This bill prohibits the State of Wisconsin Investment Board from engaging in
securities transactions involving certain companies associated with China and Iran.

Under current law, federal Executive Order 14032 of June 3, 2021, imposes
certain restrictions related to the purchase or sale of securities in specified Chinese
companies.

This bill prohibits SWIB from purchasing or selling any publicly traded
security of a Chinese military-industrial complex company. The bill defines
“Chinese military-industrial complex company” as a company listed in the Annex to
Executive Order 14032 or later identified by the federal Secretary of the Treasury as
such a company. However, the bill allows SWIB, for specified periods, to divest from
prohibited securities already held by SWIB.

The bill also generally prohibits SWIB from investing in securities of any
company that 1) has outstanding loans or other commitments of credit to the
government of Iran; 2) maintains property or personnel, or has business operations,
in Iran; 3) contracts with the government of Iran or provides goods or services in Iran;
or 4) 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. For purposes of the bill, the

government of Iran includes any company owned or controlled by Iran. If SWIB
maintains a prohibited investment on the effective date of the bill, SWIB must divest
itself of the investment within approximately one year. However, the investment
prohibition does not apply to investments made by external managers with whom
SWIB has contracted, investments in mutual funds and other commingled
instruments, and investments in private equity funds. In determining whether an
investment is prohibited, SWIB may rely on information about a company available
from a third-party screening service that utilizes criteria reasonably similar to the
criteria described in items 1 to 4 above.

The bill also requires SWIB to include, in an annual report that under current
law SWIB submits to the legislature, information relating to SWIB's efforts to satisfy
the requirements under the bill, including identification of companies in which
investment is prohibited and, as applicable, SWIB's status of divestment from these
companies.