Bill > HB0805

This bill requires the Tennessee Consolidated Retirement System (TCRS) board of trustees and local government pension plans to divest from investments in companies that are majority-owned by China. The bill defines key terms such as "China" (which includes the Chinese government, Communist Party, and military), "majority-owned" (more than 50% ownership), and "restricted entity" (a company known to be majority-owned by China). Under the legislation, these retirement systems must review their direct holdings annually by January 15th to identify any investments in restricted entities. If such investments are found, the state treasurer (for the TCRS) or the local governing body (for local pension plans) must divest from those investments, following a prudent investor standard. If immediate divestment is not possible, the board or governing body must develop a written divestment plan by July 1st each year, with complete divestment required by December 31st. The bill provides immunity from civil liability for the state, its officers, the retirement system, and political subdivision pension plans in the implementation of this divestment process. The act takes effect immediately upon becoming law, reflecting a policy aimed at reducing Tennessee's financial exposure to Chinese-owned companies.

Government Affairs, Labor and Employment

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0805&ga=114