HB 805

With respect to the retirement system and political subdivision pension plans, this bill requires the board of trustees for t he Tennessee consolidated retirement system (" board "") and governing body for each respective political subdivision pension plan, as applicable, to, no later than January 15 of each year, review the retirement system's or political subdivision pension plan' s direct holdings as of December 31 of the prior calendar year to determine which direct holdings, if any, constitute an investment activity of the retirement system or a political subdivision pension plan in a company that is known through publicly availa ble information to be majority-owned by China ("" restricted investment ""). However, the board or governing body may review the retirement system's or the respective political subdivision pension plan's direct holdings more frequently. EXPEDITIOUS DIVESTMEN T If the board identifies a restricted investment in the retirement system's direct holdings, then this bill requires the state treasurer to divest from the restricted investment and report the divestment to the retirement system's investment committee. If a governing body identifies a restricted investment in its political subdivision pension plan's direct holdings, then the governing body must divest from the restricted investment in accordance with the governing body's investment policy. DIVESTMENT P LAN If the board or a governing body cannot cause the retirement system or political subdivision pension plan to divest expeditiously from a restricted investment, then this bill requires the board or governing body to develop a written divestment plan f or these direct holdings in restricted investments no later than July 1 of each year and submit a copy of the divestment plan to the chair of the council on pensions. The divestment plan must be developed and implemented in a manner consistent with existi ng provisions that require trustees to invest and manage trust assets solely in the interest of the beneficiaries, the prudent investor rule, and the standard of care required by existing law that requires trustee s to invest and manage trust assets as a pr udent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust . This bill requires t he board or governing body, as applicable, to divest from the securities identified in such a divestment plan, with divestment occurring no later than December 31 of each year, or such later time established by the board or governing body to implement the divestment plan consistent with each entity's fiduciary duty. With respect to the retirement system, (i) the divestment plan for the retirement system must be implemented consistent with present law ; ( ii ) t he categorization of the retirement system's securities or investment vehicles must be done at the discretion of the state treasurer if not specifically addres sed in the retirement system's investment policy; and ( iii ) t he board may delegate its responsibilities under this bill to the state treasurer. IMMUNITY FROM CIVIL LIABILITY This bill provides that the following entities are immune from civil liability for any act or omission under this bill : ( i ) t his state, and its officers and employees; ( ii ) e ach political subdivision, and its officers and employees; ( iii ) t he retirement system and its board members; and ( iv ) e ach political subdivision pension plan and its governing body."