HB1561 HFLR Page 1
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1561 By: Duel of the House
and
Hines of the Senate
COMMITTEE SUBSTITUTE
An Act relating to public finance; enacting the
Foreign Adversary Divestment Act of 2025; making
findings; defining terms; prohibiting certain
entities from owning certain investments; prescribing
procedures for divestment; prescribing duties for the
State Treasurer; prov iding for construction of act;
providing immunity from certain liability for
specific pension systems; providing for affirmative
defense; providing for indemnification; providing for
codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11001 of Title 62, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the “Foreign
Adversary Divestment Act of 2025”.
HB1561 HFLR Page 2
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11002 of Title 62, unless there
is created a duplication in n umbering, reads as follows:
The Foreign Adversary Divestment Act of 2025 will ensure that
Oklahoma public investment dollars are not put at risk in countries
of concern and do not fund the development of the military
technologies and surveillance tools of foreign adversaries that
impede the furthering of Oklahoma’s interests and the interests of
the United States of America, by requiring the divestment of public
pension dollars and university endowment funds from countries of
concern.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11003 of Title 62, unless there
is created a duplication in numbering, reads as follows:
As used in this act:
1. “Company” shall mean any sole proprietorship, or ganization,
association, corporation, partnership, joint venture, limited
partnership, limited liability partnership, limited liability
company, or other entity or business association, including wholly
owned subsidiaries, majority -owned subsidiaries, pare nt companies,
or affiliates of those entities or business associations, that exist
for the purpose of making profit;
2. “Divestment” shall mean the sale or otherwise contractual
end of any current or planned investments;
HB1561 HFLR Page 3
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
3. “Domicile” shall mean either the country in which a company
is registered, where the company’s affairs are primarily completed,
or where the majority of ownership share is held;
4. “Foreign adversary” shall mean any country designated by the
United States Secretary of State as hostile or a Country of
Particular Concern (CPC) ;
5. “Investment” shall mean any transfer of funds in any active
or passive, direct or indirect structure which seeks to generate
revenue or accomplish any other gain, including nonmonetary;
6. “Official governmen t capacity” shall mean any role, elected
or appointed, in a government or its subsidiaries;
7. “State-managed fund” shall mean any short - or long-term
investment structure which is state -managed, state-run, state-
controlled, or otherwise overseen by Oklah oma, a state agency, or
any political subdivision within Oklahoma or agency controlled by
the same, in which the state or subdivision has primary discretion
over or vested interest in. Nothing in this definition shall be
construed so as to not apply to an y fund which is subject to the
purview or direction of Oklahoma or applicable subdivision, and
populated, wholly or in part, with state funds, but managed by a
third-party entity, such as a fiduciary. This shall include, but is
not limited to:
a. public pension funds, public retirement funds, or
other state-sponsored funds, that is sponsored,
HB1561 HFLR Page 4
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
maintained, or contributed to or required to be
contributed to by Oklahoma or any locality within
Oklahoma, or any subsidiaries of such,
b. city, county, or other loc al or municipal entity
investment funds, “rainy day funds”, or other
political-subdivision-controlled investment
structures, and
c. university or college endowments, trusts, or other
structure which constitutes, wholly or in part, a
public institution of h igher education’s investable
assets; and
8. “State-owned enterprise” shall mean any company owned or
controlled, in whole or in part, by a government or by individuals
acting in official government capacities in any form.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11004 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. All state and local managed funds are prohibited from
holding investments in any :
1. Foreign adversary;
2. Company owned or controlled by a foreign adversary;
3. State-owned enterprise of a foreign adversary;
4. Company domiciled within a foreign adversary; or
5. Other entity within a foreign adversary.
HB1561 HFLR Page 5
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
B. All state and local m anaged funds are prohibited from
investing or depositing public funds in any bank that is domiciled
or has its principal place of business in a foreign adversary.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11005 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. All state-managed funds are required to immediately in good
faith begin divestment of any holdings prohibited in this act, with
total divestment achieved by January 1, 2028, or two (2) years after
the effective date of this act, whichever is earliest.
B. For purposes of this section, “total divestment” shall mean
reducing the value of prohibited investments to no more than five -
hundredths of one percent (0.0005) of the market value of all assets
under management by a state or locally managed fund.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11006 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. The State Treasurer shall develop a notification system to
be able to identify foreign adversaries and countries of particular
concern. Such information shall be available to the entities
subject to the provisions of this act.
B. No later than six (6) months after the effective date of
this act, the entities subject to the provisions of this act shall
identify all companies that are state -owned enterprises of, are
HB1561 HFLR Page 6
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
domiciled within, whose primary a ffairs are conducted within, or
whose majority ownership is held within a foreign adversary, and
companies owned or controlled by a foreign adversary. The
identification process shall include, but are not limited to the
following:
1. Reviewing and relyin g on publicly available information
regarding companies that are state -owned enterprises of, are
domiciled within, whose primary affairs are conducted within, or
whose majority ownership share is held within a foreign adversary,
including information provi ded by nonprofit organizations, research
firms, and government entities;
2. Contacting asset managers and fund managers contracted by a
state-managed fund that invest in companies and in funds that are
state-owned enterprises of, are domiciled within, who se primary
affairs are conducted within, or whose majority or plurality
ownership share is held within a foreign adversary;
3. Contacting other institutional investors that have divested
from or engaged with companies that are state -owned enterprises of,
are domiciled within, whose primary affairs are conducted within, or
whose majority ownership share is held within a foreign adversary;
and
4. Retaining an independent research firm to identify companies
that are directly or indirectly investment holdings of a state or
local fund that are state -owned enterprises of, are domiciled
HB1561 HFLR Page 7
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
within, whose primary affairs are conducted within, or whose
majority or plurality ownership share is held within a foreign
adversary.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11007 of Title 62, unless there
is created a duplication in numbering, reads as follows:
Nothing in this act shall be construed so as to inhibit,
conflict, impede, or otherwise interfer e with any required financial
safeguards, fiduciary requirements, and other sound investment
criteria which any state -managed fund is subject to, nor any
applicable state or federal law.
SECTION 8. NEW LAW A new section of law to b e codified
in the Oklahoma Statutes as Section 11008 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. As used in this section, "public pension system" means the:
1. Oklahoma Firefighters Pension and Retirement System;
2. Oklahoma Police Pension and Retirement System;
3. Uniform Retirement System for Justices and Judges;
4. Oklahoma Law Enforcement Retirement System;
5. Teachers' Retirement System of Oklahoma; and
6. Oklahoma Public Employees Retirement System.
B. No public pension system shall be liable in any action for
damages based upon the loss or alleged loss of value in pension
system assets based upon the provisions of this act. The provisions
HB1561 HFLR Page 8
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
of this subsection shall also be applicable to any action filed
naming the governing board of a public pension system, one or more
members of the governing board of a public pension system, or any of
its employees as defendants.
C. In any action filed naming a public pension system or any
other person described in su bsection B of this section as
defendants, it shall be a defense to the action that the value of
pension system assets increased at any time after the date of the
alleged decrease in the value of pension system assets resulting
from failure to comply with t he provisions of this act. The
provisions of this subsection shall be applicable with regard to an
increase in the value of pension system assets occurring at any time
after such date including the date as of which the action is filed.
For purposes of this section, any increase in the value of pension
system assets occurring during the pendency of an appeal from a
final judgment or other order establishing liability for damages may
also be used in defense of the claim for damages and the time period
shall be inclusive of any period during which a case is remanded
from an appellate court to a district court.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 11009 of Title 62, unless there
is created a duplica tion in numbering, reads as follows:
A. The State of Oklahoma, public pension system plans as
defined in this act, as well as officers, board members, and
HB1561 HFLR Page 9
BOLD FACE denotes Committee Amendments. 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
employees of the state or the public pension systems are immune from
civil liability for any act or omission related to any provision
under this act.
B. In addition to the immunity provided under subsection A of
this section, officers, board members, and employees of the state or
the public pension system plans are entitled to indemnification from
the public pension system for all losses, costs and expenses,
including reasonable attorney fees, associated with defending
against any claim or suit related to any provision of this act.
SECTION 10. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON GOVERNMENT OVERSIGHT, dated
03/05/2025 - DO PASS, As Amended and Coauthored.