,,ii #aag? ,,congress #a/ ,session ,s4 #bhbi ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,septemb] #bc1 #bjba,mr4 ,rubio introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to am5d ! ,securities ,ex*ange ,act ( #aicd to require ! ,securities & ,ex*ange ,commission to require ! contractual provision by l>ge issu]s ( proc$ural privileges ) respect to c]ta9 %>ehold] claims relat+ to bo>d & managem5t acc\ntability = woke social policy actions z a condition ( li/+ on a national securities ex*ange1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,m9d ,y\r ,own ,bus9ess ,act ( #bjba4 #b4 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,! fiduci>y duties ( bo>ds ( directors & o!r corporate actors to corporations & _! /ockhold]s are g5]ally e/abli%$ by & en=ceable "u ,/ate law4 7#b7 ,/ate law g5]ally p]mits corporations discretion ) respect to alt]+ ! rights ( /ockhold]s1 includ+ ! process by :i* /ockhold]s ass]t claims = brea* ( fiduci>y duties by ! bo>d ( directors or o!r corporate actors1 limit$ by ,/ate law gov]n+ ^! fiduci>y duties4 7#c7 ,! regulation ( corporations z issu]s ( securities au?oriz$ by ,congress 9 ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 g5]ally regulates corporate behavior 9 connection ) ! issuance ( securities1 includ+ ) respect to contractual arrangem5ts betwe5 corporations & _! /ockhold]s via provisions 9 corporations' *>t]s & bylaws1 & does n-- 7,a7 e/abli% fiduci>y duties ( bo>ds ( directors or o!r corporate actors to corporations & _! /ockhold]s "u ,f$]al law2 or 7,b7 regulate ! fiduci>y duties ( bo>ds ( directors or o!r corporate actors to corporations & _! /ockhold]s "u ,/ate law4 7#d7 ,! ,/ate law fiduci>y duties ( bo>ds ( directors & o!r corporate actors e/abli% c]ta9 norms ^u :i* ! national m>ket sy/em = securities has hi/orically reli$1 includ+-- 7,a7 bo>ds ( directors & o!r corporate actors g5]ally h fiduci>y duties to _! respective corporations & /ockhold]s2 & 7,b7 ! behavior ( corporations z issu]s ( securities w g5]ally con=m to ^! fiduci>y duties1 to ! b5efit ( ! protection ( inve/ors & ! public int]e/4 7#e7 ,o!r norms relat$ to ! public int]e/ h hi/orically provid$ critical bases ^u :i* ! national m>ket sy/em = securities has hi/orically reli$1 includ+ norms t l>ge corporate issu]s t are significant to ! national economy-- 7,a7 g5]ally inve/ corporate res\rces to increase ! long-t]m value ( ! corporation z a bus9ess r ?an z an ag5t ( social *ange2 7,b7 d n use corporate res\rces to advance n>r[ly political or p>tisan ag5das2 & 7,c7 d n use corporate res\rces to promote socialism1 ,m>xism1 critical race !ory1 or o!r un-,am]ican ideologies among _! work=ces or cu/om]s4 7#f7 ,?\gh ^! norms are n en=ceable legal duties ( bo>ds ( directors or o!r corporate actors "u ,f$]al law1 !y sub/antially contribute to ! comm]cial purpose & nationwide availability ( ! national m>ket sy/em = securities1 :i* are recogniz$ by section #b ( ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;b7 z pr9cipal bases = ! regulation au?oriz$ by t ,act4 7#g7 ,c]ta9 l>ge corporate issu]s t are significant to ! national economy h rec5tly und]tak5 actions :i* facially violate ^! norms on acc\nt ( app>5t political bias4 ,examples ( su* actions include ! use ( corporate res\rces to-- 7,a7 d5y goods & s]vices to ,/ates & _! political subdivisions1 & private entities )9 su* ,/ates & _! political subdivisions1 9 response to ! social policies propos$ or enact$ 9 su* ,/ates & _! political subdivisions1 includ+ ^? relat$ to election proc$ures1 re/rictions on abortion1 protections = religi\s fre$om1 & en=cem5t ( immigration law2 7,b7 d5y goods & s]vices to indu/ries & o!r classes ( entities on ! basis ( *>act]i/ics ( ^? indu/ries & classes relat$ to social policy1 includ+ indu/ries involv$ 9 ! sale or manufacture ( fire>ms1 op]ation ( bord] security or crim9al det5tion facilities1 & p]=mance ( s]vices = ! ,unit$ ,/ates milit>y1 & classes ( entities bas$ on religi\s belief or id5tity2 7,c7 promote race & sex /]eotyp+1 su* z ^? describ$ 9 section #b7;a7 ( ,executive ,ord] #aciej 7#e ,u4,s4,c4 #dajc note2 relat+ to combat+ race & sex /]eotyp+71 :i* include su* de/ructive concepts t ! ,unit$ ,/ates is fundam5tally raci/ or sexi/1 an individual %\ld be discrim9at$ aga9/ or receive adv]se treatm5t solely or p>tly because ( 8 or h] race or sex1 & m]itocracy or traits su* z a h>d "w e?ic are raci/ or sexi/1 or 7 creat$ by a p>ticul> race to oppress ano!r race2 & 7,d7 op5ly coord9ate ) political actors to pursue su* actions1 includ+-- 7i7 und]tak+ su* actions ^u ! action 7or inaction7 ( bo>ds ( directors & o!r corporate actors t are n suffici5tly indep5d5t f conflicts ( int]e/ ) political actors1 includ+ elect$ (ficials1 political p>ties1 news m$ia1 labor unions1 nonpr(it or non-gov]nm5tal organizations :i* advocate = *anges political or social policy ?r\gh issu]s1 o!r activi/s affiliat$ ) su* actors1 & activi/ inve/ors :i* advocate = *anges 9 corporate policy prim>ily unrelat$ to ! pecuni>y int]e/ ( ! issu]2 & 7ii7 conc$+ to ! dem&s ( su* political actors )\t und]tak+ due c>e4 7#h7 ,! prom95t1 op51 & public facial violation ( ^! norms by l>ge corporate issu]s t are significant to ! national economy und]m9e ! comm]cial purpose & nationwide availability ( ! national m>ket sy/em = securities by sp5d+ corporate res\rces on non-comm]cial & divisive1 political & p>tisan causes4 7#i7 ,! ?reat ^! actions pose to ! national m>ket sy/em = securities e/abli%es a public int]e/ 9 ensur+ l>ge corporate issu]s t are significant to ! national economy-- 7,a7 h adequate int]nal proc$ural me*anisms to ensure ! acc\ntability ( bo>ds ( directors & o!r corporate actors ) respect to _! adh]5ce ) ! norms describ$ 9 ?is section2 & 7,b7 d n unduly burd5 ! ability ( /ockhold]s to ass]t claims = brea* ( fiduci>y duty "u ,/ate law :]e ! actions at issue 9 su* claims facially violates ^? norms4 #c4 ,li/+ requirem5t relat+ to proc$ural privileges = c]ta9 %>ehold] claims ,! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq47 is am5d$ by ins]t+ aft] section #aj;,d 7#ae ,u4,s4,c4 #gh;j-#d7 ! foll[+3 #aj;,e4 ,proc$ural privileges = c]ta9 %>ehold] claims 7a7 ,def9itions ,9 ?is section3 7#a7 ,claimant ,! t]m claimant means-- 7,a7 a p]son t br+s a cov]$ claim2 or 7,b7 if a cov]$ claim is br\ght z a class action1 ! repres5tative ( ! class 9 t action4 7#b7 ,controll] ,! t]m controll] means any p]son or entity t has control1 directly or indirectly1 by any means 7z ^? t]ms are def9$ "u applicable ,/ate law71 ov] ! bo>d ( directors ( an issu]1 ei!r-- 7,a7 g5]ally2 or 7,b7 ) respect to an action at issue 9 a cov]$ claim4 7#c7 ,cov]$ claim ,! t]m cov]$ claim-- 7,a7 means any s+le cause ( action t-- 7i7 ass]ts a claim = brea* ( fiduci>y duty ow$ by any corporate def5dant to ! applicable issu] 7or ! %>ehold]s ( ! applicable issu]7 result+ f mat]ial action by any cov]$ corporate actor ) respect to ! applicable issu]-- 7,i7 t is tak5 prim>ily 9 response to a law 7includ+ a regulation7 t is enact$ by a ,/ate1 or a bill t is introduc$ 9 ! legislature ( a ,/ate or policy o!rwise publicly propos$ by an elect$ (ficial ( a ,/ate1 :i* %all include if su* action includes any prohibition ( bus9ess )9 t ,/ate by an issu]1 :e!r ) respect to bus9ess s]vices or travel to1 or major ev5ts 91 t ,/ate1 t is facially unrelat$ to ! pecuni>y int]e/ ( ! applicable issu]1 :i* %all presumptively include if ! law bill1 or policy w\ld modify1 e/abli%1 or create a law relat+ to-- 7aa7 ! mann] 9 :i* elections are conduct$ 9 ! ,/ate2 7bb7 protect+ religi\s fre$om2 or 7cc7 limit+ ! availability ( s]vices t include ! abortion ( unborn *ildr52 7,,ii7 to prohibit ! sale ( goods or s]vices by any cov]$ corporate actor ) respect to ! applicable issu] to cu/om]s :o op]ate 9 an indu/ry ) :i* ! issu] engages 9 su* bus9ess prim>ily on ! basis ( a *>act]i/ic ( t indu/ry t is facially unrelat$ to ! pecuni>y int]e/ ( ! applicable issu]2 7,,iii7 to promote a cov]$ divisive concept2 or 7,,iv7 = :i* ! reason+ publicly pres5t$ by any cov]$ corporate actor ) respect to ! applicable issu] z-- 7aa7 any basis = su* action promotes a cov]$ divisive concept2 or 7bb7 ! prim>y basis = su* action is facially unrelat$ to ! pecuni>y int]e/ ( ! applicable issu]1 :i* %all presumptively include any ref]5ce to div]sity1 equity1 or inclusion ) respect to ! composition ( ! work=ce1 managem5t1 or bo>d ( directors ( ! issu] or society 9 g5]al2 & 7ii7 is br\ght by a cov]$ %>ehold] z-- 7,i7 a direct action2 or 7,,ii7 a d]ivative action or proce$+ br\ght on behalf ( ! applicable issu]2 & 7,b7 does n include a cause ( action t ass]ts a claim = ! brea* ( fiduci>y duty ow$ by any corporate def5dant to ! applicable issu] 7or ! %>ehold]s ( t issu]7 result+ f-- 7i7 a *>itable contribution by any cov]$ corporate actor ) respect to ! applicable issu]2 7ii7 ! ex]cise ( religion by any cov]$ corporate actor ) respect to ! applicable issu]2 7iii7 bus9ess activity by any cov]$ corporate actor 9 connection ) ! national security ( ! ,unit$ ,/ates1 ! ,arm$ ,=ces1 or vet]ans ( ! ,arm$ ,=ces2 or 7iv7 ! limitation ( bus9ess by any cov]$ corporate actor ) respect to ! applicable issu]-- 7,i7 occurr+ 9 ! jurisdiction (1 or ) an ag5t ( ! ,p's ,republic ( ,*9a1 ! ,russian ,f$]ation1 ,nor? ,korea1 ,iran1 ,syria1 ,sudan1 ,v5ezuela1 or ,cuba2 7,,ii7 9 connection ) prev5t+ ! abuse ( int]nationally recogniz$ work] rights1 z def9$ 9 section #ejg ( ! ,trade ,act ( #aigd 7#ai ,u4,s4,c4 #bdfg72 7,,iii7 ) any entity t d]ives directly or indirectly m ?an de m9imis gross rev5ue ?r\gh ! sale ( products or s]vices1 or ! pres5tation ( any depictions or displays1 ( a pruri5t sexual nature2 7,,iv7 ) any entity t engages 9 a comm]ce- or inve/m5t-relat$ boycott1 dive/m5t1 or sanctions activity t t>gets ,israel2 or 7,v7 t is requir$ "u ,f$]al1 ,/ate1 or local law4 7#d7 ,cov]$ company ,! t]m cov]$ company means an issu] t has1 z calculat$ 9 accordance ) section #bdj4ab;b-#b ( title #ag1 ,code ( ,f$]al ,regulations1 or any successor regulation-- 7,a7 a public float ( m ?an #bj1jjj1jjj1jjj2 or 7,b7 annual rev5ues ( m ?an #e1jjj1jjj1jjj4 7#e7 ,cov]$ corporate actor ,! t]m cov]$ corporate actor means-- 7,a7 an issu]2 7,b7 a director1 (fic]1 or affiliate ( an issu]2 7,c7 a controll] ) respect to an issu]2 or 7,d7 any p]son act+ 9 ! capacity ( an (fic] or ag5t ( an issu]4 7#f7 ,corporate def5dant ,! t]m corporate def5dant means any individual :o-- 7,a7 is a director1 (fic]1 affiliate ( an issu]1 or controll]2 & 7,b7 may be nam$ z a def5dant 9 a cause ( action = brea* ( fiduci>y duty "u applicable ,/ate law4 7#g7 ,cov]$ divisive concept ,! t]m cov]$ divisive concept means any concept describ$ 9 section #b7;a7 ( ,executive ,ord] #aciej 7#e ,u4,s4,c4 #dajc note2 relat+ to combat+ race & sex /]eotyp+74 7#h7 ,cov]$ %>ehold] 7,a7 ,9 g5]al ,! t]m cov]$ %>ehold] means a %>ehold] t z ( ! date on :i* a cov]$ claim ) respect to ! issu] is fil$ & at all times dur+ :i* ! cov]$ claim describ$ 9 subp>agraph 7,a7 is p5d+ h cont9u\sly own$ n less ?an-- 7i7 #b1jjj 9 m>ket value ( ! issu]'s securities = at lea/ ?ree ye>s2 7ii7 #ae1jjj 9 m>ket value ( ! issu]'s securities = at lea/ two ye>s2 or 7iii7 #be1jjj 9 m>ket value ( ! issu]'s securities = at lea/ "o ye>4 7#i7 ,director ,! t]m director means1 ) respect to an issu]1 a memb] ( ! bo>d ( directors ( ! issu]4 7#aj7 ,inve/m5t advis]2 private fund ,! t]ms inve/m5t advis] & private fund h ! mean+s giv5 ! t]ms 9 section #bjb ( ! ,inve/m5t ,advis]s ,act ( #aidj 7#ae ,u4,s4,c4 #hj;b-#b74 7#aa7 ,inve/m5t company ,! t]m inve/m5t company has ! mean+ giv5 ! t]m 9 section #c ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c74 7#ab7 ,issu] ,! t]m issu] means an issu] ) a class ( securities regi/]$ pursuant to section #ab4 7#ac7 ,non-pecuni>y inve/m5t entity ,! t]m non-pecuni>y inve/m5t entity means-- 7,a7 any inve/m5t company or private fund t inve/s1 re9ve/s1 or trades1 or proposes to inve/1 re9ve/1 or trade 91 or t ex]cises any control "r ) respect to any security prim>ily on a basis t is facially unrelat$ to ! pecuni>y int]e/ ( any b5efici>y ( su* company or fund = :i* su* activity occurs ) respect to su* security2 7,b7 any inve/m5t advisor t provides any advice t is n a *>itable contribution-- 7i7 t is = comp5sation2 & 7ii7 ! basis = :i* is prim>ily unrelat$ to ! pecuni>y int]e/ ( ! p>ty receiv+ ! advice2 7,c7 any entity t engages 9 activism ) respect to issu]s to :i* section #ad applies = :i* ! prim>y basis ( su* activism is facially unrelat$ to ! pecuni>y int]e/ ( ! issu]s to :i* su* activism is direct$1 includ+-- 7i7 nom9at+ c&idates = election z directors ( ^? issu]s2 or 7ii7 mak+ %>ehold] proposals pursuant to t section2 & 7,d7 any labor organization1 z def9$ 9 section #b ( ! ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aeb71 or p5sion fund affiliat$ ) a labor organization4 7b7 ,requirem5ts 7#a7 ,rules ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ! ,m9d ,y\r ,own ,bus9ess ,act ( #bjba1 ! ,commission %all1 by rule1 direct ! national securities ex*anges & national securities associations to prohibit ! li/+ ( any security ( any cov]$ company t is n 9 compliance ) ! requirem5ts ( ?is section4 7#b7 ,issu] requirem5ts ,! rules issu$ "u p>agraph 7#a7 %all require ea* issu]1 to ! maximum ext5t p]mitt$ by ,/ate law1 9 ! articles ( incorporation or bylaws ( ! issu]1 to provide1 ) respect to any cov]$ claim1 t any corporate def5dant ) respect to ! issu] t is nam$ z a def5dant 9 ! cov]$ claim %all-- 7,a7 be b\nd by ! presumptions e/abli%$ "u subsection 7c7 ) respect to any factual repres5tation made 9 connection ) ! cov]$ claim1 includ+ any factual repres5tation relat+ to :e!r a claim ass]t$ is a cov]$ claim2 7,b7 h ! burd5 ( pro( ) respect to any det]m9ation ( indep5d5t bus9ess judgm5t2 7,c7 if ! claimant obta9s a judgm5t on ! m]its 9 ! cov]$ claim1 be jo9tly & sev]ally liable = money damages to ! claimant 9 an am\nt t is n less ?an ! great] (-- 7i7 treble damages2 or 7ii7 #b times ! total comp5sation paid by ! issu] to all directors ( ! issu] = ! ye> 9 :i* ! prim>y action alleg$ 9 ! cov]$ claim sub/antially occurr$1 :i* %all include ! m>ket value ( all securities issu$ z comp5sation to ^? directors 9 t ye>2 7,d7 if ! claimant obta9s all or "s ( ! relief s\ght 9 ! cov]$ claim1 :e!r by c\rt ord]1 settlem5t1 volunt>y *ange 9 ! conduct ( ! def5dant1 or o!rwise1 reimburse ! claimant = ! greate/ am\nt p]mitt$ by law ) respect to all fees1 co/s1 & exp5ses ( e k9d & description 7includ+ all reasonable attorney's fees & o!r litigation exp5ses7 t ! claimant may obta9 9 connection ) ! cov]$ claim2 & 7,e7 n be indemnifi$ by ! issu] = any liability1 loss 7includ+ attorney's fees1 judgm5ts1 f9es1 or am\nts paid 9 settlem5t7 incurr$ or suff]$ 9 connection ) ! cov]$ claim4 7c7 ,presumptions ,= ! purposes ( ?is section1 ! foll[+ presumptions %all apply ) respect to any cov]$ claim1 includ+ ) respect to any factual repres5tation relat+ to :e!r a claim ass]t$ is a cov]$ claim3 7#a7 ,pecuni>y int]e/ ,!re %all be a presumption t ! pecuni>y int]e/ ( an issu]1 :i* %all include ! be/ int]e/ ( ! issu] to ! ext5t t su* int]e/ is sub/antially simil> to ! pecuni>y int]e/ ( ! issu]1 does n include-- 7,a7 ! morale (1 or ability ( ! issu] to hire or reta91 sup]visory employees 9 g5]al2 7,b7 ! div]sity ( ! bo>d ( directors1 managem5t1 or work=ce 9 g5]al ) respect to any *>act]i/ic protect$ by section #gjc ( ! ,civil ,rights ,act ( #aifd 7#db #bjjj;e-#b72 7,c7 ! public relations1 image1 value ( m>ket+1 or cov]age by ! news m$ia ( ! issu]2 or 7,d7 any f9ancial b5efit or r$uction 9 co/1 includ+ ! co/ ( capital to ! issu]1 to ! ext5t ! pecuni>y b5efit ( or to su* b5efit or r$uction 9 co/ is caus$ by !-- 7i7 inve/m5t 9 ! securities ( ! issu] by a non-pecuni>y inve/m5t entity2 or 7ii7 inclusion ( ! securities ( ! issu] 9 indexes creat$ by index provid]s t select ^? indexes on a prim>ily non-pecuni>y basis or t include su* securities 9 any index on a prim>ily non-pecuni>y basis4 7#b7 ,dem& excus$ ,= ! purpose ( det]m9+ :e!r dem& is excus$ ) respect to a cov]$ claim1 !re %all be a presumption t a director is n indep5d5t if ! director is employ$1 controll$1 or nom9at$ by1 or o!rwise has a hi/ory ( affiliation ) a non-pecuni>y inve/m5t entity or any affiliate ( a non-pecuni>y inve/m5t entity4 7d7 ,rules ( con/ruction ,no?+ 9 ?is section may be con/ru$-- 7#a7 to limit ! ex]cise ( religion1 z def9$ 9 section #e ( ! ,religi\s ,fre$om ,re/oration ,act ( #aiic 7#db ,u4,s4,c4 #bjjj;bb-#b7 ( any issu] or any director1 (fic]1 or affiliate ( an issu]2 or 7#b7 z e/abli%+ a fiduci>y duty by any corporate def5dant or corporate actor4 4