119-hr2067

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2067 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2067

 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

 March 11, 2025

Mr. Moolenaar introduced the following bill; which was referred to the 
 Committee on Education and 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.--It shall be a violation of paragraph

    (1) for a fiduciary of a plan to fail to ensure that the 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 covered entity;
 ``
            (ii) lending money or extending credit to a 
 covered entity;
 ``
            (iii) furnishing goods, services, or facilities 
 to a covered entity; and
 ``
            (iv) transferring, directly or indirectly, to or 
 for use by or for the benefit of a covered entity--
 ``
            (I) any assets of the plan; or
 ``
            (II) any data with respect to any 
 participant or beneficiary of the plan.
 ``
        (B) === Definitions. ===
-
 ``
            (i) Covered entity.--For purposes of this 
 paragraph, the term `covered entity' means a foreign 
 adversary entity or sanctioned entity, as such terms 
 are defined in 

section 103

    (h) .
 ``
            (ii) Fiduciary.--For purposes of subparagraph
        (A)
            (iv) 
            (II) , the term `fiduciary' includes any person 
 who exercises direct or indirect discretionary 
 authority, responsibility, or control with respect to 
 any participant beneficiary data.
 ``
            (C) Continuation of current investments.--In the case of 
 a plan holding an investment in a covered entity on the date of 
 enactment of the Protecting Americans' Retirement Savings Act, 
 such plan may, notwithstanding subparagraph
        (A) , continue to 
 hold such investment without violating paragraph

    (1) if the 
 fiduciary of such plan complies with the requirements of 
 subparagraphs
            (I) and
        (J) of 

section 103

    (b)

    (3) .
 ``
            (D) 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 in 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, notwithstanding 
 subparagraph
        (A) , fulfill the terms of such agreement without 
 violating paragraph

    (1) 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 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 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)
            (D) , 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:
 ``

    (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 the Protecting Americans' 
 Retirement Savings 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 a 
 sanctioned entity or foreign adversary entity, 
 including any financial instrument or other contract 
 which seeks to replicate any financial return with 
 respect to such an entity or an interest in such an 
 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; relating to Addressing the Threat From 
 Securities Investments That Finance Certain Companies 
 of the People's Republic of China), 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 pursuant to 

section 2
            (d) (2)
        (B) of the 
 Act entitled `An Act to ensure that goods made with 
 forced labor in the Xinjiang Uyghur Autonomous Region 
 of the People's Republic of China do not enter the 
 United States market, and for other purposes', approved 
 December 23, 2021 (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 the Act entitled `An Act 
 to ensure that goods made with forced labor in the 
 Xinjiang Uyghur Autonomous Region of the People's 
 Republic of China do not enter the United States 
 market, and for other purposes', approved December 23, 
 2021 (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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