DITCH Act Dump Investments in Troublesome Communist Holdings Act
Impact
The enactment of SB2750 would significantly alter the landscape of investment practices for tax-exempt organizations. By formalizing these restrictions, the bill intends to shield U.S. interests from entities that might be linked to the Chinese government or Communist Party. Organizations would be required to submit an annual report detailing their investments in disqualified companies, thus increasing oversight on their financial activities. The bill also calls for a public report from the Secretary of the Treasury to monitor patterns of U.S. outbound investment in China, which would facilitate transparency and accountability in this area.
Summary
SB2750, also known as the 'Dump Investments in Troublesome Communist Holdings Act' (DITCH Act), is a federal law designed to impose strict restrictions on investments in Chinese companies by tax-exempt entities. The bill stipulates that any organization classified as tax-exempt under the Internal Revenue Code will lose this status if it holds any interest in a 'disqualified Chinese company', which includes firms incorporated in China or those significantly owned by Chinese governmental agencies or corporations. This measure seeks to guard against perceived threats posed by Chinese investments to U.S. national security.
Contention
The bill could potentially face considerable contention regarding its implications on freedom of investment and economic relations with China. Critics might argue that such stringent investment restrictions could hinder financial opportunities for U.S. tax-exempt organizations, limiting their ability to diversify portfolios or seek beneficial investment returns. Moreover, there are concerns regarding the definitions of 'disqualified Chinese companies', which may be interpreted broadly, thus affecting many organizations that do not traditionally have connections with the Chinese government. Supporters of the bill, however, believe it is a necessary measure to protect U.S. economic interests and national security against rising global tensions.
Related
Countering Communist China Act Stop CCP Fentanyl Act Countering Atrocities through Currency Accountability Act of 2024 Sanctioning Supporters of Slave Labor Act DATA Act Deterring America’s Technological Adversaries Act DITCH Act Dump Investments in Troublesome Communist Holdings Act ENABLERS Act Establishing New Authorities for Businesses Laundering and Enabling Risks to Security Act STOP CCP Act Sanctioning Tyrannical and Oppressive People within the Chinese Communist Party Act Disclosing Investments in Foreign Adversaries Act of 2024 PARSA Protecting Americans’ Retirement Savings Act Preventing Adversaries from Developing Critical Capabilities Act
Countering Communist China Act Stop CCP Fentanyl Act Countering Atrocities through Currency Accountability Act of 2024 Sanctioning Supporters of Slave Labor Act DATA Act Deterring America’s Technological Adversaries Act DITCH Act Dump Investments in Troublesome Communist Holdings Act ENABLERS Act Establishing New Authorities for Businesses Laundering and Enabling Risks to Security Act STOP CCP Act Sanctioning Tyrannical and Oppressive People within the Chinese Communist Party Act Disclosing Investments in Foreign Adversaries Act of 2024 PARSA Protecting Americans’ Retirement Savings Act Preventing Adversaries from Developing Critical Capabilities Act
Securing American Families and Enterprises from People's Republic of China Investments Act or the SAFE from PRC Investments Act This bill requires certain issuers of securities and funds traded on an exchange to report on connections to China or the Communist Party of China. In particular, an issuer with specified connections to China must annually disclose a variety of details, including whether executive-level employees, senior directors, or board members are members of the Communist Party of China; interactions with the party; expenditures in China; expenditures in the United States regarding operations and lobbying activities; and the ability of the Public Company Accounting Oversight Board to audit the issuer. Additionally, an exchange-traded fund that invests in a Chinese company must annually disclose about that company ownership information, party involvement, whether the company participates in specified Chinese policies or activities, any ties to U.S.-sanctioned individuals, and the types of products or services produced by the company.
A bill for an act relating to controlled substances, including certain controlled substances schedules and precursor substances reporting requirements, making penalties applicable, and including effective date provisions. (Formerly HSB 25.) Effective date: 03/28/2025.
A bill for an act relating to controlled substances, including certain controlled substances schedules and precursor substances reporting requirements, making penalties applicable, and including effective date provisions.(Formerly SSB 1080.)