SB1340

THE CONTEXT: The State Board of Investment (Board) consists of five members and is chaired by the State Treasurer. The Board must hold regular monthly meetings and keep an accurate record of its proceedings.

WHAT THE BILL DID: The final vetoed version would prohibit a publicly managed fund from: a) holding an investment in: i; a foreign adversary; ii; a state-owned enterprise of a foreign adversary; iii; a company domiciled within a foreign adversary; or iv; any other entity owned by or domiciled in a foreign adversary; or b) investing or depositing public monies in a bank that is domiciled in, or has a principal place of business in, a foreign adversary, direct a publicly managed fund, on the general effective date, to immediately begin divestment of any prohibited holdings or investments, and require a publicly managed fund to complete total divestment no later than two years after the general effective date.

WHY IT MATTERED: The practical reason for this bill was to put public resources toward the named state purpose through an accountable appropriation. It would prohibit a publicly managed fund from: a) holding an investment in: i. a foreign adversary; ii. a state-owned enterprise of a foreign adversary; iii. a company domiciled within a foreign adversary; or iv. any other entity owned by or domiciled in a foreign adversary; or b) investing or depositing public monies in a bank that is domiciled in, or has a principal place of business in, a foreign adversary, and would also direct a publicly managed fund, on the general effective date, to immediately begin divestment of any prohibited holdings or investments, rather than leave the current rule unchanged.