,i #aac? ,,congress #b;d ,session ,h4 ,r4 #ehgg ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,decemb] #aa1 #bjad ,mr4 ,meeks 7= himself & ,ms4 ,wat]s7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ov]sight & ,gov]nm5t ,re=m1 & 9 addition to ! ,committee on ,education & ! ,work=ce1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to am5d ! ,employee ,retirem5t ,income ,security ,act ( #aigd & title #e1 ,unit$ ,/ates ,code1 to require plans to e/abli% policies address+ firm-specific risks 9 asset managem5t s]vices1 great] div]sification 9 inve/m5t /rategies1 & ! inclusion ( div]se asset manag]s & m9ority brok]age firms1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,am]ican ,p5sion ,inve/m5ts ,mod]nization ,act ( #bjad4 #b4 ,consid]ation ( firm-specific risks & inclusion ( div]se asset manag]s 9 ,,erisa plans 7a7 ,9 g5]al ,section #djd7;a7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7;a77 is am5d$-- 7#a7 9 p>agraph 7#a7-- 7,a7 9 subp>agraph 7,c71 by /rik+ & at ! end2 7,b7 by designat+ subp>agraph 7,d7 z subp>agraph 7,e72 & 7,c7 by ins]t+ aft] subp>agraph 7,c7 ! foll[+3 7,d7 9 any case 9 :i* ! fiduci>y appo9ts an inve/m5t manag] or manag]s to manage any assets ( a plan "u section #djb7;c77#c71 or bus9ess ent]prise or ent]prises = brok]age & inve/m5t bank+ s]vices1 by e/abli%+ policies "u :i* ! fiduci>y w consid]-- 7i7 ! conc5tration level ( ! plan's exposure to firm-specific risks1 includ+ op]ational1 compliance1 & fraud risks2 7ii7 ! inclusion1 to ! greate/ ext5t feasible1 ( m9ority bus9ess ent]prises = brok]age & inve/m5t bank+ s]vices2 & 7iii7 ! utilization ( div]se asset manag]s1 tak+ into consid]ation ! inve/m5t opportunities !y (f] 9 sectors1 /rategies1 geographies1 & demographics n mean+fully available to ! plans4 2 & 7#b7 by ins]t+ at ! end ! foll[+3 7#c7 7,a7 ,= purposes ( ?is subsection1 ! t]m m9ority bus9ess ent]prise means any bus9ess entity-- 7i7 n less ?an #ea p]c5t ( :i* is own$ by "o or m individuals describ$ 9 subp>agraph 7,c7 or1 9 ! case ( any publicly own$ bus9ess1 n less ?an #ea p]c5t ( ! /ock ( :i* is own$ by su* individuals2 or 7ii7 7,i7 n less ?an #ce p]c5t ( :i* is own$ by "o or m individuals describ$ 9 subp>agraph 7,c7 or1 9 ! case ( any publicly own$ bus9ess1 n less ?an #ce p]c5t ( ! /ock ( :i* is own$ by su* individuals2 & 7,,ii7 ! managem5t & daily bus9ess op]ations ( :i* are controll$ by "o or m individuals describ$ 9 subp>agraph 7,c74 7,b7 ,= purposes ( ?is subsection1 ! t]m div]se asset manag] means a m9ority bus9ess ent]prise t manages an inve/m5t portfolio ( at lea/ #ajj1jjj1jjj & n m ?an #be1jjj1jjj1jjj4 7,c7 ,an individual describ$ 9 ?is subp>agraph is-- 7i7 an ,african-,am]ican1 ,hispanic-,am]ican1 ,asian ,pacific ,am]ican1 ,subcont95t ,asian ,am]ican1 or ,native ,am]ican2 7ii7 a woman2 or 7iii7 a vet]an 7z def9$ 9 section #aja7b7 ( title #ch1 ,unit$ ,/ates ,code74 4 7b7 ,issuance ( guidance by ,secret>y ( ,labor ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor %all issue guidance relat+ to ! requirem5t impos$ by section #djd7;a77#a77;,d7 ( su* ,act 7z am5d$ by subsection 7a774 ,9 issu+ guidance "u ?is subsection1 ! ,secret>y ( ,labor %all consid] successful practices f ,/ate1 local1 & private-sector retirem5t sy/ems' utilization ( div]se & em]g+ asset manag]s & ( m9ority bus9ess ent]prises = brok]age & inve/m5t bank+ s]vices1 includ+ e/abli%$ ef=ts1 programs1 plans1 & goals design$ to increase _! p>ticipation 9 f9ancial s]vices1 & provid+ p5sion plans ) great] access to inve/m5t opportunities t may o!rwise be ov]look$4 #c4 ,consid]ation ( firm-specific risks & inclusion ( div]se asset manag]s 9 ! ,?rift ,sav+s ,plan 7a7 ,9 g5]al ,section #hdgb ( title #e1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7k7 ,9 e/abli%+ policies "u subsection 7f77#a77;,a71 ! ,bo>d %all take into acc\nt ! guidance issu$ by ! ,secret>y ( ,labor pursuant to section #djd7;a77#a77;,d7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7;a774 4 7b7 ,con=m+ am5dm5t ,section #hdgg7;b77#a77;,c7 ( su* title is am5d$ by ins]t+ aft] ( ?is title1 ! foll[+3 & consi/5t ) ! policies develop$ "u section #hdgb7k714 #d4 ,active managem5t option "u ! ,?rift ,sav+s ,plan 7a7 ,9 g5]al ,sub*apt] ,,iii ( *apt] #hd ( title #e1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ at ! end ! foll[+3 #hddj;g4 ,active managem5t option 7a7 ,! ,bo>d %all provide employees & ,memb]s & =m] employees or ,memb]s ! option to p>ticipate 9 actively manag$ funds )9 su* employee or ,memb]'s ,?rift ,sav+s ,fund acc\nt4 ,su* option or options %all all[ n m ?an #bj p]c5t ( an employee or ,memb]'s 7or =m] employee or ,memb]'s7 funds to be actively manag$4 7b7 ,not)/&+ ! requirem5t ( subsection 7a71 ! ,bo>d may n subject m ?an #bj p]c5t ( ! total assets "u managem5t ( ! ,?rift ,sav+s ,fund to active managem5t4 7c7 ,! ,bo>d %all promulgate guidel9es reg>d+ ! active managem5t ( funds "u ?is section4 ,9 promulgat+ su* guidel9es1 ! ,bo>d %all consid] mod]n & successful practices f ,/ate1 local1 & private-sector retirem5t sy/ems' utilization ( active managem5t /rategies 9 ord] to-- 7#a7 r$uce m>ket d[nside risks to ! be/ ext5t possible1 includ+ dramatic sw+s 9 major m>ket indexes2 7#b7 take advantage ( rese>* & inve/m5t opportunities (f]$ by small-1 m9ority-1 wom5- & vet]an-own$ firms t specialize 9 less traditional asset classes1 or less effici5t m>ket segm5ts ) high-gr[? pot5tials1 includ+ inve/m5ts 9 sectors1 /rategies1 geographies & demographics t are n mean+fully available to l>ge passively inve/$ funds2 & 7#c7 take advantage ( m effective portfolio designs t div]sify across active & passive inve/m5t /rategies & manag]s4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = su* sub*apt] is am5d$ by add+ aft] ! item relat+ to section #hddj;f ! foll[+ new item3 #hddj;g4 ,active managem5t option4 4 #e4 ,reports ,n lat] ?an #a ye> aft] ! issuance ( guidance "u section #b7;b7 & annually !reaft]1 ! ,secret>y ( ,labor & ! ,*airman ( ! ,f$]al ,retirem5t ,?rift ,inve/m5t ,bo>d %all submit a report to ,congress on ! progress a*iev$ & ef=ts be+ made to implem5t ! am5dm5ts made by sections #b & #c1 respectively4 ,su* report %all include su* recomm5dations z ! ,secret>y & ! ,*airman1 respectively1 deem necess>y or appropriate4 ,9 addition1 ea* report %all include-- 7#a7 an assessm5t ( ! ext5t to :i* compliance ) ! requirem5ts conta9$ 9 su* am5dm5ts is be+ a*iev$2 7#b7 a summ>y ( ! en=cem5t actions tak5 by ea* ( ! ag5cies assign$ adm9i/rative en=cem5t responsibilities = su* requirem5ts2 7#c7 to ! ext5t feasible1 ) respect to ! ,?rift ,sav+s ,plan & t]m9at$ plans )9 ! mean+ ( title ,,iv ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd-- 7,a7 a li/ ( all asset managem5t firms 7m9ority-own$ & o!rs7 to :i* plan funds 7 allocat$1 & ! am\nt allocat$ to ea* asset managem5t firm2 7,b7 ! fees *>g$ by ea* asset managem5t firm1 includ+ proce$s f security l5d+1 if any2 7,c7 ! li/ ( all firms 7m9ority-own$ & o!rs7 us$ = brok]age & inve/m5t bank+ s]vices1 & ! am\nt ( transactions execut$2 & 7,d7 ! fees *>g$ by ea* firm us$ = brok]age & inve/m5t bank+ s]vices4 #f4 ,effective date ,! am5dm5ts made by sections #b & #c %all apply ) respect to plan ye>s beg9n+ at lea/ #i mon?s aft] ! issuance ( guidance "u section #b7;b74