Union Calendar No. 129

104TH CONGRESS

1ST SESSION H. R. 1594

[Report No. 104–238]

A BILL

To place restrictions on the promotion by the Deplans. vestments in connection with employee benefit and instrumentalities of economically targeted in- partment of Labor and other Federal agencies

SEPTEMBER 1, 1995

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 129

104TH CONGRESS

1ST SESSION H. R. 1594

[Report No. 104–238]

To place restrictions on the promotion by the Department of Labor and

other Federal agencies and instrumentalities of economically targeted

investments in connection with employee benefit plans.

IN THE HOUSE OF REPRESENTATIVES

MAY 9, 1995

Mr. SAXTON (for himself, Mr. ARMEY, Mr. HASTERT, Mr. ISTOOK, Mrs.

KELLY, Mrs. SEASTRAND, Mr. HASTINGS of Washington, Mr. HOKE, Mr.

COX of California, Mr. MANZULLO, Mr. EWING, Mr. SANFORD, Mr.

LAHOOD, Mrs. MEYERS of Kansas, Mr. STUMP, Mr. SCARBOROUGH, Mr.

UPTON, Mr. HEINEMAN, Mr. LARGENT, Mr. SMITH of Texas, Mr.

THORNBERRY, Mr. DOOLITTLE, Mr. EHRLICH, Mr. ROHRABACHER, Mr.

CUNNINGHAM, Mr. SALMON, Mr. BARTLETT of Maryland, Mr. BOEHNER,

Mr. MILLER of Florida, Mrs. CHENOWETH, Mr. HERGER, Mr. BARTON

of Texas, Mr. LATHAM, Mr. LIVINGSTON, Mr. GEKAS, Mr. HILLEARY,

Mr. TALENT, Mr. WALSH, and Mr. DELAY) introduced the following bill;

which was referred to the Committee on Economic and Educational Opportunities

SEPTEMBER 1, 1995

Additional sponsors: Mr. RAMSTAD, Mr. SOLOMON, Mr. CHRISTENSEN, Mr.

CHABOT, Mr. FOLEY, Mr. BALLENGER, Mr. LOBIONDO, Mr. ENGLISH of

Pennsylvania, Mr. KNOLLENBERG, Mr. EMERSON, Mr. LINDER, Mr. ZIMMER, Mr. SHADEGG, Mr. WELDON of Pennsylvania, Mr. ARCHER, Mr.

HAYWORTH, Mr. HANCOCK, Mr. COBLE, Mrs. WALDHOLTZ, Mr. INGLIS

of South Carolina, Mr. HEFLEY, Mr. TAYLOR of North Carolina, Mr.

BURTON of Indiana, Mr. MARTINI, Mr. SENSENBRENNER, Mr. NORWOOD, Mr. DORNAN, Mr. BAKER of California, Mr. BUNNING of Kentucky, Mr. HOBSON, Mr. SCHAEFER, Mr. CRAPO, Mr. GOSS, Mr.

FORBES, Mr. KOLBE, Mr. CHAMBLISS, Mr. HOSTETTLER, Mr. ZELIFF,

Mr. BONILLA, Mr. WELDON of Florida, Mr. METCALF, Mr. PACKARD,

Mr. WELLER, Mr. SAM JOHNSON of Texas, Mr. DUNCAN, Mr.

HOEKSTRA, Mr. BASS, Mr. FOX of Pennsylvania, Mr. ROYCE, Mr.
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GUTKNECHT, Mr. CHRYSLER, Mr. BLILEY, Mr. NEY, Mr. BUYER, Mr.

THOMAS, Mr. BAKER of Louisiana, Mr. FIELDS of Texas, Ms. PRYCE,

Mr. ALLARD, Mr. GOODLATTE, Mr. FAWELL, Mr. GOODLING, Mr.

FUNDERBURK, Mr. SKEEN, Mr. HORN, Mr. CALVERT, and Mr.

GILCHREST

SEPTEMBER 1, 1995

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on May 9, 1995]

A BILL

To place restrictions on the promotion by the Department

of Labor and other Federal agencies and instrumentalities of economically targeted investments in connection

with employee benefit plans.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SENSE OF THE CONGRESS.

4 It is the sense of the Congress that it is inappropriate

5 for the Department of Labor, as the principal enforcer of

6 fiduciary standards in connection with employee pension

7 benefit plans and employee welfare benefit plans (as defined

8 in paragraphs (1) and (2) of section 3 of the Employee Re9 tirement Income Security Act of 1974 (29 U.S.C. 1002(1),

10 (2))), to take any action to promote or otherwise encourage

11 economically targeted investments.
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1 SEC. 2. PROHIBITIONS ON DEPARTMENT OF LABOR RE2 GARDING ECONOMICALLY TARGETED INVEST3 MENTS.

4 (a) IN GENERAL.—Interpretive Bulletin 94–1, issued

5 by the Secretary of Labor on June 23, 1994 (59 Fed. Reg.

6 32606; 29 C.F.R. 2509.94–1), is null and void and shall

7 have no force or effect. The provisions of the Employee Re8 tirement Income Security Act of 1974 (29 U.S.C. 1001 et

9 seq.) shall be interpreted and enforced without regard to

10 such Interpretive Bulletin.

11 (b) RESTRICTIONS ON DEPARTMENT OF LABOR REGU12 LATIONS.—The Secretary of Labor may not issue any rule,

13 regulation, or interpretive bulletin which promotes or other14 wise encourages economically targeted investments as a

15 specified class of investments.

16 (c) RESTRICTIONS ON ACTIVITIES OF THE DEPART17 MENT OF LABOR.—No officer or employee of the Depart18 ment of Labor may travel, lecture, or otherwise expend re19 sources available to such Department for the purpose of pro20 moting, directly or indirectly, economically targeted invest21 ments.

22 (d) ECONOMICALLY TARGETED INVESTMENT DE23 FINED.—For purposes of this section, the term ‘‘economi24 cally targeted investment’’ has the meaning given such term

25 in Interpretive Bulletin 94–1, as issued by the Secretary
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1 of Labor on June 23, 1994 (59 Fed. Reg. 32606; 29 C.F.R.

2 2509.94–1).

3 SEC. 3. PROHIBITION ON FEDERAL AGENCIES AGAINST ES4 TABLISHING OR MAINTAINING ANY CLEAR5 INGHOUSE OR OTHER DATABASE RELATING

6 TO ECONOMICALLY TARGETED INVEST7 MENTS.

8 (a) IN GENERAL.—Part 5 of subtitle B of title I of

9 the Employee Retirement Income Security Act of 1974 (29

10 U.S.C. 1131 et seq.) is amended by adding at the end the

11 following new section:

12 ‘‘PROHIBITION ON FEDERAL AGENCIES AGAINST ESTAB13 LISHING OR MAINTAINING ANY CLEARINGHOUSE OR

14 OTHER DATABASE RELATING TO ECONOMICALLY TAR15 GETED INVESTMENTS

16 ‘‘SEC. 516. (a) IN GENERAL.—No agency or instru17 mentality of the Federal Government may establish or

18 maintain, or contract with (or otherwise provide assistance

19 to) any other party to establish or maintain, any clearing20 house, database, or other listing—

21 ‘‘(1) for the purpose of making available to em22 ployee benefit plans information on economically tar23 geted investments,

24 ‘‘(2) for the purpose of encouraging, or providing

25 assistance to, employee benefit plans or any other
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1 party related to an employee benefit plan to under2 take or evaluate economically targeted investments, or

3 ‘‘(3) for the purpose of identifying economically

4 targeted investments with respect to which such agen5 cy or instrumentality will withhold from undertaking

6 enforcement actions relating to employee benefit plans

7 under any otherwise applicable authority of such

8 agency or instrumentality.

9 ‘‘(b) ECONOMICALLY TARGETED INVESTMENT DE10 FINED.—For purposes of this section, the term ‘economi11 cally targeted investment’ has the meaning given such term

12 in Interpretive Bulletin 94–1, as issued by the Secretary

13 on June 23, 1994 (59 Fed. Reg. 32606; 29 C.F.R.

14 2509.94–1).’’.

15 (b) CLERICAL AMENDMENT.—The table of contents in

16 section 1 of such Act is amended by inserting at the end

17 of the items relating to part 5 of subtitle B of title I the

18 following new item:

‘‘Sec. 516. Prohibition on Federal agencies against establishing or maintaining

any clearinghouse or other database relating to economically targeted investments.’’.

19 SEC. 4. TERMINATION OF CONTRACTS.

20 The head of each agency and instrumentality of the

21 Government of the United States shall immediately take

22 such actions as are necessary and appropriate to terminate

23 any contract or other arrangement entered into by such

24 agency or instrumentality which is in violation of the re-
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1 quirements of the provisions of this Act or the amendments

2 made thereby.

3 SEC. 5. EFFECTIVE DATE.

4 The preceding provisions of this Act (and the amend5 ments made thereby) shall take effect on the date of the en6 actment of this Act.