,i  #aah? ,,congress  #a/ ,session  ,h4 
,r4 #dbcg  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #ba1 #bjbc,mr4  
,b>r 7= himself1 ,mr4 ,all51 & ,mr4     
,huiz5ga7 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,f9ancial    
,s]vices1 & 9 addition to ! ,committee  
on ,education & ! ,work=ce1 = a p]iod to
 be subsequ5tly det]m9$ by ! ,speak]1 9 
ea* case = consid]ation ( su* provisions
 z fall )9 ! jurisdiction ( ! committee 
conc]n$  ,a ,,bill  ,to am5d ! ,inve/m5t
 ,advis]s ,act ( #aidj & ! ,employee    
,retirem5t ,income ,security ,act (     
#aigd to specify requirem5ts conc]n+ !  
consid]ation ( pecuni>y & non-pecuni>y  
factors4  #a4 ,%ort title ,?is ,act may 
be cit$ z ! ,ensur+ ,s\nd ,guidance     
,act4  #b4 ,inve/m5t ,advisors ,act (   
#aidj am5dm5t  7a7 ,9 g5]al ,section    
#baa7;g7 ( ! ,inve/m5t ,advis]s ,act (  
#aidj 7#ae ,u4,s4,c4 #hj;b-#aa7;g77 is  
am5d$ by add+ at ! end ! foll[+3  7#c7  
,be/ int]e/ bas$ on pecuni>y factors    
7,a7 ,9 g5]al ,= purposes ( p>agraph    

7#a71 ! be/ int]e/ ( a cu/om] %all be   
det]m9$ us+ pecuni>y factors1 :i* may n 
be subord9at$ to or limit$ by           
non-pecuni>y factors1 unless ! cu/om]   
provides in=m$ cons5t1 9 writ+1 t su*   
non-pecuni>y factors be s consid]$4     
7,b7 ,disclosure ( pecuni>y factors ,if 
a cu/om] provides a brok]1 deal]1 or    
inve/m5t advis] ) ! in=m$ cons5t to     
consid] non-pecuni>y factors describ$ "u
 subp>agraph 7,a71 ! brok]1 deal]1 or   
inve/m5t advis] %all also-- 7i7 disclose
 ! expect$ pecuni>y effects to ! cu/om] 
ov] a "t p]iod select$ by ! cu/om] & n  
to exce$ ?ree ye>s2 &  7ii7 at ! end ( !
 "t p]iod describ$ "u clause 7i71       
disclose1 by comp>ison to a reasonably  
comp>able index or basket ( securities  
select$ by ! cu/om]1 ! actual pecuni>y  
effects ( t "t p]iod1 includ+ all fees1 
co/s1 & o!r exp5ses incurr$ to s consid]
 non-pecuni>y factors4  7,c7 ,pecuni>y  
factor def9$ ,! t]m pecuni>y factor has 
! mean+ giv5 su* t]m 9 section          
#djd7;a77#c77;,d7 ( ! ,employm5t        

,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4                    
#aajd7;a77#c77;,d774  4  7b7 ,rulemak+  
,n lat] ?an ! end ( ! #ab-mon? p]iod    
beg9n+ on ! date ( enactm5t ( ?is ,act1 
! ,securities & ,ex*ange ,commission    
%all revise or issue su* rules z may be 
necess>y to implem5t ! am5dm5t made by  
subsection 7a74  7c7 ,effective date ,! 
am5dm5t made by subsection 7a7 %all     
apply to actions tak5 by a brok]1 deal]1
 or inve/m5t advis] on or aft] ! date t 
is #ab mon?s aft] ! date ( enactm5t (   
?is ,act4  #c4 ,employee ,retirem5t     
,income ,security ,act ( #aigd am5dm5t  
7a7 ,9 g5]al ,section #djd7;a7 ( !      
,employee ,retirem5t ,income ,security  
,act ( #aigd 7#bi ,u4,s4,c4 #aajd7;a77  
is am5d$ by add+ at ! end ! foll[+3     
7#c7 ,int]e/ bas$ on pecuni>y factors   
7,a7 ,9 g5]al ,= purposes ( p>agraph    
7#a71 a fiduci>y ( a plan %all be       
consid]$ to act solely 9 ! int]e/ ( !   
p>ticipants & b5efici>ies ( ! plan )    
respect to an inve/m5t or inve/m5t c\rse

 ( action only if ! fiduci>y's action ) 
respect to su* inve/m5t or inve/m5t     
c\rse ( action is bas$ only on pecuni>y 
factors 7except z provid$ 9 subp>agraph 
7,b774 ,! fiduci>y may n subord9ate !   
int]e/s ( ! p>ticipants & b5efici>ies 9 
_! retirem5t income or f9ancial b5efits 
"u ! plan to o!r objectives & may n     
sacrifice inve/m5t return or take on    
additional inve/m5t risk to promote     
non-pecuni>y b5efits or goals4 ,! weight
 giv5 to any pecuni>y factor by a       
fiduci>y %\ld appropriately reflect a   
prud5t assessm5t ( ! impact ( su* factor
 on risk & return4  7,b7 ,use (         
non-pecuni>y factors = inve/m5t         
alt]natives ,not)/&+ p>agraph 7,a71 if a
 fiduci>y is unable to di/+ui% betwe5 or
 among inve/m5t alt]natives or inve/m5t 
c\rses ( action on ! basis ( pecuni>y   
factors alone1 ! fiduci>y may use       
non-pecuni>y factors z ! decid+ factor  
if ! fiduci>y docum5ts-- 7i7 :y pecuni>y
 factors 7 n suffici5t to select a plan 
inve/m5t or inve/m5t c\rse ( action2    

7ii7 h[ ! select$ inve/m5t comp>es to ! 
alt]native inve/m5ts ) reg>d to !       
composition ( ! portfolio ) reg>d to    
div]sification1 ! liquidity & curr5t    
return ( ! portfolio relative to !      
anticipat$ ca% fl[ requirem5ts ( ! plan1
 & ! project$ return ( ! portfolio      
relative to ! fund+ objectives ( ! plan2
 &  7iii7 h[ ! select$ non-pecuni>y     
factor or factors are consi/5t ) !      
int]e/s ( ! p>ticipants & b5efici>ies 9 
_! retirem5t income or f9ancial b5efits 
"u ! plan4  7,c7 ,inve/m5t alt]natives =
 p>ticipant-direct$ individual acc\nt   
plans ,9 select+ or reta9+ inve/m5t     
options = a p5sion plan describ$ 9      
subsection 7c77#a77;,a71 a fiduci>y is n
 prohibit$ f consid]+1 select+1 or      
reta9+ an inve/m5t option on ! basis t  
su* inve/m5t option promotes1 seeks1 or 
supports "o or m non-pecuni>y b5efits or
 goals1 if-- 7i7 ! fiduci>y satisfies ! 
requirem5ts ( p>agraph 7#a7 &           
subp>agraphs 7,a7 & 7,b7 ( ?is p>agraph 
9 select+ or reta9+ any su* inve/m5t    

option2 &  7ii7 su* inve/m5t option is n
 add$ or reta9$ z1 or includ$ z a       
compon5t (1 a default inve/m5t "u       
subsection 7c77#e7 7or any o!r default  
inve/m5t alt]native7 if its inve/m5t    
objectives or goals or its pr9cipal     
inve/m5t /rategies include1 consid]1 or 
indicate ! use ( "o or m non-pecuni>y   
factors4  7,d7 ,pecuni>y factor def9$ ,=
 ! purposes ( ?is p>agraph1 ! t]m       
pecuni>y factor means a factor t a      
fiduci>y prud5tly det]m9es is expect$ to
 h a mat]ial effect on ! risk or return 
( an inve/m5t bas$ on appropriate       
inve/m5t horizons consi/5t ) ! plan's   
inve/m5t objectives & ! fund+ policy    
e/abli%$ pursuant to section            
#djb7;b77#a74  4  7b7 ,effective date ,!
 am5dm5ts made by ?is section %all apply
 to actions tak5 by a fiduci>y on or    
aft] ! date t is #ab mon?s aft] ! date (
 enactm5t ( ?is ,act4  #d4 ,/udy ( ,/ate
 & local p5sion plans  7a7 ,/udy ,!     
,comptroll] ,g5]al ( ! ,unit$ ,/ates    
%all conduct a /udy on ! pot5tial impact

 ( und]fund$ ,/ate & local p5sion plans 
on ! ,f$]al ,gov]nm5t1 includ+-- 7#a7 ! 
ext5t to :i* su* p5sion plans subord9ate
 ! pecuni>y int]e/s ( p>ticipants &     
b5efici>ies to environm5tal1 social1    
gov]nance1 or o!r objectives2 &  7#b7   
legislative & adm9i/rative actions t1 if
 implem5t$ at ! ,f$]al level1 w\ld      
prev5t su* p5sion plans f subord9at+ !  
int]e/s ( p>ticipants & b5efici>ies to  
environm5tal1 social1 or gov]nance      
objectives4  7b7 ,report ,n lat] ?an #ab
 mon?s aft] ! date ( enactm5t ( ?is     
,act1 ! ,comptroll] ,g5]al submit to    
,congress a report conta9+ ! results ( !
 /udy4  #e4 ,/udy on climate *ange & o!r
 environm5tal disclosures 9 municipal   
bond m>ket  7a7 ,9 g5]al ,! ,securities 
& ,ex*ange ,commission %all solicit     
public comm5t & !reaft] conduct a /udy  
to det]m9e ! ext5t to :i* issu]s (      
municipal securities 7z su* t]m is def9$
 9 section #c7;a77#bi7 ( ! ,securities  
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#gh;c7a77#bi77 make disclosure to       

inve/ors reg>d+ climate *ange & o!r     
environm5tal matt]s4  7b7 ,cont5ts ,!   
/udy "u subsection 7a7 %all consid] &   
analyze1 among o!r ?+s-- 7#a7 ! frequ5cy
 ( su* disclosures2  7#b7 :e!r su*      
disclosures made by issu]s ( municipal  
securities 9 connection ) (f]+s (       
securities align ) su* disclosures made 
by issu]s ( municipal securities 9 o!r  
contexts or to o!r audi5ces o!r ?an     
inve/ors2  7#c7 any volunt>y or m&atory 
disclosure /&>ds obs]v$ by issu]s (     
municipal securities 9 ! c\rse ( mak+   
su* disclosures2 &  7#d7 ! degree to :i*
 inve/ors consid] su* disclosures 9     
connection ) mak+ an inve/m5t decision4 
7c7 ,report ,! ,securities & ,ex*ange   
,commission %all issue a report on !    
/udy requir$ "u ?is section to !        
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs ( ! ,s5ate & ! ,committee on   
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives n lat] ?an #ab mon?s    
aft] ! date ( enactm5t ( ?is ,act4 ,!   
report %all include a detail$ discussion

 ( ! f9ancial risks to inve/ors f       
inve/m5ts 9 municipal securities & :e!r 
^? risks are be+ adequately disclos$ z  
well z a discussion ( regulatory or     
legislative /eps t are recomm5d$ or t   
may be necess>y to address any conc]ns  
id5tifi$ 9 ! /udy4  #f4 ,/udy on        
solicitation ( municipal securities     
bus9ess  7a7 ,9 g5]al ,! ,securities &  
,ex*ange ,commission %all solicit public
 comm5t & !reaft] conduct a /udy to     
det]m9e ! effectiv5ess ( ,rule ,g-#ch ( 
! ,municipal ,securities ,rulemak+ ,bo>d
 & ,rule #bjf7d7-e ( ! ,securities &    
,ex*ange ,commission 7#ag ,,cfr         
#bge4bjf7d7-e7 9 prev5t+ ! paym5t (     
funds to elect$ (ficials or c&idates =  
elect$ (fice 9 ex*ange = ! receipt (    
gov]nm5t bus9ess 9 connection ) ! (f] or
 sale ( municipal securities 7z su* t]m 
is def9$ 9 section #c7;a77#bi7 ( !      
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;c7a77#bi774  7b7 ,cont5ts 
,! /udy "u subsection 7a7 %all consid] &
 analyze1 among o!r ?+s-- 7#a7 :e!r     

,rule ,g-#ch & ,rule #bjf7d7-e h _h _!  
int5d$ effects & :e!r !y h _h any       
un9t5d$ adv]se effects2  7#b7 ! frequ5cy
 & scope ( en=cem5t actions und]tak5 "u 
,rule ,g-#ch & ,rule #bjf7d7-e2  7#c7 ! 
degree to :i* p]sons subject to ,rule   
,g-#ch & ,rule #bjf7d7-e h put 9 place  
policies & proc$ures int5d$ to ensure   
compliance ) su* rules2  7#d7 ! degree  
to :i* o!r ,/ate & ,f$]al regulations   
impact ! solicitation ( municipal       
securities bus9ess2 &  7#e7 ! degree to 
:i* p]sons subject to ,rule ,g-#ch &    
,rule #bjf7d7-e are disadvantag$ f      
p>ticipat+ 9 ! political process bo? z a
 g5]al matt] & relative to p]sons :o    
solicit or receive gov]nm5t bus9ess or  
gov]nm5t lic5ses1 p]mits1 & approvals   
o!r ?an 9 connection ) ! (f] or sale (  
municipal securities4  7c7 ,report ,!   
,securities & ,ex*ange ,commission %all 
issue a report on ! /udy requir$ "u ?is 
section to ! ,committee on ,bank+1      
,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! 
,committee on ,f9ancial ,s]vices ( !    

,h\se ( ,repres5tatives n lat] ?an #ab  
mon?s aft] ! date ( enactm5t ( ?is ,act4
 ,! report %all include a discussion ( !
 ext5t to :i* p]sons affiliat$ ) small  
bus9esses1 z well z p]sons affiliat$ )  
m9ority & wom5 op5$ bus9esses1 h be5    
affect$ by ,rule ,g-#ch & ,rule         
#bjf7d7-e & a discussion ( regulatory or
 legislative a discussion ( regulatory  
or legislative /eps t are recomm5d$ or t
 may be necess>y to address any conc]ns 
id5tifi$ 9 ! /udy4