,,ii #aadth ,,congress #ast ,session ,s4 #ahjb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #af1 #bjae ,mr4 ,toomey 7for himself1 ,mr4 ,manchin1 ,mr4 ,crapo1 and ,mr4 ,menendez7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to protect the investment choices of ,american investors1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,consumer ,financial ,choice and ,capital ,markets ,protection ,act of #bjae4 #b4 ,treatment of money market funds under the ,investment ,company ,act of #aidj ,the ,investment ,company ,act of #aidj 7#ae ,u4,s4,c4 #hj;a et seq47 is amended by adding at the end the following3 #ff4 ,money market funds 7a7 ,election ,to be treated as money market fund ,notwithstanding any other provision of this title1 any open-end investment company 7or a separate series thereof7 may elect1 in its registration statement filed under section #h1 to be a money market fund and may compute the current price per share1 for purposes of distribution or redemption and repurchase1 of any redeemable security issued by the company using the amortized cost method of valuation1 or the penny-rounding method of pricing1 regardless of whether its shareholders are limited to natural persons1 if-- 7#a7 the company or series has as its objective the generation of income and preservation of capital through investment in short-term1 high-quality debt securities2 7#b7 if the company or series elects to maintain a stable net asset value per share or stable price per share1 by virtue of the amortized cost valuation method1 as that term is defined in section #bgj4b;a-#g7;a77#b7 of title #ag1 ,code of ,federal ,regulations1 as in effect on the date of enactment of this section1 and in accordance with the requirements specified with respect to the use of the amortized cost valuation method as set forth in that section1 as in effect on the date of enactment of this section1 or the penny-rounding pricing method1 as that term is defined in section #bgj4b;a-#g7;a77#ba7 of title #ag1 ,code of ,federal ,regulations1 as in effect on the date of enactment of this section1 and in accordance with the requirements specified with respect to the use of the penny-rounding pricing method as set forth in that section1 as in effect on the date of enactment of this section1 the board of directors of the company has determined1 in good faith1 that-- 7,a7 it is in the best interests of the company or series1 and its shareholders1 to do so2 and 7,b7 the money market fund will continue to use such method or methods only as long as the board of directors believes that the resulting share price fairly reflects the market-based net asset value per share of the company or series2 and 7#c7 the company or series agrees to comply with such quality1 maturity1 diversification1 and liquidity requirements1 including reasonable procedural and recordkeeping requirements and provisions relating to liquidity fees and restrictions on redemptions1 as the ,commission1 by rule or regulation or order1 may prescribe or has prescribed as necessary or appropriate in the public interest or for the protection of investors to the extent that such requirements and provisions are not inconsistent with this section4 7b7 ,prohibition against ,federal ,government bailouts of money market funds 7#a7 ,definitions ,in this subsection-- 7,a7 the term covered ,federal assistance means ,federal assistance used for the purpose of-- 7i7 making any loan to1 or purchasing any stock1 equity interest1 or debt obligation of1 any money market fund2 7ii7 guaranteeing any loan or debt issuance of any money market fund2 or 7iii7 entering into any assistance arrangement 7including tax breaks71 loss sharing1 or profit sharing with any money market fund2 and 7,b7 the term ,federal assistance means-- 7i7 insurance or guarantees by the ,federal ,deposit ,insurance ,corporation2 7ii7 transactions involving the ,secretary of the ,treasury2 or 7iii7 the use of any advances from any ,federal ,reserve credit facility or discount window that is not part of a program or facility with broad-based eligibility established in unusual or exigent circumstances4 7#b7 ,prohibition ,notwithstanding any other provision of law 7including regulations71 covered ,federal assistance may not be provided directly to any money market fund4 7c7 ,disclosure of the prohibition against ,federal ,government bailouts of money market funds ,no principal underwriter of a redeemable security issued by a money market fund nor any dealer shall offer or sell any such security to any person unless the prospectus of the money market fund and any advertising or sales literature for such fund prominently discloses the prohibition against direct covered ,federal assistance as described in subsection 7b74 ,the ,commission may1 after consultation with and taking into account the views of the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 and the ,department of the ,treasury1 adopt rules and regulations1 and issue orders consistent with the protection of investors1 prescribing the manner in which the disclosure under this subsection shall be provided4 7d7 ,continuing obligation ,to meet requirements of this title ,a company that elects to be a money market fund in accordance with subsection 7a7 or is otherwise a money market fund operating in accordance with the rules and regulations of the ,commission applicable to money market funds shall remain subject to the provisions of this title and the rules and regulations of the ,commission thereunder that would otherwise apply to a registered open-end company1 as long as those provisions do not conflict with the provisions of this section4 4