,,ii  #aah? ,,congress  #a/ ,session    
,s4 #bbhb  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #ab1 #bjbc,mr4   
,cotton 7= himself1 ,mr4 ,braun1 ,mr4   
,budd1 ,mr4 ,ris*1 ,mrs4 ,blackburn1    
,mr4 ,cram]1 & ,mr4 ,scott ( ,florida7  
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,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  
factors1 & = o!r purposes4  #a4 ,%ort   
title ,?is ,act may be cit$ z ! ,ensur+ 
,s\nd ,guidance ,act4  #b4 ,def9itions  
,9 ?is ,act3 7#a7 ,commission ,! t]m    
,commission means ! ,securities &       
,ex*ange ,commission4  7#b7 ,municipal  
securities ,! t]m municipal securities  
has ! mean+ giv5 ! t]m 9 section #c7;a7 
( ! ,securities ,ex*ange ,act ( #aicd   
7#ae ,u4,s4,c4 #gh;c7a774  #c4 ,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$-- 7#a7 by       
r$esignat+ p>agraph 7#b7 z p>agraph     
7#c72 &  7#b7 by ins]t+ aft] p>agraph   
7#a7 ! foll[+3  7#b7 ,be/ int]e/ bas$ on
 pecuni>y factors  7,a7 ,def9ition ,9   
?is p>agraph1 ! t]m pecuni>y factor has 
! mean+ giv5 ! t]m 9 p>agraph 7#c7 (    
section #djd7;a7 ( ! ,employm5t         
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #aajd7;a774  7,b7  
,det]m9ation ,= 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]$4     
7,c7 ,disclosure ( pecuni>y factors ,if 
a cu/om] provides a brok]1 deal]1 or    
inve/m5t advis] ) ! in=m$ cons5t to     
consid] non-pecuni>y factors describ$ 9 
subp>agraph 7,b71 ! 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$ #c ye>s2 &  7ii7 at ! end ( !  
"t p]iod describ$ 9 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  4  7b7 ,rulemak+
 ,n lat] ?an #a ye> aft] ! date (       
enactm5t ( ?is ,act1 ! ,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 #a ye> aft] ! date ( enactm5t ( ?is  
,act4  #d4 ,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$1 except z provid$ 9 subp>agraph    
7,b71 only on pecuni>y factors4 ,!      
weight giv5 to any su* pecuni>y factors 
by a fiduci>y %all appropriately reflect
 a prud5t assessm5t ( ! impact ( su*    
factor on ! risk & return ( ! inve/m5t  
or inve/m5t c\rse ( action4 ,! duties "u
 p>agraph 7#a7 %all include ! duty to n 
subord9ate ! int]e/s ( ! p>ticipants &  
b5efici>ies 9 retirem5t income or       
f9ancial b5efits "u a plan to o!r       
objectives & ! duty to n sacrifice      
inve/m5t return or take on additional   
inve/m5t risk to promote non-pecuni>y   
b5efits or goals4  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 9
 ! selection or ret5tion ( an inve/m5t  
if ! fiduci>y docum5ts-- 7i7 :y pecuni>y
 factors 7 n suffici5t to select or     
reta9 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 is 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 ,! consid]ation1 selection1 or    
ret5tion by a fiduci>y ( an inve/m5t    

option = a p5sion plan describ$ 9       
subsection 7c77#a77;,a7 t promotes1     
seeks1 or supports a non-pecuni>y b5efit
 or goal %all n con/itute a brea* (     
fiduci>y duties "u p>agraph 7#a7 if--   
7i7 ! fiduci>y satisfies ! requirem5ts (
 subp>agraph 7,a7 & p>agraph 7#a7 9     
select+1 consid]+1 or reta9+ any su*    
inve/m5t option2 &  7ii7 9 ! case ( su* 
an inve/m5t option 9 :i* ! inve/m5t     
objectives or goals or pr9cipal inve/m5t
 /rategy ( ! inve/m5t option include1   
consid]1 or indicate ! use ( a          
non-pecuni>y factor1 su* inve/m5t option
 is n select$ 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]native74  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  #e4 ,/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  #f4 ,/udy on climate *ange & o!r

 environm5tal disclosures 9 municipal   
bond m>ket  7a7 ,9 g5]al ,! ,commission 
%all solicit public comm5t & !reaft]    
conduct a /udy to det]m9e ! ext5t to :i*
 issu]s ( municipal securities make     
disclosures to inve/ors reg>d+ climate  
*ange & o!r environm5tal matt]s 7ref]r$ 
to 9 ?is section z cov]$ disclosures74  
7b7 ,cont5ts ,! /udy "u subsection 7a7  
%all consid] & analyze1 among o!r ?+s-- 
7#a7 ! frequ5cy ( cov]$ disclosures2    
7#b7 :e!r cov]$ disclosures made by     
issu]s ( municipal securities 9         
connection ) (f]+s ( securities align ) 
cov]$ 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+ cov]$ disclosures2 &  
7#d7 ! degree to :i* inve/ors consid]   
cov]$ disclosures 9 connection ) mak+ an
 inve/m5t decision4  7c7 ,report  7#a7  
,9 g5]al ,n lat] ?an #a ye> aft] ! date 
( enactm5t ( ?is ,act1 ! ,commission    

%all submit to ! ,committee on ,bank+1  
,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! 
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives a report on !   
/udy requir$ "u ?is section4  7#b7      
,cont5ts ,! report requir$ "u p>agraph  
7#a7 %all include-- 7,a7 a detail$      
discussion (-- 7i7 ! f9ancial risks to  
inve/ors f inve/m5ts 9 municipal        
securities2 &  7ii7 :e!r ! risks        
describ$ 9 clause 7i7 are be+ adequately
 disclos$2 &  7,b7 a discussion (       
regulatory or legislative /eps t are    
recomm5d$1 or t may be necess>y1 to     
address any conc]ns id5tifi$ 9 ! /udy   
requir$ "u ?is section4  #g4 ,/udy on   
solicitation ( municipal securities     
bus9ess  7a7 ,def9ition ,9 ?is section1 
! t]m cov]$ rules means-- 7#a7 ,rule    
,g-#ch ( ! ,municipal ,securities       
,rulemak+ ,bo>d2 &  7#b7 section        
#bge4bjf7d7-e ( title #ag1 ,code (      
,f$]al ,regulations1 or any successor   
regulation4  7b7 ,/udy ,! ,commission   
%all solicit public comm5t & !reaft]    

conduct a /udy to det]m9e ! effectiv5ess
 ( ! cov]$ rules 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 securities4  7c7      
,cont5ts ,! /udy "u subsection 7b7 %all 
consid] & analyze1 among o!r ?+s-- 7#a7 
:e!r ! cov]$ rules h _h _! int5d$       
effects & any un9t5d$ adv]se effects2   
7#b7 ! frequ5cy & scope ( en=cem5t      
actions und]tak5 "u ! cov]$ rules2  7#c7
 ! degree to :i* p]sons subject to !    
cov]$ rules h put 9 place policies &    
proc$ures int5d$ to ensure compliance ) 
! cov]$ rules2  7#d7 ! degree to :i*    
,/ate & ,f$]al regulations1 o!r ?an !   
cov]$ rules1 impact ! solicitation (    
municipal securities bus9ess2 &  7#e7 ! 
degree to :i* p]sons subject to ! cov]$ 
rules are disadvantag$ f p>ticipat+ 9 ! 
political process1 bo? z a g5]al matt] &
 relative to p]sons t solicit or receive
 gov]nm5t bus9ess or gov]nm5t lic5ses1  
p]mits1 & approvals o!r ?an 9 connection

 ) ! (f] or sale ( municipal securities4
  7d7 ,report  7#a7 ,9 g5]al ,n lat] ?an
 #a ye> aft] ! date ( enactm5t ( ?is    
,act1 ! ,commission %all submit to !    
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs ( ! ,s5ate & ! ,committee on   
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives a report on ! /udy      
requir$ "u ?is section4  7#b7 ,cont5ts  
,! report requir$ "u p>agraph 7#a7 %all 
include-- 7,a7 a discussion ( ! ext5t to
 :i* p]sons affiliat$ ) small bus9esses1
 & p]sons affiliat$ ) m9ority- &        
wom5-op5$ bus9esses1 h be5 affect$ by ! 
cov]$ rules2 &  7,b7 a discussion (     
regulatory or legislative /eps t are    
recomm5d$1 or t may be necess>y1 to     
address any conc]ns id5tifi$ 9 ! /udy   
requir$ "u ?is section4