[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6783 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 6783
To protect the investment choices of investors in the United States,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 14, 2023
Mr. Sessions (for himself and Mr. Vicente Gonzalez of Texas) introduced
the following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To protect the investment choices of investors in the United States,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Capital Markets Financing and
Economic Growth Investments Act of 2023''.
SEC. 2. TREATMENT OF MONEY MARKET FUNDS UNDER THE INVESTMENT COMPANY
ACT OF 1940.
The Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.) is
amended by adding at the end the following:
``SEC. 66. MONEY MARKET FUNDS.
``(a) Election To Be a Stable Value Money Market Fund.--
``(1) In general.--Any open-end investment company (or a
separate series thereof) that is a money market fund that
relies on section 270.2a-7 of title 17, Code of Federal
Regulations, may, in the prospectus included in its
registration statement filed under section 8 state that the
company has elected to compute the current price per share, for
purposes of distribution or redemption and repurchase, of any
redeemable security issued by the company by using the
amortized cost method of valuation, or the penny-rounding
method of pricing, regardless of whether its shareholders are
limited to natural persons, if--
``(A) the objective or principal investment
strategy of the company is not inconsistent with the
generation of income and preservation of capital
through investment in short-term, high-quality debt
securities;
``(B) the board of directors of the company elects,
on behalf of the company, to maintain a stable net
asset value per share or stable price per share, by
using the amortized cost valuation method, as defined
in section 270.2a-7(a) of title 17, Code of Federal
Regulations (or successor regulation), or the penny-
rounding pricing method, as defined in section 270.2a-
7(a) of title 17, Code of Federal Regulations (or
successor regulation), and the board of directors of
the company has determined, in good faith, that--
``(i) it is in the best interests of the
company, and its shareholders, to do so; and
``(ii) the money market fund will continue
to use such method or methods only as long as
the board of directors believes that the
resulting share price fairly reflects the
market-based net asset value per share of the
company; and
``(C) the company will comply with such quality,
maturity, diversification, liquidity, and other
requirements, including related procedural and
recordkeeping requirements, as the Commission, by rule
or regulation or order, may prescribe or has prescribed
as necessary or appropriate in the public interest or
for the protection of investors to the extent that such
requirements and provisions are not inconsistent with
this section or with the ability of the company to
maintain a stable net asset value per share or stable
price per share by using either the amortized cost
method or the penny-rounding method of pricing.
``(2) Exemption from mandatory liquidity fee
requirements.--Notwithstanding section 270.2a-7 of title 17,
Code of Federal Regulations (or successor regulation), no
company that makes the election under paragraph (1) shall be
subject to the mandatory liquidity fee requirements of section
270.2a-7(c)(2)(ii) of title 17, Code of Federal Regulations (or
successor regulation).
``(b) Continuing Obligation To Meet Requirements of This Title.--A
company that makes an election under subsection (a)(1) shall remain
subject to the provisions of this title and the rules and regulations
of the Commission thereunder that would otherwise apply if those
provisions do not conflict with the provisions of this section.''.
SEC. 3. PROHIBITION AGAINST MANDATORY PRICING OR FEES FOR A REGISTERED
OPEN-END COMPANY.
Section 22 of the Investment Company Act of 1940 (15 U.S.C. 80a-22)
is amended by adding at the end the following:
``(h) Prohibition Against Mandatory Pricing or Fees for a
Registered Open-End Company.--
``(1) In general.--The Commission and any securities
association registered under section 15A of the Securities
Exchange Act of 1934 are prohibited from promulgating,
interpreting, or enforcing rules or guidance, or issuing orders
of general applicability, that would impose, directly or
indirectly, any requirement upon a registered open-end company,
for the purpose of accomplishing the ends prescribed in
subsection (a), with the effect of requiring--
``(A) adjustment to the company's current net asset
value per share;
``(B) calculation and application of differing
share prices as between redeeming and purchasing
shareholders;
``(C) adoption, calculation, or use of mandatory
fees on shareholder transactions or transacting
shareholders; or
``(D) adoption or use of any measures economically
similar to the foregoing.
``(2) Rule of construction.--Nothing in this subsection may
be construed to prevent a registered open-end company from
voluntarily adopting any measure described under subparagraph
(A) through (D) of paragraph (1).''.
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