[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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