,,ii  #aah? ,,congress  #b;d ,session   
,s4 #dehi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #ah1 #bjbd,mr4   
,scott ( ,florida introduc$ ! foll[+    
bill2 :i* 0 read twice & ref]r$ to !    
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs  ,a ,,bill  ,to prohibit index 
funds & regi/]$ inve/m5t companies f    
inve/+ 9 ,*9ese companies1 & = o!r      
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,safegu>d+ ,u4,s4 ,f9ancial
 ,lead]%ip ,aga9/ ,communi/ ,*9a ,act4  
#b4 ,f9d+s ,congress f9ds ! foll[+3 7#a7
 ,a #bjbd report by ! ,select ,committee
 on ! ,*9ese ,communi/ ,p>ty ( ! ,h\se (
 ,repres5tatives f\nd t index provid]s &
 asset manag]s1 on an indu/ry-wide      
basis1 h facilitat$ ! inve/m5t ( m ?an  
#f1ejj1jjj1jjj 9 companies t are bas$ 9 
! ,p's ,republic ( ,*9a & t ! ,f$]al    
,gov]nm5t has r$-flagg$ or blackli/$ =  
advanc+ ! milit>y capabilities1 or      
support+ ! human rights abuses1 ( ! ,p's
 ,republic ( ,*9a4  7#b7 ,a #bjbc report
 by ! ,coalition = a ,prosp]\s ,am]ica  

docum5t$ ! a/\nd+ level by :i* f9ancial 
in/itutions & inve/m5t firms t are bas$ 
9 ! ,unit$ ,/ates fund companies 9 !    
,p's ,republic ( ,*9a1 includ+ su*      
companies t h be5 sanction$ by ! ,f$]al 
,gov]nm5t & prohibit$ f do+ bus9ess 9 ! 
,unit$ ,/ates4  7#c7 ,a #bjba report by 
! ,u4,s4-,*9a ,economic & ,security     
,review ,commission /at$ t ! ,gov]nm5t (
 ! ,p's ,republic ( ,*9a p]mits !       
p>ticipation ( =eign firms & inve/ors 9 
! ,*9ese m>ket only :5 t p>ticipation   
suits ! national int]e/ ( ! ,p's        
,republic ( ,*9a1 &1 z a result1 a      
nom9al f9ancial op5+ 9 ! ,p's ,republic 
( ,*9a is1 9 reality1 a c>efully manag$ 
process design$ to re9=ce /ate control  
ov] capital m>kets & *annel =eign fund+ 
t[>d fulfill+ ! national developm5t     
objectives ( t ,gov]nm5t4  7#d7 ,e doll>
 inve/$ & sp5t 9 ! ,p's ,republic ( ,*9a
 funds ! atrocities ( ! ,gov]nm5t ( !   
,p's ,republic ( ,*9a1 su* z ! g5ocide (
 ! ,uyghurs1 & ! campaign ( t ,gov]nm5t 
to de/roy ! ,unit$ ,/ates4  7#e7 ,to    

protect ! fre$om to inve/1 & ! integrity
 ( ! capital m>kets ( ! ,unit$ ,/ates1  
,congress mu/ ensure t ^? capital m>kets
 are n be+ pollut$ & di/ort$ by nef>i\s1
 non-m>ket economy actors1 su* z !      
,gov]nm5t ( ! ,p's ,republic ( ,*9a4    
7#f7 ,congress mu/ address-- 7,a7 !     
?reats t ! ,gov]nm5t ( ! ,p's ,republic 
( ,*9a poses to inve/ors 9 ! ,unit$     
,/ates2 &  7,b7 ! consequ5ces ( massive 
inve/m5t by ! ,unit$ ,/ates 9 !         
milit>y-civil fusion app>atus ( a regime
 t wi%es to de/roy ! way ( life 9 !     
,unit$ ,/ates4  #c4 ,prohibition  7a7   
,def9itions ,9 ?is section3 7#a7 ,*9ese 
company ,! t]m ,*9ese company means a   
company-- 7,a7 t is incorporat$ 91 or   
o!rwise organiz$ "u ! laws (1 ! ,p's    
,republic ( ,*9a2  7,b7 ! majority ( !  
assets or employees ( :i* are locat$ 9 !
 ,p's ,republic ( ,*9a2  7,c7 t is      
majority-own$ by1 controll$ by1 or      
subject to ! jurisdiction or direction (
 ! ,gov]nm5t ( ! ,p's ,republic ( ,*9a2 
7,d7 ! majority ( ! value ( :i* dep5ds  

on ! rev5ues1 pr(its1 m>ket             
capitalization1 assets1 or value ( a    
security 7includ+ options to pur*ase or 
sell7 ( a company describ$ 9 subp>agraph
 7,a71 7,b71 or 7,c72 or  7,e7 ) respect
 to :i* a company describ$ 9 subp>agraph
 7,a71 7,b71 or 7,c7 has control 7z     
def9$ 9 section #bcj4dje ( title #ag1   
,code ( ,f$]al ,regulations1 or any     
successor regulation74  7#b7 ,commission
 ,! t]m ,commission means ! ,securities 
& ,ex*ange ,commission4  7#c7 ,h$ge fund
 ,! t]m h$ge fund means an issu] t w\ld 
be an inve/m5t company b = p>agraph 7#a7
 or 7#g7 ( section #c7;c7 ( ! ,inve/m5t 
,company ,act ( #aidj 7#ae ,u4,s4,c4    
#hj;a-#c7;c774  7#d7 ,index fund ,! t]m 
index fund means an inve/m5t company or 
h$ge fund t is design$ to track an index
 ( securities or a portion ( su* an     
index4  7#e7 ,inve/m5t company ,! t]m   
inve/m5t company has ! mean+ giv5 ! t]m 
9 section #c ( ! ,inve/m5t ,company ,act
 ( #aidj 7#ae ,u4,s4,c4 #hj;a-#c74  7#f7
 ,regi/]$ inve/m5t company ,! t]m       

regi/]$ inve/m5t company means an       
inve/m5t company t is regi/]$ ) !       
,commission pursuant to ! ,inve/m5t     
,company ,act ( #aidj 7#ae ,u4,s4,c4    
#hj;a-#a et seq474  7b7 ,prohibition on 
inve/m5t  7#a7 ,g5]al prohibition  7,a7 
,9 g5]al ,nei!r an index fund nor a     
regi/]$ inve/m5t company may inve/ 9 a  
,*9ese company4  7,b7 ,dive/m5t p]iod   
safe h>bor ,) respect to an index fund  
or regi/]$ inve/m5t company ) an        
inve/m5t 9 a ,*9ese company on ! date ( 
enactm5t ( ?is ,act1 subp>agraph 7,a7   
%all n apply to t inve/m5t dur+ ! #a-ye>
 p]iod beg9n+ on t date ( enactm5t4     
7#b7 ,dive/m5t plan ,n lat] ?an #ahj    
days aft] ! date ( enactm5t ( ?is ,act1 
ea* index fund & regi/]$ inve/m5t       
company ) an inve/m5t 9 a ,*9ese company
 %all develop1 & %>e ) ! %>ehold]s ( &  
inve/ors 9 ! applicable entity1 a writt5
 plan on h[ ! entity w dive/ f ea* su*  
inve/m5t to come into compliance ) ?is  
subsection4  7c7 ,civil p5alty  7#a7 ,9 
g5]al ,any p]son t violates ?is section 

%all be subject to a civil p5alty ( !   
foll[+ am\nt3 7,a7 ,) respect to a      
violation ( subsection 7b77#a71 an am\nt
 n to exce$ ! great] (-- 7i7 #ejj1jjj2  
or  7ii7 an am\nt t is twice ! am\nt ( !
 transaction t is ! basis ( ! violation 
) respect to :i* ! p5alty is impos$4    
7,b7 ,) respect to a violation (        
subsection 7b77#b71 #ejj1jjj = ea* day !
 p]son is 9 violation ( subsection      
7b77#b74  7#b7 ,am\nt ( a transaction   
def9$ ,= purposes ( p>agraph            
7#a77;,a77ii71 ! t]m am\nt ( a          
transaction means-- 7,a7 ) respect to a 
pur*ase t is ! basis ( ! applicable     
violation1 ! pur*ase price2 &  7,b7 )   
respect to ! hold+ ( an inve/m5t t is ! 
basis ( ! applicable violation1 ! fair  
m>ket value ( ! inve/m5t at ! "t ( !    
violation4