,,ii #aagth ,,congress #b;d ,session ,s4 #ejjj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bh1 #bjbb,mr4 ,lee introduced the following bill2 which was read twice and referred to the ,committee on ,homeland ,security and ,governmental ,affairs ,a ,,bill ,to amend title #e1 ,united ,states ,code1 to prohibit investments under the ,thrift ,savings ,plan in certain mutual funds that make investment decisions based primarily on environmental1 social1 or governance criteria1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,no ,,esg at ,,tsp ,act4 #b4 ,prohibition on certain mutual funds under the ,thrift ,savings ,plan 7a7 ,definitions ,in this section3 7#a7 ,board2 ,executive ,director ,the terms ,board and ,executive ,director have the meanings given those terms in section #hdja of title #e1 ,united ,states ,code4 7#b7 ,covered sum ,the term covered sum means any sum of the ,thrift ,savings ,fund that is invested in a mutual fund1 exchange-traded fund1 or other investment vehicle described in subparagraph 7,e7 or 7,f7 of section #hdch7;b77#e7 of title #e1 ,united ,states ,code1 as added by subsection 7b74 7#c7 ,mutual fund window ,the term mutual fund window means the mutual fund window added by the ,board pursuant to the authorization under section #hdch7;b77#e7 of title #e1 ,united ,states ,code4 7#d7 ,participant ,the term participant has the meaning given the term in section #hdga of title #e1 ,united ,states ,code4 7#e7 ,thrift ,savings ,fund ,the term ,thrift ,savings ,fund means the fund established under section #hdcg of title #e1 ,united ,states ,code4 7b7 ,prohibition 7#a7 ,in general ,section #hdch7;b77#e7 of title #e1 ,united ,states ,code1 is amended by adding at the end the following3 7,e7 ,the ,board may not offer through the mutual fund window any mutual fund1 exchange-traded fund 7as defined in section #bgj4f;c-#aa of title #ag1 ,code of ,federal ,regulations1 or any successor regulation71 or other investment vehicle that invests in bonds or equities and that makes investment decisions based on ,,esg criteria1 to the extent that those criteria are unrelated to maximizing monetary returns for investors4 7,f7 ,the ,board may not offer through the mutual fund window any mutual fund1 exchange-traded fund 7as defined in section #bgj4f;c-#aa of title #ag1 ,code of ,federal ,regulations1 or any successor regulation71 or other investment vehicle that is marketed as making investment decisions based on ,,esg criteria4 7,g7 ,in this paragraph1 the term ,,esg criteria means any of the following criteria3 7i7 ,environmental criteria1 including-- 7,i7 emissions1 climate change1 sustainability1 environmental justice1 pollution1 or conservation2 or 7,,ii7 whether a company is engaged in the exploration1 production1 utilization1 transportation1 sale1 or manufacturing of fossil fuel-based energy4 7ii7 ,social criteria1 including-- 7,i7 diversity criteria1 including-- 7aa7 the sex1 race1 ethnicity1 gender identity1 sexual orientation1 or socioeconomic status of the owners1 board members1 employees1 or customers of companies2 or 7bb7 whether the board members1 employees1 or customers described in item 7aa7 are members of a labor organization 7as that term is defined in section #b of the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aeb772 or 7,,ii7 whether a company is engaged in the manufacture1 transportation1 or sale of firearms1 firearms accessories1 or ammunition4 7iii7 ,political criteria1 including the perceived or actual political affiliations1 donations1 or associations of companies4 7iv7 ,criteria for corporate governance standards that differ from the applicable standards required under ,state and ,federal law1 as in effect on the date of enactment of this subparagraph4 4 7#b7 ,review and removal ,the ,executive ,director shall establish a process through which1 during the period beginning on the date of enactment of this ,act and ending on the effective date described in subsection 7c71 members of the ,board shall-- 7,a7 identify investment vehicles that-- 7i7 were added to the mutual fund window pursuant to the rule entitled ,mutual ,fund ,window 7#hg ,fed4 ,reg4 #bgiag 7effective ,june #a1 #bjbb772 and 7ii7 would violate subparagraph 7,e7 or 7,f7 of section #hdch7;b77#e7 of title #e1 ,united ,states ,code1 as added by paragraph 7#a72 and 7,b7 remove from the mutual fund window all investment vehicles identified under subparagraph 7,a74 7#c7 ,existing investments in impermissible mutual funds 7,a7 ,notice ,not later than #cj days after the effective date described in subsection 7c71 the ,executive ,director shall notify each participant of the option to make an election under subparagraph 7,b74 7,b7 ,election ,during the #ij-;day period beginning on the day after the date on which the #cj-;day period described in subparagraph 7,a7 ends1 a participant may elect to have any covered sums credited to the account of that individual in the ,thrift ,savings ,fund reinvested in accordance with section #hdch of title #e1 ,united ,states ,code1 as amended by paragraph 7#a74 7,c7 ,mandatory reinvestment ,beginning on the day after the date on which the #ij-;day period described in subparagraph 7,b7 ends1 the ,board shall ensure that all covered sums with respect to which elections have not been made under that subparagraph are invested in the ,government ,securities ,investment ,fund established under section #hdch7;b77#a77;,a7 of title #e1 ,united ,states ,code4 7#d7 ,enforcement ,section #hdgg7;e77#c7 of title #e1 ,united ,states ,code1 is amended-- 7,a7 in subparagraph 7,b77iii71 by striking or at the end2 7,b7 in subparagraph 7,c77ii71 by striking the period at the end and inserting 2 or2 and 7,c7 by adding at the end the following3 7,d7 by any participant or beneficiary against the ,board-- 7i7 to obtain any appropriate equitable relief to redress a violation of subparagraph 7,e7 or 7,f7 of section #hdch7;b77#e72 7ii7 to enjoin any act or practice which violates subparagraph 7,e7 or 7,f7 of section #hdch7;b77#e72 or 7iii7 to obtain actual or compensatory damages to redress a violation of subparagraph 7,e7 or 7,f7 of section #hdch7;b77#e74 4 7c7 ,effective date ,the amendments made by paragraphs 7#a7 and 7#d7 of subsection 7b7 shall take effect on the date that is #a year after the date of enactment of this ,act4