Senate Resolution No. by Senator Hodges urges the boards of trustees of Louisiana's state retirement systems to conduct a thorough review of their investments in companies either based in China or under the control of the Chinese government, military, or Communist Party. The resolution highlights concerns regarding the increasing hostility of the Chinese government towards the United States, including threats to intellectual property and democratic values. It points out the financial risks associated with such investments, referencing similar actions taken by other states and federal entities to divest from Chinese-affiliated holdings.
The resolution calls for a risk-based assessment of current investments, aiming to identify and recommend divestment from those linked to China. It mandates that the state retirement systems report their findings to the Senate Retirement Committee by December 1, 2026, detailing their holdings, market values, and the proportion of their portfolios affected. Additionally, it emphasizes the need for internal controls to prevent future investments in Chinese entities, ensuring that the fiduciary responsibilities of managing state employees' retirement savings are upheld.