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SECOND REGULAR SESSION
HOUSE BILL NO. 1668
103RD GENERAL ASSEMBL Y
INTRODUCED BY REPRESENT A TIVE SEITZ.
3888H.01I JOSEPH ENGLER, Chief Clerk
AN ACT
T o amend chapter 1, RSMo, by adding thereto one new section relating to divestment from
foreign adversaries.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 1, RSMo, is amended by adding thereto one new section, to be
2 known as section 1.2020, to read as follows:
1.2020. 1. This section shall be known and may be cited as the "Forei gn
2 Adversary Divestment Act".
3 2. As used in this section, the following terms shall mean:
4 (1) "Company", any sole pr oprietorship, organization, association, corporation,
5 partnership, joint venture, limited partnership, limited liability partnership, limited
6 liability company , or other entity or business association, including wholly owned
7 subsidiaries, majority-owned subsidiaries, par ent companies, or affiliates of those
8 entities or business associations, that exists for the purpose of making pr ofit;
9 (2) "Divestment", the sale, forfeit, or otherwise contractual end of any curr ent
10 or planned investments;
11 (3) "Domicile", either the country in which a company is regi stered, wher e the
12 company's affairs are primarily completed, or where the majority of ownership is held;
13 (4) "For eign adversary", any person that is listed on the Specially Designated
14 Nationals and Blocked Persons List published by the Office of For eign Assets Contr ol of
15 the United States Department of the T re asury;
16 (5) "Official government capacity", any role, elected or appointed, in a
17 government or its subsidiaries;
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
18 (6) "State-managed fund", any short- or long-term investment structure that is
19 state managed, state run, state contr olled, or otherwise overseen by the state of
20 Missouri, a state agency , or any political subdivision of this state, including any agency
21 contr olled by such political subdivision, over or in which the state or political
22 subdivision has primary discreti on or vested interes t. "State-managed fund" shall
23 include, but not be limited to:
24 (a) Public pension funds, public ret irem ent funds, or other state-sponsor ed funds
25 that ar e sponsor ed, maintained, or contributed to or requ ired to be contributed to by the
26 state of Missouri or any of its political subdivisions;
27 (b) City , county , or other local or municipal entity investment funds, res erve
28 funds, or other political subdivision-contr olled investment structur es; and
29 (c) University or college endowments, trusts, or other structur e that constitutes,
30 wholly or in part, a public institution of higher education's investable assets;
31 (7) "State-owned enterprise", any company owned or contr olled, in whole or in
32 part, by a government or by individuals acting in official governmental capacities in any
33 form.
34 3. (1) All state-managed funds shall be proh ibited fr om holding investments in
35 any for eign adversary , state-owned enterprise of a for eign adversary , company
36 domiciled within a for eign adversary , or a company owned or contr olled by a for eign
37 adversary , state-owned enterprise of a for eign adversary , company domiciled within a
38 for eign adversary , or other entity within a for eign adversary .
39 (2) All state-managed funds are pr ohibited fr om investing or depositing public
40 funds in any bank that is domiciled or has its principal place of business within a for eign
41 adversary .
42 4. (1) All state-managed funds are r equir ed to immediately , in good faith, begin
43 divestment of any holdings pr ohibited in subsection 3 of this section, with total
44 divestment achieved two years after the effective date of this section.
45 (2) For purposes of this section, "total divestment" shall mean r educing the
46 value of proh ibited investments to no mor e than five-hundr edths of a per cent of the
47 market value of all assets under management by a state-managed fund.
48 5. No later than six months after the effective date of this section, the state
49 tr easur er shall identify all companies that ar e state-owned enterprises of, are domiciled
50 within, whose primary affairs ar e conducted within, or whose majority ownership is
51 held within a fore ign adversary and include those companies in a list of r estricted
52 companies to be distributed to each state-managed fund. In compiling the list, the state
53 tr easur er shall, at a minimum:
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54 (1) Review and r ely on publicly available information regard ing companies that
55 ar e state-owned enterprises of, ar e domiciled within, whose primary affairs are
56 conducted within, or whose majority ownership shar e is held within a for eign adversary ,
57 including information pr ovided by nonpr ofit organizations, r esear ch firms, and
58 government entities;
59 (2) Contact asset managers and fund managers contracted by a state-managed
60 fund that invests in companies and in funds that are state-owned enterprises of, are
61 domiciled within, whose primary affairs are conducted within, or whose majority
62 ownership share is held within a for eign adversary;
63 (3) Contact other institutional investors that have divested fro m or engaged with
64 companies that ar e state-owned enterprises of, ar e domiciled within, whose primary
65 affairs ar e conducted within, or whose majority ownership share is held within a for eign
66 adversary; and
67 (4) Retain an independent r esear ch firm to identify companies that ar e dir ectly
68 or indirect ly investment holdings of a state or local fund that are state-owned
69 enterprises of, are domiciled within, whose primary affairs are conducted within, or
70 whose majority ownership share is held within a for eign adversary .
71 6. Nothing in this section shall be construed to inhibit, conflict, impede, or
72 otherwise interfer e with any re quir ed financial safeguards, fiduciary requ irem ents, or
73 other sound investment criteria to which any state-managed fund is subject.
✔
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