Pennsylvania SB 380: An Act amending the act of October 27, 1955 (P.L.744, No.222), known as the Pennsylvania Human Relations Act, providing for prohibition of certain housing practices.

Bill Text

PRINTER'S NO. 327
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 380
Session of
2025
INTRODUCED BY MASTRIANO, ROTHMAN, PENNYCUICK, PHILLIPS-HILL,
HUTCHINSON, STEFANO AND DUSH, MARCH 6, 2025
REFERRED TO FINANCE, MARCH 6, 2025
AN ACT
Providing for divestiture by the State Treasurer, the State
Employees' Retirement System, the Public School Employees'
Retirement System and the Pennsylvania Municipal Retirement
System of investments in assets relating to China.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the China
Divestiture Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Alternative investments." An investment in a private equity
fund, private debt fund, venture fund, real estate fund, hedge
fund or absolute return fund.
"Board." Any of the following:
(1) The Pennsylvania Municipal Retirement Board.
(2) The Public School Employees' Retirement Board.
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(3) The State Employees' Retirement Board.
"China." The People's Republic of China.
"Company." A sole proprietorship, organization, association,
corporation, partnership, joint venture, limited partnership,
limited liability partnership, limited liability company or
other entity or business association that exists for the purpose
of making a profit.
"Direct holdings." All securities of a company or the
government of China that are held directly by the public fund.
"Foreign company." An entity which is not organized under
the laws of the United States.
"Government of China." The government of China and its
political subdivisions and the instrumentalities and companies
owned or controlled by the government of China or its political
subdivisions.
"Indemnitee." Each current or former board member, duly
appointed designee of a board member, officer, employee,
including, without limitation, the attorneys in the Office of
Chief Counsel that serve a public fund, agent, research firm or
investment manager of a public fund who was or is a party to, or
is threatened to be made a party to or is otherwise involved in,
any proceeding by reason of the fact that the person is or was a
board member, designee of a board member, officer, employee,
agent, research firm or investment manager of a public fund.
"Indirect holdings." All securities held in an account or
fund such as a mutual fund managed by one or more persons not
employed by a public fund, in which the public fund owns shares
or interests together with other investors.
"Public fund." Any of the following:
(1) The State Employees' Retirement Fund established
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under 71 Pa.C.S. Pt. XXV (relating to retirement for State
employees and officers).
(2) The Public School Employees' Retirement Fund
established under 24 Pa.C.S. Pt. IV (relating to retirement
for school employees).
(3) The Pennsylvania Municipal Retirement Fund.
(4) Any Commonwealth fund of which the State Treasurer
is the custodian.
"Sanctioned Chinese company." A foreign company sanctioned
under the authority of Presidential Executive Order 14032 (June
3, 2021), published at 86 Fed. Reg. 107, 30145 (June 7, 2021).
"Scrutinized company." A foreign company domiciled in or
organized under the laws of China. The term includes a
sanctioned Chinese company.
Section 3. Identification.
Within 30 days of the effective date of this section and no
less frequently as deemed necessary by the State Treasurer or a
board thereafter, a public fund shall make its best effort to
identify all direct holdings, indirect holdings and alternative
investments of scrutinized companies and the government of
China.
Section 4. Divestment.
(a) Initial divestment of direct holdings.--A public fund
shall sell, redeem, divest or withdraw from its direct holdings
all securities of the government of China.
(b) Additional divestment.--Beginning on the effective date
of this section, a public fund shall sell, redeem, divest or
withdraw from the following:
(1) A scrutinized company in which the public fund has
direct holdings.
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(2) A scrutinized company in which the public fund has
indirect holdings and alternative investments.
(3) Securities of the government of China in which the
public fund has indirect holdings and alternative
investments.
(c) Prohibition.--A public fund may not acquire direct
holdings, indirect holdings or alternative investments of
scrutinized companies or the government of China.
(d) Deadline.--
(1) All investments referenced in subsections (a) and
(b) must be divested not later than the following:
(i) At least 50% of the investment shall be removed
from a public fund's assets