Iowa House Bill HF181

Iowa 2023-2024 Regular Session

• Introduced: 2/1/23
• Refer: 5/4/23

Caption

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.)

Impact

The implementation of HF181 is expected to impact state laws concerning the investment practices of publicly funded institutions, particularly those under the purview of the state board of regents. By requiring rigorous oversight and the creation of a scrutinized companies list, the bill aims to safeguard public investments from potential risks associated with entities linked to foreign military operations. The board is tasked with reviewing its holdings and must divest from any identified prohibited companies within a specified timeframe, which could influence investment strategies and choices.

Summary

House File 181 (HF181) establishes significant restrictions on investment choices made by the Iowa state board of regents. Specifically, the bill prohibits the board from investing public moneys in companies that are owned or controlled by Chinese military or governmental entities. This legislation addresses growing concerns over national security and foreign influence, particularly in how public funds are managed and allocated concerning companies with ties to the Chinese government. The bill also stipulates that the board must identify and maintain a list of scrutinized companies subject to these investment restrictions.

Contention

While proponents of HF181 argue that the bill is essential for protecting Iowa's financial interests from foreign adversaries, several points of contention have been raised during discussions. Critics of the bill suggest that it may lead to overreach, limiting the board's investment flexibility and potentially impacting the financial returns necessary to fund educational institutions. There are also concerns about the practical implications of determining which entities are considered scrutinized companies, as well as the transparency and accuracy of the lists maintained by the board. These factors raise important questions about economic ramifications and the balance between security and investment efficacy.