HB2143--DIVESTMENTFROMFOREIGNADVERSARIES
SPONSOR: Seitz
COMMITTEEACTION:Voted"DoPass"bytheStandingCommitteeon
Pensionsbyavoteof5to3.
Thisbillestablishesthe"ForeignAdversaryDivestmentAct".
Allstate-managedfunds,asdefinedinthebill,areprohibited
fromholdinginvestmentsinanyforeignadversary,asdefinedin
thebill,state-ownedenterpriseofaforeignadversary,company
domiciledwithinaforeignadversary,oracompanyownedor
controlledbyanysuchentity.
State-managedfundsarefurtherprohibitedfrominvestingor
depositingpublicfundsinanybankdomiciledorprincipally
locatedwithinaforeignadversary.
Anystate-managedfundinviolationofthisbillisrequiredto
immediatelybegindivestmentofanypublicholdings,tobefully
divestedwithintwoyearsoftheeffectivedateofthebill.
Withinsixmonthsaftertheeffectivedateofthisbill,theState
Treasurershallidentifycompaniessubjecttotheserestrictions
anddistributealistoftheserestrictedcompaniestoeachstate-
managedfund.Methodsofgatheringthisinformationarespecified
inthebill.
PROPONENTS: Supporterssaythatthislanguagehasaclearintent
topreventMissouritaxpayerfundsfromsupportingforeign
entities. Chinaisnotagoodinvestmentandthisbillwouldallow
aprioritizingofpensioninvestmentstopreventstatedollarsfrom
beingtiedupincompaniesthataresanctionedorclassifiedas
adversaries. Thesecountriesposeanationalsecurityriskand
thisbipartisanlegislationwillpreventMissouripaymentsfrom
proppinguptheseless-than-stellareconomies.
TestifyinginpersonforthebillwereRepresentative Seitz;Vivek
Malek,MissouriStateTreasurer;andStateArmorAction.
OPPONENTS: Therewasnooppositionvoicedtothecommittee.
OTHERS:Otherstestifyingonthebillsaythatthereiscurrently
alistprovidedbytheDepartmentofCommerceandtheFederal
Governmentthatprovidesguidanceonwhatcountriesorareasposea
risk.Emergingmarketsareconsideredandmostboardsusea
qualitativestrategywhenconsideringpotentialinvestment
opportunities. Thisbillisproblematicinmanywayswithlackof clarityonwhata"subsidiary"mightinclude. ThisisESGlanguage
toadegreewithcurrentboardpoliciesalreadyaddressingthe
concernsexpressedinafiduciarymanner.
TestifyinginpersononthebillwerePSRS/PEERS;ScottSimon,
MODOT;PatrolEmployeesRet.System;andRochelleReeves,Missouri
StateEmployees'RetirementSystem.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.