Bill would direct divestment from risky Chinese entities; investment officials warn of large portfolio costs

Sen. Bob Anderson introduced LB661 to require the Nebraska Investment Council (NIC) to divest state pension and retirement investments from Chinese entities the U.S. government has designated as high risk. Anderson said the measure would prevent losses similar to those some states suffered with investments tied to Russia and argued the bill is a "targeted and pragmatic financial policy aligned with federal designations."

Proponents framed the bill as a fiduciary risk-management measure tied to national security. Auditor Mike Foley said the bill's framework is reasonable because the legislature would define off-limit entities and NIC would implement the policy; Foley said his office could audit compliance. Mary Bagalgalis of State Shield described federal lists and…