Federal Communications
317	317	Commission under 47 U.S.C. § 1601(a) of the Secure and Trusted
318	318	Communications Networks Act of 2019;
319	319	9. Included on the Uyghur Forced Labor Prevention Act
320	320	Entity List maintained by the Department of Homeland Security;
321	321	10. Included on the Withhold Release Orders and
322	322	Findings List maintained by the Commissioner of U.S. Customs
323	323	and Border Protection pursuant to the Uyghur Forced Labor
324	324	Prevention Act 88 Fed. Reg. 855899;
325	325	11. Included on the list of covered issuers, as defined
326	326	in Section 104 of the Sarbanes Oxley Act of 2002, 15 U.S.C. §
327	327	7214, maintained by the Securities and Exchange Commission;
328	328	and
329	329	12. Otherwise included on any other list maintained by
330	330	the United States Government that designates as a Chinese
331	331	entity for a restriction relating to investment, contracting,
332	332	or procurement.
333	333	c. A Chinese entity otherwise subject to the control of
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363	363	c. A Chinese entity otherwise subject to the control of
364	364	a Chinese entity listed in paragraph a or b.
365	365	d. Any agency or instrumentality of the People's
366	366	Republic of China.
367	367	(b) The State Auditor or his or her designee, no later
368	368	than January 1, 2025, shall create a list of restricted
369	369	entities and shall update the list each six months. The
370	370	retirement system shall not engage in investment activities
371	371	with a listed restricted entity.
372	372	(c) Upon publication of the restricted entity list, the
373	373	Board of Control of The retirement system shall identify any
374	374	holdings of the retirement system in such a restricted entity
375	375	and, acting as a prudent investor, shall expeditiously divest
376	376	from any holdings or other investment activity in that entity.
377	377	Section 2. This act shall become effective on October
378	378	1, 2024.
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