Adds to existing law to prohibit certain governmental entities from investing in foreign adversaries.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 763 BY WAYS AND MEANS COMMITTEE AN ACT1 RELATING TO FOREIGN ADVERSARIES; PROVIDING LEGISLATIVE INTENT; AMENDING TI-2 TLE 57, IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 21, TITLE 57, IDAHO3 CODE, TO DEFINE TERMS, TO ESTABLISH PROVISIONS PROHIBITING INVESTMENTS4 IN FOREIGN ADVERSARIES, AND TO PROVIDE FOR CERTAIN LIMITATIONS; PROVID-5 ING SEVERABILITY; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE6 DATE.7

Be It Enacted by the Legislature of the State of Idaho:8

SECTION 1. LEGISLATIVE INTENT. The Foreign Adversary Investment Act9 will ensure that the State of Idaho's public investment dollars are not10 put at risk in countries of concern and do not fund the development of the11 military technologies and surveillance tools of foreign adversaries that12 impede the furthering of the State of Idaho's interests and the interests of13 the United States of America, by prohibiting the future investment of public14 pension dollars and university endowment funds in countries of concern.15

SECTION 2. That Title 57, Idaho Code, be, and the same is hereby amended16 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-17 ter 21, Title 57, Idaho Code, and to read as follows:18 CHAPTER 2119 FOREIGN ADVERSARY INVESTMENT ACT20 57-2101. DEFINITIONS. As used in this chapter:21 (1) "Company" means any sole proprietorship, organization, associa-22 tion, corporation, partnership, joint venture, limited partnership, lim-23 ited liability partnership, limited liability company, or other entity or24 business association, including wholly owned subsidiaries, majority-owned25 subsidiaries, parent companies, or affiliates of those entities or business26 associations, that exist for the purpose of making profit.27 (2) "Domicile" means either the country in which a company is regis-28 tered, where the company's affairs are primarily completed, or where the ma-29 jority of ownership share is held.30 (3) "Foreign adversary" means any foreign country, foreign government,31 or foreign government person engaged in a long-term pattern of serious in-32 stances of conduct significantly adverse to the national security of the33 United States or security and safety of United States persons as determined34 in 15 CFR 791.4. The list of foreign adversaries provided in 15 CFR 791.4,35 as it existed on February 1, 2026, includes the People's Republic of China,36 including the Hong Kong special administrative region and the Macau special37 administrative region, the Republic of Cuba, the Islamic Republic of Iran,38 the Democratic People's Republic of Korea, the Russian Federation, and the39 Venezuelan regime of Nicolás Maduro.40

2 (4) "Governmental entity" means the state of Idaho, any state agency,1 any political subdivision within the state of Idaho, any public institution2 of higher education within the state of Idaho, any local government within3 the state of Idaho, any taxing district within the state of Idaho, or any4 agency or organization controlled by such entities.5 (5) "Investment" means any transfer of funds in any active or passive6 structure, whether direct or indirect, that seeks to generate revenue or ac-7 complish any other gain, including any non-monetary gain.8 (6) "State-managed fund" means any short-term or long-term investment9 structure that is managed, run, controlled, or otherwise overseen by any10 governmental entity that such governmental entity has primary discretion11 over or vested interest in. This definition shall apply to any fund that12 is managed by a third-party entity, such as a fiduciary, but subject to the13 purview or direction of a governmental entity and populated with any funds14 from such governmental entity. This shall include but is not limited to:15 (a) Public pension funds, public retirement funds, or other funds that16 are sponsored, maintained, or contributed to or required to be con-17 tributed to by any governmental entity;18 (b) Investment funds, rainy day funds, savings accounts, or other in-19 vestment structures of any governmental entity; and20 (c) University or college endowments, trusts, or other investment21 structures that constitute, wholly or in part, a public institution of22 higher education's investable assets.23 (7) "State-owned enterprise" means any company owned or controlled,24 wholly or in part, by a government or by individuals acting in official gov-25 ernment capacities in any form.26 57-2102. INVESTMENTS IN FOREIGN ADVERSARIES PROHIBITED. (1) On and27 after July 1, 2026:28 (a) No state-managed fund shall make new investments in any foreign ad-29 versary, state-owned enterprise of a foreign adversary, company domi-30 ciled within a foreign adversary, or company owned or controlled by a31 foreign adversary, state-owned enterprise of a foreign adversary, com-32 pany domiciled within a foreign adversary, or any other entity within a33 foreign adversary; and34 (b) All state-managed funds shall be prohibited from making new invest-35 ments or depositing public funds in any bank that is domiciled or has its36 principal place of business in a foreign adversary.37 (2) This section shall not apply with respect to funds invested prior to38 July 1, 2026.39 57-2103. LIMITATIONS. Nothing in this chapter shall be construed to40 limit, inhibit, conflict, impede, or otherwise interfere with required fi-41 nancial safeguards, fiduciary requirements, or other sound investment cri-42 teria that any state-managed fund is subject to or required to comply with43 pursuant to applicable federal law.44

SECTION 3. SEVERABILITY. The provisions of this act are hereby declared45 to be severable and if any provision of this act or the application of such46 provision to any person or circumstance is declared invalid for any reason,47

3 such declaration shall not affect the validity of the remaining portions of1 this act.2

SECTION 4. An emergency existing therefor, which emergency is hereby3 declared to exist, this act shall be in full force and effect on and after4 July 1, 2026.5