[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3295 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 3295

 To amend title 5, United States Code, to prohibit sums in the Thrift 
Savings Fund from being invested in any security of an entity based in 
        the People's Republic of China, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 18, 2021

  Mr. Banks introduced the following bill; which was referred to the 
                   Committee on Oversight and Reform

_______________________________________________________________________

                                 A BILL


 
 To amend title 5, United States Code, to prohibit sums in the Thrift 
Savings Fund from being invested in any security of an entity based in 
        the People's Republic of China, 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; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Prohibiting TSP 
Investment in China Act''.
    (b) Findings.--Congress finds the following:
            (1) The Thrift Savings Fund invests more than 
        $700,000,000,000 on behalf of plan participants. As the 
        guardian of the retirement funds of approximately 6,000,000 
        Federal civilian and military plan participants, it is critical 
        that sums in the Thrift Savings Fund are not invested in 
        securities linked to the economy of the People's Republic of 
        China.
            (2) Companies headquartered in the People's Republic of 
        China have repeatedly committed corporate espionage, violated 
        sanctions imposed by the United States, flouted international 
        property laws, committed theft, and failed to comply with audit 
        and regulatory standards designed to safeguard investors.
            (3) The Thrift Savings Plan is known for its low management 
        fees and comprehensive array of investment strategies. The 
        provisions of this Act, and the amendments made by this Act, 
        will not increase fees imposed on participants of the Thrift 
        Savings Plan.
            (4) The November 2017 selection of the MSCI ACWI Index by 
        the Federal Retirement Thrift Investment Board, initially 
        scheduled to be effective in 2020, would violate the terms of 
        subsection (i) of section 8438 of title 5, United States Code, 
        as added by section 2(a) of this Act.

SEC. 2. PROHIBITION ON ANY TSP FUND INVESTING IN ENTITIES BASED IN THE 
              PEOPLE'S REPUBLIC OF CHINA.

    (a) In General.--Section 8438 of title 5, United States Code, is 
amended by adding at the end the following:
    ``(i) Notwithstanding any other provision of this section, no fund 
established or overseen by the Board may include an investment in any 
security of--
            ``(1) an entity based in the People's Republic of China; or
            ``(2) any subsidiary that is owned or operated by an entity 
        described in paragraph (1).''.
    (b) Divestiture of Assets.--Not later than 30 days after the date 
of enactment of this Act, the Federal Retirement Thrift Investment 
Board established under section 8472(a) of title 5, United States Code, 
shall--
            (1) review whether any sums in the Thrift Savings Fund are 
        invested in violation of subsection (i) of section 8438 of that 
        title, as added by subsection (a) of this section;
            (2) if any sums are invested in the manner described in 
        paragraph (1), divest those sums in a manner that is consistent 
        with the legal and fiduciary duties provided under chapter 84 
        of that title, or any other applicable provision of law; and
            (3) reinvest any sums divested under paragraph (2) in 
        investments that do not violate subsection (i) of section 8438 
        of that title, as added by subsection (a) of this section.

SEC. 3. PROHIBITION ON INVESTMENT OF TSP FUNDS IN ENTITIES BASED IN THE 
              PEOPLE'S REPUBLIC OF CHINA THROUGH THE TSP MUTUAL FUND 
              WINDOW.

    Section 8438(b)(5) of title 5, United States Code, is amended by 
adding at the end the following:
    ``(E) A mutual fund accessible through a mutual fund window 
authorized under this paragraph may not include an investment in any 
security of--
            ``(i) an entity based in the People's Republic of China; or
            ``(ii) any subsidiary that is owned or operated by an 
        entity described in clause (i).''.
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