Bill > SB380

This bill, known as the China Divestiture Act, requires several Pennsylvania public funds (including the State Employees', Public School Employees', and Municipal Retirement Systems, and any Commonwealth funds managed by the State Treasurer) to divest from investments related to China. The bill mandates that these funds identify and sell all direct and indirect holdings in Chinese companies and the Chinese government, with a phased divestment schedule: 50% of investments must be removed within three years, 75% within five years, and 100% within ten years. The funds are prohibited from acquiring new investments in scrutinized Chinese companies or the Chinese government. Each fund must report annually to state leadership, detailing the investments sold and the financial impact of the divestment. The Commonwealth will reimburse the funds for any net losses incurred during this process, and the bill includes provisions to protect board members and administrators from legal repercussions when implementing the divestment. The bill does not apply to certain defined contribution plans and savings programs. The divestment requirements would cease if the U.S. President or Congress determines that such mandatory divestment interferes with foreign policy, and the act takes effect immediately upon passage.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=380