Bill > SB0542

This bill requires the Tennessee Consolidated Retirement System (TCRS) and local political subdivision pension plans to review and divest from investments in companies that are majority-owned by China, effectively creating a targeted investment restriction. The bill provides detailed definitions for key terms like "direct holdings," "restricted entity," and "investment activity," and mandates an annual review process where the board of trustees or governing body must identify any investments in companies majority-owned by China and develop a divestment plan if such investments exist. By January 15th each year, these entities must review their direct holdings and aim to complete divestment by December 31st, with the process guided by prudent investor rules and fiduciary responsibilities. The bill provides flexibility in implementation, allowing the state treasurer discretion in categorizing securities and permitting the board to delegate responsibilities. Importantly, the bill includes a provision that grants immunity from civil liability to the state, its officers, the retirement system, political subdivisions, and their respective governing bodies in the process of implementing these investment restrictions. The law is designed to limit Tennessee's financial exposure to Chinese-majority-owned companies and takes effect immediately upon becoming law.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0542&ga=114