Iowa Senate Bill SF98

Iowa 2023-2024 Regular Session

• Introduced: 1/19/23
• Refer: 1/19/23

Caption

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.)

Impact

If enacted, SF98 would significantly alter how public funds in Iowa manage their investments, specifically towards companies designated by the United States government as posing risks due to their affiliation with Chinese military or governmental activities. This legislative move aims to safeguard state investments from entities that may undermine U.S. interests. The bill demonstrates a proactive stance toward addressing emerging concerns about foreign influence in critical sectors, particularly as they relate to state-controlled investment funds.

Summary

Senate File 98 (SF98) proposes stringent measures regarding the investment of public funds in companies associated with the Chinese military or government services. The bill mandates that by January 1, 2024, public funds identify all such prohibited companies in which they hold direct or indirect investments. A prohibited companies list must be created and made publicly accessible, ensuring transparency in investments made with state resources. The bill further requires public funds to continually review and update this list quarterly, promoting ongoing vigilance against potential national security threats posed by foreign investments.

Contention

Notably, the bill’s stipulations may face opposition from stakeholders who argue that it could limit investment opportunities or adversely impact the performance of public funds. Critics may assert that the sweeping measures could hinder the economic engagement of local governments with international markets. Additionally, there are potential concerns about the feasibility and administrative burden placed on public funds to consistently monitor and enforce compliance with the defined regulations, particularly in relation to the extensive identification process and the annual reporting requirements set forth by the bill.