FL H7071

The State Board of Administration is prohibited from acquiring new direct holdings in Chinese companies on behalf of the Florida Retirement System Trust Fund, with "Chinese company" defined as a company publicly known to be majority-owned (50.1%+) by the People's Republic of China, the Chinese Communist Party, the Chinese military, or any instrumentality thereof.

The board must initiate a review of all current direct holdings by June 1, 2024, to identify securities of Chinese companies, and develop a divestment plan for those holdings by September 1, 2024.

Full divestment from direct holdings in Chinese companies must be completed by September 1, 2025, with a possible extension if needed to comply with fiduciary standards under s. 215.47(10).

The prohibition applies only to direct holdings by the Florida Retirement System Trust Fund and does not cover indirect holdings in actively managed investment funds, private equity funds, or exchange-traded funds.

All actions and good faith determinations made under this section must be adopted and incorporated into the board's investment policy statement as provided in s. 215.475.