S.Amdt. 4812

SA 4812. Mr. TUBERVILLE submitted an amendment intended to be
proposed to amendment SA 3867 submitted by Mr. Reed and intended to be
proposed to the bill H.R. 4350, to authorize appropriations for fiscal
year 2022 for military activities of the Department of Defense, for
military construction, and for defense activities of the Department of
Energy, to prescribe military personnel strengths for such fiscal year,
and for other purposes; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. ____. PROHIBITING TSP INVESTMENT IN CHINA.

(a) Findings.--Congress finds the following:
(1) The Thrift Savings Fund invests more than
$700,000,000,000 on behalf of plan participants. As the
guardian of the retirement funds of approximately 6,000,000
Federal civilian and military plan participants, it is
critical that sums in the Thrift Savings Fund are not
invested in securities linked to the economy of the People's
Republic of China.
(2) Companies headquartered in the People's Republic of
China have repeatedly committed corporate espionage, violated
sanctions imposed by the United States, flouted international
property laws, committed theft, and failed to comply with
audit and regulatory standards designed to safeguard
investors.
(3) The Thrift Savings Plan is known for its low management
fees and comprehensive array of investment strategies. The
provisions of this section, and the amendments made by this
section, will not increase fees imposed on participants of
the Thrift Savings Plan.
(4) The November 2017 selection of the MSCI ACWI Index by
the Federal Retirement Thrift Investment Board, initially
scheduled to be effective in 2020, would violate the terms of
subsection (i) of section 8438 of title 5, United States
Code, as added by subsection (b)(1) of this section.
(b) Prohibition on Any TSP Fund Investing in Entities Based
in the People's Republic of China.--
(1) In general.--Section 8438 of title 5, United States
Code, is amended by adding at the end the following:
``(i) Notwithstanding any other provision of this section,
no fund established or overseen by the Board may include an
investment in any security of--
``(1) an entity based in the People's Republic of China; or
``(2) any subsidiary that is owned or operated by an entity
described in paragraph (1).''.
(2) Divestiture of assets.--Not later than 30 days after
the date of enactment of this Act, the Federal Retirement
Thrift Investment Board established under section 8472(a) of
title 5, United States Code, shall--
(A) review whether any sums in the Thrift Savings Fund are
invested in violation of subsection (i) of section 8438 of
that title, as added by paragraph (1) of this subsection;
(B) if any sums are invested in the manner described in
subparagraph (A), divest those sums in a manner that is
consistent with the legal and fiduciary duties provided under
chapter 84 of that title, or any other applicable provision
of law; and
(C) reinvest any sums divested under subparagraph (B) in
investments that do not violate subsection (i) of section
8438 of that title, as added by paragraph (1) of this
subsection.
(c) Prohibition on Investment of TSP Funds in Entities
Based in the People's Republic of China Through the TSP
Mutual Fund Window.--Section 8438(b)(5) of title 5, United
States Code, is amended by adding at the end the following:
``(E) A mutual fund accessible through a mutual fund window
authorized under this

[[Page S8500]]

paragraph may not include an investment in any security of--
``(i) an entity based in the People's Republic of China; or
``(ii) any subsidiary that is owned or operated by an
entity described in clause (i).''.
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