,,ii  #aag? ,,congress  #b;d ,session   
,s4 #eagh  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,decemb] #a1 #bjbb,mr4 
,hawley introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to impose          
re/rictions on ! inve/m5t 9 ,*9ese      
companies by tax-exempt entities4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,dump ,inve/m5ts 9 ,tr\blesome ,communi/
 ,hold+s ,act or z ! ,,dit* ,act4  #b4  
,re/riction on inve/m5t 9 ,*9ese        
companies by tax-exempt entities  7a7 ,9
 g5]al ,section #eja ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subsection3  7s7  
,re/riction on inve/m5t 9 ,*9ese        
companies  7#a7 ,9 g5]al ,an            
organization %all n be treat$ z describ$
 9 subsection 7c7 or 7d7 or section     
#dja7;a7 = any taxable ye> if su*       
organization-- 7,a7 holds any int]e/ 9 a
 disqualifi$ ,*9ese company at any "t   
dur+ su* taxable ye>1 or  7,b7 fails to 
timely transmit ! annual report describ$

 9 p>agraph 7#e7 = su* taxable ye>4     
7#b7 ,disqualifi$ ,*9ese company ,=     
purposes ( ?is subsection-- 7,a7 ,9     
g5]al ,! t]m disqualifi$ ,*9ese company 
means any corporation-- 7i7 t is        
incorporat$ 9 ,*9a1 or  7ii7 m ?an #aj  
p]c5t ( ! /ock ( :i* 7det]m9$ by vote or
 value7 is held 7directly or indirectly 
?r\gh any *a9 ( own]%ip7 by any ( !     
foll[+ 7or comb9ation !re(73 7,i7 #a or 
m corporations describ$ 9 clause 7i74   
7,,ii7 ,*9a or any gov]nm5tal ag5cy     
!re(4  7,,iii7 ,prov9cial1 regional1    
municipal1 ,special ,adm9i/rative       
,regions1 prefecture1 c\nty1 t[n%ip1    
village1 or any o!r ,*9ese sub-national 
gov]nm5tal entity or ag5cy4  7,,iv7 ,any
 entity controll$ 7directly or          
indirectly7 by ! ,*9ese ,communi/ ,p>ty 
or any ,*9ese ,communi/ ,p>ty organ4    
7,v7 ,any ,*9ese national4  7,b7        
,application to entities o!r ?an        
corporations ,9 ! case ( any bus9ess    
organization :i* is n a corporation1    
subp>agraph 7,a7 %all apply to su*      

organization 9 ! same mann] z ?\gh su*  
organization 7 a corporation4  7,c7     
,application to indirect1 d]ivative1 or 
o!r contractual int]e/s1 etc ,= purposes
 ( ?is subsection1 an organization %all 
be treat$ z hold+ an int]e/ 9 a         
disqualifi$ ,*9ese company if su*       
organization-- 7i7 holds su* int]e/ 7or 
any in/rum5t describ$ 9 subp>agraph     
7,a77 directly or indirectly ?r\gh any  
*a9 ( own]%ip1 or  7ii7 holds any       
d]ivative f9ancial in/rum5t or o!r      
contractual arrangem5t ) respect to su* 
int]e/ or company 7includ+ any f9ancial 
in/rum5t or o!r contract :i* seeks to   
replicate any f9ancial return ) respect 
to su* int]e/ or su* company74  7,d7    
,publication ( li/ by ,secret>y ,!      
,secret>y %all1 n lat] ?an #abj days    
aft] ! date ( ! enactm5t ( ?is          
subsection1 e/abli% a process = !       
p]iodic publi%+ ( a li/ ( c]tifi$ pool$ 
inve/m5ts1 includ+ ex*ange trad$ funds &
 mutual funds1 t d n h exposure to      
disqualifi$ ,*9ese companies4  7#c7     

,waiv]s  7,a7 ,9 g5]al ,p>agraph 7#a7   
%all n apply ) respect to any int]e/ 9 a
 disqualifi$ ,*9ese company held by any 
organization dur+ any taxable ye> if !  
,secret>y issues a waiv] to su*         
organization ) respect to su* int]e/ =  
su* taxable ye> "u ?is p>agraph4 ,any   
waiv] issu$ "u ?is p>agraph %all be     
subject to r5ewal or expiration on a    
biannual basis4  7,b7 ,waiv] process    
7i7 ,application ,n lat] ?an #fj days   
aft] ! date ( ! enactm5t ( ?is          
subsection1 ! ,secret>y %all e/abli% a  
process "u :i* an organization may      
submit a writt5 application = a waiv] "u
 ?is p>agraph4 ,su* application %all be 
made publicly available & %all include !
 foll[+3 7,i7 ,an explanation ( ! ne$ = 
su* waiv] & ! reasons t ! ne$ = su*     
waiv] outweigh ! ?reat pos$ to ! ,unit$ 
,/ates by ,*9a & ! lack ( sep>ation     
betwe5 ,*9a & ! disqualifi$ ,*9ese      
company involv$4  7,,ii7 ,! type        
7includ+ sector ( ! economy71 am\nt1 &  
duration ( ! inve/m5t 9 ! disqualifi$   

,*9ese company4  7,,iii7 ,! relation%ip 
betwe5 ! disqualifi$ ,*9ese company &   
,*9a4  7,,iv7 ,! ext5uat+ circum/ances  
ju/ify+ ! applicant's ne$ to inve/ 9 !  
disqualifi$ ,*9ese company4  7ii7       
,response ,! ,secret>y %all provide a   
writt5 response to ea* complet$         
application "u clause 7i7 n lat] ?an #fj
 days aft] receipt ( su* application4   
,su* writt5 response %all be made       
publicly available & %all include !     
foll[+3 7,i7 ,a /atem5t ( :e!r ! waiv]  
has be5 provid$ or )held4  7,,ii7 ,!    
reasons = provid+ or )hold+ ! waiv]4    
7,,iii7 ,! id5tification ( any future   
inve/m5ts ) respect to :i* su* waiv]    
applies4  7,,iv7 ,! date on :i* su*     
waiv] expires 7:i* may n be lat] ?an !  
e>li] ( ! t]m9ation ( ! ext5uat+        
circum/ances ref]r$ to 9 clause         
7i77,,iv7 or ! end ( ! biannual p]iod   
ref]r$ to 9 subp>agraph 7,a774  7,c7    
,/&>ds = det]m9+ if waiv] is provid$ ,! 
,secret>y may provide a waiv] "u ?is    
p>agraph only if ! ,secret>y indep5d5tly

 det]m9es t-- 7i7 ! ne$ = su* waiv]1 & !
 reasons = ! ne$ = su* waiv]1 outweigh !
 ?reat pos$ to ! ,unit$ ,/ates by ,*9a &
 ! lack ( sep>ation betwe5 ,*9a & !     
disqualifi$ ,*9ese company involv$1 &   
7ii7 ext5uat+ circum/ances ju/ify !     
applicant's ne$ to inve/ 9 ! disqualifi$
 ,*9ese company4  ,= purposes ( ?is     
subp>agraph1 ! ,secret>y %all n consid] 
! pa/ or future f9ancial returns ( any  
inve/m5t 9 any disqualifi$ ,*9ese       
company1 or any o!r ju/ification bas$ on
 ! applicant's own f9ancial ne$s1 z an  
ext5uat+ circum/ance ju/ify+ su* an     
inve/m5t4  7,d7 ,publication ( waiv]s   
provid$ ,) respect to ea* cal5d> qu>t]1 
! ,secret>y %all publi% & make publicly 
available a li/ ( ! waiv]s provid$ by ! 
,secret>y "u ?is p>agraph dur+ su*      
qu>t]4  7#d7 ,*9a ,= purposes ( ?is     
section1 ! t]m ,*9a means ! ,p's        
,republic ( ,*9a & includes any         
subord9ate ,special ,adm9i/rative       
,regions !re(4  7#e7 ,annual report ,ea*
 organization describ$ 9 p>agraph 7#a7 )

 respect to ea* taxable ye> %all1 n lat]
 ?an ! due date = ! return ( tax = su*  
taxable ye>1 transmit to ! ,secret>y a  
writt5 report includ+-- 7,a7 a          
description ( ea* int]e/ 9 a disqualifi$
 ,*9ese company held by su* organization
 dur+ su* taxable ye>1  7,b7 ! p]iod    
dur+ :i* su* int]e/ 0 s held1 &  7,c7   
:e!r su* organization has a waiv] "u    
p>agraph 7#c7 to hold su* int]e/ dur+   
su* p]iod4  4  7b7 ,effective date  7#a7
 ,9 g5]al ,! am5dm5t made by ?is section
 %all apply to taxable ye>s end+ aft] ! 
date ( ! enactm5t ( ?is ,act1 except t  
only p]iods aft] ! date t is #bgj days  
aft] ! date ( ! enactm5t ( ?is ,act %all
 be tak5 into acc\nt 9 det]m9+ :e!r !   
requirem5t ( section #eja7s7 ( !        
,int]nal ,rev5ue ,code ( #aihf 7z add$  
by ?is section7 is met ) respect to any 
taxable ye>4  7#b7 #a-ye> grace p]iod "u
 c]ta9 circum/ances ,9 ! case (         
organization t1 aft] int5sive due       
dilig5ce1 is unaw>e ( ! failure to      
satisfy ! requirem5t ( su* section      

#eja7s71 p>agraph 7#a7 %all be appli$ by
 sub/itut+ #a ye> = #bgj days4  7c7     
,public report ,n lat] ?an #cfj days    
aft] ! date ( ! enactm5t ( ?is ,act1 &  
annually !reaft]1 ! ,secret>y ( !       
,treasury 7or ! ,secret>y's delegate7   
%all publicly release a report describ+ 
! patt]ns ( ,unit$ ,/ates outb\nd       
inve/m5t 9 ,*9a1 includ+ su* inve/m5t by
 organizations describ$ 9 section       
#eja7s77#a7 ( ! ,int]nal ,rev5ue ,code (
 #aihf 7z add$ by ?is section74 ,su*    
report %all detail ! sectoral breakd[n (
 su* inve/m5ts4