,i  #aah? ,,congress  #a/ ,session  ,h4 
,r4 #dfde  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #ad1 #bjbc,mr4  
,huiz5ga introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,f9ancial     
,s]vices  ,a ,,bill  ,to am5d !         
,inve/m5t ,advis]s ,act ( #aidj )       
respect to proxy vot+ ( passively manag$
 funds1 & = o!r purposes4  #a4 ,%ort    
title ,?is ,act may be cit$ z ! ,emp[]+ 
,%>ehold]s ,act ( #bjbc4  #b4 ,proxy    
vot+ ( passively manag$ funds  7a7 ,9   
g5]al ,! ,inve/m5t ,advis]s ,act ( #aidj
 7#ae ,u4,s4,c4 #hj;b-#a et seq47 is    
am5d$ by ins]t+ aft] section #bjh 7#ae  
,u4,s4,c4 #hj;b-#h7 ! foll[+3  #bjh;,a4 
,proxy vot+ ( passively manag$ funds    
7a7 ,inve/m5t advis] proxy vot+  7#a7 ,9
 g5]al ,an inve/m5t advis] t holds      
au?ority to vote a proxy solicit$ by an 
issu] pursuant to section #ad ( !       
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #ghn7 9 connection ) any vote 
( cov]$ securities held by a passively  
manag$ fund %all-- 7,a7 vote 9          

accordance ) ! in/ructions ( ! b5eficial
 own] ( su* cov]$ securities2  7,b7 vote
 9 accordance ) ! vot+ in/ructions ( su*
 issu]2 or  7,c7 ab/a9 f vot+4  7#b7    
,exception ,p>agraph 7#a7 %all n apply )
 respect to a vote on a r\t9e matt]4    
7b7 ,safe h>bor ,) respect to a matt] t 
is n a r\t9e matt]1 9 ! case ( a vote   
describ$ 9 subsection 7a77#a71 an       
inve/m5t advis] %all n be liable to any 
p]son "u any law or regulation ( !      
,unit$ ,/ates1 any con/itution1 law1 or 
regulation ( any ,/ate or political     
subdivision !re(1 or "u any contract or 
o!r legally en=ceable agreem5t 7includ+ 
any arbitration agreem5t71 = any ( !    
foll[+3 7#a7 ,n solicit+ vot+ in/ruct+ f
 any p]son "u subsection 7a77#a7 )      
respect to su* vote4  7#b7 ,vot+ 9      
accordance ) ! vot+ in/ructions ( an    
issu] pursuant to subp>agraph 7,b7 ( su*
 subsection4  7#c7 ,ab/a9+ f vot+ 9     
accordance ) subp>agraph 7,c7 ( su*     
subsection4  7c7 ,def9itions ,9 ?is     
section3 7#a7 ,cov]$ security ,! t]m    

cov]$ security-- 7,a7 means a vot+      
security1 z t t]m is def9$ 9 section    
#b7;a7 ( ! ,inve/m5t ,company ,act (    
#aidj 7#ae ,u4,s4,c4 #hj;a-#b7;a771 9   
:i* a qualifi$ fund is inve/$2 &  7,b7  
does n include any vot+ security 7z     
def9$ 9 subp>agraph 7,a77 ( an issu]    
regi/]$ ) ! ,commission z an inve/m5t   
company "u section #h ( ! ,inve/m5t     
,company ,act ( #aidj 7#ae ,u4,s4,c4    
#hj;a-#h74  7#b7 ,passively manag$ fund 
,! t]m passively manag$ fund means a    
qualifi$ fund t-- 7,a7 is design$ to    
track1 or is d]iv$ f1 an index (        
securities or a portion ( su* an index2 
7,b7 discloses t ! qualifi$ fund is a   
passive index fund2 or  7,c7 allocates n
 less ?an #dj p]c5t ( ! total assets ( !
 qualifi$ fund to an inve/m5t /rategy t 
is design$ to track1 or is d]iv$ f1 an  
index ( securities or a portion ( su* an
 index fund4  7#c7 ,qualifi$ fund ,! t]m
 qualifi$ fund means-- 7,a7 an inve/m5t 
company1 z t t]m is def9$ 9 section #c (
 ! ,inve/m5t ,company ,act ( #aidj 7#ae 

,u4,s4,c4 #hj;a-#c72  7,b7 a private    
fund2  7,c7 an eligible def]r$          
comp5sation plan1 z t t]m is def9$ 9    
section #deg7;b7 ( ! ,int]nal ,rev5ue   
,code ( #aihf2  7,d7 a tru/1 plan1      
acc\nt1 or o!r entity describ$ 9 section
 #c7;c77#aa7 ( ! ,inve/m5t ,company ,act
 ( #aidj 7#ae ,u4,s4,c4                 
#hj;a-#c7;c77#aa772  7,e7 a plan ma9ta9$
 by an employ] describ$ 9 clause 7i71   
7ii71 or 7iii7 ( section                
#djc7;b77#a77;,a7 ( ! ,int]nal ,rev5ue  
,code ( #aihf to provide annuity        
contracts describ$ 9 section #djc7;b7 ( 
su* ,code2  7,f7 a common tru/ fund1 or 
simil> fund1 ma9ta9$ by a bank2  7,g7   
any fund e/abli%$ "u section            
#hdch7;b77#a7 ( title #e1 ,unit$ ,/ates 
,code2 or  7,h7 any sep>ate manag$      
acc\nt ( a cli5t ( an inve/m5t advis]4  
7#d7 ,regi/rant ,! t]m regi/rant means  
an issu] ( cov]$ securities4  7#e7      
,r\t9e matt] ,! t]m r\t9e matt]-- 7,a7  
includes a proposal t relates to-- 7i7  
an election ) respect to ! bo>d (       

directors ( ! regi/rant2  7ii7 !        
comp5sation ( managem5t or ! bo>d (     
directors ( ! regi/rant2  7iii7 !       
selection ( auditors2  7iv7 mat]ial     
conflicts2  7v7 declassification2 or    
7vi7 transactions t w\ld trans=m !      
/ructure ( ! regi/rant1 includ+-- 7,i7 a
 m]g] or consolidation2 &  7,,ii7 !     
sale1 lease1 or ex*ange ( all1 or       
sub/antially all1 ( ! prop]ty & assets (
 a regi/rant2 &  7,b7 does n include--  
7i7 a proposal t is n submitt$ to a     
hold] ( cov]$ securities by means ( a   
proxy /atem5t comp>able to t describ$ 9 
section #bdj4ad;a-#aja ( title #ag1     
,code ( ,f$]al ,regulations1 or any     
successor regulation2  7ii7 a proposal t
 is-- 7,i7 ! subject ( a                
c\nt]-solicitation2 or  7,,ii7 "p ( a   
proposal made by a p]son o!r ?an !      
applicable regi/rant2 or  7iii7 any o!r 
matt] det]m9$ by ! ,commission or an    
ex*ange regi/]$ "u section #f ( !       
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;f7 to be n r\t9e4  4  7b7 

,effective date ,! am5dm5t made by ?is  
section %all take effect on ! fir/      
,augu/ #a t occurs aft] ! date t is #b  
ye>s aft] ! date ( enactm5t ( ?is ,act4