[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2319 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 699
115th CONGRESS
  2d Session
                                H. R. 2319

                          [Report No. 115-903]

 To protect the investment choices of investors in the United States, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 2017

 Mr. Rothfus (for himself, Ms. Moore, and Mr. Stivers) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

                            August 24, 2018

 Additional sponsors: Ms. Sewell of Alabama, Mr. Trott, Mr. Sires, Mr. 
Messer, Mr. Tiberi, Mr. Ross, Mr. David Scott of Georgia, Ms. Kelly of 
Illinois, Ms. Eddie Bernice Johnson of Texas, Mr. Moolenaar, Mr. Murphy 
   of Pennsylvania, Mrs. Beatty, Mr. Meeks, Mr. Michael F. Doyle of 
 Pennsylvania, Mr. Mooney of West Virginia, Mr. Gonzalez of Texas, Mr. 
   Williams, Mr. MacArthur, Mr. Pittenger, Mr. Clay, Mr. Thompson of 
    Pennsylvania, Mr. Cleaver, Ms. Sinema, Mr. Kildee, Mr. Kelly of 
Pennsylvania, Mr. Sessions, Mr. Ryan of Ohio, Mr. Gottheimer, Mr. Budd, 
  Mr. Lawson of Florida, Mr. Olson, Mr. Fitzpatrick, Mr. Renacci, Mr. 
Hastings, Mr. Hill, Mr. Tipton, Mrs. Wagner, Ms. Fudge, Mr. Flores, Mr. 
 Shuster, Mr. Farenthold, Ms. Jackson Lee, Mr. Dent, Mr. Davidson, Mr. 
Zeldin, Mr. Sean Patrick Maloney of New York, Mr. Barletta, Mr. Kustoff 
  of Tennessee, Mr. Barr, Mr. Emmer, Mr. Smith of Texas, Mr. Estes of 
 Kansas, Mr. Danny K. Davis of Illinois, Mr. Arrington, Mr. Long, Mr. 
Perry, Mr. Evans, Mr. Brendan F. Boyle of Pennsylvania, Mr. Babin, Mr. 
Marino, Mr. Brady of Pennsylvania, Mr. Smucker, Mr. Vela, Mr. Faso, Mr. 
    Donovan, Mr. Higgins of New York, Mr. McCaul, Mr. Norcross, Mr. 
                Walberg, Mr. Cramer, and Mr. Cartwright


                            August 24, 2018

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on May 3, 
                                 2017]

_______________________________________________________________________

                                 A BILL


 
 To protect the investment choices of investors in the United States, 
                        and for other purposes.


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Financial Choice and 
Capital Markets Protection Act of 2018''.

SEC. 2. TREATMENT OF MONEY MARKET FUNDS UNDER THE INVESTMENT COMPANY 
              ACT OF 1940.

    The Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.) is 
amended by adding at the end the following:

``SEC. 66. MONEY MARKET FUNDS.

    ``(a) Definitions.--In this section--
            ``(1) the term `covered Federal assistance' means Federal 
        assistance used for the purpose of--
                    ``(A) making any loan to, or purchasing any stock, 
                equity interest, or debt obligation of, any money 
                market fund;
                    ``(B) guaranteeing any loan or debt issuance of any 
                money market fund; or
                    ``(C) entering into any assistance arrangement 
                (including tax breaks), loss sharing, or profit sharing 
                with any money market fund; and
            ``(2) the term `Federal assistance' means--
                    ``(A) insurance or guarantees by the Federal 
                Deposit Insurance Corporation;
                    ``(B) transactions involving the Secretary of the 
                Treasury; or
                    ``(C) the use of any advances from any Federal 
                Reserve credit facility or discount window, except to 
                the extent any part of a program or facility with 
                broad-based eligibility established in unusual or 
                exigent circumstances might be made available.
    ``(b) Election To Be a Stable Value Money Market Fund.--
            ``(1) In general.--Notwithstanding any other provision of 
        this title, any open-end investment company (or a separate 
        series thereof) that is a money market fund that relies on 
        section 270.2a-7 of title 17, Code of Federal Regulations, may, 
        in the prospectus included in its registration statement filed 
        under section 8, state that the company or series has elected 
        to compute the current price per share, for purposes of 
        distribution or redemption and repurchase, of any redeemable 
        security issued by the company or series by using the amortized 
        cost method of valuation, or the penny-rounding method of 
        pricing, regardless of whether its shareholders are limited to 
        natural persons, if--
                    ``(A) the company or series has as its objective 
                the generation of income and preservation of capital 
                through investment in short-term, high-quality debt 
                securities;
                    ``(B) the board of directors of the company or 
                series elects, on behalf of the company or series, to 
                maintain a stable net asset value per share or stable 
                price per share, by using the amortized cost valuation 
                method, as defined in section 270.2a-7(a) of title 17, 
                Code of Federal Regulations (or successor regulation), 
                or the penny-rounding pricing method, as defined in 
                section 270.2a-7(a) of title 17, Code of Federal 
                Regulations (or successor regulation), and the board of 
                directors of the company has determined, in good faith, 
                that--
                            ``(i) it is in the best interests of the 
                        company or series, and its shareholders, to do 
                        so; and
                            ``(ii) the money market fund will continue 
                        to use such method or methods only as long as 
                        the board of directors believes that the 
                        resulting share price fairly reflects the 
                        market-based net asset value per share of the 
                        company or series; and
                    ``(C) the company or series will comply with such 
                quality, maturity, diversification, liquidity, and 
                other requirements, including related procedural and 
                recordkeeping requirements, as the Commission, by rule 
                or regulation or order, may prescribe or has prescribed 
                as necessary or appropriate in the public interest or 
                for the protection of investors to the extent that such 
                requirements and provisions are not inconsistent with 
                this section.
            ``(2) Exemption from default liquidity fee requirements.--
                    ``(A) Elections under paragraph (1).--
                Notwithstanding section 270.2a-7 of title 17, Code of 
                Federal Regulations (or successor regulation), no 
                company or series that makes the election under 
                paragraph (1) shall be subject to the default liquidity 
                fee requirements of section 270.2a-7(c)(2)(ii) of title 
                17, Code of Federal Regulations (or successor 
                regulation) unless the board of directors of such 
                company or series elects, in the prospectus included in 
                the registration statement filed under section 8, to be 
                subject to such requirements.
                    ``(B) Other funds.--Notwithstanding section 270.2a-
                7 of title 17, Code of Federal Regulations (or 
                successor regulation), a company or series that does 
                not make an election under paragraph (1) shall not be 
                subject to the default liquidity fee requirements of 
                section 270.2a-7(c)(2)(ii) of title 17, Code of Federal 
                Regulations (or successor regulation), if it states in 
                the prospectus included in the registration statement 
                filed under section 8, that the company or series 
                satisfies the provisions of subparagraphs (A) and (C) 
                of paragraph (1) and that the board of directors of 
                such company or series has elected for the company or 
                series to not be subject to the default liquidity fee 
                requirements.
    ``(c) Prohibition Against Federal Government Bailouts of Money 
Market Funds.--Notwithstanding any other provision of law (including 
regulations), covered Federal assistance may not be provided directly 
to any money market fund.
    ``(d) Disclosure of the Prohibition Against Federal Government 
Bailouts of Money Market Funds.--
            ``(1) In general.--No principal underwriter of a redeemable 
        security issued by a money market fund nor any dealer shall 
        offer or sell any such security to any person unless the 
        prospectus of the money market fund and any advertising or 
        sales literature for such fund prominently discloses, on the 
        first page of such prospectus or literature, the prohibition 
        against direct covered Federal assistance as described in 
        subsection (c).
            ``(2) Rules, regulations, and orders.--The Commission may, 
        after consultation with and taking into account the views of 
        the Board of Governors of the Federal Reserve System, the 
        Federal Deposit Insurance Corporation, and the Department of 
        the Treasury, adopt rules and regulations and issue orders 
        consistent with the protection of investors, prescribing the 
        manner in which the disclosure under this subsection shall be 
        provided.
    ``(e) Continuing Obligation To Meet Requirements of This Title.--A 
company or series that makes an election under subsection (b)(1) shall 
remain subject to the provisions of this title and the rules and 
regulations of the Commission thereunder that would otherwise apply if 
those provisions do not conflict with the provisions of this 
section.''.
                                                 Union Calendar No. 699

115th CONGRESS

  2d Session

                               H. R. 2319

                          [Report No. 115-903]

_______________________________________________________________________

                                 A BILL

 To protect the investment choices of investors in the United States, 
                        and for other purposes.

_______________________________________________________________________

                            August 24, 2018

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed