,,ii  #aai? ,,congress  #a/ ,session    
,s4 #bjdf  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #ab1 #bjbe ,mr4  
,ricketts 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 f      
inve/+ 9 ,*9ese companies1 & = o!r      
purposes4  #a4  ,%ort title  ,?is ,act  
may be cit$ z ! ,no ,*9a 9 ,index ,funds
 ,act4  #b4  ,def9itions  ,9 ?is ,act3  
7#a7 ,am\nt ( ! transaction ,! t]m am\nt
 ( ! transaction means--  7,a7 ) respect
 to a pur*ase t violates ?is ,act1 !    
pur*ase price2 &  7,b7 ) respect to !   
hold+ ( an inve/m5t t violates ?is ,act1
 ! fair m>ket value ( ! inve/m5t at ! "t
 ( ! violation4  7#b7  ,*9ese company   
,! t]m ,*9ese company means a company-- 
7,a7 incorporat$ or o!rwise organiz$ 9 !
 ,p's ,republic ( ,*9a2  7,b7 t has a   
majority ( its assets or employees      
locat$ 9 ! ,p's ,republic ( ,*9a2  7,c7 
own$ by1 controll$ by1 or subject to !  
jurisdiction or direction ( ! gov]nm5t (

 ! ,p's ,republic ( ,*9a2  7,d7 :]e a   
majority ( ! value ( ! company 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,c71 z det]m9$ by !    
,securities & ,ex*ange ,commission2 or  
7,e7 :]e a company describ$ "u          
subp>agraph 7,a71 7,b71 or 7,c7 has     
control1 z def9$ 9 section #bcj4dje (   
title #ag1 ,code ( ,f$]al ,regulations1 
( ! company1 z det]m9$ by ! ,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  #c4          
,prohibition  7a7  ,9 g5]al  ,an index  
fund may n inve/ 9 a ,*9ese company4    
7b7  ,dive/m5t p]iod safe h>bor  ,)     
respect to an index fund ) an inve/m5t 9
 a ,*9ese company on ! date ( enactm5t (
 ?is ,act1 subsection 7a7 %all n apply  
to su* inve/m5t dur+ ! #ahj-;day p]iod  
beg9n+ on ! date ( enactm5t ( ?is ,act4 
7c7  ,civil p5alty  ,any p]son :o       
violates ?is section %all be subject to 
a civil p5alty 9 an am\nt n to exce$ !  
great] (--  7#a7 #bej1jjj2 or  7#b7 an  
am\nt t is twice ! am\nt ( ! transaction
 t is ! basis ( ! violation ) respect to
 :i* ! p5alty is impos$4  7d7  ,rulemak+
  ,! ,securities & ,ex*ange ,commission 
may issue su* rules z may be necess>y to
 c>ry out ?is section4