This bill allows state and local governments to divest their public assets, including pension funds, from companies that invest in China or have ties to Chinese military, surveillance, or forced labor operations. The legislation defines eligible divestment targets by referencing multiple U.S. government lists, such as entities designated for military connections, companies involved in Uyghur forced labor, and certain telecommunications firms. States and localities that adopt new divestment policies must provide companies with 90 days' written notice, offer a hearing opportunity, and inform the Department of Justice within 30 days, though previously enacted divestment measures can continue without these procedures until two years after the bill's enactment. The bill also protects investment companies and employee benefit plan managers from liability when they divest from these Chinese-connected entities, and the Securities and Exchange Commission is directed to update disclosure requirements within 120 days to reflect such divestments. The legislation contains no direct federal funding and instead empowers state and local governments to make their own investment decisions based on security and ethical concerns about China-related investments.
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