,,ii #aagth ,,congress #b;d ,session ,s4 #djig ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #bg1 #bjbb,mr4 ,kaine 7for himself1 ,mr4 ,booker1 ,mrs4 ,murray1 ,mr4 ,menendez1 and ,mr4 ,warner7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to improve access for diverse-owned asset management firms1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,too ,narrow to ,succeed ,act4 #b4 ,purpose ,the purpose of this ,act is to improve access for diverse-owned1 including women- and minority-owned1 asset management firms by-- 7#a7 increasing transparency regarding the asset management firm selection processes of ,federal institutional investors2 7#b7 identifying common and potential barriers that limit business opportunities for diverse-owned asset management firms and developing strategies to remove these barriers2 and 7#c7 enabling both public and private retirement funds to adopt broader and more inclusive selection processes to reduce systemic risk and maximize returns1 consistent with administrators' fiduciary responsibilities4 #c4 ,definitions ,in this ,act3 7#a7 ,asset management firm ,the term asset management firm means any investment firm that-- 7,a7 manages a portfolio of securities or other assets for a defined benefit plan or other institutional investor2 or 7,b7 offers investment options1 such as mutual1 private equity1 real estate1 or other commingled funds1 to participate in a defined contribution or other comparable retirement plan4 7#b7 ,diverse-owned ,the term diverse-owned1 when used with respect to an asset management firm1 means any threshold or other requirements determined appropriate by the ,secretary under section #d7;a77#c74 7#c7 ,federal institutional investor ,the term ,federal institutional investor means each of the following3 7,a7 ,the ,federal ,retirement ,thrift ,investment ,board4 7,b7 ,the entity that administers-- 7i7 the funds of the ,pension ,benefit ,guaranty ,corporation established under section #djje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acje72 7ii7 the funds of the ,national ,railroad ,retirement ,investment ,trust established under section #ae7;j7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bcan7j772 7iii7 the funds of the ,federal ,reserve ,system ,retirement ,plan2 7iv7 the funds of the ,federal ,reserve ,system ,thrift ,plan2 7v7 the funds of the ,tennessee ,valley ,authority ,retirement ,system2 7vi7 the funds of the ,tennessee ,valley ,authority ,retirement ,system ,savings and ,deferral ,retirement ,plan2 7vii7 the funds of the ,army and ,air ,force ,exchange ,service ,retirement ,system2 7viii7 the funds of the ,navy ,exchange ,service ,command ,retirement ,plan2 or 7ix7 the endowment funds of the ,smithsonian ,institution4 7,c7 ,any other ,federal entity that administers a fund-- 7i7 with more than #a1jjj1jjj1jjj in assets invested for which the entity uses the services of1 or contracts with1 an asset management firm2 and 7ii7 that the ,secretary determines is similar to the ,thrift ,savings ,fund or a fund described in subparagraph 7,b74 7#d7 ,federal investments ,the term ,federal investments means investments of sums in a fund administered by a ,federal institutional investor4 7#e7 ,secretary ,the term ,secretary means the ,secretary of ,labor4 7#f7 ,subcontractor asset management firm ,the term subcontractor asset management firm means an asset management firm that-- 7,a7 enters into a contract 7including a subcontract7 with an asset management firm that is the primary manager of ,federal investments1 through the use of services or by contract1 for a ,federal institutional investor2 and 7,b7 under the terms of the contract1 manages ,federal investments of the ,federal institutional investor4 #d4 ,improving access for diverse-owned asset management firms 7a7 ,annual reports by ,federal institutional investors that invest in externally managed assets 7#a7 ,annual reports 7,a7 ,reports required ,by not later than ,december #ca1 #bjbb1 and annually thereafter1 each ,federal institutional investor that uses the services of1 or contracts with1 an asset management firm to manage ,federal investments shall prepare and submit a report to the ,secretary on the usage of diverse-owned asset management firms by the ,federal institutional investor4 7,b7 ,inclusion of subcontractor asset management firms ,the report under subparagraph 7,a7 shall also include all subcontractor asset management firms of the ,federal institutional investor4 7#b7 ,content of reports ,each report described in paragraph 7#a7 shall include1 with respect to any fund administered by the ,federal institutional investor that uses the services of1 or contracts with1 an asset management firm-- 7,a7 the amounts of assets in such fund that are managed by non-diverse-owned asset management firms and by diverse-owned asset management firms1 as determined by the ,secretary under paragraph 7#c71 disaggregated by race1 ethnicity1 and gender2 7,b7 the challenges1 if any1 the ,federal institutional investor faces in reporting on diverse-owned and non-diverse-owned asset management firms2 7,c7 the challenges the ,federal institutional investor faces in selecting diverse-owned asset management firms 7including through subcontractor asset management firms7 to manage investments of sums in the fund administered by the ,federal institutional investor2 7,d7 the actions taken during the reporting period1 or planned to be taken1 by the ,federal institutional investor to alleviate barriers that limit participation of diverse-owned asset management firms2 and 7,e7 the actions taken during the reporting period1 or planned to be taken1 by the ,federal institutional investor to increase opportunities for diverse-owned asset management firms to compete for contracts4 7#c7 ,diverse-owned ,the ,secretary shall evaluate industry benchmarks to determine the threshold or other requirements necessary for an asset management firm to qualify as diverse-owned4 7#d7 ,public availability ,the ,secretary shall make each report submitted under paragraph 7#a7 publicly available4 7b7 ,sense of ,congress relating to diverse-,owned asset management firms and covered private sector plans ,it is the sense of ,congress that the ,advisory ,council on ,employee ,welfare and ,pension ,benefit ,plans 7commonly known as the ,,erisa ,advisory ,council7 routinely consider barriers to the usage of diverse-owned asset management firms among covered private sector plans1 and methods to overcome such barriers4 7c7 ,survey of fund management best practices 7#a7 ,in general ,the ,secretary shall-- 7,a7 conduct a survey of the best practices in fund asset management with respect to increasing the utilization and capacity of diverse-owned asset management firms2 and 7,b7 prepare and submit a report to ,congress not less often than every #c years1 or more frequently as the ,secretary considers to be appropriate4 7#b7 ,requirements of survey ,the ,secretary shall survey a sample of public and private-sector pension plans subject to the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajja et seq47 and other retirement funds that are engaged in 7or looking to engage in7 strategies to improve access to1 and representation by1 diverse-owned asset management firms4 7#c7 ,report ,the ,secretary shall make publicly available a report to ,congress on the best practices of pension funds and other retirement funds with respect to implementing strategies to improve access to diverse-owned asset management firms4 ,the report shall include-- 7,a7 the challenges pension funds and other retirement funds may face in adopting or executing strategies to engage more with diverse-owned asset management firms as the primary institutional fund manager or as subcontractor asset management firms1 including women- and minority-owned asset management firms2 and 7,b7 an identification of the strategies adopted to implement programs4