Pennsylvania HB 346: An Act providing for the protection of public investment from global risks, for duties of public funds and for an annual report.

Bill Text

PRINTER'S NO. 301
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 346
Session of
2025
INTRODUCED BY OWLETT, PICKETT, HAMM, KUZMA AND KENYATTA,
JANUARY 27, 2025
REFERRED TO COMMITTEE ON INTERGOVERNMENTAL AFFAIRS AND
OPERATIONS, JANUARY 27, 2025
AN ACT
Providing for the protection of public investment from global
risks, for duties of public funds and for an annual report.
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 Protecting
Pennsylvania's Public Investments from Geopolitical Risk 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:
"Foreign country." A sovereign nation other than the United
States.
"Fund manager." The entity that manages a public fund.
"Geopolitical risks." The market risks to investments that
result from geopolitical events, including risks due to war,
terrorist attacks and other actions that impact the normal and
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peaceful course of international relations.
"Public fund." As defined in section 2 of the act of July 2,
2010 (P.L.266, No.44), known as the Protecting Pennsylvania's
Investments Act.
Section 3. Consideration of geopolitical risks.
(a) Considerations for public funds.--A fund manager shall
consider geopolitical risks within the investment decision
process for a public fund for the following:
(1) Making an investment in an asset that is domiciled
in a foreign country where geopolitical risks are present.
(2) Making an investment in an asset that has a
substantial economic connection to a foreign country where
geopolitical risks are present, in accordance with the
investment policy under subsection (c).
(b) Coordination with other responsibilities.--The
considerations under subsection (a) shall be made in
coordination with, and subject to, any other actions taken as
part of the public fund's compliance with any other fiduciary or
prudent investing responsibilities as prescribed under:
(1) The act of July 2, 2010 (P.L.266, No.44) known as
the Protecting Pennsylvania's Investments Act.
(2) The act of November 3, 2022 (P.L.1970, No.132),
known as the Russia and Belarus Divestiture Act.
(3) 24 Pa.C.S. § 8521 (relating to management of fund
and accounts).
(4) 71 Pa.C.S. § 5931 (relating to management of fund
and accounts).
(5) Any obligations of a public fund with respect to the
choice of any of the following:
(i) Asset managers.
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(ii) Investment funds.
(iii) Investments for the public fund's securities
portfolios.
(c) Investment policy.--A fund manager shall adopt an
investment policy that establishes criteria to determine whether
an asset has a substantial economic connection to a foreign
country under subsection (a)(2). Criteria under this subsection
may include a review of the risks to supply chains in foreign
countries and the proportion of assets received from a foreign
country.
Section 4. Annual report.
(a) Annual report.--No later than December 31, 2025, and
each December 31 thereafter, a fund manager shall publish an
annual report that contains a list of the public fund's
investments that are domiciled in foreign countries as of the
prior June 30.
(b) Publication and distribution.--The report under
subsection (a) shall be published on the public fund's publicly
accessible Internet website.
Section 5. Effective date.
This act shall take effect immediately.
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