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.)
Impact
HSB41 is expected to restrict the investment options available to the Board of Regents, potentially affecting the financial returns on public funds traditionally invested in a variety of sectors, including technology and infrastructure that might be linked to Chinese companies. The enforcement of this bill reflects a broader shift towards decreasing economic interactions with adversarial nations, fulfilling legislative goals of bolstered national security through preventive financial strategies. The prohibition against acquiring shares in 'prohibited companies' is planned to be enforced strictly, with existing investments needing to be divested within 180 days of a company being designated as prohibited.
Summary
House Study Bill 41 (HSB41) serves to prohibit the Iowa State Board of Regents from investing state funds in companies that may be controlled or owned by Chinese military or governmental entities. This bill aims to align with national security interests by implementing restrictions on investments, particularly those linked to the military capabilities and governmental functions of China. The definitions provided in the bill include clear classifications of direct and indirect holdings, as well as what constitutes a ‘prohibited company’ and a ‘scrutinized company.’ The measure sets a deadline for the Board to compile and publicly disclose a list of such scrutinized companies by July 1, 2023, and mandates quarterly reviews of this list thereafter.
Contention
Despite its national security rationale, HSB41 could face critiques related to economic ramifications and diplomatic tensions. Critics may argue that such restrictions could limit the free market dynamics and investment opportunities for the state, risking overall economic growth. Moreover, there are concerns about the potential interpretation of what constitutes a 'prohibited company,' creating ambiguity that could affect numerous legitimate businesses involved in global supply chains. This tension between economic interests and security measures is a focal point of the debates surrounding HSB41, highlighting the delicate balance lawmakers must navigate between promoting investment and safeguarding national interests.
Replaced by
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.)
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.)
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.)
A bill for an act relating to the investment of certain public funds in certain companies, concerning companies that are owned or controlled by Chinese military or government services and public fund review requirements. (Formerly SF 98.) Effective date: 07/01/2023.
Relating to state contracts with Chinese companies and investments in Chinese companies and certain companies doing business with China; authorizing a civil penalty.
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.
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 ERSA and TRSA from investing with restricted entities affiliated with Communist Chinese military companies
A bill for an act prohibiting institutions of higher learning governed by the state board of regents from expending moneys to fund diversity, equity, and inclusion offices or to hire individuals to serve as diversity, equity, and inclusion officers, creating a private cause of action, and including effective date provisions.(See HF 616.)