Alabama 2025 Regular Session

Alabama Senate Bill SB69 Compare Versions

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

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1	1	SB69INTRODUCED
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3	3	SB69
4	4	3YBTEVV-1
5	5	By Senators Jones, Allen, Givhan, Bell, Kitchens, Elliott,
6	6	Butler, Price, Sessions, Williams, Barfoot, Roberts, Kelley,
7	7	Stutts, Beasley
8	8	RFD: Veterans and Military Affairs
9	9	First Read: 04-Feb-25
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16	16	7 3YBTEVV-1 01/31/2025 TRP (L)bm 2025-433
17	17	Page 1
18	18	First Read: 04-Feb-25
19	19	SYNOPSIS:
20	20	Under existing law, the Board of Control of the
21	21	Retirement Systems of Alabama is authorized to act as
22	22	trustee of several funds and is granted full power to
23	23	invest and reinvest funds.
24	24	This bill would enforce the prohibition placed
25	25	on investment activities by certain Presidential
26	26	Executive Orders addressing an identified national
27	27	emergency regarding the threat from securities
28	28	investments that finance Communist Chinese military
29	29	companies.
30	30	This bill would prohibit the purchase or sale of
31	31	any publicly traded securities to or from certain
32	32	entities affiliated with Communist Chinese military
33	33	companies or any publicly traded securities that are
34	34	derivative of such securities or are designed to
35	35	provide investment exposure to such securities.
36	36	The bills would also provide for certain
37	37	definitions.
38	38	A BILL
39	39	TO BE ENTITLED
40	40	AN ACT
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68	68	28 SB69 INTRODUCED
69	69	Page 2
70	70	Relating to public investments; to add Section
71	71	16-25-20.1, to the Code of Alabama 1975, to prohibit the Board
72	72	of Control of the Teachers' Retirement System of Alabama from
73	73	making certain investments; and to add Section 36-27-25.1 to
74	74	the Code of Alabama 1975, to prohibit the Board of Control for
75	75	the Employees' Retirement System of Alabama from making
76	76	certain investments.
77	77	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
78	78	Section 1. Sections 16-25-20.1 and 36-27-25.1 are added
79	79	to the Code of Alabama 1975, to read as follows:
80	80	§16-25-20.1
81	81	(a) As used in this section, the following terms have
82	82	the following meanings:
83	83	(1) INVESTMENT ACTIVITIES. The act of investing or the
84	84	lending of assets of the Teachers' Retirement System of
85	85	Alabama.
86	86	(2) RESTRICTED ENTITY. All of the following:
87	87	a. A Chinese Entity that is:
88	88	1. Designated by Presidential Executive Order 13959,
89	89	relating to addressing the threat from securities investments
90	90	that finance Communist Chinese military companies;
91	91	2. Designated by Presidential Executive Order 14105(88
92	92	Fed. Reg. 54867), relating to addressing United States
93	93	investments in certain national security technologies and
94	94	products in countries of concern; and
95	95	3. Included in the List of Specially Designated
96	96	Nationals and Blocked Persons maintained by the U.S.
97	97	Department of the Treasury, Office of Foreign Assets Control.
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127	127	Department of the Treasury, Office of Foreign Assets Control.
128	128	b. A Chinese Entity that is:
129	129	1. Included on the Non-SDN Chinese Military-Industrial
130	130	Complex Companies List (NS-CMIC List) maintained by the U.S.
131	131	Department of the Treasury, Office of Foreign Assets Control
132	132	under Executive Order 14032;
133	133	2. A Chinese military company or a military-civil
134	134	fusion contributor and included on the list maintained by the
135	135	Department of Defense in accordance with Section 1260H(b)of
136	136	the National Defense Authorization Act for Fiscal Year 2021;
137	137	3. Included on the list required under Section 1237 of
138	138	the National Defense Authorization Act for Fiscal Year 1999;
139	139	4. Included on the Entity List in 15 C.F.R. Supplement
140	140	No. 4 to Part 744 of the federal government's Export
141	141	Administration Regulations;
142	142	5. Included on the Denied Persons List described in 15
143	143	C.F.R. § 764.3(a)(2) of the federal government's Export
144	144	Administration Regulations;
145	145	6. Included on the Unverified List set forth in 15
146	146	C.F.R. Supplement No.6 to Part 744 of the Export
147	147	Administration Regulations;
148	148	7. Included on the Military End User List set forth in
149	149	15 C.F.R. Supplement No.7 to Part 744 of the Export
150	150	Administration Regulations;
151	151	8. Produces or provides communications equipment or
152	152	service on the list published by the Federal Communications
153	153	Commission under 47 U.S.C. § 1601(a) of the Secure and Trusted
154	154	Communications Networks Act of 2019;
155	155	9. Included on the Uyghur Forced Labor Prevention Act
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185	185	9. Included on the Uyghur Forced Labor Prevention Act
186	186	Entity List maintained by the Department of Homeland Security;
187	187	10. Included on the Withhold Release Orders and
188	188	Findings List maintained by the Commissioner of U.S. Customs
189	189	and Border Protection pursuant to the Uyghur Forced Labor
190	190	Prevention Act 88 Fed. Reg. 85899;
191	191	11. Included on the list of covered issuers, as defined
192	192	in Section 104 of the Sarbanes Oxley Act of 2002 15 U.S.C. §
193	193	7214, maintained by the Securities and Exchange Commission;
194	194	and
195	195	12. Otherwise included on any other list maintained by
196	196	the United States Government that designates a Chinese entity
197	197	for a restriction relating to investment, contracting, or
198	198	procurement.
199	199	c. A Chinese entity otherwise subject to the control of
200	200	a Chinese entity listed in paragraph a. or b.
201	201	d. Any agency or instrumentality of the People's
202	202	Republic of China.
203	203	(b) The State Auditor or his or her designee, no later
204	204	than January 1, 2025, shall create a list of restricted
205	205	entities and shall update the list each six months. The
206	206	retirement system shall not engage in investment activities
207	207	with a listed restricted entity.
208	208	(c) Upon publication of the restricted entity list, the
209	209	Board of Control of the retirement system shall identify any
210	210	holdings of the retirement system in such a restricted entity
211	211	and, acting as a prudent investor, shall expeditiously divest
212	212	from any holdings or other investment activity in that entity.
213	213	§36-27-25.1
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241	241	112 SB69 INTRODUCED
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243	243	§36-27-25.1
244	244	(a) As used in this section, the following terms have
245	245	the following meanings:
246	246	(1) INVESTMENT ACTIVITIES. The act of investing or the
247	247	lending of assets of the retirement system.
248	248	(2) RESTRICTED ENTITY. All of the following:
249	249	a. A Chinese Entity that is:
250	250	1. Designated by Presidential Executive Order 13959,
251	251	relating to addressing the threat from securities investments
252	252	that finance Communist Chinese military companies;
253	253	2. Designated by Presidential Executive Order 14105 (88
254	254	Fed. Reg. 54867), relating to addressing United States
255	255	investments in certain national security technologies and
256	256	products in countries of concern; and
257	257	3. Included in the List of Specially Designated
258	258	Nationals and Blocked Persons maintained by the U.S.
259	259	Department of the Treasury, Office of Foreign Assets Control.
260	260	b. A Chinese Entity that is:
261	261	1. Included on the Non-SDN Chinese Military-Industrial
262	262	Complex Companies List (NS-CMIC List) maintained by the U.S.
263	263	Department of the Treasury, Office of Foreign Assets Control
264	264	under Executive Order 14032;
265	265	2. A Chinese military company or a military-civil
266	266	fusion contributor and included on the list maintained by the
267	267	Department of Defense in accordance with Section 1260H(b) of
268	268	the National Defense Authorization Act for Fiscal Year 2021;
269	269	3. Included on the list required under Section 1237 of
270	270	the National Defense Authorization Act for Fiscal Year 1999;
271	271	4. Included on the Entity List in 15 C.F.R. Supplement
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301	301	4. Included on the Entity List in 15 C.F.R. Supplement
302	302	No. 4 to Part 744 of the federal government's Export
303	303	Administration Regulations;
304	304	5. Included on the Denied Persons List described in 15
305	305	C.F.R. § 764.3(a)(2) of the federal government's Export
306	306	Administration Regulations;
307	307	6. Included on the Unverified List set forth in 15
308	308	C.F.R. Supplement No.6 to Part 744 of the Export
309	309	Administration Regulations;
310	310	7. Included on the Military End User List set forth in
311	311	15 C.F.R. Supplement No.7 to Part 744 of the Export
312	312	Administration Regulations;
313	313	8. Produces or provides communications equipment or
314	314	service on the list published by the Federal Communications
315	315	Commission under 47 U.S.C. § 1601(a) of the Secure and Trusted
316	316	Communications Networks Act of 2019;
317	317	9. Included on the Uyghur Forced Labor Prevention Act
318	318	Entity List maintained by the Department of Homeland Security;
319	319	10. Included on the Withhold Release Orders and
320	320	Findings List maintained by the Commissioner of U.S. Customs
321	321	and Border Protection pursuant to the Uyghur Forced Labor
322	322	Prevention Act 88 Fed. Reg. 855899;
323	323	11. Included on the list of covered issuers, as defined
324	324	in Section 104 of the Sarbanes Oxley Act of 2002, 15 U.S.C. §
325	325	7214, maintained by the Securities and Exchange Commission;
326	326	and
327	327	12. Otherwise included on any other list maintained by
328	328	the United States Government that designates a Chinese entity
329	329	for a restriction relating to investment, contracting, or
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359	359	for a restriction relating to investment, contracting, or
360	360	procurement.
361	361	c. A Chinese entity otherwise subject to the control of
362	362	a Chinese entity listed in paragraph b.
363	363	d. Any agency or instrumentality of the People's
364	364	Republic of China.
365	365	(b) The State Auditor or his or her designee, no later
366	366	than January 1, 2025, shall create a list of restricted
367	367	entities and shall update the list each six months. The
368	368	retirement system shall not engage in investment activities
369	369	with a listed restricted entity.
370	370	(c) Upon publication of the restricted entity list, the
371	371	Board of Control of the retirement system shall identify any
372	372	holdings of the retirement system in such a restricted entity
373	373	and, acting as a prudent investor, shall expeditiously divest
374	374	from any holdings or other investment activity in that entity.
375	375	Section 2. This act shall become effective on October
376	376	1, 2025.
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