,,ii #aahth ,,congress #ast ,session ,s4 #adi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #cj1 #bjbc,mr4 ,rubio 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 address the responsibilities of fiduciaries with respect to the ,thrift ,savings ,fund1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,tsp ,fiduciary ,security ,act of #bjbc4 #b4 ,findings ,congress finds the following3 7#a7 ,the ,federal ,retirement ,thrift ,investment ,board has a fiduciary duty to manage the ,thrift ,savings ,fund in the best interest of the beneficiaries of the ,fund4 7#b7 ,the principal beneficiaries of the ,thrift ,savings ,fund are the civil servants of the ,united ,states1 and members of the uniformed services1 who are tasked with defending the national security of the ,united ,states4 7#c7 ,the duty of the ,federal ,retirement ,thrift ,investment ,board to manage the ,thrift ,savings ,fund in the best interests of the beneficiaries of the ,fund includes a duty not to harm the national security of the ,united ,states4 #c4 ,fiduciary responsibilities with respect to ,thrift ,savings ,fund ,section #hdgg of title #e1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7b77#a7-- 7,a7 in subparagraph 7,b71 by striking 2 and and inserting a semicolon2 7,b7 in subparagraph 7,c71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7,d7 to the maximum extent practicable1 by preventing the investments of the ,thrift ,savings ,fund 7or portions thereof71 and the exercise of voting rights associated with any such investments1 from harming the national security of the ,united ,states4 2 and 7#b7 in subsection 7e71 by adding at the end the following3 7#i7 7,a7 ,notwithstanding any other provision of this subsection1 no fiduciary shall be personally liable for any monetary damages1 or be assessed any civil penalty1 under this subsection with respect to a breach of the requirement under subsection 7b77#a77;,d74 7,b7 ,subparagraph 7,a7 shall cease to have effect beginning on ,january #a1 #bjbe4 4 #d4 ,review of ,thrift ,savings ,fund for compliance with fiduciary duties 7a7 ,in general ,section #hdgg7;f7 of title #e1 ,united ,states ,code1 is amended-- 7#a7 by inserting 7#a7 after 7f72 and 7#b7 by adding at the end the following3 7#b7 7,a7 ,not later than #a year after the date of enactment of this paragraph1 the ,secretary of ,labor1 in consultation with the ,secretary of ,defense1 the ,attorney ,general1 the ,secretary of ,homeland ,security1 and the ,secretary of the ,treasury1 shall prescribe regulations to carry out subsection 7b77#a77;,d7 with respect to each of the following3 7i7 ,the investments of the ,thrift ,savings ,fund1 which shall include the establishment of standards by which compliance with subsection 7b77#a77;,d7 with respect to the investments of the ,thrift ,savings ,fund 7or portions thereof7 shall be determined4 7ii7 ,the exercise of voting rights associated with the investments of the ,thrift ,savings ,fund 7or portions thereof74 7,b7 ,the regulations prescribed under subparagraph 7,a77ii7 shall include-- 7i7 the establishment of a process by which the exercise of voting rights described in subparagraph 7,a77ii7 shall be reviewed by the ,secretary of ,labor1 in consultation with the ,secretary of ,defense1 the ,attorney ,general1 the ,secretary of ,homeland ,security1 and the ,secretary of the ,treasury1 for compliance with subsection 7b77#a77;,d7 with respect to the exercise of those rights2 and 7ii7 the establishment of standards by which compliance with subsection 7b77#a77;,d7 with respect to the exercise of voting rights described in subparagraph 7,a77ii7 shall be determined1 including the factors contributing to a determination that a covered vote would not comply with subsection 7b77#a77;,d74 7,c7 ,for the purposes of any regulation prescribed under subparagraph 7,a71 the ,secretary of ,labor shall presume that-- 7i7 an investment of the ,thrift ,savings ,fund 7or portions thereof7 does not comply with subsection 7b77#a77;,d7 if the investment invests in-- 7,i7 an entity included on-- 7aa7 the list of ,communist ,chinese military companies maintained under section #abcg7;b7 of the ,strom ,thurmond ,national ,defense ,authorization ,act for ,fiscal ,year #aiii 7#ej ,u4,s4,c4 #agja note72 or 7bb7 the entity list maintained by the ,bureau of ,industry and ,security of the ,department of ,commerce and set forth in ,supplement ,no4 #d to part #gdd of title #ae1 ,code of ,federal ,regulations2 or 7,,ii7 a parent1 subsidiary1 or affiliate of1 or an entity controlled by1 an entity described in subclause 7,i72 and 7ii7 an exercise of voting rights associated with any investments of the ,thrift ,savings ,fund 7or portions thereof7 does not comply with subsection 7b77#a77;,d7 if that exercise of voting rights is a covered vote with respect to a proposal that would-- 7,i7 approve or ratify a transaction1 including a transaction described in subparagraph 7,d77ii77,i71 that would cause1 or would reasonably be expected to cause1 an entity to which the covered vote applies to-- 7aa7 breach any contract with the ,federal ,government to which the entity is a party1 and under which the consideration provided to the entity over the course of the entire contract is more than #aj1jjj1jjj1 if the entity has otherwise complied with all applicable laws and regulations in fulfilling the responsibilities of the entity with respect to the contract2 7bb7 significantly reduce the production of1 or the capital expenditure or research and development expenditure with respect to1 any-- 7,,aa7 industrial resources1 critical technology items1 or materials that are essential to the national defense 7as those terms are defined in section #gjb of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #deeb772 or 7,,bb7 emerging and foundational technology identified by the ,president under section #ageh of the ,export ,controls ,act of #bjah 7#ej ,u4,s4,c4 #dhag72 or 7cc7 outsource or substantially sell1 whether to any affiliated entity or joint venture1 or by contract1 to any entity located in a covered country1 any-- 7,,aa7 industrial resources1 critical technology items1 or materials that are essential to the national defense 7as those terms are defined in section #gjb of the ,defense ,production ,act of #aiej 7#ej ,u4,s4,c4 #deeb772 or 7,,bb7 emerging and foundational technology identified by the ,president under section #ageh of the ,export ,controls ,act of #bjah 7#ej ,u4,s4,c4 #dhag72 or 7,,ii7 elect to the board of directors of any entity an individual who-- 7aa7 is a director1 officer1 employee1 or affiliate of any entity described in clause 7i77,i72 7bb7 at any time during the #e-year period preceding the date on which that election occurs1 was as described in item 7aa72 or 7cc7 a reasonable investor would believe supports any proposal described in subclause 7,i74 7,d7 ,in this paragraph-- 7i7 the term covered country means-- 7,i7 the ,people's ,republic of ,china1 the ,russian ,federation1 ,north ,korea1 ,iran1 ,syria1 ,sudan1 ,venezuela1 or ,cuba2 7,,ii7 any country1 the government of which the ,secretary of ,state determines has provided support for international terrorism pursuant to-- 7aa7 section #aged7;c77#a77;,a7 of the ,export ,control ,reform ,act of #bjah 7#ej ,u4,s4,c4 #dhac7;c77#a77;,a772 7bb7 section #fbj;,a of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcga72 7cc7 section #dj of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bghj72 or 7dd7 any other provision of law2 or 7,,iii7 any other country that the ,secretary of ,labor1 in consultation with the ,secretary of ,defense1 the ,attorney ,general1 the ,secretary of ,homeland ,security1 and the ,secretary of the ,treasury1 designates as posing an undue or unnecessary risk to the national security of the ,united ,states2 and 7ii7 the term covered vote means a vote in favor of 7or an abstention with respect to7 a proposal to-- 7,i7 approve or ratify a transaction involving an entity1 including-- 7aa7 any sale of1 or other disposition of 7whether in a single or a series of transactions7 assets or capital stock2 and 7bb7 any merger1 consolidation1 joint venture1 partnership1 spin-off1 reverse spin-off1 dissolution1 restructuring1 recapitalization1 liquidation1 or any other business combination or strategic transaction2 or 7,,ii7 elect an individual to the board of directors of the entity that is the subject of the proposal4 4 7b7 ,review of exercise of voting rights2 report to ,congress ,section #hdch of title #e1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7f7-- 7,a7 by inserting 7#a7 after 7f72 and 7,b7 by adding at the end the following3 7#b7 ,for the purposes of paragraph 7#a71 a review of the exercise of voting rights for compliance with section #hdgg7;b77#a77;,d71 including under the regulations prescribed under section #hdgg7;f77#b71 shall not be considered to be the exercise of voting rights associated with the ownership of securities by the ,thrift ,savings ,fund4 2 and 7#b7 by adding at the end the following3 7i7 ,not later than #b years after the date of enactment of this subsection1 and annually thereafter1 the ,secretary of ,labor shall submit to the ,committee on ,homeland ,security and ,governmental ,affairs of the ,senate and the ,committee on ,oversight and ,accountability of the ,house of ,representatives a report regarding-- 7#a7 for the year covered by the report1 the investments of the ,thrift ,savings ,fund 7or portions thereof71 and the exercise of voting rights associated with any such investments1 that have been reviewed for compliance with section #hdgg7;b77#a77;,d72 and 7#b7 the outcome with respect to enforcement of each review conducted under paragraph 7#a7 and a justification for that outcome4 4