[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4008 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 4008

   To amend the Employment Retirement Income Security Act of 1974 to 
prohibit plan investments in foreign adversary and sanctioned entities, 
 require disclosure of existing investments in such entities, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2023

Mr. Banks (for himself, Mr. Gallagher, Mr. Moolenaar, and Mr. Wittman) 
 introduced the following bill; which was referred to the Committee on 
                      Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
   To amend the Employment Retirement Income Security Act of 1974 to 
prohibit plan investments in foreign adversary and sanctioned entities, 
 require disclosure of existing investments in such entities, 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 ``Protecting Americans' Retirement 
Savings Act'' or ``PARSA''.

SEC. 2. PROHIBITION ON INVESTMENT IN CERTAIN ENTITIES.

    Section 404(a) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1104(a)) is amended by adding at the end the following:
    ``(3) Prohibition on Investment in Certain Entities.--
            ``(A) In general.--For purposes of paragraph (1), a 
        fiduciary of a plan may not be considered to act solely in the 
        interest of the participants and beneficiaries of the plan if 
        such fiduciary does not ensure that such plan does not engage 
        in a transaction that the fiduciary knows, or should know, will 
        result in the plan--
                    ``(i) acquiring an interest (as defined in section 
                103(h)) between the plan and a sanctioned entity or 
                foreign adversary entity (as each such term is defined 
                in section 103(h));
                    ``(ii) lending money or extending credit to such an 
                entity;
                    ``(iii) furnishing goods, services, or facilities 
                to such an entity; or
                    ``(iv) transferring, directly or indirectly, to or 
                for use by or for the benefit of such an entity--
                            ``(I) any assets of the plan; or
                            ``(II) any data with respect to any 
                        participant or beneficiary of the plan.
                For the purposes of subclause (II), the term 
                `fiduciary' includes any person who exercises direct or 
                indirect discretionary authority, responsibility, or 
                control with respect to any participant beneficiary 
                data.
            ``(B) Continuation of current investments.--In the case of 
        a plan holding an investment in a sanctioned entity or foreign 
        adversary entity on the date of enactment of the Protecting 
        Americans' Retirement Savings Act, such plan may continue to 
        hold such investment if the fiduciary of such plan complies 
        with the requirements of subparagraphs (I) and (J) of section 
        103(b)(3).
            ``(C) Contractually obligated investments.--In the case of 
        a plan that has entered into a binding agreement prior to the 
        date of enactment of the Protecting Americans' Retirement 
        Savings Act obligating such plan to engage in a transaction 
        described under subparagraph (A), if the fiduciary of such plan 
        complies with the requirements of subparagraphs (I), (J), and 
        (K) of section 103(b)(3), such plan may fulfill the terms of 
        such agreement until such agreement--
                    ``(i) expires; or
                    ``(ii) allows for termination.''.

SEC. 3. ADDITIONAL DISCLOSURES FOR EMPLOYEE RETIREMENT FUNDS.

    (a) In General.--Section 103(b)(3) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1023(b)(3)) is amended--
            (1) in subparagraph (H)(iv), by striking the period at the 
        end and inserting ``; and''; and
            (2) by inserting at the end the following:
            ``(I) a separate statement of all assets in the plan that 
        consist, in whole or in part, of an interest in a sanctioned 
        entity, including--
                    ``(i) the aggregate value of such assets in the 
                plan;
                    ``(ii) the identity of each sanctioned entity in 
                which such plan holds an interest; and
                    ``(iii) information identifying each list under 
                subsection (h)(5) on which such sanctioned entity is 
                listed, and the reasons for which an entity may be 
                placed on such list;
            ``(J) a separate statement of all assets in the plan that 
        consist, in whole or in part, of an interest in a foreign 
        adversary entity, including--
                    ``(i) the aggregate value of such assets in the 
                plan;
                    ``(ii) the specific interest, and value thereof, 
                that such plan holds in each such foreign adversary 
                entity;
                    ``(iii) the name of any investment vehicle through 
                which the plan holds such interest;
                    ``(iv) the name of the fiduciary responsible for 
                such investment; and
                    ``(v) a brief statement of factors considered by 
                the fiduciary in maintaining such investment;
            ``(K) a description of any ongoing agreement subject to 
        section 404(a)(3)(C), including--
                    ``(i) the assets involved in such agreement;
                    ``(ii) the date on which such agreement expires;
                    ``(iii) the date on which such commitment may be 
                terminated; and
                    ``(iv) such other information as the Secretary may 
                deem appropriate.''.
    (b) Definitions.--Section 103 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1023) is further amended by adding at 
the end the following new subsection:
    ``(h) Definitions.--In this section:
            ``(1) Control.--The term `control' has the meaning given in 
        section 800.208 of title 31, Code of Federal Regulations (as in 
        effect on the date of enactment of this Act).
            ``(2) Export administration regulations.--The term `Export 
        Administration Regulations' means the regulations set forth in 
        subchapter C of chapter VII of title 15, Code of Federal 
        Regulations, or successor regulations.
            ``(3) Foreign adversary.--The term `foreign adversary'--
                    ``(A) has the meaning given the term `covered 
                nation' in section 4872(d) of title 10, United States 
                Code (as in effect on the date of enactment of this 
                Act); and
                    ``(B) includes any Special Administrative Region of 
                any such covered nation.
            ``(4) Foreign adversary entity.--The term `foreign 
        adversary entity' means--
                    ``(A) any official governmental body at any level 
                in a foreign adversary;
                    ``(B) the armed forces of a foreign adversary;
                    ``(C) the leading political party of a foreign 
                adversary;
                    ``(D) a person organized under the laws of, 
                headquartered in, or with its principal place of 
                business in a foreign adversary; or
                    ``(E) a person subject to the direction or control 
                of an entity listed in subparagraphs (A) through (D).
            ``(5) Interest.--The term `interest' includes any 
        interest--
                    ``(A) held directly or indirectly through any chain 
                of ownership; or
                    ``(B) held as a derivative financial instrument or 
                other contractual arrangement with respect to such 
                sanctioned entity, including any financial instrument 
                or other contract which seeks to replicate any 
                financial return with respect to a sanctioned entity or 
                interest in such sanctioned entity.
            ``(6) Sanctioned entity.--The term `sanctioned entity' 
        means an entity listed on any of the following lists:
                    ``(A) The Non-SDN Chinese Military-Industrial 
                Complex Companies List (NS-CMIC List) maintained by the 
                Office of Foreign Assets Control of the Department of 
                the Treasury under Executive Order 14032 (86 Fed. Reg. 
                30145), or any successor order.
                    ``(B) The list of Chinese military companies 
                identified by the Secretary of Defense pursuant to 
                section 1260H of the William M. (Mac) Thornberry 
                National Defense Authorization Act for Fiscal Year 2021 
                (Public Law 116-283; 10 U.S.C. 113 note).
                    ``(C) The Entity List maintained by the Department 
                of Commerce and set forth in Supplement No. 4 to part 
                744 of the Export Administration Regulations.
                    ``(D) The Denied Persons List maintained by the 
                Department of Commerce and described in section 
                764.3(a)(2) of the Export Administration Regulations.
                    ``(E) The Unverified List set forth in Supplement 
                No. 6 to part 744 of the Export Administration 
                Regulations.
                    ``(F) The Military End User List set forth in 
                Supplement No. 7 to part 744 of the Export 
                Administration Regulations.
                    ``(G) The list of companies whose equipment or 
                services are maintained by the Federal Communications 
                Commission under section 2(a) of the Secure and Trusted 
                Communications Networks Act of 2019 (47 U.S.C. 
                1601(a)), commonly referred to as the FCC Covered list.
                    ``(H) The Uyghur Forced Labor Prevention Act Entity 
                List maintained by the Department of Homeland Security 
                pursuant to Public Law 117-78.
                    ``(I) The Withhold Release Orders and Findings List 
                maintained by the Commissioner of U.S. Customs and 
                Border Protection pursuant to Public Law 117-78.''.
    (c) Effective Date.--
            (1) Regulations required.--Not more than 180 days after the 
        enactment of this Act, the Secretary shall issue regulations 
        implementing this Act.
            (2) Effective date of regulations.--The regulations issued 
        under paragraph (1) shall take effect not later than 1 year 
        after the date of enactment of this Act.
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