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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
640
BY
COMMERCE
AND
HUMAN
RESOURCES
COMMITTEE
AN
ACT
1
RELATING
TO
FOREIGN
ADVERSARIES;
PROVIDING
LEGISLATIVE
INTENT;
AMENDING
TI
-
2
TLE
57,
IDAHO
CODE,
BY
THE
ADDITION
OF
A
NEW
CHAPTER
21,
TITLE
57,
IDAHO
3
CODE,
TO
DEFINE
TERMS,
TO
ESTABLISH
PROVISIONS
PROHIBITING
INVESTMENTS
4
IN
FOREIGN
ADVERSARIES,
TO
ESTABLISH
PROVISIONS
TO
REQUIRE
CERTAIN
5
DIVESTMENTS,
AND
TO
PROVIDE
FOR
CERTAIN
LIMITATIONS;
PROVIDING
SEVER
-
6
ABILITY;
AND
DECLARING
AN
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
7
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
8
SECTION
1.
LEGISLATIVE
INTENT.
The
Foreign
Adversary
Divestment
Act
9
will
ensure
that
the
State
of
Idaho's
public
investment
dollars
are
not
10
put
at
risk
in
countries
of
concern
and
do
not
fund
the
development
of
the
1
1
military
technologies
and
surveillance
tools
of
foreign
adversaries
that
12
impede
the
furthering
of
the
State
of
Idaho's
interests
and
the
interests
of
13
the
United
States
of
America,
by
requiring
the
divestment
of
public
pension
14
dollars
and
university
endowment
funds
from
countries
of
concern.
15
SECTION
2.
That
Title
57,
Idaho
Code,
be,
and
the
same
is
hereby
amended
16
by
the
addition
thereto
of
a
NEW
CHAPTER
,
to
be
known
and
designated
as
Chap
-
17
ter
21,
Title
57,
Idaho
Code,
and
to
read
as
follows:
18
CHAPTER
21
19
THE
FOREIGN
ADVERSARY
DIVESTMENT
ACT
20
57
-
2101.
DEFINITIONS.
As
used
in
this
chapter:
21
(1)
"Company"
means
any
sole
proprietorship,
organization,
associa
-
22
tion,
corporation,
partnership,
joint
venture,
limited
partnership,
lim
-
23
ited
liability
partnership,
limited
liability
company,
or
other
entity
or
24
business
association,
including
wholly
owned
subsidiaries,
majority
-
owned
25
subsidiaries,
parent
companies,
or
affiliates
of
those
entities
or
business
26
associations,
that
exist
for
the
purpose
of
making
profit.
27
(2)
"Divestment"
means
the
sale
or
otherwise
contractual
end
of
any
28
current
or
planned
investments.
29
(3)
"Domicile"
means
either
the
country
in
which
a
company
is
regis
-
30
tered,
where
the
company's
affairs
are
primarily
completed,
or
where
the
ma
-
31
jority
of
ownership
share
is
held.
32
(4)
"Foreign
adversary"
means
any
foreign
country,
foreign
government,
33
or
foreign
government
person
engaged
in
a
long
-
term
pattern
of
serious
in
-
34
stances
of
conduct
significantly
adverse
to
the
national
security
of
the
35
United
States
or
security
and
safety
of
United
States
persons
as
determined
36
in
15
CFR
791.4.
The
list
of
foreign
adversaries
provided
in
15
CFR
791.4,
37
as
it
existed
on
February
1,
2026,
includes
the
People's
Republic
of
China,
38
including
the
Hong
Kong
special
administrative
region
and
the
Macau
special
39
administrative
region,
the
Republic
of
Cuba,
the
Islamic
Republic
of
Iran,
40
2
the
Democratic
People's
Republic
of
Korea,
the
Russian
Federation,
and
the
1
Venezuelan
regime
of
Nicolás
Maduro.
2
(5)
"Governmental
entity"
means
the
state
of
Idaho,
any
state
agency,
3
any
political
subdivision
within
the
state
of
Idaho,
any
public
institution
4
of
higher
education
within
the
state
of
Idaho,
any
local
government
within
5
the
state
of
Idaho,
any
taxing
district
within
the
state
of
Idaho,
or
any
6
agency
or
organization
controlled
by
such
entities.
7
(6)
"Investment"
means
any
transfer
of
funds
in
any
active
or
passive
8
structure,
whether
direct
or
indirect,
that
seeks
to
generate
revenue
or
ac
-
9
complish
any
other
gain,
including
any
non
-
monetary
gain.
10
(7)
"Official
government
capacity"
means
any
role
in
a
government
or
1
1
its
subsidiaries,
whether
elected
or
appointed.
12
(8)
"State
-
managed
fund"
means
any
short
-
term
or
long
-
term
investment
13
structure
that
is
managed,
run,
controlled,
or
otherwise
overseen
by
any
14
governmental
entity
that
such
governmental
entity
has
primary
discretion
15
over
or
vested
interest
in.
This
definition
shall
apply
to
any
fund
that
16
is
managed
by
a
third
-
party
entity,
such
as
a
fiduciary,
but
subject
to
the
17
purview
or
direction
of
a
governmental
entity
and
populated
with
any
funds
18
from
such
governmental
entity.
This
shall
include
but
is
not
limited
to:
19
(a)
Public
pension
funds,
public
retirement
funds,
or
other
funds
that
20
are
sponsored,
maintained,
or
contributed
to
or
required
to
be
con
-
21
tributed
to
by
any
governmental
entity;
22
(b)
Investment
funds,
rainy
day
funds,
savings
accounts,
or
other
in
-
23
vestment
structures
of
any
governmental
entity;
and
24
(c)
University
or
college
endowments,
trusts,
or
other
investment
25
structures
that
constitute,
wholly
or
in
part,
a
public
institution
of
26
higher
education's
investable
assets.
27
(9)
"State
-
owned
enterprise"
means
any
company
owned
or
controlled,
28
wholly
or
in
part,
by
a
government
or
by
individuals
acting
in
official
gov
-
29
ernment
capacities
in
any
form.
30
57
-
2102.
INVESTMENTS
IN
FOREIGN
ADVERSARIES
PROHIBITED.
(1)
All
31
state
-
managed
funds
are
prohibited
from
holding
investments
in
any
foreign
32
adversary,
state
-
owned
enterprise
of
a
foreign
adversary,
company
domiciled
33
within
a
foreign
adversary,
or
company
owned
or
controlled
by
a
foreign
ad
-
34
versary,
state
-
owned
enterprise
of
a
foreign
adversary,
company
domiciled
35
within
a
foreign
adversary,
or
any
other
entity
within
a
foreign
adversary.
36
(2)
All
state
-
managed
funds
are
prohibited
from
investing
or
deposit
-
37
ing
public
funds
in
any
bank
that
is
domiciled
or
has
its
principal
place
of
38
business
in
a
foreign
adversary.
39
57
-
2103.
REQUIRED
DIVESTMENT.
All
state
-
managed
funds
shall
immedi
-
40
ately
in
good
faith
begin
divestment
of
any
holdings
prohibited
by
the
provi
-
41
sions
of
this
chapter.
42
57
-
2104.
LIMITATIONS.
Nothing
in
this
chapter
shall
be
construed
to
43
limit,
inhibit,
conflict,
impede,
or
otherwise
interfere
with
required
fi
-
44
nancial
safeguards,
fiduciary
requirements,
or
other
sound
investment
cri
-
45
teria
that
any
state
-
managed
fund
is
subject
to
that
are
unrelated
to
divest
-
46
3
ment
from
foreign
adversaries
or
required
to
comply
with
any
applicable
fed
-
1
eral
law.
2
SECTION
3.
SEVERABILITY.
The
provisions
of
this
act
are
hereby
declared
3
to
be
severable
and
if
any
provision
of
this
act
or
the
application
of
such
4
provision
to
any
person
or
circumstance
is
declared
invalid
for
any
reason,
5
such
declaration
shall
not
affect
the
validity
of
the
remaining
portions
of
6
this
act.
7
SECTION
4.
An
emergency
existing
therefor,
which
emergency
is
hereby
8
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
9
July
1,
2026.
10