IIA

104TH CONGRESS

1ST SESSION H. R. 1594

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 14 (legislative day, SEPTEMBER 5), 1995

Received; read twice and referred to the Committee on Labor and Human

Resources

AN ACT

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,
2

HR 1594 RFS

1 SECTION 1. SENSE OF THE CONGRESS.

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

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

4 fiduciary standards in connection with employee pension

5 benefit plans and employee welfare benefit plans (as de6 fined in paragraphs (1) and (2) of section 3 of the Em7 ployee Retirement Income Security Act of 1974 (29

8 U.S.C. 1002(1), (2))), to take any action to promote or

9 otherwise encourage economically targeted investments.

10 SEC. 2. PROHIBITIONS ON DEPARTMENT OF LABOR RE11 GARDING ECONOMICALLY TARGETED IN12 VESTMENTS.

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

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

15 32606; 29 C.F.R. 2509.94–1), is null and void and shall

16 have no force or effect. The provisions of the Employee

17 Retirement Income Security Act of 1974 (29 U.S.C. 1001

18 et seq.) shall be interpreted and enforced without regard

19 to such Interpretive Bulletin.

20 (b) RESTRICTIONS ON DEPARTMENT OF LABOR REG21 ULATIONS.—The Secretary of Labor may not issue any

22 rule, regulation, or interpretive bulletin which promotes or

23 otherwise encourages economically targeted investments as

24 a specified class of investments.

25 (c) RESTRICTIONS ON ACTIVITIES OF THE DEPART26 MENT OF LABOR.—No officer or employee of the Depart-
3

HR 1594 RFS

1 ment of Labor may travel, lecture, or otherwise expend

2 resources available to such Department for the purpose

3 of promoting, directly or indirectly, economically targeted

4 investments.

5 (d) ECONOMICALLY TARGETED INVESTMENT DE6 FINED.—For purposes of this section, the term ‘‘economi7 cally targeted investment’’ has the meaning given such

8 term in Interpretive Bulletin 94–1, as issued by the Sec9 retary of Labor on June 23, 1994 (59 Fed. Reg. 32606;

10 29 C.F.R. 2509.94–1).

11 SEC. 3. PROHIBITION ON FEDERAL AGENCIES AGAINST ES12 TABLISHING OR MAINTAINING ANY CLEAR13 INGHOUSE OR OTHER DATABASE RELATING

14 TO ECONOMICALLY TARGETED INVEST15 MENTS.

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

17 the Employee Retirement Income Security Act of 1974

18 (29 U.S.C. 1131 et seq.) is amended by adding at the end

19 the following new section:

20 ‘‘PROHIBITION ON FEDERAL AGENCIES AGAINST ESTAB21 LISHING OR MAINTAINING ANY CLEARINGHOUSE OR

22 OTHER DATABASE RELATING TO ECONOMICALLY

23 TARGETED INVESTMENTS

24 ‘‘SEC. 516. (a) IN GENERAL.—No agency or instru25 mentality of the Federal Government may establish or

26 maintain, or contract with (or otherwise provide assistance
4

HR 1594 RFS

1 to) any other party to establish or maintain, any clearing2 house, database, or other listing—

3 ‘‘(1) for the purpose of making available to em4 ployee benefit plans information on economically tar5 geted investments,

6 ‘‘(2) for the purpose of encouraging, or provid7 ing assistance to, employee benefit plans or any

8 other party related to an employee benefit plan to

9 undertake or evaluate economically targeted invest10 ments, or

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

12 targeted investments with respect to which such

13 agency or instrumentality will withhold from under14 taking enforcement actions relating to employee ben15 efit plans under any otherwise applicable authority

16 of such agency or instrumentality.

17 ‘‘(b) ECONOMICALLY TARGETED INVESTMENT DE18 FINED.—For purposes of this section, the term ‘economi19 cally targeted investment’ has the meaning given such

20 term in Interpretive Bulletin 94–1, as issued by the Sec21 retary on June 23, 1994 (59 Fed. Reg. 32606; 29 C.F.R.

22 2509.94–1).’’.

23 (b) CLERICAL AMENDMENT.—The table of contents

24 in section 1 of such Act is amended by inserting at the
5

HR 1594 RFS

1 end of the items relating to part 5 of subtitle B of title

2 I the following new item:

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

any clearinghouse or other database relating to economically

targeted investments.’’.

3 SEC. 4. TERMINATION OF CONTRACTS.

4 The head of each agency and instrumentality of the

5 Government of the United States shall immediately take

6 such actions as are necessary and appropriate to terminate

7 any contract or other arrangement entered into by such

8 agency or instrumentality which is in violation of the re9 quirements of the provisions of this Act or the amend10 ments made thereby.

11 SEC. 5. AUTHORITY OF DEPARTMENT OF LABOR.

12 Nothing in this Act is intended to affect the ability

13 of the Department of Labor to issue advisory opinions,

14 information letters, technical releases, prohibited trans15 actions, exemptions, or other pronouncements interpreting

16 and applying ERISA’s fiduciary responsibility rules to

17 particular factual situations, or exempting specific trans18 actions from the prohibited transaction provisions of the

19 Employee Retirement Income Security Act of 1974 (pur20 suant to 29 U.S.C. 1106, 1108).
6

HR 1594 RFS

1 SEC. 6. EFFECTIVE DATE.

2 The preceding provisions of this Act (and the amend3 ments made thereby) shall take effect on the date of the

4 enactment of this Act.

Passed the House of Representatives September 12,

1995.

Attest: ROBIN H. CARLE,

Clerk.