Montana would restrict investments in markets that block accounting inspections

Montana’s Board of Investments would be barred from investing in securities listed on exchanges in places meeting both inspection conditions. The restriction would cover investments based on where their exchange is located. The federal Public Company Accounting Oversight Board must not have conducted a legally required inspection of a registered accounting firm. A local authority’s law or policy must also prevent a legally required inspection. The proposal named July 1, 2025, as its effective date, but it did not become law.

The board would have to sell investments covered by the proposal’s sale requirement. The sale requirement refers to subsection (1), which states general investment principles rather than the specific exchange restriction. Selling would be required when it could avoid losing invested money or revenue, or whenever selling was prudent. The proposed July 1, 2025, start date never took effect because the bill did not become law.

The board would consult with the Securities and Exchange Commission every two years. The consultation would focus on compliance with the proposal’s principles of prudent, safe, and conservative investing. The proposal named July 1, 2025, as its effective date, but this duty did not become law.