[Congressional Record Volume 167, Number 87 (Wednesday, May 19, 2021)]
[Senate]
[Pages S3097-S3098]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1570. Mr. TUBERVILLE submitted an amendment intended to be 
proposed to amendment SA 1502 proposed by Mr. Schumer to the bill S. 
1260, to establish a new Directorate for Technology and Innovation in 
the National Science Foundation, to establish a regional technology hub 
program, to require a strategy and report on economic security, 
science, research, innovation, manufacturing, and job creation, to 
establish a critical supply chain resiliency program, and for other 
purposes; which was ordered to lie on the table; as follows:

        At the appropriate place, insert the following:

     SEC. ____. PROHIBITING TSP INVESTMENT IN CHINA.

       (a) 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 section, and the amendments made by this 
     section, 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 subsection (b)(1) of this section.
       (b) Prohibition on Any TSP Fund Investing in Entities Based 
     in the People's Republic of China.--
       (1) 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).''.
       (2) 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--
       (A) 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 paragraph (1) of this subsection;
       (B) if any sums are invested in the manner described in 
     subparagraph (A), 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
       (C) reinvest any sums divested under subparagraph (B) in 
     investments that do not violate subsection (i) of section 
     8438 of that title, as added by paragraph (1) of this 
     subsection.
       (c) 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

[[Page S3098]]

       ``(ii) any subsidiary that is owned or operated by an 
     entity described in clause (i).''.
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