Blocking Investment In Our Adversaries Act

I 116TH CONGRESS 1ST SESSION H. R. 2903 To amend title 5, United States Code, to prohibit the International Stock Index Investment Fund of the Thrift Savings Fund from investing in any entity in peer or near-peer competitor nations as outlined in the National Defense Strategy, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 22, 2019 Mr. BANKS introduced the following bill; which was referred to the Committee on Oversight and Reform A BILL To amend title 5, United States Code, to prohibit the Inter- national Stock Index Investment Fund of the Thrift Sav- ings Fund from investing in any entity in peer or near- peer competitor nations as outlined in the National De- fense Strategy, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; FINDINGS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Blocking Investment In Our Adversaries Act’’. 5 (b) FINDINGS.—Congress finds the following: 6 VerDate Sep 11 2014 06:06 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2903.IH H2903 kjohnson on DSK79L0C42 with BILLS 2 •HR 2903 IH (1) Federal retirement plans, including the 1 Thrift Savings Plan, invest a total of over $550 bil- 2 lion on behalf of their plan participants. With such 3 an influence, it is critical that U.S. Federal pension 4 plans do not contribute to stock earnings for compa- 5 nies demonstrated to be linked to the economies of 6 peer or near-peer competitors, as outlined in the Na- 7 tional Defense Strategy. 8 (2) Large sector international companies such 9 as Huawei have repeatedly committed numerous 10 crimes such as corporate espionage, violations of 11 US-imposed sanctions, violations of international 12 property law, and theft. 13 (3) The Thrift Savings Plan is the preeminent 14 retirement plan for Federal government employees. 15 The plan is especially beneficial due to its low serv- 16 ice fees and high historical returns. The provisions 17 outlined in this Act will not increase fees imposed on 18 clients of the Thrift Savings Plan. 19 (4) Congress acknowledges the conflict between 20 fiduciary duties of financial investment firms and 21 the responsibility to ensure national security. 22 (5) The November 2017 selection of the MSCI 23 ACWI Index by the Federal Retirement Thrift In- 24 VerDate Sep 11 2014 06:06 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2903.IH H2903 kjohnson on DSK79L0C42 with BILLS 3 •HR 2903 IH vestment Board, to be effective in 2020, violates the 1 terms of this Act, as outlined in section 2. 2 SEC. 2. PROHIBITION ON INVESTMENT OF TSP I FUND IN 3 PEER AND NEAR-PEER COMPETITORS. 4 (a) IN GENERAL.—Section 8438(b)(4) of title 5, 5 United States Code, is amended by adding at the end the 6 following: 7 ‘‘(C) The index selected by the Board under subpara- 8 graph (A) may not include investments in any stock of 9 an entity based in a peer or near-peer competitor, includ- 10 ing China or Russia.’’. 11 (b) DIVESTITURE OF ASSETS.—Not later than 30 12 days after the date of the enactment of this Act, the Fed- 13 eral Retirement Thrift Investment Board (as established 14 under section 8472(a) of title 5, United States Code), in 15 consultation with the manager of the Thrift Savings Fund, 16 shall— 17 (1) review whether any sums in the Thrift Sav- 18 ings Fund are invested in contravention of subpara- 19 graph (C) of section 8438(b)(4) of such title, as 20 added by subsection (a); 21 (2) if any sums are so invested, and consistent 22 with the legal and fiduciary duties provided under 23 chapter 84 of such title or any other provision of 24 law, divest such sums; and 25 VerDate Sep 11 2014 06:06 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2903.IH H2903 kjohnson on DSK79L0C42 with BILLS 4 •HR 2903 IH (3) re-invest the divested sums in investments 1 that do not contradict such subparagraph. 2 Æ VerDate Sep 11 2014 06:06 Jun 05, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H2903.IH H2903 kjohnson on DSK79L0C42 with BILLS