Prohibited foreign investments.

(1) As used in this section, the term:

(a) “Board” means the State Board of Administration.

(b) “China” means the government of the People’s Republic of China, the Chinese Communist Party, the Chinese military, or any instrumentality thereof, or any combination thereof.

(c) “Chinese company” means a company that is publicly known to be majority-owned by China.

(d) “Company” means a sole proprietorship, an organization, an association, a corporation, a partnership, a joint venture, a limited partnership, a limited liability partnership, a limited liability company, or any other entity or business association, including all wholly owned subsidiaries, majority-owned subsidiaries, and parent companies, or an affiliate of such entity or business association which exists for the purpose of making a profit.

(e) “Direct holdings” in a company means all securities of that company which are held directly by the Florida Retirement System Trust Fund or in an account or fund in which the Florida Retirement System Trust Fund owns all shares or interests. The term does not include indirect holdings in actively managed investment funds, including a private equity fund, or holdings in exchange-traded funds.

(f) “Florida Retirement System Trust Fund” means all assets of the Florida Retirement System held by the board in its capacity as a fiduciary pursuant to part I of chapter 121.

(g) “Indirect holdings” in a company means all securities of that company which are held in a commingled fund or other collective investment, such as a mutual fund, in which the Florida Retirement System Trust Fund owns shares or interests, together with other investors not subject to this section.

(h) “Majority-owned” means to have ownership of 50.1 percent or more of the outstanding equity interests of a company.

(2)(a) The board may not acquire, on behalf of the Florida Retirement System Trust Fund, direct holdings in a Chinese company.

(b) The board must:

1. Initiate, no later than June 1, 2024, a review of all current direct holdings to determine which direct holdings, if any, include securities of a Chinese company.

2. Develop, no later than September 1, 2024, a divestment plan for all direct holdings in Chinese companies. The divestment plan must be developed and implemented consistent with the fiduciary standards set forth in s. 215.47(10).

3. Complete divestment from direct holdings in Chinese companies included in the divestment plan developed pursuant to subparagraph 2. no later than September 1, 2025, or at such later time if necessary for the board to implement the divestment plan consistent with the fiduciary standards set forth in s. 215.47(10).

(3) The board’s actions taken in compliance with this section, including all good faith determinations regarding companies as required by this section, must be adopted and incorporated into the investment policy statement as provided in s. 215.475.