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