AB480: Bill Text

AB480,2,13 25.182 Management authority for certain funds. In addition to the management authority provided under any other provision of law, and notwithstanding any limitation on the board's management authority provided under any other provision of law except s. 25.183 (4) and (5), the board shall have authority to manage the money and property of the core retirement investment trust and, subject to s. 25.17 (5), the variable retirement investment trust in any manner that does not violate the standard of responsibility specified in s. 25.15 (2).

AB480,3 Section 3. 25.183 (4) and (5) of the statutes are created to read:

AB480,3,3 25.183 (4) Investments in Chinese military-industrial complex companies. (a) In this subsection:

AB480,3,4 1. “Chinese military-industrial complex company” means any of the following:

AB480,3,5 a. A company listed in the Annex to the executive order.

AB480,3,9 b. A company determined by the federal secretary of the treasury, as provided in section 1 (a) (i) of the executive order, to operate or have operated in the defense and related materiel sector or the surveillance technology sector of the economy of the People's Republic of China.

AB480,3,13 c. A company determined by the federal secretary of the treasury, as provided in section 1 (a) (ii) of the executive order, to own or control, or to be owned or controlled by, directly or indirectly, a company listed or identified as provided in subd. 1. a. or b.

AB480,3,15 2. “Executive order” means executive order 14032 of June 3, 2021, 86 Fed. Reg. 30145 to 30149 (June 7, 2021).

AB480,3,19 3. “Publicly traded security'' means any “security,” as defined in 15 U.S.C. 78c (a) (10), denominated in any currency that trades on a securities exchange or through the method of trading that is commonly referred to as ``over-the-counter,'' in any jurisdiction.

AB480,3,21 (b) Notwithstanding s. 25.15 (2), and except as provided in pars. (c) and (d), the board may not engage in any of the following activities:

AB480,3,25 1. Beginning on the effective date of this subdivision .... [LRB inserts date], the purchase or sale of any publicly traded security, or any publicly traded security that is derivative of or designed to provide investment exposure to such a security, of any Chinese military-industrial complex company, as defined in par. (a) 1. a.

AB480,4,5 2. Beginning on the 60th day after a determination by the federal secretary of the treasury as described in par. (a) 1. b. or c., the purchase or sale of any publicly traded security, or any publicly traded security that is derivative of or designed to provide investment exposure to such a security, of any Chinese military-industrial complex company, as defined in par. (a) 1. b. or c.

AB480,4,6 (c) The board may engage in any of the following activities:

AB480,4,9 1. The purchase or sale of any publicly traded security described in par. (b) 1. made solely to divest, in whole or in part, from the security if the purchase or sale occurs before June 3, 2022.

AB480,4,13 2. The purchase or sale of any publicly traded security described in par. (b) 2. made solely to divest, in whole or in part, from the security if the purchase or sale occurs before the 365th day after the date of the federal secretary of the treasury's determination described in par. (a) 1. b. or c.

AB480,4,17 (d) Paragraph (b) does not apply with respect to any Chinese military-industrial complex company that, under authority of section 6 of the executive order, the federal secretary of the treasury has removed from the executive order's prohibition.

AB480,4,20 (5) Investments relating to Iran. (a) In this subsection, “government of Iran" includes any political subdivision or instrumentality of Iran and any company owned or controlled, in whole or in part, by the government of Iran.

AB480,4,24 (b) Notwithstanding s. 25.15 (2), but subject to pars. (c) to (e), after the effective date of this paragraph .... [LRB inserts date], the board may not invest any of the moneys in funds under its management in any equity or debt securities of any of the following:

AB480,5,2 1. Any company that has outstanding loans or other commitments of credit to the government of Iran.

AB480,5,4 2. Any company that maintains property or personnel, or has business operations, within Iran.

AB480,5,6 3. Any company that contracts with the government of Iran or provides goods or services within Iran.

AB480,5,9 4. Any company that sells weapons, military technology, oil-production or mineral-extraction equipment, or related goods with reasonable knowledge that they will be resold to the government of Iran or redistributed into Iran.

AB480,5,14 (c) Notwithstanding s. 25.15 (2), but subject to pars. (d) and (e), if the board, on the effective date of this paragraph .... [LRB inserts date], maintains any investment prohibited under par. (b), the board shall divest itself of the investment not later than the first day of the 13th month beginning after the effective date of this paragraph .... [LRB inserts date].

AB480,5,19 (d) In determining whether an investment is prohibited under pars. (b) and (c), the board may rely on 3rd party information about a company available from any research or screening service contracted by the board, or from any other pension fund or investment adviser, if the 3rd party information utilizes criteria reasonably similar to the criteria specified in par. (b) 1. to 4.

AB480,5,20 (e) This subsection does not apply to any of the following:

AB480,5,22 1. Investments made for the board by investment advisers with which the board has contracted to manage and control board assets under s. 25.18 (2) (e).

AB480,5,25 2. Investments by the board in mutual funds, index funds, or similar commingled investment instruments in which the board does not directly hold a company's security in its own name or as nominee.

AB480,6,1 3. Investments by the board in private equity funds.

AB480,4 Section 4 . Effective date.

AB480,6,4 (1) This act takes effect on the first day of the 3rd month beginning after publication.

AB480,6,5 (End)