WASHINGTON, DC—Today, H.R. 4657, a bill introduced by U.S. Representative John Rose (TN-06) passed the U.S. House of Representatives as part of a broader legislative package by a vote of 215-203-1.
U.S. Rep. Rose released the following statement:
“Retirement accounts are at risk of underperforming due to left-wing activist investors forcing public companies to take social and political positions that diminish economic growth,” said Rep. Rose. “My bill, which I am extremely proud to have led its passage through the U.S. House, prevents this from happening. ESG investments have no place in Tennesseans' retirement accounts, and I am proud to have led the charge in the U.S. House to return retirement portfolios to what matters most—maximizing gains.”
Rep. Rose delivered the following remarks on the House Floor during debate of H.R. 4790, which included the text of his legislation. Watch here.
“Under the Biden-Harris Administration, economic growth has been sacrificed to pursue a woke agenda detrimental to Tennesseans. This is one of the many reasons I rise in support of my Michigan colleague’s legislation, H.R. 4790. The Tennesseans I represent can be assured that I will continue to prioritize working families over the woke, socialist agenda known as ESG that far-left progressives are inserting into retirement accounts.
“My bill, that is included in this package, would protect retail investors and retirement savings from left wing, activist shareholders and socially directed investment funds abusing the shareholder process to advance their progressive political agendas. Activist investors that force companies to take social positions on issues like abortion and climate change shouldn’t be making business decisions.
“My bill would offer companies respite from these harmful and extremist shareholder proposals, which is why my bill is referred to as the RESPITE Act in the Senate.
“Tennesseeans know firsthand how woke priorities don’t align with our values or our financial interests. That’s why we stood up to Tractor Supply Company and forced them to care about people again and not politics.
“When the Securities and Exchange Commission, or SEC, came after our farmers to collect ESG-related information, the Tennessee Attorney General’s office sued the SEC to remind them that they were overstepping by engaging in environmental policy.
“Tennessee is proud to lead the charge against the woke agenda championed by the Biden-Harris Administration.
“That’s why, Mister Speaker, I urge Members to join me in voting ‘Yes’ on H.R. 4790 so that we can turn the focus back on promoting economic growth and not social wokeness.”
Background:
On July 19th U.S. Representative John Rose introduced H.R. 4657 to protect retail investors and retirement savings from activist shareholders and socially-directed investment funds abusing the shareholder process to advance their activist and oftentimes progressive political agendas.
Currently, under the SEC’s recent Staff Legal Bulletin 14-L, significant social policy issues, like climate-related proposals, no longer need to have a nexus between an individual company and the policy to be included in a proxy statement. This makes it easier for activists to force public companies to take positions on social and political issues. Under Chair Gensler, the SEC has tasked unelected bureaucrats with making subjective judgments about whether a company should include these proposals on its proxy statement.
Read the full text of the bill here.
This is a companion discussion topic for the original entry at https://johnrose.house.gov/media/press-releases/us-rep-roses-bill-passes-us-house-representatives