[Congressional Record Volume 167, Number 88 (Thursday, May 20, 2021)]
[Senate]
[Page S3218]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1751. Mr. RUBIO 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 end of title I of division E, add the following:

     SEC. 51__. MARKET INDEXES.

       (a) In General.--The Investment Company Act of 1940 (15 
     U.S.C. 80a-1 et seq.) is amended--
       (1) in section 8(b) (15 U.S.C. 80a-8(b))--
       (A) in paragraph (4), by striking ``and'' at the end;
       (B) in paragraph (5), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(6) a disclosure of--
       ``(A) whether the registrant intends to track the returns 
     of, or benchmark against, a specific index of securities; and
       ``(B) if the registrant intends to track the returns of, or 
     benchmark against, a specific index of securities--
       ``(i) the identity of the index provider;
       ``(ii) any involvement of the registrant in designing the 
     index;
       ``(iii) any ability of the registrant to influence the 
     construction or composition of the index; and
       ``(iv) any licensing fees paid by the registrant to the 
     index provider.'';
       (2) in section 13 (15 U.S.C. 80a-13)--
       (A) by redesignating subsection (c) as subsection (d); and
       (B) by inserting after subsection (b) the following:
       ``(c) Change in Investment Policy Relating to Indexing.--
       ``(1) In general.--With respect to a registered investment 
     company that tracks the returns of, or benchmarks against, a 
     specific index of securities, if a deviation with respect to 
     that index occurs such that the deviation would be permitted 
     under subsection (a)(3) if made directly by the investment 
     company only if authorized by the vote of a majority of the 
     outstanding voting securities of the investment company, the 
     investment company may not continue to so track, or benchmark 
     against, the index, unless so authorized by such a vote or by 
     a vote by the board of directors of the investment company.
       ``(2) Rule of construction.--For the purposes of paragraph 
     (1), a deviation with respect to an index that requires a 
     vote, as described in that paragraph, includes such a 
     deviation that adds new, or increases the weighting of, 
     securities--
       ``(A) of issuers that are headquartered or incorporated in 
     the People's Republic of China; or
       ``(B) that are listed on exchanges in the People's Republic 
     of China.''; and
       (3) in section 30 (15 U.S.C. 80a-29)--
       (A) in subsection (b)(1) , by striking ``this title; and'' 
     and inserting the following: ``this title, which shall 
     include--
       ``(A) information regarding whether the registered 
     investment company tracks the returns of, or benchmarks 
     against (or intends to track, or benchmark against), a 
     specific index of securities; and
       ``(B) if the registered investment company engages in, or 
     intends to engage in, the action described in subparagraph 
     (A), the information described in section 8(b)(6)(B) with 
     respect to the index described in subparagraph (A) of this 
     paragraph; and''; and
       (B) by adding at the end the following:
       ``(k) Annual Disclosure Regarding Chinese Securities.--
       ``(1) In general.--Each registered investment company shall 
     annually transmit to the stockholders of the investment 
     company a report containing information regarding, with 
     respect to any security owned by the investment company that 
     is issued by an issuer that is headquartered or incorporated 
     in the People's Republic of China or listed on an exchange in 
     the People's Republic of China--
       ``(A) the percentage of the securities of that issuer that 
     are owned by governmental entities in the People's Republic 
     of China;
       ``(B) whether the entities described in subparagraph (A) 
     have a controlling financial interest with respect to the 
     issuer;
       ``(C) the name of any official of the Chinese Communist 
     Party who is a member of the board of directors of--
       ``(i) the issuer; or
       ``(ii) the operating entity with respect to the issuer;
       ``(D) whether the articles of incorporation of the issuer 
     (or equivalent organizing document) contains any charter of 
     the Chinese Communist Party, including the text of any such 
     charter; and
       ``(E) whether the investment company was unable to obtain 
     any of the information required under any of subparagraphs 
     (A) through (D).
       ``(2) Inclusion permitted.--A report that a registered 
     investment company is required to transmit under paragraph 
     (1) may be included in a report that the investment company 
     is required to transmit under subsection (e).''.
       (b) Technical and Conforming Amendment.--Section 401(a) of 
     the Comprehensive Iran Sanctions, Accountability, and 
     Divestment Act of 2010 (22 U.S.C. 8551(a)) is amended, in the 
     matter preceding paragraph (1), by striking ``section 
     13(c)(1)(B)'' and inserting ``section 13(d)(1)(B)''.
       (c) Updates to Rules.--Not later than 1 year after the date 
     of enactment of this Act, the Securities and Exchange 
     Commission shall make any updates to the rules of the 
     Commission that are necessary as a result of this section and 
     the amendments made by this section.
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