,,ii  #aag? ,,congress  #a/ ,session    
,s4 #afgg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #ah1 #bjba ,ms4   
,baldw9 7= h]self1 ,mr4 ,s&]s1 ,ms4     
,w>r51 ,mr4 ,m]kley1 ,mr4 ,m>key1 ,mr4  
,book]1 & ,mr4 ,blum5?al7 introduc$ !   
foll[+ bill2 :i* 0 read twice & ref]r$  
to ! ,committee on ,heal?1 ,education1  
,labor1 & ,p5sions  ,a ,,bill  ,to      
e/abli% a process by :i* p>ticipants (  
employee welf>e plans select guidel9es  
to be us$ by ! plan fiduci>y = vot+     
proxies on securities held 9 inve/m5t   
portfolios "u ! plan1 & = o!r purposes4 
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,enc\rag+ ,m ,proxy vot+ by ,organiz$ 
,work]s1 ,employees1 & ,retirem5t ,sav]s
 ,act or ! ,,emp[]s ,act4  #b4          
,tru/ee%ip ( s+le-employ] plans ,section
 #djc7;a7 ( ! ,employee ,retirem5t      
,income ,security ,act ( #aigd 7#bi     
,u4,s4,c4 #aajc7;a77 is am5d$--  7#a7 by
 r$esignat+ p>agraphs 7#a7 & 7#b7 z     
subp>agraphs 7,a7 & 7,b71 respectively2 
7#b7 by /rik+ ,except z & ins]t+ 7#a7   

,except z2 &  7#c7 by add+ at ! end !   
foll[+3  7#b7 7,a7 ,! assets ( a        
s+le-employ] plan %all be held 9 tru/ by
 a jo9t bo>d ( tru/ees1 :i* %all consi/ 
( #b or m tru/ees repres5t+ on an equal 
basis ! int]e/s ( ! employ] or employ]s 
ma9ta9+ ! plan & ! int]e/s ( !          
p>ticipants & _! b5efici>ies4  7,b7  7i7
 ,except z provid$ 9 clause 7ii71 9 any 
case 9 :i* ! plan is ma9ta9$ pursuant to
 "o or m collective b>ga9+ agreem5ts    
betwe5 "o or m employee organizations & 
"o or m employ]s1 ! tru/ees repres5t+ ! 
int]e/s ( ! p>ticipants & _! b5efici>ies
 %all be designat$ by su* employee      
organizations4  7ii7 ,9 any case 9 :i*  
clause 7i7 does n apply ) respect to a  
s+le-employ] plan because ! plan is n   
describ$ 9 clause 7i71 ! tru/ee or      
tru/ees repres5t+ ! int]e/s ( !         
p>ticipants & _! b5efici>ies %all consi/
 ( #a or m p>ticipants "u ! plan elect$ 
to s]ve z su* 9 accordance ) ?is clause4
  7,c7 ,n lat] ?an "o ye> aft] ! date ( 
enactm5t ( ! ,enc\rag+ ,m ,proxy vot+ by

 ,organiz$ ,work]s1 ,employees1 &       
,retirem5t ,sav]s ,act1 ! ,secret>y %all
 issue rules ) respect to ! election (  
tru/ees & c]tification ( ! results ( su*
 elections "u subp>agraph 7,b77ii74 ,su*
 rules %all ensure t-- 7i7 employee     
tru/ee elections are--  7,i7 fair &     
democratic & free f int]f]5ce by !      
employ]1 ! employ]'s fiduci>ies1 & !    
inve/m5t manag]s2  7,,ii7 design$ to    
maximize p>ticipation by plan           
p>ticipants & _! b5efici>ies & to be    
conv5i5t = p>ticipants1 & _! b5efici>ies
 :5 appropriate1 to vote2  7,,iii7 use !
 late/ te*nologies to meet ! objectives 
describ$ 9 subclause 7,,ii72  7,,iv7    
provide = a secret ballot to be us$ by !
 p>ticipants ( ! plan 7or1 9 ! case ( a 
deceas$ p>ticipant1 by ! b5efici>y ( su*
 p>ticipant72 &  7,v7 provide "o vote p]
 p>ticipant1 :i*1 9 ! ev5t a p>ticipant 
is deceas$1 may be ca/ by ! deceas$     
p>ticipant's b5efici>y2 &  7ii7 tru/ee  
vacancies are fill$--  7,i7 by !        
election process1 & n by appo9tm5t2 &   

7,,ii7 n lat] ?an "o mon? aft] ! tru/ee 
position is vacant4  4  #c4 ,proxy vot+ 
guidel9es = s+le employ] plans  7a7     
,e/abli%m5t ( plan ,section #djb ( !    
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #aajb7 is   
am5d$ by add+ at ! end ! foll[+3  7d7   
,proxy vot+ guidel9es = s+le employ]    
plans  7#a7 ,9 g5]al ,! tru/ees ( a plan
 %all e/abli% a set ( proxy vot+        
guidel9es to direct ! vot+ ( ! plan's   
%>es ( corporate /ock by plan           
fiduci>ies1 except 9 ! case ( an        
employee /ock own]%ip plan z def9$ 9    
section #djg7;d77#f74  7#b7 ,tru/ees    
7,a7 ,tra9+ ,ea* plan tru/ee describ$ 9 
p>agraph 7#a7 %all und]go tra9+1 :i*    
%all-- 7i7 include education on proxy   
vot+ issues1 fund & executive           
comp5sation practices1 proc$ural        
prud5ce1 & appropriate long-t]m inve/+ =
 retirem5t sav]s2 &  7ii7 be adm9i/]$ by
 a ?ird p>ty nonpr(it organization )    
significant exp]i5ce 9 educat+ tru/ees =
 s]vice z employee repres5tatives on    

employee b5efit bo>ds4  7,b7 ,tra9+     
curriculum ,! tra9+ describ$ 9          
subp>agraph 7,a7 %all foll[ a curriculum
 e/abli%$ by an entity select$ by !     
,secret>y4  7,c7 ,fiduci>y duty to      
und]go tra9+ ,a failure to und]go tra9+ 
& fulfill ! obligation to develop       
guidel9es 9 accordance ) p>agraph 7#a7  
%all be deem$ to be a violation (       
fiduci>y duties "u section #djd4  7#c7  
,vot+ guidel9es ) respect to diff]5t    
inve/m5t options ,a plan may e/abli%    
multiple vot+ guidel9es1 ) ea* set (    
vot+ guidel9es applicable to specific   
fiduci>ies & inve/m5t options available 
to ! plan p>ticipants4  7#d7            
,availability ( vot+ guidel9es ,! vot+  
guidel9es e/abli%$ pursuant to ?is      
subsection ) respect to a plan %all be  
made available to all plan p>ticipants &
 b5efici>ies4  7#e7 ,inve/m5t companies 
& pool$ inve/m5t vehicles  7,a7         
,provision ( vot+ guidel9es ,if an      
employee b5efit plan is inve/$ 9        
securities issu$ by an inve/m5t company 

regi/]$ "u ! ,inve/m5t ,company ,act (  
#aidj 7#ae ,u4,s4,c4 #hj;a-#a71 or any  
o!r pool$ inve/m5t vehicle1 ! tru/ees   
describ$ 9 p>agraph 7#a7 %all provide to
 ! company ! vot+ guidel9es e/abli%$ "u 
p>agraph 7#a74  7,b7 ,proxy vot+ ,an    
inve/m5t company or pool$ inve/m5t      
vehicle describ$ 9 subp>agraph 7,a7 %all
 vote 9 accordance ) ! guidel9es provid$
 "u t subp>agraph ) respect to !        
p]c5tage ( proxies t is equival5t to !  
p]c5tage ( own]%ip ( ! employee b5efit  
plan 9 ! inve/m5t company4  7,c7 ,proxy 
vot+ record report ,an inve/m5t company 
describ$ 9 subp>agraph 7,a7 %all        
annually provide to ! p>ticipant        
repres5tation bo>d a report on all !    
votes ! inve/m5t company ca/ on behalf (
 ! plan 9 ! la/ ye>4 ,ea* su* report    
%all provide ! relevant provision ( !   
plan's guidel9es illu/rat+ h[ ! inve/m5t
 company made its det]m9ation4  7,d7    
,rule ( con/ruction ,no?+ 9 ?is p>agraph
 may be con/ru$ to deem securities issu$
 by inve/m5t companies to employee      

b5efit plans to be s5ior securities1 z  
def9$ 9 section #ah7;g7 ( ! ,inve/m5t   
,company ,act ( #aidj 7#ae ,u4,s4,c4    
#hj-ah7;g774  7#f7 ,exemption = small   
plans ,! ,secret>y may exempt f !       
requirem5ts ( ?is subsection any plan ) 
few] ?an #ajj p>ticipants1 subject to ! 
same requirem5ts ) respect to an        
exemption to report+ requirem5ts "u     
section #bebj4ajd-df ( title #bi1 ,code 
( ,f$]al ,regulations 7or any successor 
regulations74  7#g7 ,con=m+ ) ,secure   
,act ,n lat] ?an "o ye> aft] ! enactm5t 
( ?is subsection1 ! ,secret>y %all      
promulgate rules to ensure t !          
requirem5ts ( ?is subsection apply to   
multiple employ] plans ) pool$ provid]s 
plans z describ$ 9 section #dac7;e7 ( ! 
,int]nal ,rev5ue ,code ( #aihf4  7#h7   
,inve/m5t manag] proxy vot+ policies ,no
 inve/m5t manag] %all require p>ticipat+
 inve/ors to accept ! inve/m5t manag]'s 
own proxy vot+ policy z a condition (   
inve/m5t  4  7b7 ,prud5ce requirem5t    
,section #djd7;a77#a7 ( ! ,employee     

,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #aajd7;a77#a77 is  
am5d$-- 7#a7 9 subp>agraph 7,c71 by     
/rik+ & at ! end2  7#b7 9 subp>agraph   
7,d71 by /rik+ ! p]iod & ins]t+ 2 &2 &  
7#c7 by add+ at ! end ! foll[+3  7,e7 9 
ex]cis+ a plan's proxy vot+ rights )    
respect to plan assets-- 7i7 may vote   
proxies 9 accordance ) ! plan's proxy   
vot+ guidel9es z e/abli%$ by ! plan's   
tru/ees1 unless ! fiduci>y det]m9es t ! 
ca/+ ( any proxy vote w\ld be inconsi/5t
 ) subp>agraphs 7,a7 & 7,b72 &  7ii7 may
 consid]-- 7,i7 ! di/9ct & specific     
inve/m5t objectives & horizons ( !      
p>ticipants & b5efici>ies1 especially 9 
contra/ ) o!r m>ket actors engag$ 9     
proxy vot+2 &  7,,ii7 ! div]sifi$ nature
 ( ! plan's inve/m5ts & ! effect ( any  
negative ext]nalities g5]at$ by         
portfolio companies on ! plan's ability 
to provide b5efits to p>ticipants &     
b5efici>ies by r$uc+ ! returns f o!r    
plan assets4  4