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Committee reports foreign‑adversary divestment bill after questions about indirect exposures in pension portfolios
Summary
House Bill 15‑61 would require state‑run pensions to divest from countries designated a country of particular concern by the U.S. State Department; sponsor said preliminary review shows roughly 2% of pension funds are invested in Chinese markets and smaller positions in Russia; committee reported the bill out on a 10‑2 vote.
Representative Duell introduced House Bill 15‑61, called the Foreign Adversary Divestment Act in committee. The bill would require state‑run pension funds to divest investments in countries designated as ‘‘countries of particular concern’’ by the U.S. State Department.
Duell said preliminary work indicated roughly 2% of the total pension portfolio is invested in Chinese markets and a fractional percentage in Russian markets. Representative Kelly, who chairs the State Firefighters Pension board, warned that forcing sales could create realized losses if pension systems were compelled to sell positions at a discount; Duell said the proposal balances financial stewardship with national‑security concerns.
Committee members asked whether decentralized assets such as Bitcoin would be affected; the sponsor said Bitcoin’s decentralized nature likely would not put it in scope unless it was directly backed by a listed foreign government or market. Members also raised sports‑washing and indirect exposure through funds that themselves invest internationally.
The committee voted to report the bill out do pass on a 10‑2 vote.
