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AL HB406
Bill
Status
4/27/2023
Primary Sponsor
Mike Shaw
Click for details
AI Summary
HB406 Summary
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State Treasurer and Boards of Control of Alabama retirement systems must create and publicly publish lists of "prohibited companies" (businesses owned or controlled by Chinese military/government and designated by U.S. government as restricted) by January 1, 2024, with quarterly updates thereafter.
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Public funds may use third-party services to identify prohibited companies and must send annual written notices to companies on the list informing them of divestment requirements.
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Public funds are prohibited from acquiring new direct holdings in publicly traded securities of prohibited companies and must divest all existing direct holdings within 180 days of a company being added to the prohibited list.
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Each public fund must file annual reports with the Legislature by October 1, 2024, and each October 1 thereafter detailing the prohibited companies list, notices sent, divested investments, and indirect holdings in prohibited companies.
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Requirements do not apply if Congress or the President declares through legislation or executive order that mandatory divestment interferes with U.S. foreign policy; act becomes effective three months after passage.
Legislative Description
Relating to public investments; to require the State Treasurer and the Boards of Control of the Retirement Systems of Alabama and the Judicial Retirement Fund to establish and maintain a list of certain companies owned or controlled by Chinese military or government services and designated by the U.S. government as companies with whom U.S. citizens are restricted from entering into transactions; to make this list available to the public; to prohibit the State Treasurer and the Boards of Control of the Retirement Systems of Alabama and the Judicial Retirement Fund from acquiring direct holdings in publicly traded securities of a listed company, and requiring the sale, redemption, divestment, or withdrawal of all direct holdings in publicly traded securities of a listed company within 180 days after the company becomes a listed company; and to define terms.
Public funds, investment in certain companies owned or controlled by China prohibited
Last Action
Introduced and Referred to House State Government
4/27/2023