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

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
 1   Providing for the protection of public investment from global
 2      risks, for duties of public funds and for an annual report.
 3      The General Assembly of the Commonwealth of Pennsylvania
 4   hereby enacts as follows:
 5   Section 1.   Short title.
 6      This act shall be known and may be cited as the Protecting
 7   Pennsylvania's Public Investments from Geopolitical Risk Act.
 8   Section 2.   Definitions.
 9      The following words and phrases when used in this act shall
10   have the meanings given to them in this section unless the
11   context clearly indicates otherwise:
12      "Foreign country."   A sovereign nation other than the United
13   States.
14      "Fund manager."   The entity that manages a public fund.
15      "Geopolitical risks."    The market risks to investments that
16   result from geopolitical events, including risks due to war,
17   terrorist attacks and other actions that impact the normal and
 1   peaceful course of international relations.
 2      "Public fund."      As defined in section 2 of the act of July 2,
 3   2010 (P.L.266, No.44), known as the Protecting Pennsylvania's
 4   Investments Act.
 5   Section 3.     Consideration of geopolitical risks.
 6      (a)   Considerations for public funds.--A fund manager shall
 7   consider geopolitical risks within the investment decision
 8   process for a public fund for the following:
 9            (1)   Making an investment in an asset that is domiciled
10      in a foreign country where geopolitical risks are present.
11            (2)   Making an investment in an asset that has a
12      substantial economic connection to a foreign country where
13      geopolitical risks are present, in accordance with the
14      investment policy under subsection (c).
15      (b)   Coordination with other responsibilities.--The
16   considerations under subsection (a) shall be made in
17   coordination with, and subject to, any other actions taken as
18   part of the public fund's compliance with any other fiduciary or
19   prudent investing responsibilities as prescribed under:
20            (1)   The act of July 2, 2010 (P.L.266, No.44) known as
21      the Protecting Pennsylvania's Investments Act.
22            (2)   The act of November 3, 2022 (P.L.1970, No.132),
23      known as the Russia and Belarus Divestiture Act.
24            (3)   24 Pa.C.S. § 8521 (relating to management of fund
25      and accounts).
26            (4)   71 Pa.C.S. § 5931 (relating to management of fund
27      and accounts).
28            (5)   Any obligations of a public fund with respect to the
29      choice of any of the following:
30                  (i)   Asset managers.

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 1                 (ii)    Investment funds.
 2                 (iii)    Investments for the public fund's securities
 3            portfolios.
 4      (c)     Investment policy.--A fund manager shall adopt an
 5   investment policy that establishes criteria to determine whether
 6   an asset has a substantial economic connection to a foreign
 7   country under subsection (a)(2). Criteria under this subsection
 8   may include a review of the risks to supply chains in foreign
 9   countries and the proportion of assets received from a foreign
10   country.
11   Section 4.    Annual report.
12      (a)     Annual report.--No later than December 31, 2025, and
13   each December 31 thereafter, a fund manager shall publish an
14   annual report that contains a list of the public fund's
15   investments that are domiciled in foreign countries as of the
16   prior June 30.
17      (b)     Publication and distribution.--The report under
18   subsection (a) shall be published on the public fund's publicly
19   accessible Internet website.
20   Section 5.    Effective date.
21      This act shall take effect immediately.




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