and the funding policy established pursuant to 
section 402(b)(1).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to actions taken by a fiduciary on 
or after the date that is 12 months after the date of enact-
ment of this Act. 
SEC. 4. STUDY OF STATE AND LOCAL PENSION PLANS. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study on the potential impact of 
underfunded State and local pension plans on the Federal 
Government, including— 
(1) the extent to which such pension plans sub-
ordinate the pecuniary interests of participants and 
beneficiaries to environmental, social, governance, or 
other objectives; and 
(2) legislative and administrative actions that, 
if implemented at the Federal level, would prevent 
such pension plans from subordinating the interests 
of participants and beneficiaries to environmental, 
social, or governance objectives. 
(b) REPORT.—Not later than 12 months after the 
date of enactment of this Act, the Comptroller General 
submit to Congress a report containing the results of the 
study. 
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SEC. 5. STUDY ON CLIMATE CHANGE AND OTHER ENVIRON-
MENTAL DISCLOSURES IN MUNICIPAL BOND 
MARKET. 
(a) IN GENERAL.—The Securities and Exchange 
Commission shall solicit public comment and thereafter 
conduct a study to determine the extent to which issuers 
of municipal securities (as such term is defined in section 
3(a)(29) of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(a)(29)) make disclosure to investors regarding 
climate change and other environmental matters. 
(b) CONTENTS.—The study under subsection (a) 
shall consider and analyze, among other things— 
(1) the frequency of such disclosures; 
(2) whether such disclosures made by issuers of 
municipal securities in connection with offerings of 
securities align with such disclosures made by 
issuers of municipal securities in other contexts or to 
other audiences other than investors; 
(3) any voluntary or mandatory disclosure 
standards observed by issuers of municipal securities 
in the course of making such disclosures; and 
(4) the degree to which investors consider such 
disclosures in connection with making an investment 
decision. 
(c) REPORT.—The Securities and Exchange Commis-
sion shall issue a report on the study required under this 
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section to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Finan-
cial Services of the House of Representatives not later 
than 12 months after the date of enactment of this Act. 
The report shall include a detailed discussion of the finan-
cial risks to investors from investments in municipal secu-
rities and whether those risks are being adequately dis-
closed as well as a discussion of regulatory or legislative 
steps that are recommended or that may be necessary to 
address any concerns identified in the study. 
SEC. 6. STUDY ON SOLICITATION OF MUNICIPAL SECURI-
TIES BUSINESS. 
(a) IN GENERAL.—The Securities and Exchange 
Commission shall solicit public comment and thereafter 
conduct a study to determine the effectiveness of Rule G– 
38 of the Municipal Securities Rulemaking Board and 
Rule 206(4)–5 of the Securities and Exchange Commis-
sion (17 CFR 275.206(4)–5) in preventing the payment 
of funds to elected officials or candidates for elected office 
in exchange for the receipt of government business in con-
nection with the offer or sale of municipal securities (as 
such term is defined in section 3(a)(29) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78c(a)(29)). 
(b) CONTENTS.—The study under subsection (a) 
shall consider and analyze, among other things— 
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(1) whether Rule G–38 and Rule 206(4)–5 have 
had their intended effects and whether they have 
had any unintended adverse effects; 
(2) the frequency and scope of enforcement ac-
tions undertaken under Rule G–38 and Rule 
206(4)–5; 
(3) the degree to which persons subject to Rule 
G–38 and Rule 206(4)–5 have put in place policies 
and procedures intended to ensure compliance with 
such rules; 
(4) the degree to which other State and Federal 
regulations impact the solicitation of municipal secu-
rities business; and 
(5) the degree to which persons subject to Rule 
G–38 and Rule 206(4)–5 are disadvantaged from 
participating in the political process both as a gen-
eral matter and relative to persons who solicit or re-
ceive government business or government licenses, 
permits, and approvals other than in connection with 
the offer or sale of municipal securities. 
(c) REPORT.—The Securities and Exchange Commis-
sion shall issue a report on the study required under this 
section to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Finan-
cial Services of the House of Representatives not later 
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than 12 months after the date of enactment of this Act. 
The report shall include a discussion of the extent to which 
persons affiliated with small businesses, as well as persons 
affiliated with minority and women opened businesses, 
have been affected by Rule G–38 and Rule 206(4)–5 and 
a discussion of regulatory or legislative a discussion of reg-
ulatory or legislative steps that are recommended or that 
may be necessary to address any concerns identified in the 
study. 
Æ 
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