Bill > SF418

This bill amends Iowa's existing laws to restrict public funds from investing in companies that are owned or controlled by the Chinese military or government services. The key provisions are: 1. Defines "prohibited companies" as those on specified U.S. government lists of companies that U.S. citizens are restricted or prohibited from transacting with due to their ties to the Chinese military or government. 2. Requires public funds (e.g., state pension systems) to identify and create a list of prohibited companies in which they have direct or indirect holdings, and to review and update this list annually. 3. Prohibits public funds from acquiring direct holdings in securities of prohibited companies, and requires them to sell, redeem, divest, or withdraw all direct holdings in prohibited companies within 180 days of the company being added to the list. 4. Requires public funds to report annually on their prohibited companies list, any divestments, and the percentage of their portfolio held indirectly in prohibited companies. 5. Exempts public funds from any conflicting legal obligations when complying with the requirements of this bill. The overall intent is to restrict Iowa public funds from financially supporting companies with ties to the Chinese government or military, which are seen as a national security concern.

Business and Industry

State Government (Senate)

https://www.legis.iowa.gov/legislation/BillBook?ga=90&ba=SF418