[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6783 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 6783

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 14, 2023

Mr. Sessions (for himself and Mr. Vicente Gonzalez of Texas) introduced 
 the following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 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 ``Capital Markets Financing and 
Economic Growth Investments Act of 2023''.

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) Election To Be a Stable Value Money Market Fund.--
            ``(1) In general.--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 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 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 objective or principal investment 
                strategy of the company is not inconsistent with 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 elects, 
                on behalf of the company, 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, 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; and
                    ``(C) the company 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 or with the ability of the company to 
                maintain a stable net asset value per share or stable 
                price per share by using either the amortized cost 
                method or the penny-rounding method of pricing.
            ``(2) Exemption from mandatory liquidity fee 
        requirements.--Notwithstanding section 270.2a-7 of title 17, 
        Code of Federal Regulations (or successor regulation), no 
        company that makes the election under paragraph (1) shall be 
        subject to the mandatory liquidity fee requirements of section 
        270.2a-7(c)(2)(ii) of title 17, Code of Federal Regulations (or 
        successor regulation).
    ``(b) Continuing Obligation To Meet Requirements of This Title.--A 
company that makes an election under subsection (a)(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.''.

SEC. 3. PROHIBITION AGAINST MANDATORY PRICING OR FEES FOR A REGISTERED 
              OPEN-END COMPANY.

    Section 22 of the Investment Company Act of 1940 (15 U.S.C. 80a-22) 
is amended by adding at the end the following:
    ``(h) Prohibition Against Mandatory Pricing or Fees for a 
Registered Open-End Company.--
            ``(1) In general.--The Commission and any securities 
        association registered under section 15A of the Securities 
        Exchange Act of 1934 are prohibited from promulgating, 
        interpreting, or enforcing rules or guidance, or issuing orders 
        of general applicability, that would impose, directly or 
        indirectly, any requirement upon a registered open-end company, 
        for the purpose of accomplishing the ends prescribed in 
        subsection (a), with the effect of requiring--
                    ``(A) adjustment to the company's current net asset 
                value per share;
                    ``(B) calculation and application of differing 
                share prices as between redeeming and purchasing 
                shareholders;
                    ``(C) adoption, calculation, or use of mandatory 
                fees on shareholder transactions or transacting 
                shareholders; or
                    ``(D) adoption or use of any measures economically 
                similar to the foregoing.
            ``(2) Rule of construction.--Nothing in this subsection may 
        be construed to prevent a registered open-end company from 
        voluntarily adopting any measure described under subparagraph 
        (A) through (D) of paragraph (1).''.
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