| 1 | 1 | | SECONDREGULARSESSION |
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| 2 | 2 | | HOUSEBILLNO.2143 |
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| 3 | 3 | | 102NDGENERALASSEMBLY |
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| 4 | 4 | | INTRODUCEDBYREPRESENTATIVESEITZ. |
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| 5 | 5 | | 4835H.02I DANARADEMANMILLER,ChiefClerk |
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| 6 | 6 | | ANACT |
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| 7 | 7 | | Toamendchapter1,RSMo,byaddingtheretoonenewsectionrelatingtodivestmentfrom |
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| 8 | 8 | | foreignadversaries. |
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| 9 | 9 | | BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows: |
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| 10 | 10 | | SectionA.Chapter1,RSMo,isamendedbyaddingtheretoonenewsection,tobe |
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| 11 | 11 | | 2knownassection1.2020,toreadasfollows: |
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| 12 | 12 | | 1.2020.1.Thissectionshallbeknownandmaybecitedasthe"Foreign |
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| 13 | 13 | | 2AdversaryDivestmentAct". |
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| 14 | 14 | | 3 2.Asusedinthissection,thefollowingtermsshallmean: |
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| 15 | 15 | | 4 (1)"Company",anysoleproprietorship,organization,association,corporation, |
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| 16 | 16 | | 5partnership,jointventure,limitedpartnership,limitedliabilitypartnership,limited |
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| 17 | 17 | | 6liabilitycompany,orotherentityorbusinessassociation,includingwhollyowned |
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| 18 | 18 | | 7subsidiaries,majority-ownedsubsidiaries,parentcompanies,oraffiliatesofthose |
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| 19 | 19 | | 8entitiesorbusinessassociations,thatexistsforthepurposeofmakingprofit; |
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| 20 | 20 | | 9 (2)"Divestment",thesale,forfeit,orotherwisecontractualendofanycurrent |
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| 21 | 21 | | 10orplannedinvestments; |
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| 22 | 22 | | 11 (3)"Domicile",eitherthecountryinwhichacompanyisregistered,wherethe |
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| 23 | 23 | | 12company'saffairsareprimarilycompleted,orwherethemajorityofownershipisheld; |
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| 24 | 24 | | 13 (4)"Foreignadversary",thePeople'sRepublicofChina,theRussian |
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| 25 | 25 | | 14Federation,theIslamicRepublicofIran,theDemocraticPeople'sRepublicofKorea, |
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| 26 | 26 | | 15theRepublicofCuba,theVenezuelanregimeofNicolásMaduro,theSyrianArab |
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| 27 | 27 | | 16Republic,oranyotherentitydesignatedbythegovernorinconsultationwiththe |
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| 28 | 28 | | 17attorneygeneral; |
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| 29 | 29 | | EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis |
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| 30 | 30 | | intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 18 (5)"Officialgovernmentcapacity",anyrole,electedorappointed,ina |
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| 31 | 31 | | 19governmentoritssubsidiaries; |
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| 32 | 32 | | 20 (6)"State-managedfund",anyshort-orlong-terminvestmentstructurethatis |
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| 33 | 33 | | 21statemanaged,staterun,statecontrolled,orotherwiseoverseenbythestateof |
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| 34 | 34 | | 22Missouri,astateagency,oranypoliticalsubdivisionofthisstate,includinganyagency |
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| 35 | 35 | | 23controlledbysuchpoliticalsubdivision,overorinwhichthestateorpolitical |
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| 36 | 36 | | 24subdivisionhasprimarydiscretionorvestedinterest."State-managedfund"shall |
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| 37 | 37 | | 25include,butnotbelimitedto: |
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| 38 | 38 | | 26 (a)Publicpensionfunds,publicretirementfunds,orotherstate-sponsoredfunds |
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| 39 | 39 | | 27thataresponsored,maintained,orcontributedtoorrequiredtobecontributedtobythe |
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| 40 | 40 | | 28stateofMissourioranyofitspoliticalsubdivisions; |
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| 41 | 41 | | 29 (b)City,county,orotherlocalormunicipalentityinvestmentfunds,reserve |
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| 42 | 42 | | 30funds,orotherpoliticalsubdivision-controlledinvestmentstructures;and |
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| 43 | 43 | | 31 (c)Universityorcollegeendowments,trusts,orotherstructurethatconstitutes, |
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| 44 | 44 | | 32whollyorinpart,apublicinstitutionofhighereducation'sinvestableassets; |
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| 45 | 45 | | 33 (7)"State-ownedenterprise",anycompanyownedorcontrolled,inwholeorin |
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| 46 | 46 | | 34part,byagovernmentorbyindividualsactinginofficialgovernmentalcapacitiesinany |
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| 47 | 47 | | 35form. |
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| 48 | 48 | | 36 3.(1)Allstate-managedfundsshallbeprohibitedfromholdinginvestmentsin |
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| 49 | 49 | | 37anyforeignadversary,state-ownedenterpriseofaforeignadversary,company |
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| 50 | 50 | | 38domiciledwithinaforeignadversary,oracompanyownedorcontrolledbyaforeign |
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| 51 | 51 | | 39adversary,state-ownedenterpriseofaforeignadversary,companydomiciledwithina |
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| 52 | 52 | | 40foreignadversary,orotherentitywithinaforeignadversary. |
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| 53 | 53 | | 41 (2)Allstate-managedfundsareprohibitedfrominvestingordepositingpublic |
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| 54 | 54 | | 42fundsinanybankthatisdomiciledorhasitsprincipalplaceofbusinesswithinaforeign |
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| 55 | 55 | | 43adversary. |
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| 56 | 56 | | 44 4.(1)Allstate-managedfundsarerequiredtoimmediately,ingoodfaith,begin |
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| 57 | 57 | | 45divestmentofanyholdingsprohibitedinsubsection3ofthissection,withtotal |
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| 58 | 58 | | 46divestmentachievedtwoyearsaftertheeffectivedateofthissection. |
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| 59 | 59 | | 47 (2)Forpurposesofthissection,"totaldivestment"shallmeanreducingthe |
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| 60 | 60 | | 48valueofprohibitedinvestmentstonomorethanfive-hundredthsofapercentofthe |
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| 61 | 61 | | 49marketvalueofallassetsundermanagementbyastate-managedfund. |
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| 62 | 62 | | 50 5.Nolaterthansixmonthsaftertheeffectivedateofthissection,thestate |
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| 63 | 63 | | 51treasurershallidentifyallcompaniesthatarestate-ownedenterprisesof,aredomiciled |
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| 64 | 64 | | 52within,whoseprimaryaffairsareconductedwithin,orwhosemajorityownershipis |
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| 65 | 65 | | 53heldwithinaforeignadversaryandincludethosecompaniesinalistofrestricted |
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| 66 | 66 | | HB2143 2 54companiestobedistributedtoeachstate-managedfund.Incompilingthelist,thestate |
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| 67 | 67 | | 55treasurershall,ataminimum: |
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| 68 | 68 | | 56 (1)Reviewandrelyonpubliclyavailableinformationregardingcompaniesthat |
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| 69 | 69 | | 57arestate-ownedenterprisesof,aredomiciledwithin,whoseprimaryaffairsare |
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| 70 | 70 | | 58conductedwithin,orwhosemajorityownershipshareisheldwithinaforeignadversary, |
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| 71 | 71 | | 59includinginformationprovidedbynonprofitorganizations,researchfirms,and |
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| 72 | 72 | | 60governmententities; |
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| 73 | 73 | | 61 (2)Contactassetmanagersandfundmanagerscontractedbyastate-managed |
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| 74 | 74 | | 62fundthatinvestsincompaniesandinfundsthatarestate-ownedenterprisesof,are |
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| 75 | 75 | | 63domiciledwithin,whoseprimaryaffairsareconductedwithin,orwhosemajority |
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| 76 | 76 | | 64ownershipshareisheldwithinaforeignadversary; |
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| 77 | 77 | | 65 (3)Contactotherinstitutionalinvestorsthathavedivestedfromorengagedwith |
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| 78 | 78 | | 66companiesthatarestate-ownedenterprisesof,aredomiciledwithin,whoseprimary |
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| 79 | 79 | | 67affairsareconductedwithin,orwhosemajorityownershipshareisheldwithinaforeign |
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| 80 | 80 | | 68adversary;and |
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| 81 | 81 | | 69 (4)Retainanindependentresearchfirmtoidentifycompaniesthataredirectly |
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| 82 | 82 | | 70orindirectlyinvestmentholdingsofastateorlocalfundthatarestate-owned |
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| 83 | 83 | | 71enterprisesof,aredomiciledwithin,whoseprimaryaffairsareconductedwithin,or |
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| 84 | 84 | | 72whosemajorityownershipshareisheldwithinaforeignadversary. |
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| 85 | 85 | | 73 6.Nothinginthissectionshallbeconstruedtoinhibit,conflict,impede,or |
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| 86 | 86 | | 74otherwiseinterferewithanyrequiredfinancialsafeguards,fiduciaryrequirements,or |
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| 87 | 87 | | 75othersoundinvestmentcriteriatowhichanystate-managedfundissubject. |
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| 88 | 88 | | ✔ |
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| 89 | 89 | | HB2143 3 |
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