I
104TH CONGRESS
1ST SESSION
H. R. 1594
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 Op-
portunities
A BILL
To place restrictions on the promotion by the Department
of Labor and other Federal agencies and instrumental-
ities of economically targeted investments in connection
with employee benefit plans.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SENSE OF THE CONGRESS.
It is the sense of the Congress that economically tar-
geted investments violate sections 403 and 404 of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1103 and 1104) because they violate the principle
of undivided loyalty that a fiduciary owes to employee ben-
efit plan participants and beneficiaries and are made with
the intent to benefit persons other than plan participants
and beneficiaries and to serve interests other than those
of plan participants and beneficiaries.
SEC. 2. PROHIBITIONS ON DEPARTMENT OF LABOR RE-
GARDING 
ECONOMICALLY 
TARGETED 
IN-
VESTMENTS.
(a) IN GENERAL.—With respect to the investment by
employee benefit plans of plan assets (and the interpreta-
tions and decisions by the Department of Labor regarding
investment by such plans of plan assets), the application
of sections 403 and 404 of the Employee Retirement In-
come Security Act of 1974 (29 U.S.C. 1103 and 1104)
shall be determined—
(1) without regard to Interpretive Bulletin 94–
1, issued by the Secretary of Labor on June 23,
1994 (59 Fed. Reg. 32606; 29 C.F.R. 2509.94–1),
and without regard to any other regulation, interpre-
tive bulletin, advisory opinion, information letter, or
other determination reaching the same result as, or
a result similar to, the result set forth in such Inter-
pretive Bulletin, and
(2) with full regard to sections 403 and 404 of
such Act.
(b) RESTRICTIONS ON ACTIVITIES OF THE DEPART-
MENT OF LABOR.—No officer or employee of the Depart-
ment of Labor may travel, lecture, or otherwise expend
resources available to such Department for the purpose
of promoting, directly or indirectly, economically targeted
investments.
(c) DEFINITIONS.—For purposes of this section—
(1) ECONOMICALLY TARGETED INVESTMENT.—
The term ‘‘economically targeted investment’’ has
the meaning given such term in Interpretive Bulletin
94-1, as issued by the Secretary of Labor on June
23, 1994 (59 Fed. Reg. 32606; 29 C.F.R. 2509.94–
1).
(2) EMPLOYEE
BENEFIT
PLAN.—The term
‘‘employee benefit plan’’ means an employee benefit
plan within the meaning of section 3(3) of the Em-
ployee Retirement Income Security Act of 1974 (29
U.S.C. 1002(3)) which is covered under section 4 of
such Act (29 U.S.C. 1003).
SEC. 3. PROHIBITION ON FEDERAL AGENCIES AGAINST ES-
TABLISHING OR MAINTAINING ANY CLEAR-
INGHOUSE OR OTHER DATABASE RELATING
TO 
ECONOMICALLY 
TARGETED 
INVEST-
MENTS.
(a) IN GENERAL.—Part 5 of subtitle B of title I of
the Employee Retirement Income Security Act of 1974
(29 U.S.C. 1131 et seq.) is amended by adding at the end
the following new section:
‘‘PROHIBITION ON FEDERAL AGENCIES AGAINST ESTAB-
LISHING OR MAINTAINING ANY CLEARINGHOUSE OR
OTHER
DATABASE
RELATING
TO
ECONOMICALLY
TARGETED INVESTMENTS
‘‘SEC. 516. (a) IN GENERAL.—No agency or instru-
mentality of the Federal Government may establish or
maintain, or contract with (or otherwise provide assistance
to) any other party to establish or maintain, any clearing-
house, database, or other listing—
‘‘(1) for the purpose of making available to em-
ployee benefit plans information on economically tar-
geted investments,
‘‘(2) for the purpose of encouraging, or provid-
ing assistance to, employee benefit plans or any
other party related to an employee benefit plan to
undertake or evaluate economically targeted invest-
ments, or
‘‘(3) for the purpose of identifying economically
targeted investments with respect to which such
agency or instrumentality will withhold from under-
taking enforcement actions relating to employee ben-
efit plans under any otherwise applicable authority
of such agency or instrumentality.
‘‘(b) ECONOMICALLY TARGETED INVESTMENT DE-
FINED.—For purposes of this section, the term ‘economi-
cally targeted investment’ has the meaning given such
term in Interpretive Bulletin 94–1, as issued by the Sec-
retary on June 23, 1994 (59 Fed. Reg. 32606; 29 C.F.R.
2509.94–1).’’.
(b) CLERICAL AMENDMENT.—The table of contents
in section 2 of such Act is amended by inserting at the
end of the items relating to part 5 of subtitle B of title
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.’’.
SEC. 4. TERMINATION OF CONTRACTS.
The head of each agency and instrumentality of the
Government of the United States shall immediately take
such actions as are necessary and appropriate to terminate
any contract or other arrangement entered into by such
agency or instrumentality which is in violation of the re-
quirements of the provisions of this Act or the amend-
ments made thereby.
SEC. 5. EFFECTIVE DATE
The preceding provisions of this Act (and the amend-
ments made thereby) shall take effect on the date of the
enactment of this Act.
Æ